Energy-efficient refurbishment: reasons, measures, funding opportunities. We clarify!

Topics such as sustainability, the energy transition and climate protection are becoming increasingly important in society and politics. The EU has been pushing these issues for many years in order to achieve the climate targets that have been set. The war in Ukraine in 2022 has once again clearly shown us how quickly the situation on the energy market can deteriorate dramatically. It can be assumed that politics and business will place even more emphasis on sustainability in the future in order to increase the independence of both property owners and society as a whole, in addition to protecting the environment. For energy-efficient refurbishment, this means that there will be numerous funding offers and support - but also more obligations and state regulation in the foreseeable future. Be prepared for this and see it as an opportunity.

In this article, we would like to give you an overview of this complex topic and answer the following three key questions:

1. What measures fall under energy renovation?
2. How do I finance the measures and which subsidies can I make use of?
3. Is an energy-efficient renovation worthwhile?

1. Which measures are covered by energy-efficient refurbishment?

Generally speaking, an energy-efficient renovation is a structural measure on an existing property with the aim of reducing energy consumption for heating and hot water.

A property is an overall system and you should also consider it as such when carrying out an energy-efficient refurbishment. The individual areas can be renovated separately from each other - or as one large measure at the same time. As a rule, this is a question of your investment options. Which measures make the most sense in which combination and sequence always depends on the property in question.

The measures at a glance:

• Façade insulation: Façade insulation is one of the most effective methods for energy efficiency. Insulating the exterior walls alone can save up to 35 percent of energy costs.
• Roof insulation: Due to its size, the roof of a house offers a lot of surface area for heat and cold to penetrate. Good roof insulation can quickly save up to 30 percent of thermal energy.
• Basement insulation: Compared to other renovation measures, insulating the basement ceiling is relatively simple and inexpensive. As an individual measure, it is a good start to the energy-efficient refurbishment of a property.
• Windows: Single-glazed and sometimes leaky frames - with many old windows
  old windows are bound to lose heat in cold seasons. Modern windows, on the other hand, work wonders in winter and summer with a low heat transfer coefficient (thermal insulation value). Nowadays, it's not just a question of whether the window is double or triple glazed. Inert gas between the panes or moisture absorbers in the frame also have a positive effect on many models.
• Heating: A modern boiler can quickly save up to 20 percent of energy. However, before installing a new heating system, it is advisable to replace the insulation so that the heat stays in the house. In the case of energy-efficient renovation, heat pump heating systems, solar thermal or pellet heating systems are particularly suitable from a sustainability perspective. However, which heating system is best suited to the property in question must always be decided on an individual basis and cannot be answered in general terms.
• Ventilation: As well-insulated properties are very airtight to prevent unwanted heat loss, the air remains in the room for much longer. It is then no longer sufficient to ventilate with the help of the windows. A ventilation system reduces humidity and the spread of odors, prevents mold and purifies the air.
• Photovoltaics: Especially in combination with a heat pump - which requires electricity to drive it, which can be produced by the photovoltaic system itself - the installation of a photovoltaic system offers a great incentive. An additional electricity storage unit also ensures that the solar power generated during the day can also be used at night.

2. How do I finance the measures and which subsidies can I make use of?

First of all, it can be said that most investments in energy-efficient refurbishment measures will pay off in the long term thanks to their energy-saving potential. However, you should always ask yourself which measures are required in each individual case, whether a combination of certain measures or even a complete renovation is suitable and what financial resources are available. In addition, various subsidies can be used, which also make more financially expensive measures possible. In the case of KfW funding, there is a choice between two funding options for energy-efficient refurbishment: Favorable loans including repayment subsidies or one-off grants without repayment. In addition to the KfW, the Federal Office of Economics and Export Control (BAFA) also offers subsidies for energy-efficient refurbishment measures. The federal subsidy for efficient buildings (BEG) is decisive.

Energy-efficient refurbishments are also eligible for tax relief in Germany. Since 2020, owner-occupiers have also been able to benefit from this for tax purposes. A total of 20 percent of the costs for energy-efficient refurbishment measures can be deducted (up to a maximum of EUR 40,000).

In the year of the refurbishment measure and in the following calendar year, up to 7 percent (maximum 14,000 euros) can be deducted in the tax return. In the third year, it is up to 6 percent (maximum 12,000 euros).

You can read about the specific conditions that must be met in our guide to "Energy-efficient renovation".

It is also important to note that tax reductions and state subsidies cannot usually be combined. It is necessary to check which of the two alternatives is more worthwhile in each individual case.

3. Is an energy-efficient renovation worthwhile?

A professionally implemented energy-efficient renovation will save you costs for electricity, heating and hot water in the long term. This is offset by the initial investment. In some cases, these costs can be sensibly combined with measures that need to be carried out on the property anyway. A general statement about the financial savings potential cannot be made in view of numerous factors and varies from property to property. This is why there are hardly any reliable sample calculations on this topic.

However, it can be said that heating accounts for two thirds of household energy consumption in Germany. According to the German Energy Agency, comprehensive energy-efficient refurbishment can save up to 80 percent of expenditure. According to dena, the refurbishment costs can be fully refinanced in the long term through these savings. Which measures make technical sense and are possible given the type of building must be determined individually for each property. To do this, it is advisable to consult an energy consultant, who will draw up a reliable calculation based on information specific to the property.

In addition to the financial reasons, an energy-efficient renovation also improves the quality of living. A ventilation system, for example, improves the indoor air, reduces the risk of mold and makes living spaces more comfortable thanks to warm surfaces and the absence of draughts.

Would you like to find out more about "energy-efficient renovation"?

Then take a look at our guide on this topic: www.immowissen-bocholt.de

We would also be happy to advise you personally on your questions: 02871/9958980