Questions and answers about transforming the energy system

Modernisation of building stock

1. Will energy-saving (building renovations, etc.) play a role in the transformation of Germany's energy system?

   Energy-saving and energy efficiency are central components of Germany's energy-policy transition. They are also a key basis for Germany's ability to meet its ambitious climate protection objectives and achieve its aims for expanded use of renewable energies. We want to increase our energy productivity by an average of a full 2 percent per year, and to cut Germany's total energy requirements in half by 2050. By 2050, we also want our electricity consumption to decrease by a quarter. One focus of such efforts will be on the building sector, which accounts for some 40 percent of Germany's energy consumption and about one-third of its CO₂ emissions. In addition, we are aiming to double the building-renovation rate to 2 percent, from its present level of 1 percent.

2. The modernisation of building stock and the expansion of power grids will cost a lot of money. Where is this money supposed to come from?

   Switching over to an energy system that is based completely on renewable energies requires financial resources that are assured over the long term. The German government is therefore financing all measures intended to increase energy efficiency from a special fund - the Energy and Climate Fund. So far, this Fund has been accumulated using the additional profits the energy suppliers were able to expect because the operating lives of their nuclear power plants had been extended. In addition to this, surplus revenues from the auctioning of emissions allowances have been channelled into the Fund. The operating lives of the nuclear power plants have now been cut. To compensate for this, all the German Federation's revenues from emissions trading are to flow directly into the Energy and Climate Fund from 2012 on. Some of this money will benefit the CO₂ Building Rehabilitation Programme. The German government is funding this programme with EUR 1.5bn a year from 2012 to 2014 - more than one and a half times the total in 2011

3. What can I do in practical terms to obtain funding for the renovation of a property?

   The KfW banking group is offering various programmes that support
   • the construction of energy-efficient new buildings,
   • the renovation of residential properties, and
   • the energy efficiency refurbishment of buildings that are part of Germany's local authority and welfare infrastructure.
   Under the CO₂ Building Rehabilitation Programme, KfW funds comprehensive renovation schemes that enable buildings to save energy all round and comply with the KfW Efficiency House standards. It also funds highly energy-efficient individual measures. In order to ensure the work done is of the highest possible quality and carried out to plan, KfW awards grants under its Energy-Efficient Refurbishment - Special Promotion programme to pay for the professional supervision of construction projects. These grants are worth as much as 50 percent of the costs incurred, up to a maximum of EUR 2,000. The regular commercial and retail banks act as agents for these funding programmes.

4. What concrete quality criteria does the renovation of a building have to satisfy (to qualify for support)?

   The preconditions for support are based on the current Energy Saving Ordinance (EnEV 2009). EnEV 2009 raised the requirements placed on new buildings and larger renovation projects by an average of 30 percent. It is recommended that the advice of a qualified energy consultant be obtained before a building or flat is refurbished. They will help to identify the potential for energy saving in the property, and propose suitable renovation and modernisation measures. The Federal Office of Economics and Export Control (BAFA) awards grants for 'local consultations' from qualified engineers.

Back to top