Energy renovation for the property - what owners need to know

The energy crisis, climate change, exploding costs - all these factors are having an impact on the real estate market. Even though energy-efficient renovations are not cheap, properties with a good energy balance are therefore becoming increasingly important. What's more, the energy condition of your home can become the most important decision-making criterion for a property purchase today and significantly increase the value of a building. Whether you are an owner yourself or thinking about buying a property, find out here what you should consider as an owner.

When is an energetic refurbishment worthwhile?

According to information from the Federal Environment Agency (UBA), buildings in Germany still consume more and too much energy compared to the transport sector. However, energy refurbishment for the property is not only significant as a measure for the community as well as for our environment. Owners also benefit by making their house energy fit and saving costs in the long term - even if energy refurbishment initially means having to invest money. The good news is that there are special grants that you can benefit from if you decide to make an energy renovation. More about that later.

In addition, energy-efficient refurbishment can be worthwhile before the house is sold. Older existing properties in particular are gaining in value and importance. This is because the energy efficiency of such properties is often not at a desirable level. In this way, you achieve an improved energy status in the energy certificate and can set a higher property price. The attractiveness of the house increases - and you benefit from better sales proceeds.

Advantages of energy renovation

Energy and cost savings

Increasing the comfort of living

Climate and environmental protection

Value enhancement

Tip

Before implementing an energy-related renovation, it is worthwhile for buyers and property owners to take advantage of a federally funded energy consulting service for residential buildings (BAFA subsidy). In this way, houses can be optimized according to a holistic energy concept and costs can ideally be saved.

When is energy renovation mandatory for the property?

Whether for industrial properties or residential buildings: In order to reduce emissions and achieve climate protection targets, the so-called Building Energy Act (GEG) has been regulating the energy requirements for buildings in Germany since November 2020. The aim is to reduce energy consumption in the long term. Owners, heirs of a house or new buyers are required by law to implement some mandatory energy measures. The program includes requirements for thermal insulation, heating and air-conditioning technology, and renewable energy.

Whether and which measures you need to take varies from house to house. Therefore, get professional advice before you decide to buy or to take special energy-related renovation measures.

In the following cases, among others, there is an obligation to remediate:

1. boilers installed before 1991 (with liquid or gas fuel).

If a boiler was installed before 1991, they must always be replaced. Boilers installed later may be in operation for 30 years before they are replaced. However, there are exceptions - for example, if the power of the heating equipment amounts to more than 400 kW or is less than 4 kW.

2. roof and attic insulation in houses that you purchased after February 1, 2002.

You have bought a property after 1.2.2002? Or you have inherited a house after the corresponding month? Then it is important to pay attention to the correct insulation of attics and roofs. Please note that the insulation value must not be lower than 0.24 W/(m2K).

Tip

Are you thinking about buying a house? As a future owner, find out in advance about the specific renovation requirements. The energy certificate can provide valuable information on the energy condition of the building.

If the property was occupied before February 1, 2002, and has not changed hands since then, it is possible that you will have to carry out a comparatively high level of refurbishment. This is because up to now it was only obligatory for owners to renovate properties in terms of energy efficiency in accordance with statutory minimum requirements if they were built after February 1, 2002.

Energy refurbishment for the property: When optional measures are worthwhile

To improve the value of your property, it may make sense to consider other energy-related initiatives in addition to the mandatory renovation measures. Whether special measures are worthwhile depends on the energy weaknesses of your property and the costs involved, when put in relation to the potential market value. Sometimes, just a few changes are worthwhile to positively impact the value of a property. You can find a general overview of possible energy-related measures here:

Renewal or replacement of leaky, outdated windows

Renewal of exterior doors

Interior and exterior insulation of walls and facades

Basement insulation

Solar thermal installation

Renewal of the heating system, installation of heat pumps

What grants are available for energy renovations?

The Federal Support for Efficient Buildings (BEG) enables owners to receive financial support if they decide to carry out energy refurbishment and thus contribute to climate protection and long-term energy savings. All measures that help improve the energy efficiency of a building are eligible for funding - for example, insulation of exterior walls, heating optimization or the installation of energy-efficient lighting. In addition to state subsidies from the Federal Office of Economics and Export Control and the KfW, owners also have the chance to receive support from cities, energy suppliers, federal states or districts, depending on where they live.

Note: It is important not to calculate the budget for an energy-efficient refurbishment too tightly in order to avoid unpleasant financial surprises and to be able to cover unforeseeable expenses. Here, too, it is advisable to draw up an individual renovation plan with professional support in order to realistically weigh up necessities and wishes.

Conclusion

Properties with high energy efficiency are attractive to owners and potential buyers. Energy-efficient refurbishment of the property is therefore often a worthwhile investment, which in many cases is also subsidized by the state. Incidental costs can be reduced in the long term and the value of the house increased, while at the same time moving closer to climate targets and contributing something to sustainability. Before you decide on energy refurbishment, we recommend professional advice.

Do you have questions about energy retrofitting, would you like to sell your home at a profit or purchase the most energy-efficient property possible?

Please feel free to contact us - we will advise you competently.

+49 (0) 89 901 697 46

info@isarestate.de

Disclaimer

Despite careful research and checking of the sources, the author assumes no liability for the accuracy and completeness of the information presented. In case of unclear legal and tax questions, it is advisable to consult a lawyer and/or tax advisor for clarification.

Author: Dipl.-Kfm. Christian Dürr

Image credits: Adobe stock photos, Marco2811, 59410692