The renovation of multi-family buildings is crucial for achieving climate goals. However, a significant gap exists between political ambition and practical implementation. Many owners and property managers are uncertain: Should they first insulate the building envelope, replace the heating system, or invest in a solar power system? What offers the greatest benefit, and what is required and subsidized by the government? Therefore, it is all the more important to make decisions based on reliable data, says [name/source missing]. Ralf Görner, Managing Director of the real estate service provider Minol.
Mr. Görner, the German government has set the goal of making the building stock climate-neutral by 2045. How far is current practice from achieving this goal?
Ralf Görner: Looking at the figures, the need for action is immediately apparent. The building sector has been missing its climate targets for years, and the energy-efficient renovation rate is significantly below one percent per year. In 2024, it was a mere 0,69 percent. Around two percent would be required. Studies show that 26 percent of private landlords plan to implement energy-efficient renovations in the near future. But so far, this willingness hasn't translated into widespread implementation. Yet renovation is far more than a regulatory obligation: it's a strategic tool for maintaining and increasing property value, for future rentability, stable cash flows, and the financial viability of existing properties. Those who renovate today are not only making their portfolio more climate-friendly, but also more competitive in the market.
What do you consider to be the biggest obstacles?
Ralf Görner: A significant obstacle is the complexity of the regulatory framework. Legal requirements in the heating and building sectors are demanding and constantly changing; just consider the ongoing debate surrounding the Building Energy Act and the Building Modernization Act. Funding programs are constantly being relaunched, adjusted, or made time-limited. Under such conditions, it's difficult for landlords, property managers, and housing companies to make long-term investment decisions. The second point is the economic considerations. Energy-efficient renovations require substantial investments. At the same time, many stakeholders are under pressure to keep rents affordable and use budgets efficiently. Simply deciding on individual measures based on gut feeling isn't enough. The crucial factor is determining which combination of measures and which business model, such as tenant-owned electricity, best benefits a property portfolio with limited resources – both in terms of achieving climate goals and maintaining property value. This uncertainty leads to a cautious, wait-and-see approach.
How can property owners find out which measures are truly sensible and economical for their properties?
Ralf Görner: This question is so complex today that a rough assessment along the lines of "We'll insulate first" or "We'll start with the heating" is no longer sufficient. Owners need clarity about their building's current energy performance and a concrete roadmap to climate neutrality. They must consider many influencing factors simultaneously. This is where digital CO₂ accounting tools come in: They compile relevant data, such as CO₂ cost trends, simulate various packages of measures, and transparently show which combination has the greatest impact. Instead of uncertain gut decisions, a verifiable factual basis is created. Based on this, owners can say: "This is our path, in these steps, for good reason"—and that's precisely what's needed to turn the renovation plan into reality.
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What data do such tools use?
Ralf Görner: Our B.One Guide provides a good example of this. We use real consumption data from heating bills – that is, energy consumption, CO₂ emissions, and costs – from at least one completed heating season. This data is automatically imported from the Minol system, eliminating the need for property managers or owners to conduct time-consuming research. Based on this, property managers or owners can define which climate target pathway their building should follow, such as the 1,5-degree pathway, which aims to limit global warming to below 1,5 degrees Celsius. They then automatically receive corresponding packages of measures. These range from short-term optimizations, such as hydraulic balancing, to long-term investments, such as the transition to renewable energy systems or facade insulation. The tool calculates the anticipated investment costs, takes into account any current subsidies, and simultaneously displays the expected CO₂ savings . In addition, it provides a sound economic analysis that transparently illustrates the impact of planned measures on operating costs and property value.
Where do you see the potential of such tools – and where do they reach their limits?
Ralf Görner: Their greatest potential lies in making decisions more objective and faster. Digital CO₂ accounting tools transform numerous individual data points into a meaningful picture, thus bringing clarity to the complex world of building renovation. Building on this foundation, expert advice can be beneficial. At Minol, specialized energy consultants help to meaningfully interpret the results from the B.One Guide and develop concrete action plans. During implementation, the defined measures are then further refined with the relevant experts. Therefore, combining the tool with expert advice is highly effective. In this way, digital analysis and expert support complement each other, leading step by step to sound decisions on the path to the energy transition.
Farknot Architect – stock.adobe.com /Plan energy-efficient renovations intelligently with the B.One Guide modernization guide.
B.One Guide supports Minol customers in making strategic decisions regarding building renovations and uses data to show the economic impact of different modernization strategies and how properties can be modernized sustainably and economically.
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