Reduce energy costs, increase property value: Your guide to energy-saving measures and modern building technology

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A couple discusses energy-saving measures in their modernized home.

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A couple discusses energy-saving measures in their modernized home.

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A couple discusses energy-saving measures in their modernized home.

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Reduce energy costs, increase property value: Your guide to energy-saving measures and modern building technology

Reduce energy costs, increase property value: Your guide to energy-saving measures and modern building technology

Reduce energy costs, increase property value: Your guide to energy-saving measures and modern building technology

4 May 2025

9

Minutes

Federico De Ponte

Expert in Real Estate Valuation at Auctoa

4 May 2025

9

Minutes

Federico De Ponte

Expert in Real Estate Valuation at Auctoa

Rising energy costs and new legal requirements present challenges for property owners. But what if these obligations are an opportunity for value increase and greater living comfort? Discover how the right energy-saving measures can future-proof your property while demonstrating your environmental awareness.

Chat with ImmoGPT for free now.

With access to Google, BORIS, and Deep Research.

The topic briefly and concisely

The energy efficiency of a property is a crucial value driver and can influence the sale price by up to 40%.

The Building Energy Act (GEG) sets new standards and gradually makes the use of renewable energies mandatory.

Government subsidies of up to 70% and tax benefits significantly reduce the investment costs for energy-saving measures.

Did you know that around 64% of residential buildings in Germany were built before the first thermal insulation regulation of 1979? These properties often consume multiple times more energy compared to new constructions. The new Building Energy Act (GEG) and a growing environmental awareness are increasing the pressure to take action. This article shows you how strategic energy-saving measures and the use of modern building technology can not only reduce your operating costs by up to 90%, but also significantly increase the sale value of your property.

The Essentials

  • Increase in Value through Efficiency: A+ class properties achieve up to 40% higher prices than class H properties.

  • Legal Framework: The Building Energy Act (GEG) has required since 2024 that new heating systems use 65% renewable energies.

  • Costs and Subsidies: A complete renovation can save up to 90% of heating costs; government subsidies often cover 20% or more of the expenses.

  • Intelligent Building Technology: Smart home systems can reduce heating energy consumption by 15% to over 30%.

  • High Renovation Demand: Approximately 12 million residential buildings in Germany were constructed before 1979 and are in urgent need of modernization.

The Status Quo: Why Action is Now Needed for Property Owners

The building sector is responsible for around 30% of CO2 emissions in Germany. In light of the goal to achieve a climate-neutral building stock by 2045, the Federal Government has set the course with the Building Energy Act (GEG). Since 1 January 2024, newly installed heating systems in new development areas must be operated with 65% renewable energy sources. For existing properties, transitional periods apply, closely linked to municipal heat planning, and come into effect by mid-2028 at the latest.

These legal changes coincide with a market where environmental awareness is steadily growing and energy efficiency is becoming a strong selling point. A poor energy balance can significantly reduce the value of your property. The good news: Every effective energy-saving measure is a direct investment in the future and the value of your property. Analysing the need for renovation is the first step.

Value Driver Energy Efficiency: How Renovations Affect Property Value

The energy efficiency class is no longer a sideshow, but a central factor in property valuation. An analysis shows that the price premium for energy-efficient houses (Class A+) compared to inefficient ones (Class H) averages at 40%. For comparison: in 2021, this difference was only 17%. This trend is further fueled by rising renovation costs, which buyers directly incorporate into their price negotiations.

An upgrade from Class D to A costs on average 700 euros per square meter. However, this investment pays off: renovated apartments achieve a higher sale price of 650 €/m² on average. A professional evaluation can precisely show you the potential value of your property. Use our ImmoGPT chat to get an initial assessment. The modernisation of your property is a clear investment in value stability.

An overview of the most effective energy-saving measures

To drastically reduce energy consumption, a holistic assessment of the building envelope and technology is required. A complete renovation can reduce energy costs by up to 90%. Here are the key factors:

  1. Insulating the building envelope: Up to 25% of heat is often lost through the facade and roof. Insulating the facade of a 130 m² single-family house costs around 30,880 euros.

  2. Window replacement: Modern triple-glazed windows significantly reduce heat loss. The cost for a complete replacement is approximately 30,000 euros.

  3. Roof insulation: A well-insulated top floor ceiling or a renovated roof (costs around 19,730 euros) prevents heat from escaping upwards.

  4. Heating optimisation: Replacing outdated heating systems is essential. A modern heat pump or a connection to district heating are forward-looking alternatives.

These measures form the basis for a sustainable and value-enhancing renovation. They significantly improve not only the energy balance but also the living comfort.

Modern building technology: Smart Home as an efficiency booster

Intelligent building technology is no longer a luxury, but a crucial element for energy-efficient living. Studies by the Fraunhofer Institute show that smart home systems can typically reduce heating energy by 15%, and in some cases by over 30%. The biggest advantage lies in the intelligent control of heating. Smart thermostats automatically adjust the room temperature based on your presence and even take weather forecasts into account.

Other smart applications with high savings potential include:

  • Smart lighting: LED lamps controlled via app or motion detector reduce electricity consumption.

  • Intelligent sockets: They completely disconnect devices in standby mode from the grid and make consumption transparent.

  • Automated shutters: They optimise solar gain in winter for heat and protect against overheating in summer.

Investing in smart building technology not only increases efficiency but also enhances the appeal of your property to technology-savvy buyer groups.

Make optimal use of government subsidies and financing options

You don't have to bear the costs of energy-efficient renovations by yourself. The government supports property owners with a variety of programmes. The Kreditanstalt für Wiederaufbau (KfW) and the Federal Office for Economic Affairs and Export Control (BAFA) are the central points of contact. For individual measures such as insulation, you can receive grants of 15%, plus a 5% bonus upon submission of an individual renovation roadmap (iSFP).

When it comes to replacing heating systems, grants of up to 70% are possible, depending on income. Alternatively, renovation costs of up to 40,000 euros can be deducted from taxes over three years instead of direct funding. A professional energy consultation, which itself can be subsidised by up to 50%, is the key to securing the maximum funding amount. A well-considered financing plan is crucial to the success of your renovation plans.

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Sustainability is more than just a trend; it is becoming a critical criterion in the property market. Investors and banks increasingly rate properties according to ESG criteria (Environmental, Social, Governance). A property that has a low carbon footprint through the use of renewable energies and ecological building materials is not only good for the environment but also for your finances.

Tenants are willing to pay more for energy-efficient apartments because their ancillary costs are significantly lower. This leads to stable rental income and a lower vacancy rate. Strong environmental awareness in the planning and implementation of construction measures secures the long-term value of your property and makes it attractive to a broader range of buyers.

Conclusion: Act now for a valuable and sustainable future

What does the Building Energy Act (GEG) 2024 stipulate?

The GEG 2024 mandates that newly installed heating systems must be operated with at least 65% renewable energy. This requirement has been in place since 1 January 2024 for new buildings in development areas and will be gradually extended to all existing buildings by 2028.

Is energy refurbishment worthwhile even for older houses?

Especially for older houses (built before 1979), the savings potential is enormous. As these buildings often have a very high energy consumption, refurbishment measures lead to a drastic reduction in operating costs and a significant increase in value.

What is an Individual Refurbishment Roadmap (iSFP)?

An iSFP is a detailed plan prepared by a certified energy consultant for the step-by-step refurbishment of your property. With an iSFP, you not only receive a clear roadmap but also an additional funding bonus of 5% for your refurbishment measures.

Can I combine subsidies?

You cannot simultaneously claim a grant and a tax bonus for the same measure. However, you can combine different funding programmes for various measures in the same building, e.g., a BAFA grant for insulation and the tax bonus for new windows.

How can I find out which measures are sensible for my property?

The best way is professional energy advice. An expert analyses the condition of your property and creates an Individual Refurbishment Roadmap (iSFP). For an initial, data-based assessment of potential value, you can also use digital tools like the Auctoa ImmoGPT-Chat.

What role does municipal heat planning play?

Municipal heat planning defines where heat networks (e.g., district heating) will be expanded in the future. The GEG deadlines for heating replacement in existing buildings are directly tied to this plan. If a plan is in place, the 65% rule becomes mandatory sooner.

FAQ

What does the Building Energy Act (GEG) 2024 state?

The GEG 2024 stipulates that new heating systems must be operated with at least 65% renewable energy. This requirement has been in effect since 1 January 2024 for new buildings in new development areas and will be gradually expanded to include all existing buildings by 2028.

Is it worthwhile to carry out an energy renovation on older homes?

Especially in older houses (built before 1979), the potential for savings is enormous. Since these buildings often have a very high energy consumption, renovation measures can lead to a drastic reduction in operating costs and a significant increase in value.

What is an individual renovation timetable (iSFP)?

An iSFP is a detailed plan created by a certified energy consultant for the step-by-step renovation of your property. With an iSFP, you not only receive a clear roadmap but also an additional funding bonus of 5% for your renovation measures.

Can I combine funding?

You cannot claim both a grant and a tax bonus for the same measure simultaneously. However, you can combine different funding programmes for different measures on the same building, for example, a BAFA grant for insulation and a tax bonus for new windows.

How can I find out which measures are appropriate for my property?

The best way is to get professional energy advice. An expert will analyse the condition of your property and create an individual renovation roadmap (iSFP). For an initial data-based assessment of the potential value, you can also use digital tools such as the Auctoa ImmoGPT-Chat.

What role does municipal heating planning play?

Municipal heat planning determines where heat networks (e.g., district heating) will be expanded in the future. The deadlines set by the Buildings Energy Act (GEG) for replacing heating systems in existing buildings are directly linked to this plan. If a plan is available, the 65% rule becomes mandatory earlier.

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auctoa – Your partner for precise appraisals and certified reports. Property valuation and land valuation. With digital expertise, expert knowledge, artificial intelligence, personalised advice, and comprehensive market insights.

Made in Germany

BASED IN HAMBURG

GDPR-compliant

HOSTED IN EUROPE

auctoa – Your partner for precise appraisals and certified reports. Property valuation and land valuation. With digital expertise, expert knowledge, artificial intelligence, personalised advice, and comprehensive market insights.

Made in Germany

BASED IN HAMBURG

GDPR-compliant

HOSTED IN EUROPE

auctoa – Your partner for precise appraisals and certified reports. Property valuation and land valuation. With digital expertise, expert knowledge, artificial intelligence, personalised advice, and comprehensive market insights.

Made in Germany

BASED IN HAMBURG

GDPR-compliant

HOSTED IN EUROPE