Hardship Provision (GEG)

The hardship provision in the Building Energy Act (GEG) allows owners to be fully or partially exempted from certain energy-efficiency renovation requirements if meeting those requirements is economically unreasonable. It applies in particular to obligations arising from a change of ownership (Section 47 GEG) and to heating system replacement requirements (Sections 71 et seq. GEG). The hardship provision protects owners from disproportionate burdens, but requires a thorough review and, as a rule, an application to the competent authority.

When does the hardship provision apply?

The hardship provision of § 102 GEG applies when the costs of a measure cannot be recouped through the expected savings in energy costs within a reasonable useful life. In addition, personal financial circumstances-such as a low pension income-may play a role. Specifically, it is relevant in the following cases:

• Insulation requirements upon change of ownership (Section 47 GEG): Anyone who purchases a house with inadequately insulated components (roof, upper-floor ceiling) must retrofit them within two years-unless the costs are unreasonable.
• Heating system replacement (Sections 71 et seq. GEG): When replacing a defective heating system, requirements regarding the use of renewable energy apply; the hardship provision may extend the deadline or exempt the owner entirely.

Procedure for Exemption

The exemption must be applied for in writing to the competent authority-in Bavaria, this is typically the district administrative authority or the municipality. The application must be accompanied by evidence demonstrating the economic unreasonableness of the costs: cost estimates, proof of income, and energy consultant reports. The authority decides at its discretion; a complete exemption is possible, as is an extension of the deadline.

Distinction from Subsidy Programs

The hardship provision is not a substitute for subsidies. Rather, owners should first check whether federal or state subsidy programs (KfW, BAFA, Bavarian Modernization Program) can reduce the costs to an economically reasonable level. Only if the project is not profitable even with subsidies should the hardship provision be considered.

Practical Tip for Owners in Nuremberg and Franconia

Anyone who inherits or purchases an older building in Nuremberg or the surrounding region should quickly determine what GEG obligations apply. The two-year deadline for insulation requirements following a change of ownership begins on the date of entry in the land register. We recommend consulting a certified energy consultant (Efficiency House expert from the German Energy Agency, dena) early on and obtaining cost estimates. If the analysis reveals an unreasonable financial burden, we will work with the energy consultant to prepare a well-founded hardship case application.

Frequently Asked Questions

Does the hardship provision also apply to landlords?

Yes, landlords can also benefit from the hardship provision if the investment costs cannot be recouped through rent increases or energy savings. Tenancy law limits modernization-related rent increases to 8% of the costs incurred per year, which can limit economic viability.

Is there an age limit for owners?

The GEG does not contain an explicit age limit, but the owner’s age and thus the remaining useful life of the property are de facto relevant factors in assessing economic unfeasibility-especially if the owner lives in the house themselves.

How long does a granted exemption last?

The duration of the exemption depends on the individual case. It can be temporary (e.g., five years) or permanent. In the case of a temporary exemption, the owner must carry out the work after the period expires or submit a new application.

Hardship Provision for Heating System Replacement (GEG § 71)

The hardship provision in connection with the heating requirement under § 71 GEG has received particular attention. Starting in 2024, the general rule is that when installing a new heating system, 65% of the heat must come from renewable energy sources. Transition periods and special provisions apply to property transfers, new construction in existing areas, and certain exceptional cases.

The hardship provision allows for a complete exemption in such cases if the financial burden-for example, due to the high investment costs of a heat pump in a building with poor insulation-is unreasonable. Older owner-occupiers who will no longer be living in the building in the foreseeable future, or owners with low incomes, are particularly eligible for an exemption.

Anyone in Nuremberg or the metropolitan region who owns an old oil or gas heating system should consult an energy advisor early on to explore both funding opportunities and a potential hardship exemption. The Nuremberg Energy Advisory Center (ebz) offers free initial consultations. We are happy to facilitate contact.

Interplay Between the Hardship Provision and GEG Transition Periods

The GEG provides for different transition periods for various owner groups, which precede the hardship provision in terms of timing. Owners over the age of 80 who live in the building themselves, for example, are generally permanently exempt from the replacement requirement for existing heating systems without the need for a formal hardship application. For younger owners, staggered deadlines apply, depending on the timing of the municipal heating plan and the condition of the heating system.

The hardship provision therefore serves as a supplement when the general transition periods are insufficient or when the economic situation justifies an exemption despite the regular deadlines. It is therefore important to take both instruments-the transition period and the hardship application-into account in the overall planning.

Documentation and Proof Requirements

Anyone applying for a hardship exemption bears the burden of proof regarding financial unfeasibility. The following documents should be prepared in any case:

• Cost estimates from at least two specialized companies for the required measure
• Current proof of income (pension statement, tax assessment, bank statements)
• Energy consultant’s report with an assessment of economic viability, including a comparison of alternatives if applicable
• Expert opinion on the building’s energy efficiency (if available)
• Proof of applied-for and rejected or insufficient subsidies

The completeness of the documentation is a decisive factor in the success or failure of the application. We recommend having an energy consultant or attorney review the documents for consistency before submission. Anyone in Nuremberg or Franconia who needs assistance with this process can contact us at any time-we will connect you with the right contacts and guide you through the process from the initial consultation to the official decision.

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