Building energy bill passes the Bundestag

11.09.2023
Source: Energy & Management Powernews

The traffic light coalition has brought the Building Energy Act (GEG) through the Bundestag. At the end of September, it must also be confirmed in the Bundesrat.

After months of discussion and many amendments, the Building Energy Act (GEG) was passed on September 8 with the votes of the traffic light coalition in the Bundestag. For the law voted 399 delegates, with no 275 with 5 abstentions. It is intended to set the right course for a switch to heating without fossil fuels. From January 2024, as far as possible, every newly installed heating system is to be powered by at least 65 percent renewable energy. Immediately this applies first to new buildings.

Existing heatings are to continue to run and also be repaired to be able. There are transition periods and exceptions so that older homeowners or low-income earners are not overburdened. Under certain conditions, the state will pay up to 70 percent of the cost of a new heating system. The maximum eligible costs are to be 30,000 euros for a single-family house, for example. Furthermore it is to give interest-favorable loans.

Linking with local heat planning

Basis of the decision for a new heating system is to be an obligatory and surface covering local heat planning. This law is to be passed still this autumn. Only if this is present, the defaults of the law for heating with at least 65 per cent renewable energies are to apply also to existing buildings. If thus a local solution is offered, like the connection to a heat net, owners of house do not have to make own investments.

If still no heat plans are present, cities with more than 100,000 inhabitants are to get time for their heat plans according to the draft for the heat planning law to in the middle of 2026. Other municipalities still without plans are to submit them by June 30, 2028. Smaller municipalities with fewer than 10,000 residents are to be able to follow a simplified procedure for this purpose. Both laws are to come into force on January 1, 2024.

The GEG allows technology-neutral to achieve the prescribed share of at least 65 percent renewable energy. Thus, heating with biomass, solar energy, geothermal energy, renewable gas or electric is possible. Under certain conditions, there is also the possibility of so-called hydrogen-capable natural gas heating systems that can be converted to 100 percent hydrogen. Here, it is still unclear whether and when hydrogen will become available in the heating market.

Broad technology diversity possible

There are also climate regulations for new systems that are installed in existing buildings in the absence of heating plans in the transition period until mid-2026 or mid-2028. They must use an increasing proportion of biomass or hydrogen for heat generation from 2029. From 2029 it is at least 15 percent, from 2035 at least 30 percent and from 2040 at least 60 percent.

The law is intended to protect tenants by allowing landlords to apportion investment costs for heating replacement to the tenant only to the extent of 10 percent, provided they have taken advantage of a government subsidy and deducted the subsidy amount from the apportionable costs. At the same time, a cap applies: the monthly rent may not increase by more than 50 cents per square meter of living space as a result of a new heating system. If further modernization measures come in addition, it can become as before two to three euro.

obligatory consultation

Among other things the heating law plans a consulting obligation, if new heatings are to be inserted, which are operated with solid, liquid or gaseous fuels. The consultation is to point out possible effects of the heat planning as well as a possible uneconomicalness, in particular due to rising CO2 prices. Fossil fuels in heating systems are only permitted until December 31, 2044.

As a result of the changes made in the course of the legislative process, the Federal Ministry of Economics no longer expects the greenhouse gas reduction of around 54 million metric tons of CO2 equivalents per year that was initially hoped for. Instead, it will go slower and in the short term only 39.2 million tons from the heating sector avoided, so the forecast of the eco-institute for the ministry.

CSU regional group leader Alexander Dobrindt raised heavy reproaches against the coalition. The planned future state support for the heating conversion is insufficient. "This law makes people poor," Dobrindt said. He also criticized the fact that fundamental changes to the original bill had not been sufficiently discussed. The law was actually supposed to be passed in July before the start of the summer recess. Because of the complaint of a CDU member of parliament, the Federal Constitutional Court had stopped the adoption to give more time to read.

Author: Susanne Harmsen