GEG Update Postponed to November 2026: What This Means

In March 2026, indications from Berlin and Munich became increasingly clear: the update to the Building Energy Act scheduled for spring 2026 will not take effect-at least not on the originally planned date. According to current plans, the new effective date is November 2026. For property owners in Nuremberg-Maxfeld, one of the city’s most densely built-up neighborhoods of older buildings located in the immediate vicinity of the city park, this postponement has concrete implications for renovation planning, investment decisions, and the assessment of risks associated with heating system modernization.

What applies so far: GEG 2024 as the current legal framework

The Building Energy Act in its currently applicable version-the GEG 2024-serves as the basis for all heating system modernizations, renovations, and new construction in Germany. For existing buildings, the key regulations that have been phased in since January 1, 2024, apply.

Anyone replacing a heating system or installing a new one in an existing building must ensure that the new system derives at least 65 percent of its heat from renewable energy sources. This requirement can be met through a heat pump, a biomass heating system, a solar thermal system, a connection to a district heating network with a correspondingly high share of renewable energy, or through a hybrid system (a combination of a gas condensing boiler and a heat pump or solar) that demonstrates the 65 percent share over the course of the year.

For oil and gas heating systems installed before January 1, 2024, a grandfathering provision applies: They may continue to be operated as long as they are technically functional. Only in the event of a malfunction, a voluntary replacement, or the expiration of the grandfather clause must the 65% renewable energy requirements be met. This grandfather clause also applies in Maxfeld to the many gas heating systems from the 1990s and 2000s that were installed in Wilhelminian-style buildings.

The Delay: Background and Political Dynamics

The GEG update, originally planned for spring 2026, was intended to implement several stricter measures that were already outlined in the 2024 political compromise. The three key points: an increase in the renewable energy share to 75 percent, a requirement to calculate the heating load prior to replacing the heating system for subsidized measures, and closer integration with municipal heating plans, which must be submitted by major cities by the end of 2026.

Topic	GEG 2024 (current)	GEG Update (planned Nov. 2026)
Renewable energy share for heating system modernization	65%	75% (planned)
Heating load calculation prior to replacement	recommended	mandatory (subsidized measures)
Grandfathering of oil/gas heating (before 2024)	until failure/replacement	until 2035 (planned)
Link to municipal heat planning	optional	mandatory link (planned)
Primary energy factor for electricity	1.8	1.6 (planned, reflects renewable energy share in the grid)
BAFA subsidy base rate	15%	15% (unchanged as planned)

Source: Federal Ministry of Housing, Urban Development, and Construction (BMWSB), draft bill for GEG update, as of January 2026; BAFA BEG subsidy guidelines, as of Q1 2026.

The postponement to November 2026 stems from a mediation process between the Federal Government and the Bundesrat. Bavaria had pushed in the Bundesrat for extended transition periods for rural areas without district heating prospects and called for adjustments to the requirements for existing buildings. Other federal states had also submitted requests for changes to the draft bill, including regarding the level of funding rates and the eligibility of direct hydrogen heating systems as a renewable energy source. These issues significantly prolonged the coordination process and made a complete parliamentary review impossible before the 2026 summer recess. It cannot be ruled out that the effective date will be delayed again-owners should not base their plans on a specific date but rather respond flexibly to the current legislative status.

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Impact on Heating System Modernizations: The Current Window of Opportunity

The postponement creates a clear and attractive window of opportunity for owners who are planning to replace their heating systems in 2026 anyway: Anyone who installs a system by October 2026 that complies with the GEG 2024 (65% renewable energy standard) will fully meet the legal requirements in effect at the time of installation. Subsequent stricter requirements resulting from the GEG update do not apply retroactively to systems already installed.

At the same time, homeowners should factor in the planned increase to a 75% renewable energy share during their current planning to ensure they install a future-proof system. An air-to-water heat pump or a ground-source heat pump generally already meets both the 65% standard of the GEG 2024 and the planned 75% standard of the GEG update-without additional modifications. The additional costs compared to a hybrid system that only barely complies with GEG 2024 are minimal in most cases.

For older gas heating systems in Maxfeld that are still covered by grandfathering provisions, a medium-term phase-out plan is recommended. The extended grandfather clause planned through 2035 provides sufficient time as well as the necessary lead time for planning: Replacing a heating system in a densely populated apartment building requires a lead time of 6 to 18 months (planning, bidding, contractor availability, grant application, installation).

Nuremberg Municipal Heat Planning: What Property Owners in Maxfeld Should Consider

As a major city with over 500,000 residents, the city of Nuremberg is required under the Heat Planning Act (WPG) to submit a municipal heat plan by December 31, 2026. This plan maps the urban area according to supply options: district heating expansion areas, local heating, hydrogen potential, or decentralized solutions (typically a heat pump).

The implications for homeowners in Maxfeld are significant: In areas designated as district heating expansion zones in the municipal heating plan, homeowners may, under certain conditions, wait to replace their heating systems until the district heating network is expanded-and then choose a district heating connection as a GEG-compliant solution instead of a heat pump. This avoids the often complex and costly retrofitting of heating systems in Wilhelminian-style buildings with radiators designed for higher flow temperatures.

Nuremberg-Maxfeld is located close to the city center and, according to current planning guidelines from N-ERGIE (Nuremberg’s energy supplier), is a promising candidate for district heating expansion. The final municipal heating plan is not yet available; owners should wait until the end of 2026 before making investment decisions regarding expensive systems.

What the subsidies offer during the transition phase: BAFA and KfW remain stable

An important practical note regarding the transition phase until November 2026: The funding conditions of BAFA (Federal Funding for Efficient Buildings, BEG) and KfW will remain unchanged until the GEG update takes effect. This means:

The basic BAFA subsidy of 15 percent for heating systems with a renewable energy component is still available; with the climate bonus (concurrent measures such as PV or windows), the rate increases to 20 percent. For low-income households, there is an additional income bonus of 30 percent. Combining this funding with a KfW 261 loan is possible. Crucially: The funding application to BAFA must be submitted before the contract is awarded-the contractor agreement may only be signed after the approval notice has been issued. This rule remains unchanged and is independent of the GEG postponement.

For homeowners in Maxfeld planning to install a heat pump or another renewable energy heating system, the transition phase is therefore an opportunity: The current subsidy framework is established, the requirements are known, and the renovation market in Nuremberg has a sufficient number of qualified specialist companies. Waiting lists at heat pump installers have normalized compared to the peak year of 2024.

Local Context: Maxfeld Between the City Park and Wilhelminian-Era Architecture

Nuremberg-Maxfeld is located immediately south of the City Park-one of the most important green corridors in the city center, characterized by mature trees and the adjacent Lake Wöhrder-and borders the historic Old Town to the west. The neighborhood is characterized by dense Wilhelminian-style development: four-story apartment buildings from the period around 1880 to 1910 dominate the streetscape along Maxfeldstraße, Gossenbühlstraße, and the adjacent side streets. The ceiling heights of 3.0 to 3.5 meters, the large window areas, and the heavier radiators from the period of construction pose special challenges for heating modernization.

Wilhelminian-style buildings in Maxfeld typically have older heating systems with flow temperatures of 60 to 75 °C. For efficient heat pump operation, flow temperatures of no more than 50 to 55 °C would be ideal. Adjusting the hydraulic system-enlarging radiators or partially switching to radiant heating-involves significant additional effort during the modernization. Nevertheless, the preparation is worth it: hydraulic balancing, switching to low-temperature radiators in individual rooms, and a thorough building envelope inspection cost between 5,000 and 15,000 euros and optimally prepare the building for a future heat pump conversion. This expense is one of the reasons why many homeowners in Maxfeld are waiting for the municipal heating plan before investing in an expensive heat pump system. In areas with planned district heating, a premature heat pump installation would later prove to be an unnecessary investment.

Conclusion for Homeowners in Nuremberg-Maxfeld

The postponement of the GEG update to November 2026 provides planning certainty for the current year but does not alter any fundamental strategic decisions. Anyone replacing a heating system in 2026 should already opt for a system that meets the planned 75% renewable energy standard-the additional costs are low, and future-proofing is high. Anyone who owns a Wilhelminian-style house in Maxfeld should also wait for the publication of Nuremberg’s municipal heating plan at the end of 2026 before deciding on a system: heat pump or district heating.

Owners with concrete renovation plans for 2026 should seize the opportunity: The combination of stable subsidy frameworks, normalized availability of tradespeople, and a clear legal landscape (GEG 2024) is more favorable than during the chaotic transition years of 2023 and 2024. Anyone who commissions a system by October 2026 will have taken full advantage of the current BAFA-BEG subsidy before any changes resulting from the GEG update take effect. This window of opportunity is particularly favorable for owners of older gas heating systems, which are deteriorating anyway: The current availability of contractors for heat pump installations in Nuremberg and the surrounding area is better than in 2023/2024, with wait times at many companies having dropped to 2 to 4 months. A grant application to the BAFA should be submitted at least 6 months before the desired installation date-as of now, BAFA processing times have dropped to 4 to 8 weeks, allowing for realistic planning.

The valuation tool from leadmarkt.ch gives you a quick overview of the energy efficiency status and market value of your property in Maxfeld-a good starting point for investment decisions regarding heating and energy-efficient renovations. Those looking to sell their property after a successful renovation will also find current market prices for renovated and unrenovated properties in the immediate vicinity. The data is regularly updated and reliably reflects current market conditions in the Nuremberg metropolitan area-a dependable planning basis for all upcoming decisions regarding your Maxfeld property.

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Compiled by the my-home.de editorial team in collaboration with regional real estate analysts. Data as of: Q1/Q2 2026.