The CO2 Building Modernisation Programme, under which funding is provided for the KfW programmes for energy-efficient construction and retrofitting, has been a great success. Over 4.6 million homes have been built or modernised to be energy-efficient since 2006, representing nearly €283 billion in total investment. As such, the programme has played an pivotal role in making thousands of buildings more energy-efficient well beyond the legal requirements. Now the duration of the programme has been extended until 2018 and €2 billion added to its previous financial envelope.
Funding takes the form of grants or low-interest loans that may be combined with loan-repayment grants. As a rule, financial incentives rise with the level of energy efficiency achieved.
- Residential buildings: The “energy-efficient construction” and “energy-efficient retrofitting” programmes for residential buildings each come in two varieties, with funding available in the form of a loan or grant. The loans provided for KfW Efficiency Houses under the programme can now be as high as 100,000 euros, up from the previous 75,000. Similarly, the loan repayment and investment grants available under the ‘energy-efficient retrofitting’ programme have also been increased and a new repayment grant introduced for one-off measures to improve a building’s energy performance. As of April 2016, there has been a new KfW standard, the KfW Efficiency House 40 Plus, for which funding is now available under the “energy-efficient construction” programme. Funding for the KfW Efficiency House 70 is no longer available.
Under the ‘energy-efficient construction and retrofitting – construction supervision’ programme, grants are also available for construction expertise and supervision services. This programme has now been expanded to cover one-off measures and the construction of new buildings.
- Municipal and social service buildings: The programmes entitled ‘Investment loans for municipalities’ (IKK) and ‘Investment loans for municipal and social enterprises’ are designed to promote energy-efficient retrofitting and construction where community and local government buildings are concerned. Whilst the funding for retrofitting has been available for quite some time, funding for the construction of new buildings has only been available since October 2015.
- Commercial buildings: In July 2015, the ‘KfW energy-efficiency programme for energy efficient construction and retrofitting’ was expanded to include commercial buildings. This leg of the programme has also been very successful, with more than 2,000 low-interest loans for energy-efficient retrofitting and construction approved since the start of the programme and an overall investment volume of some €7.6 billion. Altogether, it is fair to say that the individual programmes under the CO2 Building Modernisation Programme are a key driver of the energy transition.