The Building Energy Act 2024 changes the range of permitted heating technologies for new buildings. The GEG stipulates that, since January 1, 2024, newly installed heating systems in buildings (new and existing properties) must use at least 65% renewable energy. Existing heating systems are initially unaffected by these requirements and may continue to be operated or repaired.
In new development areas, the new regulation will take effect immediately on January 1, 2024. For existing buildings and new buildings outside of new development areas, there will be transition periods so that municipal heating plans can be taken into account. Accordingly, climate-friendly energies will become mandatory when replacing heating systems in large cities (over 100,000 inhabitants) by June 30, 2026, at the latest, and in smaller cities by June 30, 2028. The choice between local or district heating networks, electrical solutions such as heat pumps, or gas and hydrogen networks is still under discussion.
Heating Act 2024: What will happen to my oil or gas heating system?
Contrary to rumors, existing heating systems based on fossil fuels do not necessarily have to be replaced as of January 1, 2024, as long as they are functioning properly. However, since January 1, 2024, people who want to install gas or oil heating systems must seek mandatory advice to highlight potential financial challenges, particularly due to risingCO2 costs.
Gas and oil heating systems are still permitted in various configurations—for example, as a hybrid system in combination with a solar thermal system or a heat pump. If no hydrogen network is planned by the local authority, the GEG stipulates that climate-neutral gases such as biomethane should be added to the mix.
The following options are available for new buildings:
heating networks
Heat networks are efficient systems that supply heat to multiple buildings. They usually use renewable energy sources such as biomass, geothermal energy, or waste heat. These networks can be particularly suitable for new buildings, as they enable a sustainable and efficient heat supply for larger building complexes and can be adapted to different needs thanks to their scalability.
Electric heat pumps
These use ambient heat to heat buildings and are very efficient. They are attractive in new buildings because they can use renewable energy sources and work well in well-insulated buildings. Their main advantage is the reduction ofCO2 emissions.
Direct electric heating systems
This type of heating converts electrical energy directly into heat. However, they are less recommended in the context of the GEG, as they are often considered comparatively inefficient and expensive to operate and can have higherCO2 emissions.
Heat recovery through Bitcoin mining
This method uses the waste heat from Bitcoin mining facilities to heat rooms. It is controversial because mining consumes a lot of energy and is not always used efficiently for heat generation. Under the GEG guidelines, this method is therefore probably less suitable.
Combined systems using renewable and conventional heating sources
These offer flexibility by combining renewable energy sources with conventional heating systems. In new buildings, they can be a temporary solution to ensure efficiency and reliability while preparations are made for the transition to fully renewable energies.
solar thermal energy
Solar energy uses the sun to generate heat. Solar thermal energy can be effective in new buildings because it is a sustainable energy source and can be easily integrated into the overall concept for energy efficiency and sustainability.
H2-Ready gas heating
This type of gas heating is prepared for the future use of hydrogen. In new buildings, it could serve as a transitional solution, as it offers the possibility of switching to climate-friendly hydrogen later on, once its production and availability have improved.
biomass heating
Biomass heating systems use organic materials to generate heat. In new buildings, they can serve as a sustainable option as long as the biomass sources used are sustainably managed and the systems are modern and low-emission.
The following heating systems may also be considered for the renovation of heating systems in existing buildings:
Log wood gasification boiler
These boilers use firewood as fuel and are an option, especially if you are looking to switch to more efficient and environmentally friendly heating systems. They can be efficient when operated correctly, but modern alternatives may be more sensible in the long term to further reduce emissions.
wood chip heating system
Similar to wood gasification boilers, they use wood chips as fuel. They can be considered an alternative for existing buildings, but an assessment of their efficiency and environmental impact is crucial. New technologies could potentially offer more efficient options.
wood gasification boiler
These boilers use wood as fuel and are one option for switching to a more sustainable heating method. However, efficiency and emission control are crucial in order to meet the requirements of the GEG.
Tiled stoves
Such furnaces are common in existing buildings, but are often less efficient and less emission-friendly. Under the GEG, they could be considered as a replacement option, but modern, low-emission alternatives may be more sensible in the long term.
Pellet and gas heating systems with at least 65% biomethane, biogenic liquefied petroleum gas, or hydrogen
These heaters can be a solution in existing buildings if they are powered by highly renewable gases or fuels—at least 65% of the gas should come from renewable sources such as biomethane, biogenic liquefied petroleum gas, or hydrogen.
What happens next? Financial support for replacing heating systems
The federal government planned to grant subsidies of up to €21,000 at a subsidy rate of 70% to households with an annual taxable income of up to €40,000. Originally, the subsidies were to be financed from the Climate Transformation Fund, which consisted of unused loans to combat the coronavirus pandemic.
However, the Federal Constitutional Court has now ruled that the reallocation of these loans is not permitted, making the planned budget for 2024 unconstitutional. The government must now look for new financing options.
The current financial uncertainties, caused by the Federal Constitutional Court ruling and a comprehensive budget freeze, raise questions about the feasibility and financing of the GEG.
It remains to be seen how the government will respond to these new developments and whether it will find alternative ways to finance and implement the GEG in order to achieve its goals for a more sustainable heating infrastructure in Germany.
