From rising CO2 prices to new requirements under the Building Energy Act (GEG), the real estate landscape will continue to be dominated by the energy transition this year.
Energy-saving brakes on the retreat
The government price brakes on electricity and gas expired at the end of last year, which means that households must expect an increase in energy costs. Many households already felt the impact of this in their utility bills at the end of last year. It is now advisable to check the working price of your own electricity and gas contract and adjust it if necessary.
RisingCO2 prices and their impact
One of the most significant changes is the increase in theCO2 tax to €45 per ton starting in January 2024. This has a direct impact on landlords and tenants. Landlords must cover part of theCO2 price, which depends on various factors such as the energy efficiency of the building. If the energy efficiency of the building is poor, the proportion of the costs that landlords have to bear also increases, in extreme cases up to 95%. These adjustments will first become apparent in the heating cost statement for 2023, which is expected to be issued in the course of 2024.
The operating costs statement must include the basis for calculation, the classification of the apartment according to the tiered model, and the share ofCO2 costs attributable to the tenants. If this information is missing, tenants have the right to reduce their share of the heating costs by 3%, as specified in Section 7 (4) of the CO2KostAufG. In addition, tenants must be granted access to the fuel supplier's delivery note upon request.
New requirements of the Building Energy Act (GEG)
Newly installed heating systems must now be operated with at least 65% renewable energy as soon as the municipality's heating plan is available. These costs can be passed on to tenants, which can lead to rent adjustments of up to 10%.
→ Read our article on heating systems 2024
Stricter limits for wood-burning stoves
From December 31, 2024, stoves, fireplaces, and wood-burning stoves built or put into operation between January 1995 and March 21, 2010, emit less particulate matter and carbon monoxide: a maximum of 0.15 grams of particulate matter per cubic meter of exhaust air and four grams of carbon monoxide per cubic meter of exhaust air are still permitted. Owners of such stoves must either upgrade them or switch them off by the end of 2024 if they cannot meet the requirements. However, there are exceptions for homes that have no other heating and for fireplaces that are rarely used.
New additional payments for heating subsidies
Heating subsidies for environmentally friendly models will remain largely unchanged despite budget cuts. From 2024, there will be a basic subsidy of around 30%. For households with a gross income of less than €40,000, there will be an additional income bonus of 30%, an innovation bonus of 5%, and a speed bonus. Together, these can add up to a subsidy of up to 70%. However, the speed bonus will be slightly lower than originally planned. The planned increase from 20% to 25% was ultimately not implemented due to budget cuts. Similarly, the extension of the bonus to landlords and housing associations has been dropped, and the limit on eligible costs has been revised downward to a maximum of €30,000 in 2024.
New hydraulic balancing requirement
Starting this year, large apartment buildings with more than ten units must have their gas heating systems inspected and adjusted. From September 15, 2024, smaller residential communities with six to nine units with gas heating systems must also do so. Single-family and two-family houses are exempt from this regulation as long as they do not have gas central heating systems. Hydraulic balancing ensures that the heating system works efficiently by adjusting the optimal heat output, water volume, flow temperature, and pump capacity. Specialist companies carry out this measure, which can take several hours depending on the size of the system.
"Wohn-Riester" for energy-efficient renovations
From January 1, 2024, anyone who has a home pension ("Wohn-Riester") will be able to use the money not only to buy or pay off their home, but also for energy-efficient renovations such as installing a heat pump, a photovoltaic system, or thermal insulation, provided they live in the property themselves. The specialist company carrying out the renovation only has to confirm that it is an energy-efficient renovation. Applications to use the Riester credit can be submitted to the Central Allowance Authority for Pension Assets (ZfA) of the German Pension Insurance Fund from January 1, 2024.
Further changes in 2024
From March, VAT on gas prices will rise from 7% to 19%, and from June, property managers appointed by homeowners' associations (WEGs) will have to be IHK-certified. In July, the so-called "ancillary cost privilege" will be abolished, which means that TV cable contracts can no longer be automatically passed on to tenants.
No fixed date has yet been set for the planned adoption of Solar Package 1 (which aims to make communal building supply and solar power production easier and less bureaucratic) or the amendment to the Condominium Act to allow up to 20% of household electricity to be generated using plug-in solar devices on balconies ("balcony solar systems"). These measures are intended not only to increase energy efficiency, but also to make living more attractive and sustainable overall.
The idea of soon allowing virtual owners' meetings is also still under consideration.
The municipalities are also set to adjust the property tax rate. Back in 2018, the government promised that the adjustments would result in a consistent tax burden. However, the exact amount of the tax burden will not be determined until 2024, when municipalities set their actual rates – meaning that the new property tax rate will only become clear to those affected over the course of the coming year.
Overall, 2024 stands for sustainability in the real estate industry and focuses on climate-friendly energy generation and efficiency. It is advisable for owners and tenants to prepare for these changes as best they can and to take advantage of subsidies and grants to increase the energy efficiency of their properties and thus reduce rising costs in the long term.
Do you need individual advice?
At Kartheuser Immobilien, we see ourselves as real estate experts who are passionate and knowledgeable about our work and have a wealth of experience – both professional and personal. If you have any questions about your property, energy efficiency, or funding opportunities, we would be happy to advise you.
