Epico recommends technology-open JIT

04.02.2026

Source: E & M powernews

Epico and Prognos have analyzed reform options for the German Building Energy Act (GEG). The study assesses open-technology approaches as viable and rejects blanket weakening.

The building sector in Germany is facing a decision on the direction of the reform of the Building Energy Act (GEG). While parts of the governing coalition want to retain the 65% target for renewable energies in new heating systems, other stakeholders are in favor of abolishing this regulation. Against this backdrop, the Berlin think tank Epico Klimainnovation and the consulting firm Prognos have presented a joint study.

The analysis is the first to systematically evaluate the reform options currently being discussed for the GEG. According to the authors of the study, the aim is to provide a neutral assessment and identify a pragmatic path for the sustainable further development of the law. Various regulatory approaches were examined with regard to political feasibility, economic effects, investment security and compatibility with Germany's long-term climate goals.

Simplification makes sense

The study comes to a clear conclusion in its assessment of open-technology and simplified solutions. These perform best overall. According to Epico and Prognos, such approaches are easier to implement politically and offer owners and companies more planning security.

The authors are particularly positive about a limit value that is open to all technologies and is based either on the CO2 emissions or the primary energy demand of a building. Such an approach would enable different technical solutions and promote innovation in the heating market.

A points system in which various refurbishment measures can be taken into account also performs comparatively well. According to the study, such a model increases freedom of choice for building owners and creates flexibility in the gradual modernization of existing buildings. At the same time, a points system could help to take better account of different building types and initial conditions.

No reductions

The assessment of generalized weakening of existing requirements is much more critical. Among other things, the analysis includes a green gas quota in the heating sector. According to the study, such approaches entail the risk of failing to meet climate targets and increasing dependence on imports of energy sources. They also worsen the cost efficiency of the overall system. In the overall assessment, the green gas quota even performs worse than the current legal framework of the GEG.

At the same time, the study makes it clear that a reduction in regulatory requirements can only work with strong accompanying instruments. If regulatory requirements are simplified or relaxed, the state must significantly expand market-based and financial incentives.

Epico and Prognos cite a reliable and rising CO2 price path in European emissions trading for buildings and transport, long-term tax depreciation and high and socially balanced subsidies as key prerequisites.

Securing investment in the heating transition

Only under these conditions can private investment be stabilized and fossil lock-in effects avoided, according to the authors. Without such a balance, fossil heating technologies could become more attractive again, investments would be postponed and dependence on energy imports would increase. An overly cautious reform approach would increase costs for households and the energy system as a whole in the long term.

The study also points to possible macroeconomic effects. Stronger market incentives could promote innovation, expand capacities in trade and industry and strengthen resilience to energy price shocks. The prerequisite is a reliable and consistent framework that triggers investment instead of delaying it.

The Epico study on the GEG reform is available to download as a PDF.

Author: Susanne Harmsen