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In December 2021, the new Energy Performance of Buildings Directive was adopted. This states, among other requirements, that from 2030 only climate-neutral houses may be built in the EU. Existing residential buildings with an energy efficiency standard of G or H must be modernized to achieve at least standard F by 2030. The measures to be introduced range from the installation of new windows to improvement of external insulation and solar thermal systems. The specific measures required, in order to achieve the desired standard, vary – depending on the property.

Funding support is currently uncertain

For many years in Germany financial support has been provided for measures to be undertaken to optimize the energy efficiency of residential buildings. In January 2022, for the time being, the funding programs were put on hold. The German government has already announced new subsidies. However, it is still unclear about the actual stipulations and when they will be available. Therefore, anyone who would like to modernize should wait until the new funding is available. Otherwise, you might be giving away the opportunity to receive financial subsidies or favourable loans.

Additional costs due to CO2 tax

Currently, only tenants pay the costs of the CO2 levy for carbon emissions. In the future, owners will also be liable for the CO2 levy: the poorer the energy condition of the building is, the higher the portion is of the CO2 levy for the owners. Concrete regulations are currently being drawn up by the Federal Ministry of Economics and will be announced in the future.

To modernize or not?

Both the EU and the German government are making plans aimed at enforcing the refurbishment of buildings with poor energy efficiency ratings. However, the owners should contemplate carefully! If you want to keep the houses for a long time, it is sensible to make energy refurbishment. But if you are considering selling anyway, you should consider whether the additional expenditure is worth it. After all, the cost of modernization usually exceeds the resulting increase in value. The money would then have been wrongly invested.

Would you like to know which energy-saving measures are worthwhile for your house?  Our team has known the market for decades and would be happy to help the owners.