Energy-efficient refurbishment: mandatory for multi-family buildings, opportunity for the future

When is energy-efficient refurbishment mandatory for multi-family buildings?

The obligation to carry out energy-efficient refurbishments applies particularly to owners of older buildings constructed before certain construction years. This is based on state regulations, which is why the relevant construction year can vary depending on the region. 

Current guidelines and minimum requirements are defined by the EU Building Directive and the Building Energy Act (GEG). 

As the owner of an apartment building, you are particularly affected in the following cases:

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In case of change of ownership

Anyone who buys, inherits or receives an existing property as a gift after February 1, 2002, must implement the necessary energy-saving refurbishment measures within two years.

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Conversion measures of more than 10%

If you change more than 10% of an exterior component of your apartment building, you must comply with the GEG measures for that component .

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Heating replacement

For new buildings in designated development areas, the following applies from January 1, 2024: Newly installed heating systems must use 65% renewable energy (e.g. heat pumps).
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Exceptional cases that are not affected

There is no obligation to renovate properties that were occupied before February 1, 2002. The same applies to listed buildings and those whose refurbishment would be uneconomical. 

Most new buildings have already been optimized according to new standards and are therefore also not affected. 

If mandatory: What remedial measures must be implemented?

Which measures need to be implemented to achieve the goals and comply with the regulations depends on the specific condition of your apartment building. Factors such as the existing building structure and the building's energy performance certificate play a major role.  

The most common measures include:

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Building insulation

The building envelope, facade, roof and basement ceilings are insulated according to minimum standards.

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Heating systems

Old heating systems that no longer meet efficiency standards (e.g. oil heating systems) are being replaced with modern systems such as heat pumps or district heating.

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window

Energy-efficient windows with high insulation standards will be installed. 

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There are cases where only the heating system needs to be replaced to reduce _CO² emissions through a lower- _CO² heating method. On the other hand, there are properties where the lack of insulation also needs to be compensated for to reduce energy consumption. 

To determine with certainty which aspects of energy-efficient refurbishment are necessary for your apartment building, you should consult with experts. A detailed ESG report will provide you with information about which measures are suitable for your property. 

Which deadlines must be met – and what are the consequences?

The energy refurbishment of multi-family houses is regulated by various legal requirements. 

Climate neutrality by 2045

According to the Federal Climate Protection Act, Germany aims to become climate-neutral by 2045. This applies to all sectors, including the building sector, which is to no longer cause net greenhouse gas emissions by this date. 

Intermediate targets by 2030 and 2035

The EU Energy Performance of Buildings Directive (EPBD) requires all Member States to reduce the average primary energy consumption of residential buildings by 16% by 2030 and by 20-22% by 2035. 

By 2033, all buildings should also achieve at least a medium efficiency class. 

Special case: new buildings

The requirement for new buildings is different: From 2028, publicly owned buildings, and from 2030, all newly built properties (including apartment buildings) must be constructed as zero-emission buildings. This means that the building generates no or very low greenhouse gas emissions over a one-year period because it efficiently covers its energy needs with renewable sources. 

Measure-related deadlines

Depending on legislation, individual refurbishment measures such as the modernization of heating systems or the insulation of the building envelope often have to be implemented by 2030 or earlier – if you are affected. 

Benefit from energy-efficient refurbishment – even without obligation

You may not be required to renovate your apartment building anytime soon. Nevertheless, it can be a worthwhile investment—because sustainability benefits not only the environment but also you as the owner. 

• Short-term investment, long-term profit : After an energy-efficient refurbishment, you benefit from reduced operating costs and increased property value. 

• Savings potential: Depending on the measure, energy costs can be reduced by between 30% and 50%. Comprehensive insulation of the building envelope can reduce consumption by up to 40%, and replacing an oil-fired heating system with a heat pump also saves significant amounts of CO₂. 

• Sustainability: You make a valuable contribution to achieving climate goals and have a positive impact on the environmental balance. 

It's therefore worthwhile to consider this topic and determine whether energy-efficient refurbishments make sense for your apartment building. It's best to seek help from an energy consultant to identify potential savings and develop appropriate measures. 

Funding opportunities for the energy-efficient refurbishment of your apartment building

There are various funding programs available to help you with your investment in energy-efficient refurbishments. Generally, an individual assessment is required to ensure the support is optimally tailored to your project.

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KfW funding programs

The Kreditanstalt für Wiederaufbau (KfW) offers you support for energy-efficient construction and refurbishment – in the form of low-interest loans and grants .

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BAFA funding

The Federal Office for Economic Affairs and Export Control (BAFA) offers subsidies for efficient heat pumps, heating optimization, and renewable energies .

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Regional programs

Many federal states offer additional funding.

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Important : It's essential to apply for funding before starting the refurbishment. It's best to consult with experts about your funding options—energy efficiency experts can even help you with the application process as part of an energy consultation. 

How do I go about implementing energy-saving refurbishments?

Whether the obligation to carry out energy-efficient refurbishments on your apartment building applies to you or you decide to do so for other reasons, the typical process consists of these five steps:

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1. Energetic consultation

Hire experts to assess the current condition of your property and determine the appropriate needs.

Request energy advice 

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2. Individual Restructuring Roadmap (iSFP)

Based on the results of the analysis, have a restructuring plan drawn up for you. This priority plan will help you implement the most worthwhile measures first.

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3. Apply for funding

Take advantage of funding programs early on to reduce the costs of energy-efficient refurbishments of your apartment building or even your real estate portfolio.

Advice on funding

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4. Implementation

Commission professional tradespeople and companies to carry out the refurbishment work professionally. We would be happy to take over project management for you and help you manage the processes.

Project management

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5. Monitoring

Check the success of the measures and adjust them early if necessary. 

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(Photo: Jonas Denil on Unsplash )