The energy budget is becoming more important every year. More and more people are paying attention to the sustainability of properties when buying or renting. This is also very important for cost reasons. The Building Energy Act (GEG) passed in November 2020 makes an energy performance certificate mandatory for property sales and new rentals. The transitional period until April 30, 2021 has now expired, meaning that the new rules will apply from May 2021.
It is essential that you have the energy performance certificate drawn up by a qualified issuer. This is because there are important aspects that need to be taken into account. We have summarized the most important changes for you in this article.
Attention: Please note that all information is provided without guarantee and that this article does not constitute tax advice. For detailed information on your individual circumstances, please consult your tax advisor.
Why do you need an energy performance certificate?
The energy performance certificate classifies the energy standard of a residential building. If you want to sell or rent out a property, the energy performance certificate is mandatory. With the energy performance certificate, property buyers and tenants can find out about the building’s greenhouse gas emissions, giving them a much more detailed overview of the additional costs they will incur before the first annual bill.
The new regulations are also a response to the increased sensitivity in the energy sector. In recent years, the state has already supported many renewable energy projects. The energy performance certificate is not only mandatory if you wish to sell a property, but is also required when constructing a new building – provided it is to be heated to normal temperatures.
New rules for the energy performance certificate: this applies from May 2021
The transitional period since the adoption of the Building Energy Act expired on April 30, 2021. Since May 1, 2021, the regulations regarding the energy certificate must therefore be strictly adhered to. Whether a residential building is rented, sold or leased is irrelevant. The energy certificate must be presented at the time of the viewing. It is not sufficient to present it at the time of contract negotiations.
However, this does not mean that all property owners now have to issue new energy performance certificates. Previously issued energy performance certificates remain valid for up to ten years after issue – provided that no major changes have been made to the building during this period.
There are still two different types of energy performance certificate: Demand and consumption certificates, so here it remains the same as before. However, the cheaper consumption certificates are not permitted for all types of buildings. To issue a consumption certificate, the complete heating cost and consumption bills from three consecutive years are required. The requirements that the energy certificate must meet also depend on whether the building is to be used for private or commercial purposes.
Energy performance certificates - these are the changes from 2021
With the changes in May 2021, the energy performance certificate should not only break down the energy costs, but in particular also contain detailed information on energy consumption. Greenhouse emissions must therefore also be listed. Other mandatory information includes the year of construction, the energy source of the heating and the type of energy certificate.
In addition, the issuer of the energy performance certificate must get a proper impression of the property. The best way to do this is to visit the property. Photos are also permitted if a meaningful assessment is required. This step is also intended to improve the quality of the information on the energy performance certificate. This is because information on the renovation status and modernization recommendations are now mandatory for all energy performance certificates.
New regulations for energy certificates: Who is affected?
Not only property owners are affected. In future, estate agents will also have to present the energy performance certificate when inviting tenders. This means that it is no longer just property owners who are confronted with the task of presenting the energy performance certificate. However, the energy performance certificate only has to be issued if the property is newly rented, leased or sold. Existing tenancies do not require a new energy performance certificate to be issued. Even if the property is to be used by the owner, no action is required. The situation is different, however, if there has been major building work on the property that also affects the energy balance.
The responsibility for the accuracy of the energy performance certificate issued lies with the owner and the issuer of the energy performance certificate. The issuer must therefore obtain a good picture of the property in the future. An assessment of the energy standard can also be carried out by submitting informative photos, but a visit to the property is recommended for the issue.
Where can you apply for a new energy certificate?
Where you can apply for an energy performance certificate depends on whether it is a new build or an existing property.
For existing properties, energy performance certificates may in principle be issued by engineers, architects, physicists or craftsmen. However, it is important for you as the owner to make sure in advance that the issuer also meets the conditions set out in the GEG. Otherwise, you will also be liable for incorrect information in the energy certificate.
There is no certificate that attests to the issuing of an energy performance certificate. This is why it is all the more important for you to have the energy performance certificate issued by people who already have experience in this field. The German Energy Agency (dena), for example, has compiled a list of energy consultants whose qualifications are regularly checked under the energy efficiency expert list.
If it is a newly built property, the energy performance certificate will only be issued on completion. The energy certificate cannot be issued in advance. Where the energy certificate can be applied for in this case varies from state to state.
The cost of the energy certificate
The cost of an energy performance certificate can vary between 50 euros and 500 euros. How expensive the energy performance certificate is depends on many different factors. In order to be able to classify this in terms of price, a distinction must be made between the demand and consumption certificate. Although the consumption certificate is cheaper, it is not suitable for all types of building. A consumption certificate usually costs between 50 and 100 euros, while an average of 300 to 500 euros can be charged for the issue of a demand certificate. Consumption certificates are also not as informative as demand certificates. This is another reason why it can be worthwhile issuing a certificate of need.
It is important that you are not deceived by offers that are too cheap. An energy performance certificate that has been prepared correctly and with care may cost a little more. You should therefore be careful with offers that are too cheap and question the qualifications of the issuer or have them checked. Incorrect preparation can also be expensive for the issuer of the energy performance certificate. Violations when issuing or using the energy performance certificate are punishable by fines of up to 10,000 euros. As a property owner, you should therefore always ensure that the energy standard can be properly assessed by the issuer.
