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Energy-Efficient Renovation: Costs, Benefits & Funding

What is Energy-Efficient Building Renovation?

Energy-efficient renovation makes buildings more efficient. This process follows a triple benefit approach: reducing energy consumption while simultaneously increasing the comfort of the occupants. As a result, not only are annual operating costs reduced, but annual carbon dioxide emissions are also cut. Thus, building renovation can confidently contribute to protecting renewable energy.

At the same time, addressing the aforementioned issues with global welfare and efforts to improve the realistic housing and rental conditions, along with the efficiency of housing and the renovation rate, is crucial. It’s an ideal approach for many to consider. Given the above, it can be concluded that energy-efficient building renovation is a complex yet rewarding endeavor.



Why Undertake Energy-Efficient Renovations?

Naturally, energy-efficient renovation offers many benefits, including:

  • Cost Reduction: Better insulation and heating systems mean lower costs.

  • Increased Property Value: Energy-efficient buildings generally fetch higher prices upon sale and are more attractive on the real estate market.

  • Improved Living Conditions: Proper insulation ensures that living spaces remain comfortable, neither too hot in summer nor too cold in winter.

  • Contribution to Climate Protection: By consuming less energy for heating and cooling, your carbon footprint is reduced.

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Important Measures for Energy-Efficient Renovation

Insulation, Insulation, Insulation:

Walls, roof, and basement should all be thoroughly insulated. Imagine a soft coat wrapped around the house.

New Windows and Doors:

Old, inefficient windows consume a lot of energy. Modern, airtight windows not only save energy but also maintain the aesthetic design of your home.

Replace the Old Heating System:

Old heating systems are like outdated combustion engines. New heating units can save a significant amount of energy. Your options include heat pumps, condensing technology, and solar thermal systems.

Optimize Ventilation:

Ventilation can also consume a lot of energy. Replace your old ventilation system with a more modern one, such as a heat recovery system.

Invest in Renewable Energy Sources:

Consider a solar project or a heat pump to become independent from today's high energy prices.

Energy-Efficient Renovation in Practice:

Afterward, the old gas boiler was replaced with a condensing gas boiler, and the indirectly heated hot water tank was updated. The new heating system is operated with an electric high-efficiency pump. During the heating system replacement, hydraulic balancing was performed to optimize heat distribution throughout the building. We switched from decentralized hot water supply (electric water heaters) to a centralized supply through the heating system. The basement ceiling and roof were insulated. Following all these activities, the house quickly met the energy requirements for new buildings as prescribed by the Energy Saving Ordinance. This reduced heating energy consumption and improved the quality of living in the house.

Is Energy-Efficient Renovation Worth It?

Whether building or renovating is economically viable can generally be answered with a yes. How much money—and more importantly, how much energy—you actually save depends on various factors. These include the current energy efficiency of the house, the planned work, the quality of the execution, the region, the time of year, the chosen professional company, and the desired efficiency standard. Especially the latter can make a significant (and measurable) difference in cost. Whether you want to turn a new building into a KfW40 house or an old building into a KfW40 house or simply upgrade it to an energy efficiency class D.

Step-by-Step Guide to Energy-Efficient Renovation

When renovating your house, you need to invest a lot of time and money. To ensure it’s worthwhile in the end, it’s important to follow the correct sequence from the start.

  1. Gather Information

You know your home and your needs best. Therefore, the first step is to explore options for effective renovation.

  1. Consultation

The success of a renovation project greatly depends on the quality of the advice you receive. Always rely on qualified professionals for guidance.

  1. Planning

A thorough energy consultation should include financial planning. An energy consultant will usually advise on which measures make sense for your building and estimate the associated costs. Take the time to have all your questions answered.

  1. Implementation

After completing the previous steps, you can look for a suitable professional company. Recommendations from friends or your energy consultant can be helpful. Once the work is underway, it’s important to have professional supervision. The construction supervision by an energy expert is 50% subsidized by KfW. As the homeowner, try to be present regularly and participate in all interim and final inspections.

  1. Monitoring/Optimization

Once all construction work is completed and approved, the real energy savings begin. To ensure that the predicted savings are realized, regular monitoring is essential. Keep track of your energy consumption and compare it to the pre-renovation levels. The free energy savings account and monitoring software can help you continuously track your energy usage and make adjustments if necessary.

Costs and Financing

On one hand, the costs and financing of the measures are of utmost priority during the planning phase.

Costs: The total costs can vary significantly depending on the extent of the measures and the initial condition of the property; generally, around €400-600 per square meter of living space should be estimated. If the energy-efficient renovation requires significant construction work, the costs can rise to €800-1000 per square meter.

Individual Measures:

  • Roof Insulation: €100-200/m²

  • Façade Insulation: €150-250/m²

  • New Heating System: €10,000-40,000

  • Window Replacement: €500 per window

The costs of energy-efficient building renovation and the associated funding opportunities are key aspects of the planning process.

1. KfW Funding Programs

The Kreditanstalt für Wiederaufbau (KfW) also offers several programs that support energy-efficient renovations. The most well-known is probably the program with the appealing name “Energieeffizient Sanieren.” Take out low-interest loans for a complete renovation of your house through this program. You can even receive repayment subsidies of up to 45% of the loan amount if you achieve certain efficiency house standards. Aren't there even banks in the valley turning green with envy?

2. BAFA Support

The Federal Office for Economic Affairs and Export Control (BAFA) also supports energy-efficient renovations. You can receive grants for individual measures such as replacing the heating system or insulating the walls. The federal government supports you in the energy-efficient renovation of your property. Secure up to €24,000 in funding per residential unit.


3. Tax Benefits

Another nice side effect is the tax advantages. You can claim 20% of the renovation costs over three years, up to a maximum of €40,000. This is a very effective way to reduce costs after the renovation.


4. Regional Funding Measures

Numerous federal states and municipalities offer various attractive programs for building renovation. Some provide additional grants for energy-efficient renovations. It is worth contacting the relevant officials at your local city hall or state government to inquire about further programs.


5. Energy Consulting Funding

Energy efficiency consultants play a crucial role in today’s world, where sustainable energy management is of utmost importance. A good consultant can help you choose the right measures and complete the applications correctly. There is also funding available to help cover the costs of energy consulting.


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Important Notes

Timely Applications: Remember that you usually need to submit funding applications before starting the renovation measures. So, plan ahead!


Combining Funding: It is possible to combine different funding programs, but not for the same measure. Good planning is essential here.


Consultation: It’s best to consult several advisors and see who best addresses your specific concerns. Always ask for references: where has the advisor already managed a similar project?



With these funding options, you can make your energy-efficient renovation both environmentally friendly and financially sensible. It’s worth examining the various options and utilizing the support available to you.


Challenges and Solutions

Various challenges may arise during an energy-efficient renovation:


Monument Protection: Special regulations must be observed for listed buildings. Creative solutions are often required to balance energy efficiency and heritage protection.


Mold Formation: Improper insulation can lead to moisture problems and mold. Proper planning and execution, along with an adapted ventilation strategy, are crucial.


Cost-Benefit Ratio: Not all measures are equally sensible for every building. Individual consultation helps to identify the most efficient measures for your house.


Common Mistakes and How to Avoid Them

Energy-efficient building renovation can be quite an adventure, but many homeowners fall into the same traps. Here are the most common mistakes and how to avoid them:

First of all: Initiative is great, but without a plan, it can get chaotic. Get an experienced energy advisor on board. They should be independent and able to guide you through the process. Trust is key here.

Another common mistake is overlooking details. Small gaps and thermal bridges can cost a lot of energy. Pay special attention to window reveals and joints. And if you hire contractors, always keep a close eye on their work.

A major issue is also the underutilization of funding opportunities. Inform yourself early about possible grants and get help. This can save a lot of money!

The choice of heating system is also crucial. Just because a neighbor raves about a particular heating system doesn’t mean it’s right for you. Examine your house carefully and choose the appropriate system.

Finally, don’t just plan individual measures but think holistically. A clear renovation plan helps to connect the steps sensibly.

By avoiding these mistakes, you’re on the right track to an energy-efficient home. It might seem overwhelming at first, but with the right preparation and support, your renovation will be a success. Get started – your home will thank you!

Which Renovation Measures Are Most Worthwhile?

If you want to make your energy renovation efficient, focus on thermal insulation: exterior walls, roofs, basement ceilings, and the insulation of windows will save you the most energy in the long run.

When Is an Energy-Efficient Renovation Mandatory?

All buildings constructed before February 1, 2002, are subject to renovation requirements upon a change of ownership, whether due to purchase or inheritance. This includes the requirement to insulate the roof according to DIN 4108-2 and pipes, as well as to replace heating systems older than 30 years. As the owner of a single-family or two-family house, you must comply with this obligation within two years. If the building already meets these requirements, you are not legally required to undertake further construction measures.

Who Is Entitled to Energy-Efficient Renovation?

The entitlement to energy-efficient renovation or the funding of measures is regulated by various agencies and programs. Check the websites of local authorities, credit institutions, or contact regional energy consultants for more information.

Future Trends in Energy Renovation

Energy-efficient building renovations have gained increasing importance in recent years, and this trend will continue in the future. Looking at upcoming trends, it is clear that significant changes are taking place in the industry.

  1. Holistic Approach

The focus is not only on implementing individual measures but also on the entire building, as many people now understand. The new standard is a comprehensive approach. Individual renovation plans have been developed to cover everything. This ensures that everything fits together perfectly.

  1. Integration of Renewable Energy into the Grid

Future renovation concepts will include the use of renewable energies. Fossil fuel consumption will be reduced through the use of solar energy, heat pumps, and biomass. The goal is fewer CO2 emissions and more sustainable living.

  1. Sustainable Materials

Another trend is the use of sustainable and environmentally friendly materials. Ecological building materials are often somewhat more expensive, but demand is rising. They are good for the environment and improve indoor air quality. More and more people value living in a healthy home.

  1. Digitalization and Smart Home

Digitalization allows for energy regeneration. People are using increasingly intelligent operating systems for heating and ventilation, and energy consumption is rising. Improve your comfort with smart home technology.

  1. Emphasis on Living Comfort

Comfort is becoming more important than energy efficiency. Measures such as controlled ventilation with heat recovery ensure high air quality in your home. This improves life quality and health.

  1. Adapting to Climate Change

Climate change has made summer heat protection increasingly important. When modernizing, ensure that spaces do not become too hot in summer and remain warm in winter. New solutions must be developed to ensure a comfortable indoor climate for everyone.

Conclusion and Recommendations

Overall, energy-efficient building renovation is a complex but necessary undertaking that offers both economic opportunities and a significant contribution to climate protection. It requires careful planning and execution but provides substantial long-term benefits for owners, occupants, and the environment.

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