Zoom Image

Insulation material is blown under one roof: mammoth project heat transition

Photo: Silas Stein / dpa

Step by step, the traffic light coalition is trying to get a roadmap for the heating turnaround in Germany. An analysis by Deutsche Bank shows how ambitious the project is. With regard to energy-efficient renovation of homes, this speaks of an "80 billion euro challenge for private customers".

The cost of renovating a single residential building could exceed the amount of 100,000 euros to achieve the highest energy efficiency class A in the Energy Performance Certificate (EPC), it says. Deutsche Bank's residential real estate clients alone would have to spend around 80 billion euros on renovation work at today's prices in order to bring their homes up to this standard.

This corresponds to around 50 percent of the bank's existing loan portfolio for residential real estate, the institute writes. According to the analysis, two-thirds of Deutsche Bank's private clients should be able to finance appropriate renovations and energy efficiency measures. The remaining third, however, will be dependent on additional financial aid, it said.

"For a third of the owners, the costs for the energy-efficient renovation will exceed their financial possibilities according to our scenarios if they have to finance expenses entirely through a loan," says Tobias Horn, Head of Portfolio Management & Strategy in the bank's private customer business, the "Handelsblatt".

Even with the current public funding, this gap cannot be completely closed. "If you take into account the state subsidies and the possible energy savings, it is still a quarter of all customers who cannot afford these expenses."

The bank's appeal: the financial sector and politicians must work closely together to enable homeowners to renovate existing properties and thus reduce emissions.

According to an analysis by Deutsche Bank, only 62 percent of customers are able to use their income to cover the additional costs of a loan for energy-efficient renovation in addition to their monthly living expenses.

Solutions must be sought for the remaining owners. The banks are not allowed to hand over such loans if the customers do not have the financial means to repay them.

"Industry-wide solutions, targeted government support and more flexible energy standards can help," Jörg Eigendorf, Chief Sustainability Officer at Deutsche Bank, told Handelsblatt. In addition, consideration should be given to whether loans for energy-efficient refurbishment can be transferred to the next generation.