Climate package advances energy-efficient renovation
Goal: Drastic reduction of CO2 emissions
In order to protect the climate and limit global warming, the EU has set binding climate targets. For example, greenhouse gas emissions are to be reduced by at least 55% (compared to 1990) by 2030. Renewable energies are to achieve a share of at least 32 percent and energy efficiency is to increase significantly.
If it is a matter of meeting the targets in this country as well, far-reaching measures are required. One example of this is the Building Energy Act (GEG), which came into force at the end of 2020. Among other things, it replaced the Energy Saving Ordinance (EnEV) and is intended to simplify German energy saving law. But better funding conditions, new levies and bans are also part of the mix of measures in the 2030 climate protection package.
EU Renovation Wave to double renovation rate
With the "Renovation Wave", the EU is also launching an offensive for energy-efficient modernisation. The strategy paper published in October 2020 contains numerous measures that are intended to double the renovation rate. These include, for example, higher building standards for existing buildings and ways to obtain financing more easily. According to the EU Commission, a total of 35 million buildings could be renovated by 2030 and up to 160,000 additional jobs could be created.
Improved funding for energy-efficient renovation work
In order to reduce CO2 emissions, the renovation rate must increase. The prerequisite for this is that the work on the house and heating is worthwhile for consumers. Simple and technology-open funding is intended to ensure this. It is a central element of the climate package and has been in full force since July 2021 in the form of the Federal Funding for Efficient Buildings (BEG).
Find out about the funding conditions changed in 2021 via the Federal Funding for Efficient Buildings (BEG). There are attractive funding opportunities for your house renovation! |
Heating system replacement and use of renewable energies
More than 35 percent of all German heating systems today are more than 20 years old. The boilers are technically outdated and consume more energy than necessary. If we want to reduce CO2 emissions and protect the climate, existing heating systems offer great potential. The government has also recognized this, creating new incentives to replace heating systems with the climate package. For example, the subsidies for the replacement of the heating system rose to over 45 percent. This subsidy is given to homeowners who replace their old oil heating system and install a new environmental heating system. Since 2020, the state has subsidized the installation of a cheaper gas hybrid heating system with 20 to 45 percent.
Tax bonus for renovation complements the funding landscape
The so-called tax bonus for renovation was introduced in 2020. This allows 20 percent of the renovation costs to be claimed for tax purposes. The bonus is limited to 40,000 euros and must be spread over a period of three years. Since the tax benefits must be applied for retrospectively, renovators were able to use them for the first time in 2021 for the 2020 tax year. In addition to insulation work on the roof or façade, the tax bonus is also available for new windows or heating systems.
First results: In 2020, interest in renovation increased sharply
With better subsidy conditions and higher CO2 levies, the German government has already implemented some measures from the climate protection package. Evaluations by the funding agencies now show that homeowners gratefully accepted them. They more often opted for an energy-efficient renovation or a heating system replacement and submitted significantly more funding applications compared to the previous year. KfW is already reporting an increase in funding of over 180 percent in 2020. In the first half of 2021, interest increased again by more than 50 percent. A similar picture can be seen at BAFA, which recorded a 190 percent increase in funding in 2020. By the end of 2020, the government even had to provide additional funds of 2.2 billion euros in order to be able to meet the high interest in building subsidies.
The positive response ensures that CO2 emissions in Germany fall and thus protect the climate in the long term.
Federal funding for efficient buildings in the climate package
For a long time, the search for funding was a time-consuming undertaking. This is because a wide variety of programs, numerous catalogs of requirements and several contact persons caused great uncertainty among many renovators. After the government had already improved the conditions in the most important programmes, another big step was due at the turn of the year 2020/2021: the merging of current KfW and BAFA funding offers to form the new Federal Funding for Efficient Buildings (BEG). This has been fully available since July 2021 and is much clearer. The BEG is intended to make it easier for consumers to access financial resources and thus strengthen the incentives for ambitious measures.
CO2 tax has made fossil fuels more expensive since 2021
The central demand in the climate protection package: CO2 must cost something. For example, consumers have been paying for self-inflicted greenhouse gas emissions since January 2021. While a ton of CO2 costs 25 euros in the year the CO2 tax was introduced, prices will rise to 55 euros by 2025. Further price increases are possible in the following years. If you heat your house with gas or oil, you will pay between 100 and 250 euros more every year.
The special thing about it: Citizens get part of the expenses back. For example, electricity costs will fall due to a lower EEG levy. The distance allowance for commuters will increase and low-income earners will be able to claim a so-called mobility bonus. The latter provides relief if consumers do not pay income tax due to low incomes and thus do not benefit from the distance allowance.
With exceptions: ban on the installation of new oil heating systems
Experts, on the other hand, consider the ban on oil heating to be striking. This will apply from 2026 and affects new and old buildings. The installation of new oil heating systems is then prohibited – there is no additional obligation to replace existing boilers. However, many homeowners are likely to benefit from exceptions. For example, the installation ban only applies if the supply of natural gas, district heating or renewable energy sources is possible. In addition, hybrid heating systems will continue to be permitted. The systems combine, for example, oil heating systems with heat pumps to combine the advantages of fossil and renewable systems.
Climate package makes energy consulting mandatory
Energy consulting is the entry point into the energy-efficient renovation of buildings. It shows individual potential and provides information on measures to achieve it. Homeowners thus receive a roadmap that cannot necessarily be implemented immediately. With the climate package and the newly introduced Building Energy Act (GEG), energy consulting has been mandatory since November 2020 – at least on certain occasions such as the change of ownership of existing buildings or an upcoming renovation. The aim of the measure is to be able to provide building owners with even better information about the added value of energy-efficient renovation measures.