Navigating the Heating Law: Options for Exemptions from Heating Replacement

The discussion around Germany's new Heating Law, formally known as the Building Energy Act (GEG), has gained momentum ahead of the upcoming federal elections. Many property owners remain unclear about the specifics of this legislation and the potential avenues for circumventing its requirements.

Effective from early 2024, the GEG mandates that newly constructed residential buildings must utilize heating systems powered by at least 65% renewable energy sources. Existing properties, however, are afforded longer timelines to comply, with owners of older buildings required to make necessary adjustments following the completion of their local heating plans by 2026 for larger cities and by 2028 for smaller communities. The overarching aim is to transition all heating systems in Germany to fossil-free sources by 2045.

Despite the impending changes, certain exemptions exist within the Heating Law that may allow homeowners to avoid replacing their oil or gas heating systems. Key provisions include §73, which delineates exceptions to the operational ban on these heating types, and §102, which outlines the criteria for exemption from the law's obligations.

For instance, owners of single-family or two-family homes who have lived in one of the units since February 1, 2002, are exempt from the ban on oil and gas heating systems. This exemption remains in place until the property changes hands. In such cases, if the heating system is over 30 years old, the new owners must replace it within two years of the ownership change.

For example, consider a couple, Sieglinde and Manfred, who have resided in their home since 1997 and installed a new oil heating system in 1998. Although this system would typically be required to be replaced by 2028, their long-term residence qualifies them for an exemption. When their daughter, Luise, moves in after they relocate to assisted living, she will have until summer 2029 to replace the old system with one that meets the new renewable energy requirements. Nonetheless, the directive that no fossil fuel heating systems can be in operation after 2045 applies to all cases.

Section 102 of the GEG specifies additional circumstances under which homeowners may be exempt from the heating replacement mandate. These situations, however, require individual assessments and must be substantiated through formal applications to the relevant local authorities. Homeowners may be excused from compliance if they can demonstrate that they are achieving the goals of the law through alternative means not explicitly stated in the GEG, potentially including the adoption of yet-to-be-developed technologies.

Furthermore, exemptions may be granted to those facing undue financial hardship, particularly if the costs associated with compliance significantly exceed their financial capabilities or surpass the property's value. Individuals receiving social benefits for at least six consecutive months may also be exempt, although this relief lasts for only twelve months and may require renewal. Properties utilized for the accommodation of refugees may also receive extended compliance deadlines, initially set for two years.

Ultimately, the decision to grant exemptions will largely rest with local authorities, who will evaluate requests on a case-by-case basis. The primary goal remains clear: transitioning to non-fossil-based heating systems across Germany by 2045.