Development of German Retrofit Policy

Since 2002, prescribed thermal standards have been mandatory for homes being renovated in Germany. This policy has become entwined with Germany’s climate policy of 80% reductions in GHG emissions by 2050, and is the main tool used by the Federal government to drive forward home heating energy efficiency improvements. A second policy instrument is Federal subsidies, given to thermal upgrades that are designed to do better than the standards demanded in the regulations. Thirdly, the Government actively promotes thermal retrofits by promoting the view that the standard of thermal upgrade demanded by regulations always pays back, through heating fuel savings, and therefore costs nothing in the long run. Further policy instruments are energy performance certificates and free on-site advice to would-be home renovators, though there is no building inspection to check whether standards have been reached. The annual rate of thermal retrofit is a disappointing 0.8–1.0% of the housing stock, while average fuel savings per retrofit project are around 25%, so progress falls well below what is needed to reach the 80% goal.