With the entry into force of the new Building Modernisation Act in July this year, the legislator has carried out a noticeable realignment of energy efficiency standards for existing buildings. The previously binding obligation to integrate at least 65 percent renewable energy into newly installed systems no longer applies. Property owners are once again able to choose flexibly between heat pumps, district heating connections, hybrid systems or purely gas and oil heating systems. Existing installations are unaffected by these changes and enjoy unrestricted grandfathering rights without blending requirements.
However, this expanded technical freedom of choice does not release owners from the need to carry out a careful cost analysis. Harald Meyer, a real estate expert at LBS, emphasises in this context that lower upfront investment costs do not necessarily lead to lower overall expenditure. For financial viability, the decisive factor is rather what operating costs will arise over periods of ten, fifteen or twenty years.
Mandatory blending quotas and rising ancillary costs
Anyone opting for a new gas or oil heating system today will in future be subject to the so-called bio-ladder. This mandates the phased use of climate-neutral fuels, whose future availability and origin still raise questions at present. The act provides for fixed stages to gradually replace fossil fuel shares until complete climate neutrality is achieved in 2045:
- —From 2029: mandatory blending of at least 10 percent climate-neutral fuels
- —From 2030: increase of the minimum quota to 15 percent
- —From 2035 and 2040: increase to 30 percent and subsequently 60 percent
- —From 2045: exclusive use of fully climate-neutral fuels
In addition to fuel specifications, other pricing factors influence the operation of fossil fuel systems. The national CO2 levy, which currently stands at between 55 and 65 EUR per tonne, is expected to be determined by market mechanisms under the European emissions trading scheme from 2028. Furthermore, network charges already account for around twenty percent of the gas price today and are likely to climb further in future. Against this backdrop, Meyer advises both private and commercial property builders to conduct a comprehensive system comparison over the entire useful life, ideally supported by independent energy consultancy.
Abolition of the renovation obligation upon property purchase
The new legal regulations bring relief for buyers of older properties. The previous obligation to immediately replace oil and gas boilers over 30 years old following the transfer of ownership has been removed. This step can make it easier, particularly for younger families, to access home ownership, as the immediate investment pressure after purchase is eliminated.
Nevertheless, it remains advisable to factor planned renovation measures into financing arrangements and purchase price negotiations from the outset. A reliable calculation requires an overall assessment of the purchase price, necessary modernisation measures and future energy costs. In this regard, state subsidies for climate-friendly heating systems and structural efficiency measures remain available, secured at least until the end of 2029 and specifically providing grants for lower-income households. Because achieving climate neutrality by 2045 remains the binding objective and the legislator has announced an evaluation of target achievement for 2030, investment decisions should always be geared towards long-term value retention.
