Energy performance certificate: Costs and obligations in detail

At a glance

• Mandatory disclosure: Property owners must provide an energy performance certificate (EPC) whenever selling or leasing a property.

• Expanded scope: Starting late May 2026, this obligation also applies to lease extensions and comprehensive modernization projects.

• Variable costs: The cost of an energy certificate depends on building size, the type of certificate, the issuer, and the region.

• Two formats: Consumption-based certificates remain more affordable than demand-based certificates, with the latter seeing cost increases due to new calculation methods.

• Non-compliance penalties: Fulfilling the energy certificate requirements is mandatory; non-compliance carries heavy statutory fines.

• Updated rating scale: A new energy efficiency rating scale (A to G) officially replaces the previous system (A+ to H).

Definition: What exactly is an energy performance certificate?

An energy performance certificate (EPC)—often referred to as an energy pass—evaluates a building's energy efficiency, making it transparent for all parties involved. It details how much energy a building consumes and the extent to which renewable energy sources are integrated. This provides potential buyers and tenants with a reliable foundation for estimating a property's long-term energy costs.

In Germany, an energy certificate is a legal requirement and plays a critical role in property sales and leasing. There are two types of certificates: the consumption-based certificate and the demand-based certificate, each providing distinct insights.

The German Building Energy Act (GEG) forms the legal framework, stipulating that a building's CO₂ emissions must be factored into the certificate alongside its energy consumption. Ultimately, the energy performance certificate serves as a key instrument in promoting energy-efficient construction and sustainable living.

We have compiled comprehensive information regarding energy performance certificates for your review below.

Legal framework and obligations

Who needs an energy performance certificate?

Virtually every heated and permanently occupied building requires an energy performance certificate. The mandatory disclosure obligation applies primarily when selling or re-letting real estate. Exceptions exist for owner-occupied single-family homes or buildings with a floor area under 50 square meters.

This obligation stems from European and national energy efficiency legislation, which aims to reduce building energy consumption and drive climate protection forward. At the end of May 2026, the scope of this certificate requirement was significantly expanded—more details on this can be found in the section on the new regulations.

The German Building Energy Act (GEG)

The German Building Energy Act (GEG) is the core legal framework governing energy performance certificates in Germany. Replacing the former Energy Saving Ordinance (EnEV), it dictates that a building's environmental impact must be integrated into the certificate alongside its energy consumption. The GEG applies to both new builds and existing properties, defining the minimum standards for energy efficiency.

Enforcement and compliance

Violations of the energy certificate requirement are penalized with statutory fines. Enforcement is carried out through random spot checks. Both property owners and landlords must ensure that a valid energy certificate is issued in due time and presented to prospective buyers or tenants. Fines vary depending on the severity of the violation and the respective federal state. Consequently, it is highly recommended to take these legal requirements seriously and secure a valid energy performance certificate early on.

Types of energy performance certificates

A building's energy efficiency rating can be assessed through different types of energy certificates. Discover the specific options available below.

Energy efficiency ratings and metric values

Energy performance certificates (EPCs) offer key insights into a property’s energy efficiency via distinct rating classes and metric values. While the scale previously spanned from A+ to H, a newly overhauled classification system ranging from A to G takes effect in late May 2026—detailed further in the section below.

The accompanying metrics display the final energy demand or energy consumption per square meter annually, allowing for a direct comparison between different properties.

Validity period and updates

In Germany, energy performance certificates generally remain valid for ten years from the date of issuance. Following major energy-efficiency upgrades—such as installing new windows or a modern heating system—it may be highly beneficial or legally required to obtain an updated certificate. Crucially, even though older certificates technically retain their formal validity, financial institutions are increasingly hesitant to accept them. Learn more about this under the new regulatory updates below.

New regulations from May 2026

Extensive updates to energy performance certificate regulations come into force in late May 2026. Property owners and landlords who fail to act ahead of schedule risk facing increased costs and a greater administrative burden.

Expanded certificate requirements

Previously, a valid energy certificate was predominantly required for property sales and new leases. Starting late May 2026, this mandatory disclosure also applies to lease extensions and comprehensive modernizations. For landlords, this introduces significantly more administrative oversight, making early preparation essential.

New efficiency scale: A+ to H transitions to A to G

The existing classification framework is undergoing a fundamental reform. The scale from A+ to H will be replaced by a streamlined scale from A to G. The highest tier, Class A, is strictly reserved for net-zero emission buildings—which, in practice, applies almost exclusively to new builds constructed to current standards.

With the removal of Class H, automatic shifts may occur, potentially moving some properties into higher energy classes without any actual retrofitting. However, owners should not prematurely rely on this upgrade, as the new calculation methodology also introduces specific disadvantages.

Energy ratings impact financing conditions

An often underestimated factor is that banks are increasingly linking their real estate financing conditions to a property's energy efficiency rating. Financing or refinancing a property with a poor energy balance could lead to unfavorable interest rates or stricter lending criteria in the future. While older energy certificates legally retain their ten-year validity, financial institutions may increasingly reject them for new loan approvals.

Consequently, the pressure to invest in energy-efficient retrofitting is rising, driven not just by regulatory mandates but by direct economic factors.

Costs and process for obtaining an EPC

Securing an energy performance certificate is an essential step in evaluating and documenting a building's energy efficiency. This section outlines the costs and professional assessment required to issue the certificate.

Cost of issuing an energy performance certificate

The investment required for an energy certificate depends on the certificate type, property size, and regional variations. As a rule, demand-based certificates (Bedarfsausweis) involve a more complex technical analysis and are costlier than consumption-based certificates (Verbrauchsausweis).

The regulations taking effect in May 2026 will drive the cost of demand-based certificates higher. These updated assessments are anticipated to be based on primary energy demand, requiring more extensive calculations. While consumption certificates remain available from approximately €100, property owners should anticipate several hundred euros for a demand-based certificate—with costs for a single-family home ranging between €300 and €800 or more.

Properties utilizing fossil-fuel heating systems are particularly affected: the new calculation method factors in environmental impact, which can automatically trigger a lower efficiency rating even without any structural changes to the building.

We highly recommend requesting multiple quotes to compare prices before commissioning an issuer.

Certificate costs for modifications and updates

When undertaking renovations or retrofits that alter energy efficiency, the budget for an updated energy certificate must be taken into account. These mirror the standard costs of a first-time issuance. The same applies once the 10-year validity period of an existing energy certificate expires. In both scenarios, an entirely new consumption or demand certificate must be generated.

Energy consultants and their role

Energy performance certificates may only be issued by appropriately qualified and authorized professionals. Depending on their specific credentials, this includes architects, engineers, or specially trained energy consultants. Professional expertise is particularly crucial for a demand-based certificate, as it requires a comprehensive assessment of the building’s structural characteristics and technical systems.

When commissioning a professional, ensure they have verifiable qualifications, proven experience, and a transparent scope of work.

You can find practical tips and guidance on choosing a qualified energy consultant in this article.

Your energy performance certificate obligations – Supported by Engel & Völkers

An energy performance certificate (EPC) is far more than a mandatory bureaucratic document. It establishes transparency, promotes energy-efficient construction and sustainable living, and gains even greater significance under the new regulations taking effect in May 2026. Staying informed and seeking professional advice early on secures clear advantages for you—both in terms of cost planning and property financing.

As your experienced real estate partner, Engel & Völkers is by your side to support you with all questions regarding energy certificates—from evaluating your legal obligations to connecting you with qualified industry experts.