Energy Performance Certificate

Energy Performance Certificate - The Energy Performance Certificate is a legally required document that assesses a building’s energy efficiency and must be presented when the building is sold, rented, or leased.

What exactly is an Energy Performance Certificate?

The energy performance certificate makes a building’s energy needs or consumption transparent and comparable. Its legal basis is the Building Energy Act (GEG), which replaced the former Energy Saving Ordinance (EnEV) in November 2020. The goal is to provide buyers and tenants with a sound basis for decision-making and to encourage energy-efficient renovations.

There are two types of energy performance certificates. The consumption certificate is based on actual energy consumption over the past three years. It is more cost-effective but heavily dependent on user behavior: an energy-efficient previous owner may yield a lower value than the building’s actual performance. The demand certificate, on the other hand, is calculated based on a technical analysis of the building envelope and building services, independent of individual heating habits. For residential buildings with fewer than five residential units that were constructed before November 1, 1977, and have not undergone energy-efficient renovations since then, the demand certificate is mandatory.

Both versions display the energy rating in kilowatt-hours per square meter per year (kWh/m²a) and assign the building an energy efficiency class ranging from A+ (very efficient, under 30 kWh/m²a) to H (very inefficient, over 250 kWh/m²a). Many consumers are already familiar with this color scale from green to red from household appliances.

The energy performance certificate is valid for ten years from the date of issuance. After it expires, a new certificate must be issued if the property is sold or rented again. It is also recommended to obtain a new certificate after major energy-efficiency renovations, as the performance values are likely to have improved.

Owners are required to mention the energy performance certificate in the real estate listing. It must be presented unsolicited at the latest during the viewing and a copy must be provided upon signing the contract.

Obligations and Fines Under the GEG

The Building Energy Act clearly stipulates who needs an energy performance certificate and when. The obligation to present the certificate applies to sellers, landlords, and lessors. Exceptions apply only to historic buildings, small buildings with less than 50 square meters of floor space, and buildings that are not regularly heated or cooled.

Violations of the energy performance certificate requirement are punishable as administrative offenses. The GEG provides for fines of up to 10,000 euros, for example, if no energy performance certificate is presented, mandatory information is missing from listings, or intentionally false information is provided. In practice, the competent authorities primarily impose fines when listings are published without the required energy performance data.

Energy Performance Certificates and Real Estate Valuation: The Impact on Value in Practice

Energy efficiency ratings are increasingly influencing real estate market prices. Several studies-including analyses by the Nuremberg Appraisal Committee and the empirica Institute-show that buildings with poor energy ratings (F, G, H) are sold at significant price discounts in markets where energy efficiency is a priority. In the Nuremberg metropolitan region, where heating costs have risen due to increasing energy prices, we observe that prospective buyers actively factor the energy performance certificate into their purchasing decisions. A Class G single-family home with a final energy demand of 250 kWh/(m²·a) can incur additional costs of €2,000-3,500 per year in heating costs alone when compared to a renovated Class C property (80 kWh/(m²·a)). Buyers capitalize this difference into a price discount-which, with a 20-year investment horizon and a capitalization rate of 3-5%, quickly amounts to a €30,000-50,000 difference in value. For sellers, this means: An energy-efficient renovation before the sale can pay off financially if it improves the efficiency class from F to C or better.

Practical Tip for Property Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region, a large portion of the building stock dates back to the reconstruction decades of the 1950s through the 1970s. For these properties, an energy demand certificate is generally required if they have fewer than five residential units and no comprehensive energy-efficient renovation can be documented. The cost of a consumption certificate typically ranges from 50 to 100 euros, while an energy performance certificate costs between 300 and 500 euros, depending on the building’s complexity. Our network recommends having the energy performance certificate issued well in advance of a planned sale-ideally 6-12 months beforehand. This allows sufficient time to implement any renovation measures that can improve the energy rating and thereby increase the achievable sale price. In Nuremberg, numerous qualified energy consultants are available; the energy consulting service of the Bavarian Consumer Advice Center also offers subsidized on-site consultations.

Frequently Asked Questions

Do I need an energy consumption certificate or an energy demand certificate?

The choice depends on the type of building. For residential buildings with fewer than five residential units that were built before November 1977 and have not undergone significant renovation, the energy demand certificate is mandatory. For all other residential buildings, owners are free to choose. The energy demand certificate provides more objective results, as it is independent of individual heating habits. We generally recommend it, especially when selling-because it reflects the actual energy quality of the building structure and is not skewed by an atypically frugal or wasteful previous occupant.

How does the energy performance certificate affect the property price?

Studies show that buildings with a good energy efficiency rating (A+ to C) command higher market prices than comparable properties with poor ratings. In times of rising energy costs, buyers and tenants are increasingly paying attention to ongoing utility costs. A poor energy performance certificate can lead to price reductions of 5-15% compared to the market price, while an excellent energy performance certificate speeds up the marketing process and broadens the pool of bidders. For investors, the efficiency class is also an indicator of future renovation obligations-starting in 2026, increasingly stringent requirements will apply under the EU Energy Performance of Buildings Directive (EPBD).

What happens if my energy performance certificate has expired?

An expired energy performance certificate is no longer valid and may not be used when selling or renting a property. Owners must have a new certificate issued before the next sale or rental. Violations may result in fines of up to 10,000 euros, imposed by the relevant district administrative authority-in Nuremberg, this is the City Planning Office. However, if you are currently neither selling nor renting out your property, you do not need a new certificate, as the requirement to present one only applies in the event of a change of ownership or a new lease.

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