Guide to energy-efficient renovation

Renovation backlog in many existing buildings

In 1979, the first Thermal Insulation Ordinance came into force. However, it is assumed that just under 50% of existing buildings have no thermal insulation at all, as they were constructed before 1979 and have not yet been renovated. Only around 10% of older buildings have insulation that was renewed as part of an energy-efficient renovation and meets current requirements.

The same applies to heating systems, where around 70% do not meet current requirements for energy-efficient buildings. This clearly highlights the significant renovation backlog in the existing building stock.

Do smaller measures also pay off?

Older properties often require substantial investments in building services engineering and thermal insulation in order to keep operating costs—especially energy costs—within reasonable limits. In view of today’s steadily rising energy prices and the current funding measures, it is therefore essential to carefully assess which energy-efficient renovations are worthwhile from an owner’s perspective.

In general, however, it can be said that even smaller modernization measures usually pay off. In any case, it is worthwhile to carefully look for optimal improvements within the scope of energy-efficient renovation based on the respective current energy and structural condition of the property. Ideally, you should seek the assistance of an expert assessor.

What is the difference between renovation and refurbishment?

A distinction is made between renovation, modernization, refurbishment, and energy-efficient refurbishment. What are the differences? A simple refurbishment usually begins with damage, such as a damp basement, crumbling plaster, or dilapidated water and wastewater pipes. As a rule, this starts with an assessment of the existing condition and a comprehensive review of the identified defects, taking into account the life cycle of the property.

In a proper refurbishment, the primary objective is to restore the property to its original condition while taking into account the current state of the art. In addition, energy-efficient refurbishments aim at improving the existing condition. If interventions in the building are required anyway, it should be examined whether these measures can be implemented at the same time, provided this is economically viable.

Optical improvements and restoration

The focus of renovation is on visual improvements to a property, such as adaptations to family needs, refreshing through new colors, personal living preferences, or organizational requirements. In this case, damage does not necessarily have to be present. From a purely legal perspective, renovations are not subject to requirements regarding modern standards for thermal and moisture protection, sound insulation, or fire protection. As a rule, they are carried out only on exterior and interior building surfaces.

Modernization refers to measures that go beyond restoring the original condition of the building and achieve a significant technical and energy-related improvement. This improvement must then correspond to the currently required target condition. This applies to thermal insulation as well as sound, moisture, and fire protection. This includes, for example, sealing and thermally insulating basements and roofs.

How property owners benefit from energy-efficient renovation

In the existing building stock lie the greatest energy-saving potentials; existing buildings require around three times as much energy for heating and hot water preparation as new buildings. Nevertheless, an energy-efficient renovation does not pay off immediately for many owners of existing properties, as tenants usually bear the costs for gas or oil as part of the operating cost settlement.

However, if this perspective is maintained for too long, it can become an obstacle to renting. This occurs when the total rent, including operating costs, is no longer marketable due to steadily rising energy prices. As a result, rent reductions or longer vacancy periods would have to be accepted.

In which cases an energy-efficient renovation pays off

Measures for energy-efficient renovation require thorough planning and high investments, the amortization of which often only occurs after ten years or more. This aspect therefore often has a deterrent effect. On the other hand, a professionally executed energy-efficient renovation undoubtedly results in an increase in the value of the property. It is foreseeable that the energy quality of a property will become an increasingly decisive factor in its price in the future.

The advantages of an energy-efficient renovation:

• Low operating costs

• Increase in value

• Improved living comfort