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1. In order to promote the production and use of renewable energy in the building sector, Member States shall determine an indicative national share of renewable energy produced on-site or nearby as well as renewable energy taken from the grid in final energy consumption in their building sector in 2030 that is consistent with an indicative target of at least a 49 % share of energy from renewable sources in the building sector in the Union’s final energy consumption in buildings in 2030. Member States shall include their indicative national share in the integrated national energy and climate plans submitted pursuant to Articles 3 and 14 of Regulation (EU) 2018/1999 as well as information on how they plan to achieve it.

2. Member States may count waste heat and cold towards the indicative national share referred to in paragraph 1, up to a limit of 20 % of that share. If they decide to do so, the indicative national share shall increase by half of the percentage of waste heat and cold counted towards that share.

3. Member States shall introduce appropriate measures in their national regulations and building codes and, where applicable, in their support schemes, to increase the share of electricity and heating and cooling from renewable sources produced on-site or nearby as well as renewable energy taken from the grid in the building stock. Such measures may include national measures relating to substantial increases in renewables self-consumption, renewable energy communities, local energy storage, smart recharging and bi-directional recharging, other flexibility services such as demand response, and in combination with energy efficiency improvements relating to cogeneration and major renovations which increase the number of nearly zero energy buildings and buildings that go beyond minimum energy performance requirements provided for in Article 4 of Directive 2010/31/EU.

In order to achieve the indicative share of renewable energy provided for in paragraph 1, Member States shall, in their national regulations and building codes and, where applicable, in their support schemes or by other means with equivalent effect, require the use of minimum levels of energy from renewable sources produced on-site or nearby as well as renewable energy taken from the grid, in new buildings and in existing buildings that are undergoing major renovation or a renewal of the heating system, in accordance with Directive 2010/31/EU, where that is economically, technically and functionally feasible. Member States shall allow those minimum levels to be fulfilled through, inter alia, efficient district heating and cooling. For existing buildings, the first subparagraph shall apply to the armed forces only to the extent that its application does not cause any conflict with the nature and primary aim of the activities of the armed forces and with the exception of material used exclusively for military purposes.

4. Member States shall ensure that public buildings at national, regional and local level fulfil an exemplary role as regards the share of renewable energy used, in accordance with Article 9 of Directive 2010/31/EU and Article 5 of Directive 2012/27/EU. Member States may allow that obligation to be fulfilled by, inter alia, providing for the roofs of public or mixed private-public buildings to be used by third parties for installations that produce energy from renewable sources.

5. Where deemed to be relevant, Member States may promote cooperation between local authorities and renewable energy communities in the building sector, particularly through the use of public procurement.

6. In order to achieve the indicative share of renewable energy provided for in paragraph 1, Member States shall promote the use of renewable heating and cooling systems and equipment and may promote innovative technology, such as smart and renewable-based electrified heating and cooling systems and equipment, complemented, where applicable, with smart management of energy consumption in buildings. To that end, Member States shall use all appropriate measures, tools and incentives, including, energy labels developed under Regulation (EU) 2017/1369, energy performance certificates established pursuant to Article 11 of Directive 2010/31/EU, and other appropriate certificates or standards developed at Union or national level, and shall ensure the provision of adequate information and advice on renewable, highly energy efficient alternatives as well as on financial instruments and incentives available to promote an increased replacement rate of old heating systems and an increased switch to solutions based on renewable energy.