The Reform of the Building Energy Act (GEG): Special Provisions and Exceptions from 2024

Starting from January 1, 2024, the reform of the Building Energy Act (GEG) will come into effect, aimed at reducing energy consumption and greenhouse gas emissions. In this second part of our series of articles, we will take a closer look at the special provisions and exceptions provided for by this reform.

Exceptions / Exemptions

In certain special and hardship cases, property owners are granted extended timeframes for compliance with the requirements of the GEG, especially the 65 percent Renewable Energy standard.

a) Heating System Failures: In the case of heating system failures, where the heating system can no longer operate properly and cannot be repaired, property owners are given a transitional period to meet the requirements. In such cases, it is allowed to temporarily install a fossil fuel-based heating system, as long as within 3 years after the heating system failure, a transition to a heating system meeting the 65 percent Renewable Energy standard is carried out. This standard primarily applies from January 1, 2024, mainly for planned heating system replacements when the heating system has not yet failed.

b) Connection to District Heating Networks: If the connection to district heating networks is planned but not yet feasible, property owners have 10 years after the heating system failure to use a heating system that does not meet the GEG requirements, provided that the property owner commits to connecting to the district heating network within 10 years after the heating system failure.

c) Centralized Heating for Multi-Apartment Buildings and Individual Heating Devices: There is a decision period of 3 years after the failure of the first centralized heating system in a building to plan the centralization of heating. If centralization of heating is chosen, property owners are given an additional 10 years for its implementation. In the case of condominiums, centralization of heating is considered the default option unless the owners’ association decides otherwise, provided that the alternative technologies meet the 65 percent Renewable Energy standard.

d) Hardship Cases: Under certain circumstances, exceptions from GEG obligations can be granted on an individual basis upon application to the competent authority under state law, similar to other GEG requirements. The hardship provision is specified and supplemented, taking into account expected price developments in national and European emissions trading in line with the goals of this law.

Interim Conclusion

The reform of the GEG tightens the obligations of property owners or buyers for the energy-efficient renovation of buildings. This means that future modernization measures must comply with the GEG requirements, unless exceptions or hardship provisions apply, or if competing laws, such as monument protection laws or local regulations on solar energy use, come into play.

a) Solar Energy Use:

The German government plans to introduce a solar obligation for commercial new buildings and aims to make the use of solar energy the norm in private new buildings. Many federal states have already introduced or are planning various mandatory solar energy use rules. Mandatory solar energy use applies not only to new buildings but also to comprehensive roof renovations on existing buildings, with different deadlines and requirements.

b) Monument Protection:

The GEG reform takes into account the goals of monument protection and requires a balancing of monument protection interests with the expansion of renewable energies. The expansion of renewable energies is considered an overriding public interest, meaning that monument protection interests can only take precedence in exceptional cases.

Conclusion

The reform of the GEG leads to a tightening of the obligations for energy-efficient renovation of buildings and establishes a gradual reduction in the use of fossil fuels. However, the application of the regulations can be complex due to competing state-level regulations and other specialized laws, often requiring individual assessment, especially when exceptions and hardship provisions apply or other laws, such as monument protection regulations, need to be considered.