Inflation, lack of skilled workers hindering energy-efficient renovations – report

Some 5.4 million households in Germany – or 13 percent of all households in the country – have concrete plans for one or more energy-efficient refurbishment measures in the next five years, according to a report by Cologne-based research and consulting group Sirius Campus. Of these, as many as 27 percent of homeowners and 22 percent of renters are planning additional insulation, more efficient heating, or the installation of a photovoltaic system. At the same time, however, rising inflation and a shortage of workers are hampering such renovations. The report finds that the willingness to invest in energy saving measures has fallen compared to the previous year: among homeowners it fell by three percentage points but remained constant among house tenants. The willingness to invest among apartment owners, however, has fallen significantly from 23 percent in 2021 to 14 percent, while remaining low at 2 percent among apartment tenants.

Concerns about inflation, uncertainty regarding price developments and the shortage of skilled workers are the main reasons behind the declining interest. Some 86 percent of households say that inflation is severely affecting them and 55 percent of those planning refurbishments want to wait and see how things develops or even rethink their plans completely. However, around a third of households (32 percent) are willing to react to the energy crisis with building measures to save energy. But past experience suggests that less than half of those interested in energy-efficient refurbishment will eventually invest in a measure.

Germany’s buildings sector failed to reach greenhouse gas reduction targets in 2021, and likely also in 2022. The German government last year adopted support schemes for energy efficiency in buildings, with the focus on renovating existing stock.