The past year was marked by inflation, rising interest rates, changes in the real estate market, and new regulations for builders and property owners alike. Now, 2024 is bringing its own unique challenges. Above all, property owners are concerned about the Building Energy Act (GEG), which has undergone a number of changes in recent months, some of which were predictable, others surprising.
What does the Building Energy Act 2024 say and what problems does it pose for property owners?
The GEG stipulates that heating systems (both in new buildings and existing properties in new development areas) must use a minimum of 65% renewable energy from January 1, 2024. The type of energy used depends on the local heating plan of the city. Anyone building a new home or located in a new development area should therefore take this requirement into account in their cost planning.
The GEG recently caused a stir when, in the final stages of last year, the Federal Constitutional Court ruled that the funds earmarked for subsidies and subsidies were unconstitutional. as a result, owners currently have no way of having the costs they will incur co-financed by the state.
The background to the decision is that during the coronavirus pandemic, the state made more funds available than were actually used. It was therefore decided to use the surplus funds to provide households affected by the GEG with an annual taxable income of up to €40,000 with a subsidy of up to €21,000 via the so-called Climate Transformation Fund. However, this was quickly deemed unconstitutional, and it is still unclear how the state intends to compensate for the promised and, in some cases, already allocated budgets.
Who is affected by the GEG 2024?
- everyone who has to install a new heating system from January 1, 2024, provided that the building is located in a new development area (it does not have to be a new building for this regulation to apply)
- New buildings outside a new development area can take advantage of a transition period until June 30, 2026 in large cities and until June 30, 2028 in smaller cities, but must still be retrofitted
Who is not affected by the GEG 2024:
- existing and still fully functional heating systems that run on fossil fuels in existing buildings
- heating systems in existing buildings that are fully repairable may continue to be repaired and do not necessarily have to be converted
I would like to continue operating an oil or gas heating system – what do I need to do?
Existing heating systems are initially unaffected by the GEG requirements and may continue to be operated or repaired. Under certain conditions, oil or gas heating systems may not only continue to be operated, but even newly installed. First, a mandatory consultation must be held to provide information about risingCO2 costs. If you still decide to install a new system, oil or gas heating systems are permitted as hybrid systems in combination with solar thermal systems, heat pumps, or by adding climate-neutral gases such as biomethane.
Who can install and use which heating systems in 2024?
Installation of heating systems in new buildings from 2024
- Heat networks
Heat networks are efficient systems that supply heat to several buildings. They usually use renewable energy sources such as biomass, geothermal energy, or waste heat. These networks can be particularly suitable for new buildings, as they enable a sustainable and efficient heat supply for larger building complexes and can be adapted to different needs thanks to their scalability. - Electric heat pumps
These use ambient heat to heat buildings and are very efficient. They are attractive in new buildings because they can use renewable energy sources and are well suited for use in well-insulated buildings. Their main advantage is the reduction ofCO2 emissions. - Electric direct heating
This type of heating converts electrical energy directly into heat. However, they are less recommended in the context of the GEG as they are often considered comparatively inefficient and expensive to operate and can have higherCO2 emissions. - Heat recovery through Bitcoin mining
This method uses the waste heat from Bitcoin mining equipment to heat rooms. It is controversial because mining consumes a lot of energy and is not always used efficiently to generate heat. Under the GEG guidelines, this method is therefore probably less suitable. - Combined systems of renewable and conventional heating
These offer flexibility by combining renewable energy sources with conventional heating systems. In new buildings, they can be a transitional solution to ensure efficiency and reliability while preparations are made for the switch to fully renewable energies. - Solar thermal
Solar energy uses the sun to generate heat. Solar thermal energy can be effective in new buildings because it is a sustainable energy source and can be easily integrated into the overall concept for energy efficiency and sustainability. - H2-ready gas heating
This type of gas heating is prepared for the later use of hydrogen. In new buildings, it could serve as a transitional solution, as it offers the option of switching to climate-friendly hydrogen at a later date, once its production and availability have improved. - Biomass heating
Biomass heating systems use organic materials to generate heat. In new buildings, they can serve as a sustainable option as long as the biomass sources used are sustainably managed and the systems are modern and low-emission.
Modernization of heating systems in existing buildings
- Log wood gasification boilers
similar to wood gasification boilers, they use wood chips as fuel. They can be considered an alternative for existing buildings, but an assessment of their efficiency and environmental impact is crucial. New technologies may offer more efficient options. - Wood gasification boilers
These boilers use wood as fuel and are an option for existing buildings to switch to a more sustainable heating method. However, efficiency and emission control are crucial to meet the requirements of the GEG. - Fireplace stoves
These stoves are common in existing buildings, but are often less efficient and more polluting. Under the GEG, they could be considered as a replacement option, but modern, low-emission alternatives may make more sense in the long term. - Pellet and gas heating systems
These heating systems can be a solution in existing buildings if they are powered by highly renewable gases or fuels – at least 65% of the gas should come from renewable sources such as biomethane, biogenic liquefied gas or hydrogen.
Are you planning to build or buy a house and feeling uncertain about the requirements and laws?
As experienced real estate agents in the Olpe district, we not only help you find the right property, but also analyze the regional market situation and thoroughly review existing requirements through our extensive network of lawyers and experts. Feel free to contact us, we look forward to getting to know you.