Sustainable and lucrative: energy-efficient refurbishment of your commercial property

‍Whenis the modernization of commercial properties mandatory?

Commercial properties must undergo energy-efficient refurbishment if this is required by law. This is necessary in the event of major structural changes, inefficient existing buildings or specific environmental and safety requirements. 

Two key laws are particularly relevant here: the European Buildings Directive (EPBD) and the Building Energy Act (GEG). 

To a certain extent, the EPBD sets the direction. However, each EU member state decides for itself how these requirements are achieved - in Germany through the GEG. 

In order to find out whether a refurbishment obligation exists and which measures this includes, a case-by-case assessment is generally necessary. The best way to do this is to take advantage of an energy consultation that takes into account the individual factors of your commercial property.

European Buildings Directive (EPBD)

The European EPBD of 8 May 2024 aims to reduce the energy consumption of all buildings in EU member states by 16% by 2030 and by 20-22% by 2035. The EU member states must transpose the directive into national law by the end of May 2026. 

For non-residential buildings, the following also applies: the 16% with the worst energy performance must be refurbished by 2030, and the 25% with the worst energy performance by 2033. 

Building Energy Act (GEG)

Since November 1, 2020, this law has combined the previous regulations of the Energy Saving Ordinance (EnEV), the Energy Saving Act (EnEG) and the Renewable Energies Heat Act (EEWärmeG). It defines minimum requirements for the energy quality of buildings and stipulates the use of renewable energies. 

The specifications include concrete requirements for energy efficiency, heating systems and insulation for new and existing buildings. 

Different requirements for new and existing buildings 

The energy refurbishment obligations for commercial properties under the GEG and EPBD vary and depend on whether the building is new or existing. 

Energy-efficient refurbishment of existing commercial properties

Existing buildings are particularly affected if they are converted or refurbished, fall below the worst 16-25% in terms of energy efficiency or in some cases exceed deadlines. This applies, among other things: 

Obligations to renovate the roof, façade and windows 

• If the façade, roof or windows are renovated, the new features must meet the minimum energy standards. 

• Uninsulated top storey ceilings must be insulated to ensure minimum thermal insulation. 

Obligation to replace old heating systems 

• Boilers that are more than 30 years old must be replaced (e.g. with heat pumps). 

Requirements for change of ownership 

• If a property is sold, inherited or donated, new owners are obliged to carry out certain energy-efficient refurbishment measures within two years. 

• In addition, an up-to-date energy performance certificate (EnEV) must always be available for commercial properties - even after modernization or before a sale. 

Regulations for new buildings

New buildings must be very efficient from the outset and meet high standards. These include, among other things: 

Energy efficiency standards 

• New buildings must comply with strict primary energy requirements. 

• From 2030, all newly built properties are to be constructed as nearly zero-energy buildings with very low _CO² emissions. 

Share of renewable energies 

• At least 65% of heating energy must come from renewable sources. 

Failure to comply with these obligations can lead to fines of up to 50,000 euros.

Requirements for the energy-efficient refurbishment of commercial properties

The requirements for commercial properties often go beyond those for privately used residential properties. Companies not only have to pay attention to efficiency and environmental friendliness, but also to the cost-effectiveness and flexibility of their buildings. 

The following measures are central: 

• Optimization of the building envelope: insulation of walls, windows and roofs 

• Modernization of heating and air conditioning systems: Replacement with energy-efficient systems such as heat pumps or combined heat and power units 

• Renewable energies: Use of photovoltaic systems and sustainable electricity sources 

• Smart building technologies: energy management systems for better control and monitoring 

In addition, there are explicit parts of energy-efficient refurbishment that can apply specifically to commercial properties. 

Stricter energy efficiency requirements

• Commercial properties are often subject to higher energy efficiency standards as they consume more energy and operate for longer periods. 

• Comprehensive measures such as intelligent energy management systems (solutions that automatically monitor, optimize and control energy consumption) are particularly necessary for energy-intensive sectors (e.g. production or logistics). 

Obligation to use renewable energies

• According to the German Building Energy Act (GEG), commercial properties are under greater obligation to use renewable energies, for example by installing photovoltaic systems or operating combined heat and power plants. 

Consideration of ESG criteria

• Companies must pay increasing attention to ESG guidelines (environmental, social, governance). This applies in particular to corporations that are making their real estate strategy more sustainable in order to meet investor and legal requirements. 

Standards for indoor climate and working environment

• Commercial properties must not only be energy efficient, but also comply with labor law requirements. These include regulations on air quality, lighting and temperature control, which are regulated in workplace guidelines, for example. 

Documentation and inspection obligations 

• Companies must provide extensive test reports, evidence and certifications , e.g. energy performance certificates and regular audits in accordance with ISO 50001. 

• There may also be official approvals, especially for new commercial buildings or extensive conversions. 

Performance audits 

• Many commercial properties are dependent on additional proof of economic viability in order to create a cost-benefit balance sheet for investors, tenants or internal committees. 

Requirements for special properties

• Properties with special uses such as hospitals, schools, hotels or production facilities are subject to further specific regulations. These may relate to fire protection, technical building equipment or the use of cooling and ventilation systems, for example. 

Funding opportunities for commercial energy-efficient refurbishment 

Investment in energy-efficient refurbishment can be cushioned by various subsidy programs. State and regional programs are available, particularly in the commercial sector. 

KfW: Loans and subsidies 

The Kreditanstalt für Wiederaufbau (KfW) offers grants and loans for energy-efficient construction and refurbishment.

BAFA funding 

The Federal Office of Economics and Export Control (BAFA) offers you support for renewable energies and energy management systems. 

Regional funding programs 

In some federal states there are special subsidies for commercial properties.  

Which funding program is best for you depends on individual factors. We would be happy to advise you in detail on the topic of funding opportunities for energy-efficient refurbishment - also specifically for commercial properties.

How does the energy-efficient refurbishment work?

The specific procedure depends on the necessary measures and the overall strategy. To ensure that all processes are perfectly coordinated, it therefore makes sense to carry out all steps from consultation to implementation together with a specialist company. 

Purpose Green's approach can generally be summarized as follows:

We provide you with all the services you need for the energy-efficient refurbishment of your commercial property and you can use them as you wish - as a complete package or as partial services. 

Mastering and overcoming challenges

On this page, we will give you a clear but abbreviated insight into this very complex topic. Which measures you need to implement and which are particularly worthwhile depends on various individual factors.  

In order to have your commercial property renovated to make it more energy efficient, several players are also required. Coordinating them is one of the biggest challenges of such a project.

• ‍Cost control: large projects harbor the risk of budget overruns ‍
• Technical complexity: Integrating modern technologies can be challenging. ‍
• Regulatory requirements: It is important to strictly adhere to all legal requirements - even in the event of changes. 

We therefore recommend that you only work with people with the relevant expertise from the outset. With the support of experienced specialists, all challenges can be overcome.

At Purpose Green, you receive all relevant services for energy-efficient refurbishment from a single source. We are on hand to advise you, take care of strategic planning on request and support you in applying for suitable funding. In addition, we take on the project management and accompany the professional implementation of all desired measures.

Contact us

(Photo: Alisa Anton on Unsplash)