Renewable heat supply in rented buildings

This study examines the legal situation for replacing heating systems and switching to heat supply services in rented buildings in Germany. The regulation for the replacement of heating systems which changed in 2023 with the amendment of the German Building Energy Act (GEG). The study focuses on the relevant provisions of residential tenancy law and the legislations addressing the ancillary costs applicable to rented buildings. The legal and economic obstacles to the practical implementation of the requirement to use at least 65 % renewable heat when installing new heating systems (§ 71 GEG) are analysed.

Building on this analysis, proposals for improving the legal framework are developed. The aim is to establish regulations that firstly facilitate compliance with the 65 % renewable heat requirement, secondly provide incentives for landlords to implement this requirement, thirdly simultaneously protect tenants from undue financial burdens, and fourthly are compatible with the existing regulatory framework. In particular, the study explores adjustments to the tenancy law rules on modernization cost allocation in cases of heating system replacement, as well as reform proposals for the legal treatment of heat supply services, in order to ensure equal competitive conditions.