What the law means for owners and renters

Brussels, Berlin The EU is in the final stages of negotiations for a law designed to increase the efficiency of buildings. By insulating their homes, citizens should reduce heat loss and thus energy consumption.

The EU Commission has proposed that residential buildings will be brought to the energy efficiency standard F by 2030 and to the G standard by 2033. These standards may still be adjusted. As a result, houses that now only achieve standard F could move up a class and fall out of the renovation obligation.

The European Parliament is planning stricter requirements. The Council of EU Member States rejects the minimum standards. Now the Commission, Parliament and Member States must agree on a compromise. The law should also include minimum standards for new buildings and office buildings.

How many houses are affected?

The aim of the EU directive is that buildings in the two worst energy efficiency classes should be subject to renovation, with member states being able to define exceptions. In total, at least 23 percent of the building stock then falls under the obligation to refurbish, which according to the Federation of German Consumer Organizations (VZBV) would mean around 4.5 million houses.

Thermal insulation on a facade

According to the plans, the EU states can define exceptions to the remediation obligation.

(Photo: imago stock&people)

Exactly which houses are affected cannot be read from the currently valid energy certificate. Because the efficiency classes may be rearranged. This is currently being negotiated in the EU. In any case, there should be special regulations for listed buildings and holiday homes.

How can the energy efficiency of a house be improved?

Typical ways to modernize a home include replacing windows and doors, insulating the roof, and insulating the basement ceiling and exterior walls. “As a rule, one of these measures is sufficient to increase the quality of a house by one energy efficiency class,” says Patrick Biegon from the VZBV.

How expensive is it?

According to Biegon, one of the measures for a one- or two-family house usually costs between 10,000 and 20,000 euros. Insulating the basement ceiling is usually much cheaper. However, there are large individual differences. For example, it can be more expensive to renovate protected houses in accordance with monument protection.

According to the VZBV, the comprehensive, deep energy-related refurbishment is worthwhile in almost all cases after 20 years at the latest, individual measures are worthwhile even earlier.

>> Read here: Heat pump instead of oil heating? What property owners need to consider now

Does replacing the heater help?

Usually that alone is not the solution. Switching from an old gas heater to a new one does little to improve a home’s energy efficiency.

Switching to district heating or a heat pump is more worthwhile. However, district heating is not available everywhere and heat pumps work less efficiently in poorly insulated houses. Experts advise planning renovation and heating replacement together if one of the two is pending.

District heating pipes before laying

Experts believe that replacing the heating system should be combined with other renovation measures.

(Photo: IMAGO/imagebroker)

Is a complete renovation worth it?

The VZBV recommends, if possible, to have many renovation measures carried out at once. Then the costs can also be around 100,000 euros. However, around half of these costs are typically incurred anyway if a house is to be preserved, for example by having the roof re-covered or the facade re-plastered.

The association refers to the saved energy costs, the better quality of life in renovated houses and the increase in the value of the property. There are no plans for a complete renovation to be mandatory.

>> Read here: The threat of a ban fuels a boom in oil and gas heating

What is different about apartment buildings?

According to the VZBV, most apartment buildings are insulated well enough and are therefore not subject to the renovation obligation. In the case of the remaining multi-family houses, the measures will therefore tend to be cheaper than in the case of one- and two-family houses. The reason: Due to the better ratio of outdoor area to living space, the modernization costs per square meter are usually lower.

What grants are there?

The government subsidizes individual measures on the building shell with 15 percent of the investment sum. According to the EU requirements, something will have to change in the current support system.

The law is intended to require member states to give special support to homeowners with low incomes and assets, possibly with up to 100 percent. The EU also provides the member states with money for this. There are already higher subsidies for unrenovated buildings built before 1957 and for Class H buildings.

Who pays for rented apartments and houses?

The homeowner is responsible for the renovation. After a refurbishment, he can increase the rent by eight percent of the investment sum and, after a few years, earn more money than he invested. The tenants save on heating costs – but possibly not as much as they have to pay in additional rent.

>> Read here: New heating, insulation, windows: what costs tenants have to bear

Can one refuse the obligation to rehabilitate?

The EU law does not yet provide for sanctions. However, the member states could define which ones. “Of course, no one is thrown out of their house just because the renovation requirements are not met,” says Kassem Taher Saleh, who is in charge of the issue for the Greens in the Bundestag. “We want to pick up the homeowners as early as possible. This can be done with an early information campaign, a realistic renovation schedule and appropriate financial support.”

What happens to homeowners who can’t afford the renovation?

The EU stipulates that the member states create hardship regulations. This could state that people on low incomes, the elderly or houses of low value are excluded.

It is still unclear what the federal government plans to do. For Saleh it is clear that people with low incomes should not suffer from the renovation, but should benefit from it. “If the obligation to renovate comes, then the financial burden must be cushioned to a large extent by subsidies,” he says.

More: EU Parliament plans stricter refurbishment obligation for real estate

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