Heating (Technology)

Heating (Technology) - Heating technology encompasses all technical systems and installations used for heat generation and distribution in buildings. The choice of heating system significantly impacts energy costs, CO₂ emissions, eligibility for subsidies, and property value. Since the Building Energy Act (GEG) of 2024, new heating systems must be powered by renewable energy sources for at least 65% of their energy needs.

Overview of Current Heating Systems

The most important heating technologies for residential buildings:

• Heat pump: Utilizes environmental heat from the air, ground, or groundwater. The most efficient system for well-insulated buildings with surface heating (underfloor heating). Annual performance factors of 3-5 mean that 3-5 kWh of heat are generated from 1 kWh of electricity. Air-to-water heat pumps are the most cost-effective to install (12,000-20,000 euros); geothermal heat pumps (brine-to-water) are more efficient but more expensive (18,000-30,000 euros plus drilling).
• Gas condensing boiler: Efficient use of natural gas with exhaust heat recovery. Widely used in existing buildings-about 50% of all German heating systems-but under the GEG 2024, permitted only as a transitional solution or in combination with renewable energy (hybrid heating with a heat pump or solar thermal).
• Pellet and wood heating: Biomass heating systems are considered CO₂-neutral and meet the 65% renewable energy requirement. They require sufficient storage space (pellet storage approx. 4-8 m²) and regular maintenance. Particularly suitable for detached homes with storage space.
• District heating: Centralized heat supply via a pipeline network-the connection meets the GEG requirements provided the district heating supplier can demonstrate the required renewable energy share. In Nuremberg, N-ERGIE operates the district heating network and supplies parts of the city center, Langwasser, and other neighborhoods.
• Solar thermal: Supplementary system for hot water production and heating support - reduces primary energy demand and operating costs, but cannot be used as the sole heating system. Eligible for funding under the BEG.

GEG 2024 and municipal heat planning

The Building Energy Act 2024 stipulates that newly installed heating systems in new development areas starting in 2024 and in existing areas no later than upon the availability of the municipal heat plan (by mid-2026 for large cities like Nuremberg, by mid-2028 for smaller municipalities) must be powered by renewable energy sources to the extent of 65%. Existing heating systems may continue to be operated and repaired-a mandatory replacement requirement based solely on age (the so-called 30-year rule) remains limited to specific cases. In the event of an irreparable defect, transition periods of up to five years apply, during which a temporary solution (including gas or oil) may be installed.

Heating System and Property Value

A property’s energy status increasingly influences its market value. Buildings with modern heat pumps and good insulation command noticeably higher prices in the Nuremberg market than comparable properties with old oil-fired heating systems. Banks factor the energy standard into the loan-to-value ratio-a property with energy class A or B receives a more favorable loan-to-value ratio than a property in class F or G. This means: A modern heating system not only improves operating costs but also the financing terms in the event of a future sale.

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that owners in the Nuremberg metropolitan region follow the City of Nuremberg’s municipal heating plan-it will indicate which neighborhoods are slated for district heating and where individual solutions (heat pumps, pellets) will be necessary. Before replacing your heating system, you should check whether your building is suitable for a heat pump: Well-insulated houses with underfloor heating or large radiators are ideal; poorly insulated older buildings with small radiators often require prior energy-efficient renovation. Take advantage of the BEG subsidy (Federal Subsidy for Efficient Buildings) through the BAFA-the grant covers up to 70% of the investment costs for a heating system replacement when an income bonus is factored in.

Frequently Asked Questions

Do I have to replace my gas heating system immediately?

No, existing gas heating systems may continue to be operated. Only when a replacement is installed must the new heating system meet the 65% renewable energy requirement-and even then, only once the municipal heating plan for your location is available. For Nuremberg, the deadline is mid-2026. In the event of an irreparable defect, transition periods of up to five years apply, during which a temporary solution may be installed. We recommend realistically assessing the remaining service life of your current heating system and starting to plan the replacement early-given the shortage of skilled workers in the heating installation trade, wait times of six months or more are not uncommon.

Which heating system is best suited for older buildings?

For unrenovated older buildings with high heating demands, a hybrid solution often makes sense-such as a heat pump combined with a gas peak-load boiler for particularly cold days, or a pellet heating system as the primary heat source. After an energy-efficient renovation (insulation, window replacement), a heat pump can also operate economically as the sole heating system in an older building. An individual energy consultation with a consultant listed on the dena expert list provides the best basis for decision-making and is a prerequisite for accessing KfW subsidies.

What subsidies are available for replacing a heating system?

The BEG subsidy through the BAFA offers a basic grant of 30% for the installation of a climate-friendly heating system (heat pump, pellet heating, district heating). In addition, there is a speed bonus of 20% for the early replacement of still-functioning fossil fuel heating systems (valid until 2028) and an income bonus of 30% for households with a taxable annual income below 40,000 euros. A maximum of 70% of eligible costs is covered (i.e., a maximum subsidy of 21,000 euros for a 30,000-euro investment). The subsidy application must be submitted before the project begins.

How does N-ERGIE’s district heating supply influence heating decisions in Nuremberg?

N-ERGIE Aktiengesellschaft operates one of the largest municipal district heating networks in southern Germany in Nuremberg. Property owners in connected areas-including parts of the city center, the Südstadt, Langwasser, and the Nordstadt area-can meet GEG requirements through a district heating connection without having to install a new heating unit themselves. This significantly simplifies the technical side of things: no need for a boiler room, no maintenance costs for a private boiler. However, N-ERGIE’s district heating rates are linked to current energy price trends and may, in certain periods, be higher than the operating costs of a well-sized heat pump. When deciding for or against district heating, we recommend comparing N-ERGIE’s current price lists and factoring long-term cost trends into your calculations.

Back to the Real Estate Glossary.