The German Buildings Energy Act – Mandatory Measures for Non-Residential Buildings

The building sector plays a significant role in Germany's overall energy consumption and currently produces more greenhouse gases than national and European climate protection targets allow. After long debate, the German Bundestag recently passed an amendment to the national Buildings Energy Act (Gebäudeenergiegesetz, GEG). The aim is to gradually end dependence on fossil fuels and reach carbon neutrality in existing buildings by 2045. We outline what owners of non-residential buildings must take into account from 2024 on and highlight the crucial role of software solutions in optimizing building operations.

Uniform Regulations for new and Existing Buildings

The GEG establishes energy requirements for heated or air-conditioned buildings, combining and replacing several prior laws, including the German Energy Saving Ordinance (Energieeinsparverordnung, EnEV), the Renewable Energies Heat Act (Erneuerbare-Energien-Wärmegesetz, EEWärmeG), and the Energy Saving Act (Energieeinsparungsgesetz, EnEG). With few exceptions, the adopted bill impacts all new and existing buildings which are heated or cooled, as well as their heating, cooling, and ventilation systems. Its scope extends to both residential and non-residential structures, including public buildings.

Overview of Key Changes:

• Minimum building automation requirements: Mandatory for new non-residential buildings (from 1 January 2025 also for existing buildings) to continuously monitor, analyze and optimize energy consumption‍
• Heating with renewable energy will be mandatory: Starting in 2024, only heating systems that use at least 65 % renewable energy may be installed in new buildings within new development areas. Transitional periods are foreseen for existing buildings and new constructions outside these designated areas
• No immediate replacement required for existing heating systems: In cases of malfunction, broken gas or oil heating systems may undergo repairs, with designated transition periods allowed for replacement
• Incentive programs and cost allocation for heating system replacements: Costs can be proportionally passed on to tenants, and up to 30 % can be reimbursed through grants

General Requirements for new Buildings

With the GEG, the Federal Government has incorporated the EU Buildings Directive (EPBD) and the Energy Efficiency Directive (EED) into national law. As per these directives, all new buildings must be designed as nearly zero-energy buildings. The methodology involves establishing reference buildings, ensuring that the annual primary energy demand of a non-residential building for heating, hot water, ventilation, and cooling does not exceed 55 % of the demand of a reference object. Electricity from renewable sources generated in direct spatial connection with a building under construction may be considered when calculating the annual primary energy requirement. Furthermore, new buildings must adhere to specific criteria for minimum thermal insulation, the minimization of thermal bridges, air tightness and thermal insulation in summer. These requirements aim to create a comfortable living and working environment while achieving necessary energy savings. Verification of compliance with these requirements is mandatory through an energy performance certificate.

General Requirements for Existing Buildings

The Act outlines retrofitting obligations for existing buildings under specific conditions. These obligations encompass:

• Insulation of top floor ceilings in unheated attics
• ‍Insulation of heat distribution pipes in unheated rooms
• The obligation to replace oil and gas heating systems older than 30 years, excluding low-temperature boilers, condensing boilers, and heating systems with a rated output of less than 4 kilowatts or more than 400 kilowatts

Starting January 2024, new building requirements apply if the contiguous floor area increases by more than 250 m² or surpasses 100 % of the existing building's floor area. Specific exemptions, such as listed buildings or small structures with a floor area of up to 50 square meters, exist. Additionally, an energy performance certificate becomes mandatory for all heated or cooled existing buildings that are re-let or sold.

New Building Automation Requirements

While much discussion has centered on the new version of the GEG regarding heating with renewable energy sources, it is crucial not to overlook the minimum requirements set for building automation of non-residential buildings. According to Section 71a (1) and (2) GEG, existing non-residential buildings with a heating or cooling capacity greater than 290 kW shall be retrofitted by December 31, 2024, with digital energy monitoring technology that meets the following minimum requirements:

• Continuous monitoring, logging and analysis of the consumption of all major energy sources and technical building systems
• Data access via common, freely configurable interfaces for company- and vendor-independent analysis
• Ability to set energy efficiency requirements for the building
• Detection of efficiency losses in technical building systems
• Identification of improvement opportunities for facility management personnel

In addition, a person or company responsible for building energy management must be appointed or commissioned to analyze and exploit the potential for energy-optimized building operation in a continuous improvement process.

Section 71a (3) GEG applies to newly constructed non-residential buildings. Starting January 1, 2024, these buildings must be equipped with a building automation system of level B in accordance with DIN V 18599-11: 2018-09 or better and undergo a technical commissioning management process, including the control of technical building systems, in order to ensure optimal operation. The technical commissioning must cover an entire operating period. When equipping the building automation system, care must also be taken to ensure that it enables communication between interconnected technical building systems and other applications in the building, and that it can be operated together with other types of technical building systems, including different technologies, devices and manufacturers.

If an existing non-residential building already has a building automation system that complies with automation level B according to DIN V 18599-11: 2018-09 or better, communication between the interconnected technical building systems and other applications in the building must be enabled by the end of December 31, 2024, in accordance with § 71a (4) GEG. It must be ensured that these systems can be operated together with other types of technical building systems, even with different proprietary technologies, devices and manufacturers.

New Regulation from 2024: Mandatory Use of Renewable Energy for Heating

The recent amendment to the GEG, also known as the "heating law", introduces a mandatory shift to renewable energy for heating and hot water. Starting January 1, 2024, any newly installed heating system must utilize a minimum of 65 % renewable energy. Initially applicable to new buildings in new development areas, transitional periods are outlined for existing buildings and new constructions outside these areas, aligned with local authority heating plans. According to the German Heat Planning Act, cities with over 100 000 inhabitants must submit these plans by mid-2026, and all other municipalities by 2028. By 2045, the mandate extends to exclusively heating all buildings in Germany with renewable energy.

The regulation allows for a diverse range of technologies and hybrid solutions. The installation of new oil or gas heating systems is still possible after January 1, 2024, under certain conditions. In the absence of a local heating plan, the fuel mix must progressively include green fuels until it reaches 100 % biogas, biofuel, or approved hydrogen by 2045. Once a municipal heating plan is established, installation is only permitted for "H2-ready" gas heating systems and if the municipal heating plan provides for a corresponding supply network.

Existing oil and gas heating systems are permitted to be used or repaired until the end of 2044, provided they are not older than 30 years. In case of irreparable damage, during specific transitional periods, a used heating system that does not meet the 65 % requirement may be installed.

How aedifion can Provide Support

The German Building Energy Act sets extensive requirements for energy standards and the use of renewable energy in buildings. To navigate these demands and avoid penalties, innovative solutions must be found for commercial non-residential buildings. Through the aedifion cloud platform for digital operational optimization, we introduce smart energy efficiency to any portfolio, while seamlessly integrating buildings into the heating transition.

We offer aTÜV-certified solution for GEG-compliant plant operation of existing buildings

As a BAFA-listed energy management software, aedifion's Optimization Bundle provides a scalable and cost-effective solution for efficient system operation in compliancewith Section 71a (1), (2), and (4) GEG. This is now officially certified by TÜV (Technischer Überwachungsverein), Germany's leading independent provider of testing services for technical systems and products worldwide. The certificate for our software solution is publicly accessible in the TÜV Rheinland database "Certipedia" with  ID number 0000086413.

‍We sustainably reduce energy consumption and CO₂ emissions:

For both new and existing buildings, aedifion enhances energy performance through a simple digital upgrade. Our software employs artificial intelligence to continuously identify potential savings, enabling demand-based control of building operations. Predictive control takes into account not only heating, cooling and ventilation data, but also external factors such as weather forecasts, outdoor temperatures and occupancy. As a result, energy consumption and CO₂ emissions can be reduced by an average of 22 %, and in many cases by up to 40 %, while tenants benefit from optimal indoor air quality and significantly reduced ancillary costs.

We enable data-driven modernization and retrofit roadmaps:

By optimizing operations continuously, aedifion detects inefficiencies and potential weaknesses in building operations early on. This information is particularly valuable for existing buildings, informing decisions on targeted modernization and retrofit measures, such as system replacements, heat pump installations, or building envelope insulation. Data-driven decision-making avoids unnecessary investments, extends system lifespans, and preserves long-term property value.

We help save costs and stabilize electricity grids:

As renewable energy generation fluctuates, the aedifion cloud platform empowers buildings to actively manage their load, dynamically adjusting heating energy consumption. This isespecially advantageous for commercial buildings due to their high energy consumption and flexibility. By doing so, we contribute significantly to stabilizing the electricity grid and facilitating the transition away from fossil fuels.

Have your portfolio optimized now and join us on the journey towards a carbon-neutral building stock!

Note: Our research andassessments are based on the current state of the law and do not constitute valid legal advice.

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