Heat transition without a focus on building efficiency? Insights and analyses on the current debate in Germany

Extended abstract 7-186-26

Rising construction costs and technical developments in the field of decentralized heat pumps are currently leading to a shift away from efficiency measures in building envelopes and a strong focus on changing energy sources in large parts of the housing industry in Germany.

This approach is understandable from a purely economic perspective of the housing industry, particularly in the rented residential building stock, as they invest in the measures but do not benefit from the energy savings (landlord-tenant dilemma). Accordingly, the focus on changing energy sources reduces both the planning effort and the necessary investments. In addition, German law contains a number of misguided incentives that hinder or prevent a socially acceptable heat transition in the rental housing segment.

However, a heat transition that does not focus on measures relating to the building envelope has an impact that extends far beyond the individual building and the group of landlords themselves. A lack of energy efficiency increases the risk of energy poverty, particularly for tenants on low incomes, who are especially likely to live in older buildings with poor energy insulation. At the system level, too, a path without a significant focus on insulation measures leads to high additional costs, for example in the expansion of electricity grids and renewable energies. Especially in economically challenging times, efficiency measures also act as an economic driver and can generate relevant tax revenues and employment effects at the municipal level.

The presentation provides an overview of the current debate in Germany and highlights the impact of building efficiency measures at both the individual building level, as well as at the energy system and macroeconomic levels. In addition, currently debated policy solutions are presented and classified with a focus on the rented multi-family housing stock, which is of central importance for achieving a climate-neutral building stock.

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