Wednesday, March 15, 2023

The EU and Forced Renvoation

 Yesterday, the EU passed a forced renovation bill into law.  So what it says....just for residential buildings (homes, condos, apartment buildings)....you MUST achieve a energy efficiency class "E" by 2030.  Then within 3 years (2033), you must pass to a energy efficiency class "D" rating. 

How this A through E rating system exists?  It started out as a appliance type rating.  Some standards were applied and it made sense (at least 20 years ago).  

Is it a done deal?  NO.  After they passed this via the EU, they need the membership of the EU in each country.....to vote and agree.  

To be kinda honest, this has stirred up a lot of talk in Germany....particularly from the FDP and CDU political parties.  

Chief reason?  Well....in some cases, you could be talking about 40,000 to 50,000 Euro at the extreme end.

I brought this up to my wife (the German).  Around a dozen years ago, she went and did a major renovation to the house (3 apartments in the structure).  Every entry door (5 of them) was replaced.  Every window was replaced.  Right now, with the rating business...the house will pass for a 'D'.  In our case, the house is safe with this EU standard....if this gets forced.  

The rest of the houses in the village?  Out of about a thousand homes here, I would guess that 80-percent will have a 'D' rating right now, with around 15-percent in the 'E' rating (some improvements will have to occur).  A few of the really older places (dating back to prior to 1920s construction).....will have significant issues.  

Who can afford the renovation costs?  If you are over 60....I have my doubts that these folks are eager to go and spend 30,000 Euro or more.  

Why force this issue?  Well....basically to drag everyone to a energy standard.....where they aren't wasting heating.  

After looking over this 'push'....you can come to the conclusion that anyone who has an older structure (more than 50 years old)....is in a difficult position where their property value will drop....in some cases....you might own a 8-apartment building dating back to 1912, and the renovation costs would be dumped upon the renting folks....perhaps even doubling the rent, and making it impossible to find people to rent it.

I looked it up....the experts generally say they think that 15-percent of Germany's residences are in the 'G' rating....meaning they won't pass by 2033 unless money is spent.  

Ballpark figure of homes in a bind?  Seven million homes and 7.2 million apartments....requiring some type of renovation to meet the 2033 deadline.

What I suspect will happen?  I think the SPD Party (currently leading the country) will suggest this is an impossible matter to hand out to people.  Honestly....if you go to Italy, Greece, or Poland.....I suspect more than half the homes in each country would have massive problems to reach the 'D' rating. You'd just end up with a fraudulent inspector to give you a fake 'D' rating in the end.

It's another case where the EU jumped in to fix something, and just made matters worse by their resolution.  Via each country....I don't see this being passed.

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