As of: January 23, 2024, 8:02 a.m
By: Anne Hund
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The regulations of the new law will initially apply to new buildings in a new development area from January.
What rent increase could be threatened after installing a new heating system?
There was bitter debate about this for months - now the new heating law came into force at the beginning of the year.
The most important message: The vast majority of homeowners don't have to do anything at first.
Functioning heaters can continue to be operated.
“In order to reduce dependence on fossil fuels and meet climate protection goals, from 2024 every newly installed heating system must be powered by at least 65 percent renewable energy.
This requirement will be mandatory for new development areas from January 2024,” explains the Munich tenants’ association according to the statement.
But: “The new Building Energy Act does not create an obligation to replace existing heating systems.
Such an obligation will only come from the year 2045.”
What do the regulations mean for tenants?
The German Tenants' Association clarifies the most important questions.
What rent increase can tenants expect after installing a new heating system?
“By installing the new heating system, the monthly rent may increase by a maximum of 50 cents per square meter within six years,” it says.
For an 80 square meter apartment, this means a maximum monthly rent increase of 40 euros.
“How the exact rent increase is calculated is determined.
There are differences depending on whether the landlord has taken advantage of public funding or not,” explains the German Tenants’ Association, according to the announcement, and recommends that those affected seek advice in individual cases.
The new heating law came into force at the beginning of the year.
(Symbolic image) © Hauke-Christian Dittrich/dpa
Can the rent be increased by more than 50 cents per square meter per month?
"Yes.
The 50 cents per square meter only refers to the costs of installing the new heating system,” the statement says.
“If landlords carry out further modernization measures at the same time (such as insulating a facade or adding a balcony), the monthly rent may – as usual – increase by a maximum of three euros per square meter within six years.” The monthly rent is the amount before the rent increase If less than seven euros per square meter, the monthly rent may only be increased by a maximum of two euros per square meter within six years, emphasizes the German Tenants' Association.
“The 50 cents for the new heating system are included and do not come on top.”
What special features apply to the modernization levy when installing a heat pump?
In order to protect tenants “from the high costs of an ineffective heat pump in an unrenovated building,” landlords are only allowed to pass on the full costs of installing a heat pump “if they can prove that the heat pump is effective,” explains the German Tenants’ Association also according to the announcement – “for example by a chimney sweep or heating engineer”.
Otherwise, they could only pass on 50 percent of the costs incurred as modernization costs, it goes on to say.
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Can the costs for the new heating be passed on to an index rent?
"No.
Landlords who install new heating and have agreed an index rent with their tenants cannot pass on the modernization costs for the new heating,” says the announcement published by the Munich Tenants’ Association.
The Munich Tenants' Association also drew attention to the most important regulations regarding the entry into force of the new heating law on Facebook.
Start only for new development areas
The Building Energy Act (GEG) generally stipulates that from 2024 every newly installed heating system must be powered by 65 percent renewable energy.
The regulations of the new law apply from January, but initially for new buildings in a new development area.
Many heat pumps are already being installed in new buildings, but other heating models are also possible.
Specifically, according to the Ministry of Economic Affairs, the 65 percent green electricity requirement applies to all new buildings for which a building application is submitted from January 2024.
Transition periods
There are transition periods for existing buildings and new buildings outside of new development areas.
The pivotal point is municipal heat planning.
It should be available in large cities from mid-2026 and for the remaining municipalities from mid-2028.
Homeowners should then have clarity as to whether, for example, they should be connected to a district heating network or whether they should look for their own decentralized solutions for a new heating system - for example a heat pump.
If the municipalities have already made a prior decision on the designation of an area, for example for a heating network, which takes into account a municipal heating plan, earlier deadlines may apply, according to the Ministry of Economic Affairs.
In general, functioning heaters can continue to be operated.
This also applies if a heater breaks but can still be repaired.
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Replacing broken heaters
In the event that a gas or oil heating system needs to be completely replaced because it can no longer be repaired, there are transition periods lasting several years.
New oil or gas heating systems may continue to be installed until the heat planning deadlines expire.
However, from 2029 onwards they will have to use a growing proportion of renewable energies such as biogas or hydrogen.
If the municipality already has a heating plan, the installation of heating systems with 65 percent renewable energy is mandatory, according to the ministry.
In cases of hardship, owners could be exempted from the obligation to use renewable heating.
There is already a basic obligation to replace a boiler with a new one after 30 years.
There are exceptions for condensing boilers, among others.
From 2045, buildings may only be heated in a climate-neutral manner using renewable energies.
According to a study by the energy industry association BDEW in November, almost half of the 41.9 million apartments were heated with natural gas in 2023.
Oil heating is in second place with almost a quarter.
The ministry points out: In most cases it makes sense to use heating with renewable energies now.
This helps climate protection and is also economically attractive because there is financial support - even if the heating is still working.
(With material from dpa)