General Conditions

The structural development of buildings towards higher energy efficiency is a technically and economically challenging task. Therefore, it is necessary to check in advance which buildings are basically suitable for that purpose and which are not. The savings potentials vary, for example, according to the building typology, as e.g. the insulation of facades of prefabricated buildings (such as Plattenbauten) is usually significantly more effective and thus more economical than in masonry structures.

The decision for a comprehensive building renovation is also closely linked to the development of quantitative demand and the housing community structure. Furthermore, the nature of the local housing market has a noticeable influence on the yield development of the building stock, as do the urban development policy specifics.

The investment plan must also take into account that substantial rent increases are not enforceable in all local housing markets. Depending on the building type and age, the expected rent increase may be 1.5 to 4 times higher than the savings in heating costs.

The implementation of energy efficiency measures is advisable when the local housing market and the building structure offer appropriate conditions.

Energy Efficiency Measures

  • Energy efficiency of building renovation:
    • Heating consumes 73% of primary energy, therefore:
      • Objective 1: Increase the efficiency of thermal insulation
      • Objective 2: Increase the efficiency of building services
    • According to the EU directive on building efficiency, the ultimate goal is a carbon-neutral building stock by 2050
  • Energy-efficient heat supply:
    • Consumption measurements to calculate the specific heat demand
    • Use of energy sources with different CO2 emissions
    • Construction of small and medium-sized combined heat and power plants (CHP) for higher efficiency of the used energy sources (heat and electricity)
    • Contracting for heat supply (plant will be financed, built and operated by the contracting partners)
  • Use of renewable energy:
    • Checking the surface resources for solar energy generation on roof, facades or open spaces
    • Wind energy (electricity), Photovoltaic (electricity), Solar thermal energy (heat), Small wind turbines (electricity)
    • Geothermal energy for heat production and storage
    • Plants for energy production from biomass (heat and electricity)

It is of essential importance to select measures that are economically viable and equally match the investment strategy and the building.

Legal Basis and Funding

The legal conditions can be found in EU directives and the depending national rules. Germany is in the lead with respect to the already achieved level of technical solutions for accomplishing the climate protection goals. The implementation of necessary constructions in the total national housing stock is not yet very advanced. Relevant laws are

  • Renewable Energies Act (EEG)
  • Energy Saving Ordinance (EnEV 2014)
  • Combined Heat and Power Act (CHP)
  • Future Investment Act (ZInvG)

The KfW Bank (major development bank in Germany) offers several funding programs that have been created specifically for the improvement of energy efficiency in existing or in newly constructed buildings. The key measure for the amount of funding are the KfW energy efficiency standards 55, 70, 85, 100 or 115 (measure of thermal heat demand, primary energy demand, and the transmission heat loss).

The federal states also support investments in energy efficiency by means of specific funding programs. In special cases, EU funds (ERDF) can be applied for.

Public funds may be used to strengthen the investor’s financial power.