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Few laws have caused as much of a stir in recent years as the latest amendment to the Building Energy Act (GEG), also known colloquially as the “Heating Act”. Having come into force on January 1, 2024, this legislative measure is not only causing changes in private households, but is also presenting numerous companies with new challenges. The GEG sets clear guidelines for an efficient and sustainable energy policy and requires all stakeholders to rethink and take active action. With the target that 65% of the heat generated in buildings should come from renewable energies in future, the GEG complements the ambitious goals of the EU Buildings Directive, which aims to make the building sector climate-neutral by 2050. Germany has even set itself the ambitious target of achieving climate neutrality by 2045.

In the following article, you can find out what impact the GEG will have on companies, what measures are necessary and how Steamergy is helping to meet these requirements as a partner.

Details on the Building Energy Act (GEG)

The Building Energy Act (GEG) combines the Energy Saving Act (EnEG), the Energy Saving Ordinance (EnEV) and the Renewable Energies Heat Act (EEWärmeG) in a comprehensive framework and aims to reduce energy consumption in buildings, promote the use of renewable energies, reduce CO2 emissions and increase independence from energy imports. In concrete terms, this means that in future, new heating systems may only be installed if they generate at least 65% of the heat provided using renewable energies. This affects new buildings in private households and companies in all sectors, particularly those that own, rent or operate buildings. This regulation does not initially apply to existing buildings that already have a functioning heating system – regardless of the energy source used. However, oil and gas-fired heating systems must be decommissioned no later than 30 years after installation. For systems from the 1990s, this period will soon expire. It therefore makes sense to start looking for an alternative, sustainable heating option.

Significant changes due to the Building Energy Act

There are a number of changes resulting from the new GEG that would require a longer discussion. In this article, we will limit ourselves to three key effects of the Building Energy Act for companies.

65 % renewable energy rule for the overall system

One of the most significant changes brought about by the GEG is the requirement that at least 65% of the heat generated in new heating systems must come from renewable energies. For companies, this means investing now in sustainable technologies that use renewable energy sources such as solar thermal energy, biomass or heat pumps to supply electricity and heat.

Obligation to draw up a heating plan

According to the Building Energy Act (GEG), cities, municipalities or communities with more than 100,000 inhabitants are obliged to draw up comprehensive heat planning by 2026. For smaller municipalities, this deadline extends to 2028. Heat planning is being introduced across the board and is set out in a separate Heat Planning Act (WPG), which came into force at the same time as the GEG amendment on January 1, 2024. Companies operating in these areas are therefore required to actively participate in local heat plans and contribute to municipal energy supply concepts in order to meet the requirements of the Act.

Monitoring and reporting

In accordance with the German Building Energy Act (GEG), companies must prepare and submit reports on their progress and measures to comply with the GEG requirements. Reporting generally takes the form of detailed documentation describing current energy consumption, the measures taken to save energy and the use of renewable energies, as well as progress in implementing the GEG requirements.

The reporting requirements are laid down by law and must be strictly adhered to. Compliance with these requirements is monitored and controlled by the responsible authorities. The penalties for companies that violate the reporting obligations under the GEG can be significant and range from fines to legal consequences. The exact amount of the penalties depends on the extent of the violation and can vary depending on the severity of the violation.

Funding

Since January 1, 2024, the Federal Subsidy for Efficient Buildings (BEG) has supported the replacement of old, fossil-fuel heating systems with heating systems based on renewable energies with an investment subsidy of up to 70%. These subsidies offer companies additional incentives to invest in modern and environmentally friendly heating technologies. The following subsidies can be applied for from KfW since February 27, 2024:

• A basic subsidy of 30% for all residential and non-residential buildings of all applicant groups. Biomass heating systems receive a supplement of 2,500 euros if they comply with a dust emission limit of 2.5 mg/m³.
• A climate speed bonus of 20% until 2028 for the early replacement of old fossil fuel heating systems as well as night storage heaters and old biomass heating systems for owner-occupiers. After that, the climate speed bonus will decrease by 3% every two years, initially to 17% from January 1, 2029.
  
  

With these subsidies, the German government is offering considerable financial incentives for switching to renewable energies. This gives companies the opportunity not only to meet their legal obligations, but also to benefit from a sustainable and cost-efficient energy supply in the long term.

The role of Steamergy in meeting the requirements of the GEG

Steamergy plays a crucial role in helping companies to meet the requirements of the GEG. Our technology provides the innovative total solution to utilize local, renewable energy sources and increase energy efficiency. The combination of liquid salt technology and the Steamergy high-pressure steam engine with SDI (Steam Direct Injection) technology enables maximum flexibility, unprecedented efficiency and extremely low maintenance requirements. With Steamergy, companies can not only meet the strict requirements of the GEG, but also optimize their energy costs, increase efficiency and make a significant contribution to climate neutrality.

Conclusion

The new Building Energy Act (GEG) presents companies with new challenges, but at the same time opens up numerous opportunities to improve their energy efficiency and contributes significantly to sustainability and thus to a secure future for generations to come. Companies are now called upon to act proactively in order to meet the legal requirements and benefit from the advantages of a sustainable energy supply.

With Steamergy as a partner, companies can successfully meet the requirements of the GEG. Our innovative technology enables the efficient use of renewable energy sources, supports integration into municipal heating plans and increases energy efficiency. Arrange a no-obligation personal consultation now to receive individual advice and further details: Arrange a meeting now.