Building Modernisation Act, GEG 2026, Energy certificate

New energy certificate requirement for lease renewal and renovation

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Energieeffizienz-Expertin, Content-Managerin

From May 2026 the energy certificate requirement in Germany will be extended: in future an energy certificate must be provided not only on sale or new tenancy, but also on lease renewal and major renovation. What this means for landlords, tenants, property managers and agents – and how to recognise an expired or outdated certificate.

Energy certificate with A to G scale: requirement for lease renewal and renovation from 2026 for landlords, tenants, managers and agents

The EU Energy Performance of Buildings Directive (EPBD) must be transposed into national law by 29 May 2026; the planned Building Modernisation Act (GMG) will anchor the new obligations in Germany. This article sets out the confirmed facts, the practical impact for your audience and concrete next steps.

Currently the Building Energy Act (GEG) requires an energy certificate on sale, letting, leasing or rental – at latest at the viewing (§ 80 GEG). New from EPBD transposition are the requirement on lease renewal and on major renovation (or major refurbishment). That mainly affects landlords, property managers and agents; tenants get more transparency on the energy quality of their home. An overview of all 2026 changes: Energy certificate 2026: New A–G scale and extended duties.

Why things change in 2026 for lease renewal and renovation

The EU is behind the extension: the revised EU Energy Performance of Buildings Directive (EPBD, Directive (EU) 2024/1275) has been in force since May 2024 and must be transposed into national law by all member states by 29 May 2026. In Germany this will be done via the planned Building Modernisation Act (GMG), which will replace or amend the current GEG.

The EPBD extends the obligation to provide energy certificates: in addition to sale and (new) letting, an energy certificate will be required on lease renewal and on major renovation. The directive also introduces a harmonised A to G scale (Class A = zero-emission building, Class G = worst 15% of the national stock). The exact design – e.g. when exactly the energy certificate requirement applies on lease renewal and how “major renovation” is defined nationally – will be set out in the GMG.

The new requirement: Energy certificate on lease renewal

Until now an energy certificate was only required on new tenancy, not on simply renewing an existing lease. That changes with EPBD transposition: from 2026 an energy certificate will also be required on lease renewal. For landlords with multiple properties that can mean noticeable effort – e.g. when many contracts are up for renewal in 2026 and a valid or new certificate must be available for each property.

When does the requirement apply?

It applies from when the national transposition takes effect – expected from May 2026. Whether it applies only on formal renewal (e.g. follow-on tenancy agreement) or in other situations will be set out in the GMG. Landlords and managers should therefore check in good time whether a valid energy certificate (or a new certificate on the A to G scale) exists for affected properties.

Practical impact for landlords, managers and agents

  • Landlords: For every upcoming lease renewal an energy certificate must be available. If a valid certificate is missing or practice requires one on the new scale, extra costs arise (typically around €150 to €500 per certificate; Cost comparison of providers) and coordination with an energy assessor. Example: A landlord with 15 tenancy agreements renewed in 2026 must check in good time for all properties whether a current certificate exists – and if necessary plan for several new certificates.
  • Property managers: Their processes must check whether a current energy certificate exists for each property with upcoming renewals; owners should be informed in good time about having one issued if needed.
  • Agents: When arranging lease renewals or supporting renewal negotiations, the energy certificate must be planned from the start and made available to the tenant.

Important: Anyone who does not provide a valid energy certificate risks penalties (see section “Penalties, timeline and what you should do now”).

What tenants gain

Tenants have a right to information on the energy quality of the building. The extended requirement on lease renewal ensures they can see the energy efficiency class and key values on renewal too – and better assess heating costs and refurbishment state. The new A to G scale is intended to be comparable across the EU and to increase transparency.

The new requirement: Energy certificate on major renovation

In addition to lease renewal, a second new requirement applies: providing an energy certificate on major renovation.

What counts as major renovation?

The EPBD sets a framework: major renovation means work where more than 25% of the building envelope is refurbished or the work affects more than 25% of the building value (Directive (EU) 2024/1275 – EPBD). The exact design (calculation method, thresholds) will be set out in the GMG. Until then, owners and managers can use these as a guide. Practical examples: Comprehensive facade insulation, roof refurbishment or heating replacement together with other work on the envelope can meet or exceed the 25% threshold.

Impact for owners and managers

For planned major renovation, an energy certificate must be planned before or as part of the work. It is often better to have the certificate issued only after the refurbishment: then it reflects the improved energy performance (see section “Particular benefit after energy renovation or refurbishment”). Managers should inform owners about the certificate requirement and the best time to have it issued when planning larger refurbishment.

Recognising an expired or outdated energy certificate

Whether an energy certificate may still be used is critical for landlords, managers and agents – penalties apply for non-compliance. Two things to check: the expiry date and the scale.

Valid until and 10-year period

An energy certificate is valid for ten years from the date of issue; the period is calculated to the exact day (Validity of energy certificates). On the first page of the certificate the “Valid until” field is usually at the top with the end date. If that date has passed, the certificate has expired and may no longer be used on sale, letting, lease renewal or major renovation – a new energy certificate must be issued. Example: Date of issue 15 March 2015 → valid until 14 March 2025; after that the certificate has expired.

Old scale A+ to H vs. new scale A to G

  • Old scale (A+ to H): Previous German energy efficiency classes. Certificates with this scale are formally valid until the end of their ten-year validity – whether they will still be accepted from May 2026 for lease renewal and major renovation will be set out in the GMG (two scenarios: immediate invalidity or grandfathering). Details: Will energy certificates be invalid from May 2026?.
  • New scale (A to G): EU-harmonised; from EPBD transposition new certificates will only be issued with this scale. For better comparability and legal certainty alone it can make sense to voluntarily have a new certificate issued (see next section).

Why a new certificate (even just for the A–G scale) is worthwhile

Even if the old certificate is still valid, a new energy certificate on the A to G scale can bring benefits – regardless of the legal requirement.

Comparability and transparency

The A to G scale is uniform across the EU and comparable to that used for household appliances. Tenants and buyers can better compare properties; confusion between old and new scale is avoided. Will energy certificates become more comparable with the new A to G scale from May 2026?

A certificate to the new standard signals that you as landlord or manager are up to date. In practice a certificate issued under the new rules is often expected for lease renewal and major renovation. Those who switch early avoid bottlenecks and strengthen trust with tenants and partners.

Particular benefit after energy renovation or refurbishment

After energy refurbishment – e.g. insulation, new heating, window replacement – having a new energy certificate issued is especially worthwhile: the improvement becomes visible and can be used.

Making the improvement visible

A new certificate reflects the improved energy performance. The better efficiency class and lower values are immediately visible and can be used in listings and in discussions with tenants or buyers. Without a new certificate the improvement stays invisible – the old certificate still reflects the pre-refurbishment state.

Value and lettability

Energy-efficient buildings are often easier to let and can achieve higher rents or sale prices (Energy certificate and rent index). A current certificate with a good class documents the value of the property and helps banks and buyers with valuation (What do banks do with the energy certificate?). After refurbishment you should therefore plan to have a new certificate issued.

Penalties, timeline and what you should do now

Penalties for non-compliance

Breaches of the energy certificate requirement (missing or incomplete provision, outdated or forged certificates) can be punished as an administrative offence with penalties of up to €10,000 (§ 108 GEG). Anyone who does not provide a valid certificate on lease renewal or major renovation risks these penalties. Planning in good time protects you.

GMG timeline and next steps

The federal government has confirmed a timeline for the GMG: Key points are expected by end of January 2026, the draft bill by end of February 2026 (GIH – New Building Modernisation Act). The EU deadline for transposing the EPBD is 29 May 2026. Once the GMG draft is available, many open questions – including exact deadlines for lease renewal and the definition of major renovation – will be clarified.

Recommendations

  1. For planned lease renewals in 2026: Check now whether a valid energy certificate exists; if needed, plan in good time for a new certificate (e.g. on the A to G scale).
  2. For planned major renovation: Bear in mind the certificate requirement and the best time – often after refurbishment – to have it issued.
  3. Recognising an expired certificate: Check the “Valid until” field and the scale (A+ to H vs. A to G); have a new one issued in good time if expired or before transactions.
  4. Involve an energy assessor: A certified energy assessor can advise on certificate type (consumption vs. demand), timing and costs (Energy certificate cost comparison).

More on all 2026 changes: Energy certificate 2026: New A–G scale and extended duties.

Conclusion

From May 2026 the energy certificate requirement in Germany will be extended to lease renewal and major renovation. Landlords, property managers and agents must provide a valid energy certificate on renewals and on major refurbishment; tenants get more transparency. You can recognise an expired or outdated certificate by the “Valid until” field (10-year validity) and the scale (A+ to H = old standard, A to G = new standard). A new certificate is worthwhile for the better comparability of the A to G scale alone – and especially after energy refurbishment, when the improvement is visible and documented in a value-enhancing way. Penalties of up to €10,000 for non-compliance and the GMG timeline (key points January 2026, draft bill February 2026) make timely planning important.

Further reading: Will energy certificates be invalid from May 2026? · Will energy certificates become more comparable with the new A to G scale from May 2026? · Order energy certificate online