The New Building Energy Act (GEG)

What is the GEG?

The GEG (Gebäudeenergiegesetz, or colloquially the “Heating Act”) aims to reduce the energy consumption of buildings and promote the use of renewable energies.

For us in the HVAC trade, this means that we must observe various requirements when planning and implementing heating systems in public and commercial buildings, as well as in private customer projects.

The plan is to become climate-neutral in the building sector by 2045 through compliance with various GEG requirements.

This is a challenge, but also an opportunity for us to offer innovative solutions. Here are some key points:

1. Use of renewable energies: New heating systems are required to draw part of their energy from renewable sources. This can be achieved, for example, through the integration of solar technology, biomass, or heat pumps.
2. Efficiency improvements: Modern heating systems must not only be environmentally friendly, but also efficient. Highly efficient systems and the intelligent networking of systems play a decisive role here.
3. Funding opportunities: There are various funding programmes that support the installation of environmentally friendly heating systems.

Key Regulations and Deadlines

31 December 2023‍

Until this date, old gas and oil heating systems may be replaced with new ones

1 January 2024

• The obligation to use renewable heating comes into force, however ONLY for the installation of new heating systems — this means that existing systems may continue to be used and repaired in the event of defects
• The installation of gas and oil heating systems in existing and new buildings (outside of new building areas) is only permitted to a limited extent. In addition, consultation with a specialist is required
• New gas and oil heating systems installed as an exception must meet the following bio-content requirements: from 2029: 15%, from 2035: 30%, from 2040: 60%

Due to this requirement, it may make sense to expand a gas or oil heating system into a hybrid heating system. Here, the existing system is supplemented by a sustainable heating system, such as a heat pump, so that the required share of renewable energies is considered fulfilled.

Requirements for New Buildings

From 1 January 2024, at least 65% of the heat demand must be met from renewable energies. This can be relatively easily achieved by installing a heat pump. However, there are also alternative options.

Transitional periods also exist for new buildings outside of new building areas.

Requirements for Existing Buildings

New heating systems in existing buildings should also use at least 65% renewable energies from 1 January 2024.

However, this only applies once the municipal heat planning has been completed. Depending on the size of the municipality, this must be done by 30 June 2026 (> 100,000 inhabitants) or 30 June 2028 (< 100,000 inhabitants) respectively.

Until then, gas or oil heating systems may also be installed under certain conditions.

In general, systems installed before 1 January 2024 may continue to be operated and repaired until end of 2044, regardless of the share of renewable energies.

What is Municipal Heat Planning?

The GEG is closely linked to the Municipal Heat Planning Act (WPG). Municipal heat planning is intended to show whether there is, or will be, a climate-friendly heat network (district or local heating) or hydrogen supply network locally that a building can connect to.

If this is the case, the 65% RE requirement is considered fulfilled. The following deadlines apply to municipal heat planning: municipalities with more than 100,000 inhabitants must submit their heat plan by 30 June 2026. Municipalities with fewer than 100,000 inhabitants have until 30 June 2028. In principle, there is a five-year transitional period before the 65% RE requirement must be met. This obligation can be fulfilled by connecting to a heat network or by meeting the 65% RE requirement in another way (“fulfilment options”).

What options are there to achieve the required share of renewable energies?

Since the GEG is designed to be technology-neutral, various options are available to achieve the required 65% RE share. Possible options include, for example:

• Connection to a heat network
• Installation of a heat pump
• Expansion to a hybrid heating system
• Expansion with a PV system
• Installation of a biomass heating system

Is there a general replacement obligation?

No, there is no general replacement obligation.

Only gas or oil heating systems that are more than 30 years old must be replaced, provided they are not low-temperature or condensing boilers. Here, two years are available for replacement.

This obligation does not apply if a change of ownership took place before 1 February 2002.

What funding opportunities are available?

To financially relieve homeowners when replacing their heating systems, funding measures will be available. These are also planned to come into force on 1 January 2024.

Planned are, in addition to a basic subsidy of 30%, further grants for low-income households as well as a “climate speed bonus” for early heating system replacement.