Which energy savings are worthwhile for my condominium?

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Energy saving measures in the WEG
Overview
Overview

Joint energy saving in the condominium: windows, electricity, heat & more

Saving energy in a condominium - that sounds good, but how does it work? Condominium owners' associations in particular have considerable potential for energy-efficient renovations. In this article, you can find out which energy-saving measures are really worthwhile and how you can successfully implement them in your condominium association. We shed light on the most important energy-saving measures, from thermal insulation and window refurbishment to heating optimization, and explain how the distribution of costs can be regulated.

Step 1: Decide on energy-saving measures in the WEG

The first and most important step towards saving energy is open dialog within the condominium. Discuss the possibilities with your co-owners and try to develop a common understanding of the necessity and the goals.

Step 2: Resolution at the owners' meeting

As soon as you have agreed on specific refurbishment measures within the condominium, these must be formally adopted by resolution at an owners' meeting. The property management company is usually responsible for preparing and holding the owners' meeting.

As a general rule, changes that affect the common property must be approved by a simple majority in the WEG. This rule therefore also applies to energy-saving measures. Before taking any measures, the question of cost allocation should be discussed and the majority ratios clarified. In fact, the rules for cost allocation change depending on how many owners agree to a change. 

Only in the event that a double qualified majority is reached or the construction measure is amortized, the costs will be distributed among all owners according to their co-ownership shares. In the case of a simple majority, only the owners who have given their consent pay. 

To avoid a situation where only a few owners have to bear the costs of energy-saving measures, condominiums should always strive to achieve a double qualified majority for implementation or to prove that the expenditure has been amortized. Tip: Formulate the resolution in such a way that it only comes into effect on the condition of a double qualified majority.

Step 3: Commissioning the property management company and support from the management advisory board

Once the resolution has been passed, you as the condominium owner commission your property management company to implement the refurbishment measures. It is advisable to elect an advisory board to accompany, monitor and support the property management company during the refurbishment process. The tasks of the management advisory board include

  • Obtaining offers: The management advisory board can support the property management company in obtaining offers from tradesmen.
  • Informing the co-owners: The management committee should regularly inform the other owners about the status of the refurbishment.

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Save energy: Which measures are suitable for your condominium? 

When we talk about energy-saving measures in the context of COA, we usually talk first and foremost about modernization and refurbishment measures. On average, these can save between 16 and 30 percent of energy and costs. For one in five buildings, it can be even more. 

The objectives to be achieved by such measures are obvious: the aim is to reduce ancillary costs and protect the environment. An energy-efficient renovation offers many advantages in this respect: it not only reduces CO2 emissions and saves energy, but also increases living comfort and contributes to increasing the value of the building. Which measures are suitable here naturally depends on the building and its age or the modernization measures already carried out. 

When an energy-efficient refurbishment is worthwhile for a building

When you hear the word refurbishment, you usually think of the associated costs. Whether energy-efficient refurbishment is worthwhile for a building depends on the individual case, but we would still like to take a look at the potential cost savings if a house can be upgraded to a better efficiency class through refurbishment.

  • While an unrenovated building often generates heating costs of around €40/m2 , these can be reduced to €17/m2 in a well-renovated old building.
  • For a new building with minimum requirements, they are €12/m2 , but can fall to €3/m2 if the building is converted to the highest standard. 

‍It is therefore worth taking a close look as a COA and having an energy consultant calculate the cost-effectiveness of individual refurbishments. Which refurbishment work is actually so energy-saving that it makes financial sense in the short term does not depend on the building alone. Local conditions such as the weather, the micro-location and/or the orientation of the property also have a major influence on which energy-saving measures pay off.

Energy saving 1: Insulation 

The first measure that comes into question as part of energy-efficient refurbishment is insulation on the outer walls, roof, top storey ceiling or basement ceiling. Insulation is usually the biggest factor when it comes to the energy efficiency of a property, because a large proportion of the heat generated simply escapes without good insulation.

The cost of such a modification depends on the standard of the house on the one hand and on the material and labor costs on the other, which continue to vary greatly from region to region. These are generally quoted as a price per square meter when a quotation is requested. Although this is a substantial investment, it can save you considerable energy in the long term. If carried out professionally, this improvement can serve you for a period of 40 to 50 years.

Energy saving 2: Replacing the heating system

In second place is the conversion to new and modern heating systems. Especially with old heating systems such as oil or gas heating, it can be worthwhile for the COA to invest. New systems such as heat pumps or solar thermal energy can ensure that hot water and heating costs are significantly reduced overall and make a contribution to the environment.

Whether such a measure is worthwhile naturally depends on the age of the current boiler, the heating system and the energy footprint of the building as a whole. However, compared to a fifteen-year-old system, a modern low-temperature and condensing boiler can reduce heating costs by up to 20 %. A new heating system therefore often pays for itself within a few years.

Even with this energy-saving measure, only those owners who have a double-qualified majority of votes or if this energy-saving measure pays for itself bear the costs of new heating.

Energy saving 3: Optimize power consumption

Especially as a condominium, you can save a lot on electricity. Of course, everyone is initially responsible for their own household electricity consumption, but money can still be saved by using energy-saving light bulbs or LED alternatives in the hallway, for example.

It can also make sense for a condominium to purchase a photovoltaic system in order to reduce overall electricity costs. The good news at this point is that modernizing the heating system, which has already been discussed, can also make a huge difference to electricity consumption. A modern heating pump, for example, consumes up to 80 % less than an old one.

Energy saving 4: Installation of new windows

Old windows are real energy wasters. Windows are one of the biggest weak points in old buildings in particular. You should therefore check the condition of your windows as part of your energy-saving measures, especially in conjunction with insulation work, and consider renovating or replacing them if necessary.

When replacing windows, it should be noted that the exterior windows of an apartment belong to the common property, even if the declaration of division contains deviating provisions. If your condominium is planning to replace intact windows with energy-efficient, new windows, a resolution with a simple majority is required.

With regard to the distribution of costs for this structural change to the building, the regulations already explained above apply. If the window replacement is a maintenance measure - for example due to leaks or other defects in the existing windows that make replacement unavoidable - the rule applies that all owners must bear the costs in proportion to their respective co-ownership shares. In both cases, however, it is advisable to check in advance whether the declaration of division contains an effective provision on the assumption of costs for replacement by the respective owner.

Energy saving 5: Smaller measures for energy efficiency and energy saving

Smaller measures such as a house-wide night-time reduction and outside temperature sensors or insulation of the pipes also make sense in the context of a COA. In this way, costs can be saved quickly and energy-efficient action can be taken without the need for major investment if your condominium does not already make use of these measures.

Furthermore, hydronic balancing is a sensible measure for saving energy. This is possible if pre-settable thermostatic valves are fitted to the radiators. This is already mandatory for gas-heated buildings with more than five parties.

Benefit from the advantages of subsidized energy consulting

As a layman, you are initially faced with a huge mountain of information. There is often no overview of how good the insulation is and how efficiently the heating works. Of course, there are countless measures and processes that are possible for a condominium owners' association if energy-saving measures are to be taken. At the end of the day, it is generally worthwhile for a COA to commission an energy consultation to find out where there are the best opportunities to make savings in its own property.

There are subsidies that make this undertaking extremely affordable for you as the owner. In this way, the individual savings potential can be precisely determined. If the house is still new and an energy consultation is unnecessary, smaller steps can be taken. Hydraulic balancing makes the heating system significantly more efficient and enables everyone to save a little.

Independent energy advice is therefore a valuable support in the refurbishment process. It can analyze the current state of the building, make individual renovation recommendations and help you apply for subsidies. The costs for the energy consultation are usually subsidized by the state (e.g. through the Federal Subsidy for Energy Consulting for Residential Buildings (EBW) from BAFA).

Entitlement to BAFA funding for energy consulting

The BAFA subsidy covers €1,700 of the costs of energy consulting for residential buildings with three or more apartments and also offers condominiums a one-off subsidy of €500 when an energy consultation is used, as long as the energy consultation report is explained at the owners' meeting. In this way, the COA can be informed in detail about where there is potential for savings and which measures are really worthwhile for them at a relatively low cost.

Do you already know Ralph?

Ralph is usually good at estimating the rough potential of energy-efficient refurbishments and can draw on a network of energy consultants for the details. We also actively look after subsidies for your condominium. Simply get in touch with us about this.

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