Improving policy instruments to better tap into homeowner refurbishment potential: Lessons learned from a case study in Germany

Increasing energy efficiency in residential dwellings remains one of the top climate protection priorities in many European countries. In Germany regulatory instruments and subsidy programs, together with communicative instruments, represent the most important measures for motivating homeowners to pursue energy-efficient retrofitting—to date, however, with little success; a tremendous potential for energy savings still exists particularly in the category of single-family houses. The present article primarily addresses the question of how to improve or supplement the political instruments in order to increase refurbishment rates and tap these potential savings; it presents the results of an analysis of existing policy instruments in Germany focussing on the most promising types of building and refurbishment measures that also takes into account the barriers responsible for the discrepancy between potential and actual refurbishment rates. It is shown that consideration of the specific peculiarities and situations homeowners face, coupled with an analysis of the energy saving potentials of their buildings, offers valuable insights and is critical for evaluating policy instruments and finding the mix of instruments that will purposefully encourage the most effective refurbishment measures. Drawing on these results, recommendations for the improvement of current policy instruments and implementation of new instruments are provided.

► Retrofitting of single-family houses offers high potential energy savings. ► Rate of refurbishment in Germany and other European countries is insufficient. ► Analysis of regulatory instruments and subsidies programmes in Germany. ► Instruments do not adequately address homeowners' barriers. ► Subsidy programmes do not focus on promising buildings and refurbishment measures.