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What is the current status of the Heating Act?

The amendments to the Buildings Energy Act, also known as the Heating Act, were probably the most controversial legislative project of 2023. The Federal Constitutional Court initially stopped it at the last moment in order to give parliament more time to deliberate

2 min readUpdated: 2023-12-06

The amendments to the Buildings Energy Act (Gebäudeenergiegesetz), also known as the Heating Act (Heizungsgesetz), were probably the most controversial legislative project of 2023. The Federal Constitutional Court initially stopped it at the last moment in order to give parliament more time to deliberate.

The underlying Gebäudeenergiegesetz (GEG) came into force on 01.11.2020. It sets requirements for the energy quality of buildings, the issuance and use of energy performance certificates, and the use of renewable energy in buildings.

The key element of the amendments now published in the Federal Law Gazette is that every new heating system should, wherever possible, be operated using at least 65 % renewable energy. Technical solutions include electric heat pumps, direct electric heating, hybrid heating (a combination of renewable heating with a gas or oil boiler), solar thermal heating, or connection to a district heating network.

Existing, functioning heating systems do not have to be replaced. Only from 2045 onwards will it no longer be permitted to operate heating systems with natural gas or heating oil. However, if a non-eligible heating system fails completely, a replacement obligation may apply. There are also transitional periods during which a heating system fired by fossil fuels may still be installed. Depending on the building, these range from three to 13 years. In addition, there is a general hardship clause.

Passing on the costs of heating renewal to tenants is to remain possible in principle, but within limits. The modernisation surcharge option is to be increased to an upper limit of 10 %, provided the landlord makes use of state funding. The rent may then be raised by no more than 10 %. Under a capping limit, however, it may not be increased by more than €0.50 per square metre of living space. At the federal level, new heating systems are to be subsidised extensively. There is to be a uniform funding rate of 30 % for replacing an old, fossil-fuelled heating system with a new, climate-friendly one. In addition, further subsidies are to be available, linked to income and in cases of voluntary early replacement.

Note

The long-disputed Heating Act comes into force as early as 01.01.2024.

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