Why German homeowners are reluctant to retrofit: Fid-Bau Portal

Why German homeowners are reluctant to retrofit

Galvin, Ray

Germany is frequently seen as a leader in thermal retrofit policy, with stringent mandatory standards for insulation, windows and boilers. However, the annual rate and average depth of thermal retrofits are considerably lower than expected. One of the main policy planks for promoting thermal upgrades is the claim that thermal retrofitting, to federal standards, is always ‘economically viable’, i.e. it always pays back, through fuel savings, over the technical lifetime of the upgrade measures. Policy discourse therefore tends to blame homeowners for complacency or ignorance in failing to see the financial opportunity offered by retrofitting. However, a five-year in-depth study of the policy, buildings and occupants finds this policy is out of step with both the buildings and the majority of their owners. The policy's claimed ‘economic viability’ of retrofits fails to account for the real nature of the buildings and overstates the savings. The negative effect of misplaced claims of economic viability is considerable. Many thoughtful homeowners are deterred. It is argued that policy needs to change: more nuanced upgrade measures are needed that suit specific buildings and occupants; top-end retrofits can be promoted where appropriate and affordable, but for reasons other than economic gain.