The new Building Energy Act (GEG) - A uniform set of rules for climate-neutral buildings

Numerous debates on amendments and proposals from the federal states, associations and experts preceded the agreement on the new Building Energy Act (GEG). On 18.06.2020, the Bundestag approved the law at second and third reading, and the Bundesrat also approved the draft law on 03.07.2020. After the law was signed by the Federal President, the GEG was finally promulgated in the Federal Law Gazette on 13.08.2020. It will now enter into force on 01.11.2020 and contains far-reaching changes and adjustments.

Reasons for the GEG and its scope of regulation

The "Act on Energy Saving and the Use of Renewable Energies for Heating and Cooling in Buildings" is intended to implement the European requirements for the overall energy efficiency of buildings and transpose the regulation on nearly zero-energy buildings (EU Energy Performance of Buildings Directive 2010 "EPBD" - "nearly zero-energy new-build standard") into national law. In order to simplify and reduce bureaucracy, the GEG also aims to create a uniform set of regulations for the energy requirements for new buildings, existing buildings and the use of renewable energies for heating and cooling buildings. Accordingly, the GEG brings together the regulations of the Energy Saving Ordinance (EnEV), the Energy Saving Act (EnEG) and the Renewable Energies Heat Act (EEWärmeG) and thus regulates the energy efficiency and energy supply of buildings in a single law. With the simultaneous expiry of the aforementioned laws, the coexistence of different sets of regulations concerning the energy requirements for buildings has thus come to an end.

What is new?

The purpose and aim of the GEG is the most economical use of energy in buildings and the increasing use of renewable energies. With this in mind, the Act regulates the energy requirements for buildings and the conditions to be met when converting and renovating them in more than 100 paragraphs. Due to the abundance of regulations contained, only a few of the most prominent ones will be presented here.

  • In the case of significant renovation work - the GEG refers to "external components" being renewed, replaced or installed for the first time - an energy consultation must be carried out in future before the planning service is commissioned.

  • One of the most important provisions of the GEG is the temporary innovation clause in Section 103 (3) GEG. This enables developers or owners to conclude an agreement on the joint fulfillment of the energy requirements to be met in accordance with the law when altering buildings that are spatially connected to one another. This means that the individual building no longer necessarily has to meet the required energy standards. Instead, it can be considered in conjunction with the surrounding buildings in order to strengthen neighborhood-related concepts. With a corresponding agreement, buildings with high energy consumption can thus remain unrenovated if other buildings in the same neighborhood are designed to be particularly energy-efficient. However, the agreement must be based on uniform planning that provides for the implementation of corresponding measures within a timeframe of three years. In addition, Section 103 GEG makes it possible, initially for a limited period until December 31, 2023, to ensure compliance with the prescribed energy requirements not via the "primary energy" parameter, but by limiting the "greenhouse gas emissions" of the building. This means that buildings do not necessarily have to be "packed" in polystyrene in order to meet the legal requirements. However, this option requires an exemption from the competent authority.

  • From 2026, there will also be a general ban on installing oil heating systems. Exceptions to this only apply if a supply of gas or district heating is not possible and the use of hybrid heating is not technically feasible or would lead to undue hardship. Hybrid heating systems remain permissible in both existing and new buildings. For the replacement of an old oil heating system with a more climate-friendly model, the GEG also grants a replacement premium of 40% of the investment costs. Last but not least, the replacement of heating systems will be tax-deductible.

  • The GEG, which comes into force in November 2020, also aims to promote climate-neutral renovations and new builds by providing financial incentives. In addition to tax relief, the investment and repayment grants for individual and complete refurbishments to efficiency house level will increase by 10% compared to the current level.

  • In addition, the GEG introduces a simplified verification procedure for residential buildings to be constructed in Section 31. According to this, it is assumed that a residential building to be constructed meets the requirements of the GEG with regard to energy requirements etc. if it fulfills certain abstractly formulated application requirements and corresponds to equally formulated design variants. If this is the case, specific calculations and specific proof of compliance with the energy requirements are no longer required.

  • Real estate agents are also subject to new regulations. In addition to sellers and landlords, they are now also obliged to present an energy performance certificate and to provide certain mandatory information in real estate advertisements. The energy certificate will also become more reliable: it may only be issued subject to increased due diligence and inspection obligations and, in addition to stating the CO2 emissions corresponding to the primary energy consumption, must also contain information on air conditioning systems requiring inspection. Prior to the sale of detached and semi-detached houses, the seller or estate agent must also offer a consultation with an energy advisor from the consumer advice center. The same applies to the refurbishment of existing buildings, provided that an assessment of the overall efficiency of the building is carried out.

  • When the GEG comes into force, there will also be a switch to the new DIN standards DIN V 18599 (Energy Rating of Buildings) as the sole accounting standard for verifying the energy quality of buildings. It replaces DIN V 4108 Part 6 and DIN V 4701 Part 10.

Which regulations remain?

The energy requirements that must be met when renovating existing buildings or constructing new ones will remain the same for the time being. These values will not be reviewed until 2023. Only after this date is it likely that the energy requirements to be met will be tightened. Until then, the aim is to evaluate whether the existing regulations and requirements, in conjunction with the new regulations introduced for a limited period, can achieve the desired effect for climate-friendly heat supply.

In particular, owners of single or multi-family homes must ensure that the current obligation to replace oil or gas heating systems installed before January 1, 1991 continues to apply. The ban on the operation of oil or gas heating systems installed or set up after 01.01.1991 will also remain in place 30 years after their installation or set-up.

Outlook

After the GEG was promulgated in the Federal Law Gazette on 13.08.2020, it will enter into force on 01.11.2020. From this date, both the refurbishment of existing buildings and the construction of new buildings must comply with the new standards - even if this has not been contractually agreed. In addition to a more climate-friendly energy supply, the GEG promises simplification through the standardization of relevant regulations and the reduction of bureaucratic obstacles.

Status: 21.08.2020