What are the obligations of homeowners

Berlin The building sector is one of the major CO2 emitters and thus a key area for achieving climate policy goals. More than 80 percent of the heat demand is currently covered by fossil fuels, most of which are imported.

The federal government is under pressure. Germany is to become greenhouse gas neutral by 2045. The traffic light therefore wants to prescribe in future that from January 1, 2024, every newly installed heating system should be operated with at least 65 percent renewable energy. The legislative process should be started as quickly as possible so that it can be completed in spring 2023, a spokeswoman for the Federal Ministry for Economic Affairs and Climate (BMWK) told the Handelsblatt.

For homeowners, this means that they will soon need to take action. And they have to clarify the questions now: How can the 65 percent rule be proven in the future? And what happens if an old heater fails before plans for an upgrade are made? A first concept paper from the BMWK and the Federal Ministry of Building (BMWSB) shows which options are currently being discussed:

Connection to a heating network

The owner can connect his building to a heating network – for the first two years regardless of whether the share of renewable energies in the network’s generation mix has already been met. The reason for this is that when connected to a heating network, the government assumes that it will gradually supply climate-neutral heat on the basis of other specifications and incentives by 2045 at the latest.

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From 2026, the energy supplier will need a binding investment concept to convert the heat supply to renewable energies.

Installation of a heat pump

When installing an electric heat pump that fully covers the heat requirement of the building, no further proof is required. It is assumed that the heat comes entirely from renewable sources.

Installation of a biomass heating system

By installing a biomass heating system, such as a pellet heating system, the owners also fulfill their obligation without further proof, provided that this completely covers the heating requirements of a building.

Installation of a gas heating system using green gases

In the case of gas heaters, which are operated with sustainable biomethane or green hydrogen, for example, the permanent purchase of at least 65 percent green gases must be proven. The ministries are assuming that there will be high demand for green gases in other sectors in the medium to long term and are therefore anticipating “significant” price increases. That is why the BMWK and BMWSB are also planning a so-called “tenant protection regulation”. This states that when using biomethane or green gases, landlords will bear the costs that go beyond the basic supply tariff for gas.

Installation of a hybrid heater

A hybrid heating consists, for example, of fossil gas or oil boilers combined with an electric heat pump or solar thermal, biomass or green gases. Compliance with the 65 percent obligation “must always be calculated in advance using estimates,” according to the paper by BMWK and BMWSB.

Installation of direct electric heating

Here it is assumed that the electricity will gradually be completely decarbonized over the service life of the electric heaters. However, direct electricity heating systems are considered to be less efficient than heat pumps. They only make sense in particularly well-insulated houses with an extremely low heat requirement.

One and two stage model

So far it is unclear whether the law will be formulated in such a way that the owner can freely choose from the six options (one-step model). A second variant provides that the owner can basically choose freely – and only in cases in which he wants to use biomass heating, green hydrogen or other green gases, must an expert prove that all other options are not technically possible, are not legally permissible or economically justifiable (two-stage model).

Transitional periods in case of accidents

If a gas or oil central heating fails during the heating season, owners should not be immediately obliged to meet the 65 percent obligation, but basically have three years. In the transitional period, a (possibly used) gas or oil heater can be installed and used.

If a gas floor heating fails, the owners (communities) have three years to decide whether they want to continue heating the building with decentralized heat generators or with a new central heating system to be installed. If the decision is made in favor of central heating, then a further three years are granted to convert the heat supply that meets the 65 percent rule. If the decision is made in favor of decentralized heat generation, then the floor heating systems must be replaced with new heating systems that meet the 65 percent requirement.

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If apartments in an apartment building are heated using individual stoves with gas, oil or coal, the obligation to use 65 percent renewable energies applies in principle as soon as the first individual stove fails. However, centralization will make sense, either within the apartment or throughout the building. That is why a transitional period of six years is also being discussed here, similar to the regulation for a floor heating system.

If the owner wants to switch the heat supply to district heating, but cannot do so because the network structure has not yet been expanded accordingly, the ministries are currently also planning transitional periods. In the meantime, another heating system should be able to be installed, for example if the heating network operator has already submitted a plan for expanding his network.

Limit the useful life of oil and gas boilers

Because older heating systems in particular often fail unscheduled, the BMWK and BMWS propose mandatory advice from an expert for fossil-fuel heating systems that are 15 years old or older.

The possibility of gradually reducing the service life of existing heating systems to 20 years is also being examined. Oil and gas boilers installed before 1996 may be operated until 2026 at the latest. For the boilers installed between 1996 and 2024, the service life will be reduced by four months every year.

More: What should you consider with the alternatives to oil heating and gas heating?

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