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Energy Efficiency

German Relief Package Emphasizes Energy Efficiency

In light of increasing energy prices, the German government has presented a comprehensive relief package to decrease dependency on fossil fuel from Russia and to reduce the financial pressure on German citizens. 

Energy savings and energy efficiency are two of the main aspects of the package. A broad campaign will be launched to increase awareness of citizens and businesses about reducing energy consumption and improving energy efficiency and to highlight low-investment measures such as smart thermostats and hydraulic balancing.

Building law measures

  • Amendment of the Building Energy Law (GEG) this year to make the efficiency standard 55 obligatory for new buildings as of 1 January 2023;

Incentives programs

  • Energy efficiency subsidies will be augmented in the federal Incentive Program for Energy Efficient Buildings (BEG); 
  • Creation of a framework for building owners to replace boilers that are over 20 years old and optimization of the existing measures for replacing gas boilers in the Incentive Program for Energy Efficient Buildings (BEG). A “heat pump offensive” will be launched for private households, tradespersons and industry;
  • Planning security for applicants to energy efficient renovation subsidy programs: the German government will ensure that the programs are adequately funded and subsidy stops avoided;
  • Priority for renovation will be given to particularly inefficient buildings in line with the EU principle “worst first”;

Heating standards

  • New requirement for all new heating systems, as far as possible, to operate with 65 percent renewable energy as of January 1, 2024, instead of 2025 as currently planned in the coalition treaty;
  • Introduction of Germany-wide municipal heat planning as an instrument to coordinate the local and efficient use of heat.
  • Achieve at least 50 percent climate-neutral heat in district heating networks by 2030 and facilitate the integration of waste heat in such networks.

On March 30, the Federal Minister for Economic Affairs and Climate Action initiated the early warning level of the national emergency gas plan and at the same time appealed for businesses and households to save gas and other energy.

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