Hydraulic Balancing Under Section 60c GEG: What Housing Companies Must Know in 2026

Since 1 October 2024, Section 60c of the German Building Energy Act (GEG), now continued in the Building Modernization Act (GModG), has required hydraulic balancing for every new heating system installed in buildings with six or more residential units. Affected housing companies must use the stricter Method B and document the result in full, regardless of the energy source.

For portfolio owners with multiple properties, that requirement is far more than a technical footnote. As soon as a water-based heating system is newly installed or set up in a building with six or more residential or commercial units, the obligation applies automatically, whether it involves swapping out a boiler, installing a heat pump, or connecting to district heating. Running separately is the recurring heating inspection under Section 60b, with its own deadlines staggered by construction year, which is already due for older existing systems regardless.

Keeping the two obligations clearly apart avoids duplicated work and fines across the portfolio. Here is what matters in 2026:

What exactly does Section 60c GEG require for hydraulic balancing?

At the heart of the obligation is a room-by-room heat load calculation under DIN EN 12831, which determines exactly how much heat each individual room actually needs. Building on that, the specialist contractor checks the heating surfaces for the lowest achievable flow temperature and adjusts the system's controls accordingly. Together, these three steps make up what the law defines as hydraulic balancing, and they have applied since 1 October 2024 to every newly installed water-based heating system in buildings with at least six residential units.

The threshold of six units applies to the individual building, not to a housing company's overall portfolio. A five-unit building falls outside Section 60c just as a single condominium unit does, while any new-build with six or more units must meet the requirement from day one. For the technical implementation, what ultimately counts is a cleanly documented result, as also described in the article on heating optimization in existing buildings.

Who is affected: existing buildings, new builds, heat pumps, portfolios?

Any building with six or more residential or commercial units in which a water-based heating system is newly installed or set up is affected, regardless of the energy source. An existing gas heating system that simply keeps running does not trigger the obligation. Only an actual replacement or new installation sets Section 60c in motion, whether the result is a heat pump, a new gas boiler, or a district heating substation.

Legally, the obligation is designed as a one-time event. Under the prevailing legal interpretation, it arises solely from the installation of the new system, and it is addressed to the building's owner, not merely its operator. If a system has already been balanced under Section 60c, later changes to that same system do not automatically trigger the obligation again under this interpretation.

For portfolio owners with larger holdings, a second, entirely separate obligation comes into play. Heating systems installed before 1 October 2009 must be inspected and optimized by 30 September 2027. Systems installed later, with the exception of heat pumps, come due one year after their 15th year of operation, meaning boilers installed in 2010 are already due in 2026. Anyone managing a portfolio should therefore answer two separate questions for each building: has a new heating system recently been installed, and how old is the existing one.

What exactly changes with the GModG on 29 July 2026?

For hydraulic balancing, the legislative reform changes almost nothing in substance. The Building Modernization Act replaced the GEG with its first stage on 29 July 2026, after the Federal Cabinet approved the amendment on 13 May and the Bundestag and Bundesrat passed it on 10 July 2026. Further stages follow on 1 January 2027 and 1 January 2028, with a final stage on 1 January 2030.

Core efficiency rules such as Section 60b and Section 60c were carried over essentially unchanged, both in substance and in their section numbering. Other building blocks of the law did change: the former 65 percent renewable energy rule has been dropped and will be replaced from 2029 by a so-called bio-ramp for newly installed fossil-fuel heating systems. The previous obligation to replace 30-year-old boilers has also been scrapped without replacement. For the balancing obligation itself, that means anyone who has been planning under Section 60c can carry that planning forward unchanged, just under the law's new name.

How does hydraulic balancing work in a multi-family building?

For the legal obligation, only Method B under the technical rules of ZVSHK and VdZ counts; the simplified Method A does not satisfy the requirement. Method B calls for a full room-by-room heat load calculation rather than a rough estimate based on square meters, making it considerably more involved, but also far more reliable. Since 1 October 2024, Section 60c(3) has also permitted certified, equivalent digital methods that deliver the same depth of data.

Only Method B counts: A simplified balancing based on rough reference values, the kind some contractors offer for single-family homes, does not satisfy the GEG obligation in multi-family buildings. Legally sound proof requires the room-by-room calculation of Method B or a certified digital equivalent.

In practice, balancing runs as a multi-stage process coordinated by a heating, ventilation and plumbing contractor:

In multi-family buildings, the biggest delays rarely occur during the calculation itself but rather in gathering data and gaining access to individual units. Typical stumbling blocks include missing or outdated floor plans, valves that haven't been replaced in decades and offer no presetting option, and scheduling access to radiators with dozens of individual tenants. Housing companies that clarify these three points before commissioning the work noticeably shorten implementation once it's underway.

What does hydraulic balancing cost, and is funding still available?

Costs depend heavily on building size, the number of radiators, and the condition of the existing valves. Common model calculations for a small multi-family building with five residential units and roughly 500 square meters of living space put the full Method B balancing at around 4,000 to 5,000 euros.

These figures come from single-building model calculations with no portfolio context, and some rely on a methodologically older study. For your own properties, they are no substitute for a binding quote from a specialist contractor, only a first point of orientation.

When it comes to funding, many portfolio owners overlook one key point: buildings that already fall under the GEG obligation, meaning six or more residential units, no longer qualify for BAFA funding for heating optimization at all. The subsidy, 15 percent as a baseline and 20 percent with an individual renovation roadmap, remains reserved for residential buildings with a maximum of five units. Housing companies should therefore realistically budget balancing as a mandatory investment without a subsidy, not as a funded measure.

How is balancing verified, and does it stay effective long-term?

Verification must be provided in writing and include several specific data points, not just an informal confirmation. Under Section 60c(4), it must include at least the following:

This confirmation goes to the responsible party within the company, and tenants can request to view it. If the proof is missing or not provided on time, it constitutes a regulatory offense.

Fine risk: A missing or late hydraulic balancing can be penalized under Section 108 GEG/GModG with a fine of up to €5,000. For a portfolio with several affected buildings, a central overview of when each system was replaced is well worth setting up.

Once completed, a balancing job doesn't automatically stay stable forever. Heating optimization experts observe that the configured values can shift again during operation, through tenant behavior or later interventions on the system. Method B is a one-time process without ongoing metrological monitoring, so it doesn't capture what gets adjusted on thermostats or pumps months later.

There is currently no legal requirement to continuously monitor this condition digitally for typical residential buildings. The GEG only recognizes this kind of substitution of the recurring inspection through continuous monitoring for large non-residential buildings with heating or air conditioning systems above 290 kilowatts of rated output. For residential portfolios, ongoing monitoring therefore remains a business decision rather than a legal obligation, which is exactly where operational transparency through heating monitoring comes in. With KUGU VIS (Visuelles-Informationssystem, or Visual Information System), flow temperatures and system behavior become visible over time, so any drift away from the original balancing shows up early, before it turns into higher heating costs again. Building on that, KUGU EOS (Energie-Optimierungssystem, or Energy Optimization System) can counteract automatically and readjust operating parameters, instead of waiting for the next manual on-site visit.

Balancing as a starting point, not a finish line

The 31 percent figure and the upcoming wave of inspections under Section 60b for systems installed around 2010 point to the same gap from two directions: a large share of the building stock has neither been recently balanced nor ever technically inspected, and both deadline chains are now running in parallel. For housing companies with multiple properties, a one-time portfolio check is worth the effort, sorting every building into one of two questions: is a heating system replacement with a Section 60c obligation coming up, or is the system due for inspection under Section 60b because of its age.

Where balancing has already been completed, the real work doesn't end there automatically. The documented condition is a snapshot, and its effect in daily operation depends on tenant behavior and later interventions. Keeping that condition visible through monitoring, rather than relying on the one-time inspection report, protects the investment instead of letting it quietly fade away after a heating season or two.

Frequently asked questions about hydraulic balancing under the GEG

Does a heating system that has already been balanced need to be rebalanced if something is later changed on it?

No, under the prevailing legal interpretation, the obligation under Section 60c does not automatically re-arise for an already-balanced system because of later changes. The obligation is designed as a one-time event tied to the installation of the new heating system. Independently of that, it can still make operational sense to review the setting values after major interventions.

Does the balancing obligation apply if an old gas heating system just keeps running?

No, an existing heating system that isn't replaced does not trigger Section 60c. The obligation arises exclusively from the installation or setup of a new water-based heating system. For unchanged existing systems, the separate, age-dependent inspection obligation under Section 60b may apply instead.

How high is the fine if hydraulic balancing is missing or done too late?

Up to €5,000 is the fine the responsible authority can impose if hydraulic balancing under Section 60c is not carried out, or not carried out on time. This is based on the regulatory offense catalog in Section 108 GEG/GModG. What matters here is the absence of written proof, not merely a technically imperfect setting.

Do housing companies still get funding for hydraulic balancing?

No, buildings with six or more residential units, which already fall under the GEG obligation, no longer qualify for BAFA funding for heating optimization. The subsidy of 15 to 20 percent remains reserved for residential buildings with a maximum of five units. Larger portfolios have to finance the balancing entirely from their own resources.

How many residential buildings in Germany currently have their heating hydraulically balanced?

Around 31 percent of Germany's roughly 15.5 million centrally heated residential buildings had been hydraulically balanced, according to a 2023 analysis by co2online. For buildings built from 2007 onward, the share was significantly higher at 56 percent, while for older stock it was only around a third. A more recent nationwide figure is not currently available.