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How Effective Is Insulation for the Climate and Your Wallet?

Insulation
The more insulation, the better for the climate and your wallet? Federal Building Minister Klara Geywitz has expressed concerns. Photo: Getty Images
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May 25, 2023, 3:11 am | Read time: 5 minutes

Government plans for more climate-friendly heating systems are already causing significant unrest. Now, Building Minister Geywitz is questioning the value of insulation: What benefits the climate and the wallet?

Wrapping the house thickly to retain heat–is that really the best for climate protection? Building Minister Klara Geywitz has her doubts. Ever stricter insulation regulations have made construction very expensive, the SPD politician said a few days ago. There are questions about whether the additional costs for insulation are in a reasonable ratio to the energy saved. And the production of insulation materials also generates greenhouse gases. With this, the minister is opening a new debate amid the heated discussion on heating systems and risks a potential conflict with Climate Minister Robert Habeck (Greens). After all, stricter requirements for energy-efficient buildings are part of the coalition agreement. Ambitious goals are also being debated at the EU level. For homeowners, the situation is not necessarily becoming clearer. However, experts can shed some light. How sensible is insulation really for the climate and personal finances?

“Energy-efficient renovations offer enormous potential”

Christian Handwerk, an expert in energy-efficient construction at the Consumer Center of North Rhine-Westphalia, advises distinguishing between newly built houses and older properties. From Handwerk’s perspective, the insulation debate mainly concerns existing buildings: “Our problem is greater there than in the new construction sector.”

The German Energy Agency Dena has the numbers. The approximately 22 million buildings account for 35 percent of Germany’s energy consumption. About three-quarters of the stock was built before 1979, without thermal protection requirements. According to Dena, unsanctioned old buildings require three to five times the energy for space heating and hot water compared to what is technically possible today. “Energy-efficient renovations thus offer enormous potential to reduce our energy consumption,” the energy agency confirms.

Geywitz has support from the states

But is very thick facade insulation really worthwhile? Geywitz said at a construction congress: “Initially, it makes a lot of sense because what I insulate, I save on ancillary costs. But at the latest from EH55, many have questions about whether the money spent on additional insulation is in a reasonable ratio to the energy saved.” EH55 means a requirement of 55 percent of the energy of a comparable new building.

Geywitz promptly received support from the states. “What Klara Geywitz is now expressing has long been my stance,” said Nicole Razavi (CDU), chairwoman of the Building Ministers’ Conference. “We must succeed in combining affordability and climate protection in housing construction.” North Rhine-Westphalia’s Building Minister Ina Scharrenbach (also CDU) emphasized that solutions for residential areas must increasingly be considered, not just individual houses.

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“Sensible insulation also benefits the wallet”

Energy expert Handwerk sees it differently and says: “Sensible insulation also benefits the wallet.” To achieve EH55, an older house needs, for example, facade insulation of 16 to 18 centimeters. This investment pays off within twelve years at an energy price of 14 cents per kilowatt-hour. However, the lifespan of the insulation is longer, perhaps 40 years.

Looking at this span, even thicker insulation is worthwhile, Handwerk believes. This maintains the property’s value–uninsulated buildings will be harder to sell in the future.

The expert also disputes concerns that CO2 emissions from the production of insulation materials negate the benefits. “That’s really nonsense.” The insulation saves much more emissions than production causes–by a factor of 15 to 20, Handwerk says. This is also how a report from the Institute for Thermal Insulation Research, commissioned by the industry itself, presents it.

The debate is first taking place in Brussels

The political debate is likely to gain momentum both at the federal and EU levels. The coalition agreement of the SPD, Greens, and FDP states regarding the Building Energy Act (GEG): “By January 1, 2024, the standards for major expansions, conversions, and extensions of existing buildings in the (Building Energy Act) will be adjusted so that the parts to be replaced correspond to EH70; in the GEG, the new building standards will be aligned with KfW-EH 40 by January 1, 2025.”

These agreements remain valid, emphasizes the office of Climate Minister Habeck. Insulation remains important, even if heating is done with renewable energies–as they are also only available in limited quantities. According to a study by Agora Energiewende, the heat demand in buildings must decrease by 39 percent for the overall plan for a climate-neutral Germany to work.

Habeck’s office is avoiding open conflict lines for now. The insulation requirements that currently apply for funding from the KfW banking group will not be adopted one-to-one, a spokeswoman explains. A new “requirement system” is needed, which “will follow the currently negotiated revision of the European building directive.” This likely means waiting for the European framework before the Building and Climate Ministries engage in a dispute.

In Brussels, the EU states and the European Parliament currently have different plans for energy savings in buildings and possible renovation obligations. A quick agreement is not expected, says a spokesman for the Swedish Council Presidency. At least not before mid-year, when Sweden hands over the chair to Spain.

with material from dpa

This article is a machine translation of the original German version of MYHOMEBOOK and has been reviewed for accuracy and quality by a native speaker. For feedback, please contact us at info@myhomebook.de.

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