Tenants Ripped Off for Foolish Amounts?
In the ongoing quest to address the energy crisis, Germany is considering various proposals to save energy in apartments. However, these plans have sparked controversy, with real estate giant Haus & Grund criticising them as inadequate.
The proposals, which emphasise socially responsible subsidies and affordability for tenants, aim to improve building envelopes, increase renewable energy integration, and strengthen energy efficiency. One such initiative comes from the think tank "Zukunft Klimasozial," which proposes increasing subsidies for insulation measures while reducing those for heating system replacement, with subsidies scaled based on income levels.
On a regulatory level, the EU's revised Energy Performance of Buildings Directive (EPBD) requires member states to develop renovation plans focusing on the worst-performing buildings to reduce overall energy consumption significantly. Germany has until May 2026 to adopt this directive into national law, with the aim of lowering energy bills, enhancing living conditions, and making housing more energy-efficient and affordable.
Regional policies in Germany are also advancing the use of solar energy on building roofs, particularly in cities like Berlin and Hamburg, requiring solar installations on new and some existing buildings.
However, these proposals have raised concerns. Critics argue that upgrading buildings for energy savings could potentially lead to rising rents or overall housing costs, negatively impacting tenants, especially vulnerable groups. The subsidy concept by "Zukunft Klimasozial" attempts to address this by tailoring subsidies to income, but implementation details remain critical.
Another concern is ensuring affordable energy supply, particularly as heating subsidies decrease and more reliance is placed on insulation and energy-efficient technologies, which may require upfront investments that some landlords or tenants cannot afford without sufficient policy support.
The complexity and cost of compliance with evolving regulations could also strain developers and property owners, potentially impacting housing availability or affordability.
Kai Warnecke, president of Haus & Grund, has been vocal in his criticism of the proposals, stating they do not address the gravity of the issue. Warnecke has urged targeted support for low-income households and a waiver of the CO2 pricing for heating and fuel. He also demanded the refund of the €7.3 billion collected through CO2 pricing to those entitled to it.
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The Federal Ministry of Economics has proposed plans to save energy for apartments, but Haus & Grund considers them superficial and ineffective. The minister suggested making contractual provisions for minimum temperatures void to allow tenants greater savings, but Warnecke disagreed, stating that less heating was already possible in unproblematic temperature ranges, and tenants are still obligated to prevent damage through proper heating and ventilation in temperature ranges where mold is an issue.
In summary, the current proposals in Germany focus on income-based subsidies favouring insulation, stronger renovation enforcement via EU directives, and pushing renewable energy, especially solar, on buildings. The main critiques revolve around tenant protection and affordable energy access, needing careful policy design to avoid unintended financial burdens on renters.
- The proposed energy-saving plans for apartments in Germany have sparked debates over their effectiveness, with concerns about potential rising rents or housing costs impacting vulnerable tenants.
- Despite the EU's revised Energy Performance of Buildings Directive (EPBD), some critics argue that the growing reliance on insulation and energy-efficient technologies might strain developers and property owners financially, leading to potential issues with housing affordability.
- The president of Haus & Grund, Kai Warnecke, has been vocal in his criticism of the energy-saving proposals, advocating for targeted support for low-income households, waivers of CO2 pricing for heating and fuel, and the refund of collected CO2 pricing to entitled parties.
