What Is an Energy-Efficient Renovation?
Energy-efficient renovation involves targeted modernization of buildings to optimize their energy efficiency. The goal is twofold: to reduce energy consumption and to lower operating costs in the long run. Renovation measures include wall and roof insulation, upgrading outdated heating systems, and installing energy-efficient windows and doors.
How Much Does an Energy-Efficient Renovation Cost?
|
Component |
Cost (CHF) |
Payback Period |
|---|---|---|
|
Heating System |
17,000–48,000 |
10–20 years |
|
Façade Insulation |
10,000–35,000 |
15–40 years |
|
Roof Insulation |
5,000–25,000 |
12–25 years |
|
New Windows |
500–2,000 per window |
10–25 years |
|
Solar System |
20,000–25,000 |
10–15 years |
Source: HEA (Association for Efficient Energy Use). These values are approximate and non-binding.
What Are the Options for Energy-Efficient Renovation?
Replacing the Heating System
Upgrading an outdated heating system is often the first and most critical step in energy-efficient renovation. Modern systems, such as heat pumps or pellet heating, are significantly more efficient and environmentally friendly compared to traditional oil or gas heating systems.
Façade Insulation
Effective façade insulation reduces heat loss and significantly enhances energy efficiency. Options include core insulation, external insulation, or internal insulation. A well-insulated façade can lower heating costs by 20–30% or more, depending on the property.
Roof Insulation
Significant energy can be lost through an uninsulated roof. Depending on the structural situation, flat roof insulation, on-roof insulation, between-rafter insulation, or under-rafter insulation can be applied.
New Windows
Replacing old, inefficient windows with modern, highly insulated ones is another effective way to improve energy efficiency. High-performance windows with double or triple glazing, along with improved frames and seals, can reduce heat loss by 10–20%, depending on the prior installation. The thermal transmittance value (U-value) is a key indicator of a window’s insulation performance and should be considered when selecting new windows.
Solar Systems
Installing a photovoltaic or solar thermal system not only reduces energy consumption but also provides greater independence from energy suppliers. Photovoltaic systems convert sunlight directly into electricity for personal use or feeding into the grid, while solar thermal systems support heating and hot water production.
Planning an Energy-Efficient Renovation
Get Informed
Start by identifying visible issues or deficiencies in your property to assess renovation needs. Familiarize yourself with the available renovation measures and technical solutions, and begin financial planning. Check which renovation measures are subsidized in your canton and explore financing options such as bank loans or private credit.
Request Quotes
Once you have an overview, set your budget and prioritize your goals. Professional advice from an energy consultant can help provide a detailed assessment of your property. Based on this assessment, request specific quotes from contractors for the planned renovation.
Choose Measures
Take time to carefully compare the received quotes in terms of price and the quality of proposed work. Decide which measures to implement based on your budget and the energy consultant’s recommendations.
Apply for Grants
After deciding on a course of action, apply for subsidies. Each canton has different programs and requirements for energy-efficient renovations.
Execute the Renovation
Once grant approvals are secured, hire contractors to carry out the work. After completion, the installed systems will be commissioned and connected.
Should You Invest in Energy-Efficient Renovation?
|
Scenario |
Is It Worthwhile? |
|---|---|
|
Something is broken and needs replacing anyway (e.g., heating, roof) |
Almost always worthwhile |
|
No damage, but outdated technology |
Depends on the time horizon |
|
No damage, modern technology |
Usually not worthwhile |
Which Energy-Efficient Measures Are Worth It?
For properties that aren’t state-of-the-art, renovation options are often numerous. However, since homeowners have limited budgets, cost-effectiveness usually determines which measures are sensible. Typically, one or two measures offering the greatest benefit for the lowest cost are prioritized.
It’s essential to consider costs not only in terms of initial investment but over the entire lifecycle of the installation. For instance, a heat pump may have higher upfront costs than a gas heating system, but its operating costs are significantly lower. Whether an investment is worthwhile also depends on your long-term plans for the property. Renovations are most cost-effective when combined with already planned upgrades.
Subsidies for Energy-Efficient Renovations
Federal and Cantonal Building Program
The federal and cantonal building program, launched in 2010, aims to reduce greenhouse gas emissions and energy consumption in buildings. It supports energy-efficient renovations, investments in renewable energy, and optimization of building systems.
Funded by the CO2 levy, up to CHF 450 million per year is allocated to this program, with the funds distributed to cantons as global financial aid. Cantons implement the subsidy programs according to federal guidelines, which is why grant amounts vary between cantons.
GEAK/CECB (Cantonal Energy Performance Certificate)
The GEAK/CECB certificate evaluates a building’s energy performance, categorizing it into one of seven energy classes (A to G). It assesses both the building envelope (e.g., insulation, windows) and overall energy efficiency, including systems like heating, hot water, and renewable energy use.
In many cantons, a GEAK/CECB or GEAK/CECB Plus is mandatory for grant applications. However, the cost of obtaining an energy certificate is often subsidized.
Tax Deductions for Energy-Efficient Renovations
As a property owner, you can generally deduct all value-maintaining investments from your taxable income. Value-maintaining investments are expenses that are expected to occur regularly over the lifecycle of a property. These expenses help preserve the building's structure and living quality, ensuring that the property does not lose value. Examples of value-maintaining investments include:
- Replacements, such as installing a new heating system
- Maintenance, such as repainting the façade
- Renovations, such as replacing a dilapidated roof
What qualifies as a value-maintaining expense varies from canton to canton. As a homeowner, it is best to consult your local tax office to determine which renovation and maintenance measures are tax-deductible in your canton.
Energy-efficient renovations can also be deducted from taxes, just like value-maintaining investments. Examples of deductible energy-efficient renovation measures include:
- Thermal insulation
- New windows
- Replacing a fossil fuel heating system with a heat pump
- Installing a solar system
Investments in energy-saving measures or the use of renewable energy can always be deducted from direct federal taxes. However, what qualifies for deductions at the cantonal level varies, as each canton implements federal guidelines at its discretion. In all cases, only the self-financed portion of the investment is tax-deductible; costs covered by subsidies are not deductible.
In the past, energy-efficient renovations had to be declared on the tax return in the same year the work was carried out. To provide tax relief for property owners and encourage energy-efficient renovations, costs can now, since 2020, be spread over up to three tax periods.
Rental Properties
Renovations can be done in occupied or vacant properties, depending on the project’s scope. While minor updates may be manageable with tenants, extensive renovations often require vacant units. During renovations, tenants are entitled to rent reductions, and eviction due to renovations must be justified, such as with an approved building permit.
Rental increases are only allowed for value-enhancing renovations, such as those improving energy efficiency.
