The GEIG (Building Electromobility Infrastructure Act) has been in force since 2021 and aims to promote the installation of charging infrastructure for electric vehicles in the property sector. The law defines clear requirements for new and existing buildings in order to support electromobility in a future-proof manner.

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The GEIG stipulates that for new buildings with at least six parking spaces in residential buildings and seven parking spaces in non-residential buildings, the cable infrastructure must be prepared for charging points. This preparation includes the laying of cable conduits so that charging points can be easily retrofitted at a later date. Non-residential buildings are also obliged to install at least one charging point. This regulation is an important step towards integrating the charging infrastructure directly into the construction of new buildings, even if some critics would have called for more charging points from the outset.

 

Requirements for existing buildings

Existing buildings are also covered by the GEIG, but only in the case of major renovations that affect car parks or the electrical infrastructure. If there are eleven or more parking spaces, wiring infrastructure must also be installed during such renovations in order to facilitate the subsequent installation of charging points. This regulation is a moderate obligation for the property industry, as it is limited to renovation measures that are already planned and does not require immediate implementation.

 

Neighbourhood solutions

An interesting option offered by the GEIG are so-called neighbourhood solutions. Here, several owners within a neighbourhood can work together to jointly meet the requirements for the charging infrastructure. This solution makes it easier, especially for larger residential or commercial units, to implement the obligations of the GEIG by realising the infrastructure in a bundled manner. Outlook: Tightening due to EU directives

 

The GEIG is based on the European Buildings Directive (EPBD), which is constantly being tightened by the EU. A recently amended version of the directive calls for a significant increase in the number of charging points in existing and new buildings. It is particularly noteworthy that the requirements for renovations to existing buildings have been tightened. In future, charging infrastructure must already be taken into account for renovations that only affect 20% of the building envelope - a significant tightening compared to the previous threshold of 50%.

 

Significance for the property industry

The GEIG is an important step towards advancing the charging infrastructure in the property industry. The success of electromobility depends to a large extent on charging points being available where people park their vehicles in the long term - at home or at work. The regulations of the GEIG create a basis for supporting electromobility across the board and accelerating the expansion of the charging infrastructure.

 

Conclusion

The GEIG provides clear guidelines for the installation of charging infrastructure in residential and commercial properties. New and existing buildings are obliged by law to prepare the wiring infrastructure for charging points. Neighbourhood solutions and the increasing tightening of EU directives will continue to drive the expansion of charging infrastructure. The GEIG therefore represents an important building block for the future of electromobility by creating the basis for nationwide charging in properties.

 

Read the full text of the law online here.

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Emobility in commercial tenancies: A guide to
§554 BGB and practical recommendations for action

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Electric vehicles are playing an increasingly important role in the climate-friendly development of road transport. Against this backdrop, the legislator made decisive changes with the amendment to Section 554 of the German Civil Code (BGB) through the Act on the Promotion and Modernisation of the Condominium Act and on the Amendment of Cost and Land Register Regulations (WEMoG) of 15 October 2020. This extension applies not only to residential tenants, but also explicitly to commercial tenants by adapting the reference standard of Section 578 (1) and (2) BGB.

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Legal basis Section 554 of the German Civil Code (BGB) extends the right of tenants to demand consent from their landlords for the installation of charging infrastructure for electric vehicles. This right extends to the initial installation as well as to improvements or the maintenance of existing charging infrastructure. The legislator is thus emphasising its intention not to create an exclusive right for residential tenants, but to explicitly include commercial tenants as well.

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Significance for commercial tenants

For commercial tenants, this opens up the opportunity to make their locations more attractive to customers and employees and improve their competitive position by installing charging infrastructure. This contributes to the reduction of greenhouse gas emissions and promotes environmental protection.

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Recommendations for landlords

To avoid an uncoordinated proliferation of different installations, landlords should take a proactive role:

• Early coordination and planning of charging infrastructure in consultation with all tenants.

• Consideration of rent increases as a result of modernisation measures that increase the utility value of the rental properties. Supplementary:

• The establishment of an operator model by a fast-charging station operator at its own risk, with payment of an appropriate rent for the parking spaces used.

 

Weighing of interests

When deciding whether to approve structural alterations, the interests of the landlord and the tenant must be weighed up. Landlords can only refuse their consent if they cannot reasonably be expected to accept the changes, taking all interests into account.

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Dismantling and compensation

The possibility of dismantling the installed infrastructure and the conditions for this should be clearly regulated between the parties. In principle, a tenant may be obliged to remove all changes made by him, unless otherwise agreed.

 

Conclusion

The creation of charging infrastructure in commercial properties offers an opportunity to increase the attractiveness of the properties and make a contribution to electromobility. A well-planned and implemented charging infrastructure not only strengthens the competitiveness of tenants, but also increases the value of the property. An operator model is an attractive alternative to an own investment or the activities of the tenants, as attractive rental income can generally be expected for the rented space. Please do not hesitate to contact us!

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Please note that this information does not constitute legal or tax advice. Appropriate experts should always be consulted for legal or tax-related questions.

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Outlook and further development: Amended European Buildings Directive (EPBD) May 2023

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The amended European Buildings Directive (EPBD), which was adopted and came into force in May 2023, contains several new requirements for charging infrastructure for electric vehicles in new and existing buildings that must be implemented in EU member states, including Germany, over the next few years. These changes are aimed at driving the expansion of electromobility and ensuring that charging infrastructure is available in many more buildings in the future. Here are the most important new requirements from the EPBD 2023:

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New requirements of the EPBD 2023 for charging infrastructure

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1. New construction of non-residential buildings

• Cable infrastructure: In new buildings of non-residential buildings with more than 5 parking spaces, cable infrastructure (e.g. empty conduits) must be prepared for every fifth parking space with immediate effect.

• This installation will enable the future installation of charging points.

• Minimum number of charging points: In addition, at least one charging point must be installed as soon as a non-residential building offers more than 5 parking spaces.

• Example: A newly built supermarket with 20 parking spaces must provide a charging point and lay cable infrastructure for 4 parking spaces.

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2. Existing buildings during renovations

• Threshold for renovations: A key point of the new EPBD is the lowering of the threshold above which existing buildings must be equipped with charging infrastructure. Previously, this was the case when 50% of the building envelope was renovated. The new directive lowers this threshold to 20 %. This means that the installation of charging infrastructure is already required for smaller renovations (e.g. façade or roof renovations).

• Infrastructure: Existing buildings with more than 10 parking spaces must also prepare line infrastructure for every fifth parking space during such renovations.

• Minimum number of charging points: As with new buildings, at least one charging point must also be installed in existing buildings with more than 20 parking spaces.

• Example: A renovated grocery store with 50 parking spaces must provide cable infrastructure for 10 parking spaces and install at least one charging point if the renovation affects at least 20% of the building envelope.

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3. Existing buildings without renovations

• Requirements by 2025: By 2025 at the latest, all existing buildings with more than 20 parking spaces must install at least one charging point, regardless of whether renovations are being carried out or not. This ensures that older buildings that are not undergoing major renovations are also included in the expansion of the charging infrastructure.

• Example: A retail shop with 40 parking spaces must install at least one charging point by 2025 at the latest, irrespective of any renovation work.

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4. Charging infrastructure for bicycles

• One of the new requirements of the EPBD 2023 concerns not only electric vehicles, but also e-bikes and pedelecs. In future, charging facilities for bicycles must also be taken into account in major new builds and renovations of non-residential buildings. This is intended to promote the use of electric bicycles and support the transport transition in urban areas.

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Outlook for upcoming changes

The directive gives member states a two-year implementation period, which means that the new requirements must be transposed into national law by May 2025 at the latest. Germany is expected to amend the GEIG (Building Electromobility Infrastructure Act) accordingly in order to fulfil the stricter requirements of the EPBD. The GEIG already applies in Germany for new buildings and for renovations of buildings with more than 6 parking spaces in residential buildings and 7 parking spaces in non-residential buildings. It is expected that the requirements will be extended and tightened in the coming years as part of the implementation of the EPBD.

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Conclusion for property owners and operators of retail spaces

For owners of retail and commercial properties, the new EPBD 2023 means that they must plan early on how to integrate charging infrastructure into their new buildings and renovations. For grocery stores, shopping centres and retail spaces with large car parks in particular, this is an important development that both meets legal requirements and offers competitive advantages as the demand for charging points for electric vehicles continues to grow. Preparing for the new regulations in good time and taking advantage of subsidies for charging infrastructure can help to reduce the costs of implementation while enhancing the property in the long term.

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Source: European Commission - EPBD amendment 2023

Link to the official EU regulation and EPBD documentation

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Please note that this information does not constitute legal or tax advice. Appropriate experts should always be consulted for legal or tax-related questions.