Press Releases - 08.04.2024
Eschborn, April 8, 2024: The Building Energy Act (GEG) is considered an important component of the energy transition, however most landlords in Germany do not feel adequately informed about it or supported in meeting its requirements. This is shown by a recent survey conducted by the energy service provider Techem among private landlords and business customers, i.e. commercial landlords or property managers. The requirements for new and existing buildings, which came into force on January 1, 2024, have met with criticism as they are associated with high costs for landlords and tenants. In addition, bureaucratic hurdles and a shortage of skilled workers make it difficult to implement refurbishment measures. As a result, only 38% of private landlords and 24% of business customers surveyed rate the GEG positively.
Image information: Boiler room. (Copyright: Alhim / Shutterstock)
Regulation for heating system replacement considered fair
The survey results reveal that more than two thirds of private landlords and business customers do not have a comprehensive understanding of the GEG (67% and 69% respectively). The high level of interest in further information (60% of private landlords and 64% of business customers) underscores the need for more information on the GEG. At the same time, the regulation on replacing heating systems is supported: 63% of private landlords and 59% of business customers think it is fair that existing heating systems can be operated with up to 100% fossil natural gas or heating oil until the end of 2044. On the other hand, only 23% and 26% respectively consider it fair to limit the modernization levy to 50 cents per square meter and month for a period of 6 years when replacing heating systems in accordance with the requirements of the GEG.
GEG as a financial challenge with bureaucratic hurdles
Nearly three quarters of private landlords and two thirds of business customers (74% and 65% respectively) say that the GEG represents a significant financial burden for them. The respondents agree (84% and 78% respectively) that the GEG will lead to rising construction costs and higher rents. The majority of respondents also see bureaucratic hurdles as an obstacle to implementing the GEG (68% and 61% respectively) and the GEG is perceived as being too complicated overall (66% and 62% respectively). There is also disagreement as to whether the GEG contributes to achieving climate protection targets: Only 42% and 39% respectively agree with this statement.
Uncertainty regarding financial relief from politicians
The majority of private landlords (57%) are unsure whether they will be able to comply with the regulations despite the funding opportunities – in contrast, only one in three business customers (34%) have this uncertainty. In addition, the majority of respondents (64% and 61% respectively) doubt whether politicians will provide financial support for the promised basic subsidy. The fact that the basic subsidy cannot be passed on to the rent is seen as unfair by 52% of private landlords and 34% of business customers. Matthias Hartmann, CEO of Techem, emphasizes the consideration of landlords’ interests in the Building Energy Act: “The financial burden and bureaucratic hurdles pose a challenge for private landlords in particular, making it difficult to successfully implement the new provisions of the Building Energy Act. The goal must be to find a balance that drives the energy transition forward without overburdening those who are directly or indirectly affected by the changes. Our solutions, such as the CO₂ Cost Calculator, also support landlords who want to continue operating functional fossil fuel heating systems in compliance with the law. This enables an individual forecast of the financial impact of the CO₂ levy on the property and thus creates the basis for smart investment decisions.”
Heat pumps lead the way when it comes to replacing heating systems in the future
At the same time, the survey shows that anyone thinking about replacing their heating system in the future is usually considering a heat pump. Both commercial customers (55%) and private landlords (52%) stated that they wanted to consider it – potentially also in combination with solar thermal energy or a gas or biomass heating system. Only a possible local or district heating connection (62%) was even more popular with business customers. Companies like Techem make an important contribution here. They not only offer to replace outdated or incorrectly sized systems, but also take on the planning and installation of modern, environmentally friendly heating systems and bear the related investment costs. “Heat pumps in particular have a key role to play in the energy transition. As Techem’s latest consumption data study shows, half or even 90% (after replacing radiators) of the heating systems in existing multi-family homes in Germany that are currently heated with radiators are already suited for the use of heat pumps. It is crucial that we take full advantage of the opportunities offered by green heating technologies in order to accelerate the transition to more sustainable energies and help our customers to heat in a way that is both environmentally friendly and economical,” emphasizes Matthias Hartmann, CEO of Techem.
Lack of skilled workers and bureaucratic hurdles make implementation difficult
Besides financial burdens, landlords also see the shortage of skilled workers as an obstacle to the implementation of refurbishment measures – business customers (47%) are particularly concerned about this. Bureaucratic hurdles are also cited by both groups (38% of private landlords and 45% of business customers) as a further major obstacle to the effective implementation of the GEG.
About the survey
This survey was conducted online in February 2024. A total of 375 private landlords and 74 business customers (commercial landlords + administrators) were asked about their attitudes towards the Building Energy Act in a quantitative survey. Both the population of private landlords and commercial customers were defined based on specific criteria.
About Techem
Techem is a leading service provider for smart and sustainable buildings. The company's services cover energy management and resource conservation, residential health and process efficiency in real estate. Founded in 1952, the company is now active in 18 countries with around 4,300 employees and services more than 13 million homes. Techem offers efficiency improvements along the entire value chain of heat and water in real estate. As the market leader in remote radio detection of energy consumption in homes, Techem continues to drive networking and digital processes in real estate. Modern radio smoke detectors with remote inspection and services related to improving drinking water quality in properties complement the solution portfolio for the housing industry. For more information, visit www.techem.com/corp/en.
