25 proposals for energy renovation

Summary of “25 Proposals forEnergy Saving in Dwellings”The Danish Ecological CouncTil h- Oec toDbear n20i0s8h Ecological Council 1The Environment of Tomorrow is Created TodayMulti-storey buildings larger than 1000 m2 have to be Energy Labelled every five years. The Photo is from theenergy renovated building Østerbrogade 109 in CopenhagenISBN: 97-92044-22-0Author: Johan Nielsen, The Danish Ecological CouncilTranslation: Ari ArnoldLay out: Søren Dyck-MadsenPhotos: Søren Dyck-Madsen page 1, 2, 7 and 9. Isover page 3 and 7. Rockwool page 8.Only issued in electronic version - October 2008This booklet can be read and downloaded from the Danish Ecological Council’s website: www.ecocouncil.dk - “Publications”Quoting, copying and other application is allowed with source referenceFunded by by The Nordic Council of Ministers and the Energy Conservation Fund, Danish Energy AssociationIssued by:The Danish Ecological CouncilThe Environment of Tomorrows is Created TodayBlegdamsvej 4B2200 Copenhagen NPhone: +45 33 15 09 77e-mail: info@ecocouncil.dk2 25 proposals for energy saving in dwellingsPrefaceWe must pay more attention to the vast potentials Baltic Sea Region and via web-distribution. The 25for a more intelligent energy consumption and lower proposals cannot be applied directly in any othercosts within the housing sector. The potentials of re- country. It may even be difficult for the reader tonewable energy sources and especially the potentials understand the Danish context. However, every 25of increased energy efficiency are still to a wide examples of economic incitements, of adjusting legalextent unused. tools, and of making the “climate choice” the easychoice of the resident may inspire when adapted toThat is why Folketinget, the Danish Parliament, hasthe context of another country.translated a brief Summary of “25 proposals forenergy saving in dwellings”. The summary is part of Buildings and houses spend some 40 % of all energythe documentation forwarded to the working group consumption in Europe. The potentials awaiting ourof Parliamentarians gathering in Folketinget 20th - initiatives are needed in order to reduce energy con-21st October 2008. The working group includes par- sumption and in order to reduce man-made CO2liamentarians from all the Baltic Sea Region, se- emission. However, the potentials may be “toughlected by the Baltic Sea Parliamentary Conference business” as well. The techniques, the materials, the(BSPC). The working group gathering in Copenha- renewable sources, and the planning principles pre-gen October 2008 is in charge of formulating recom- sented in this publication are advantageous to its us-mendations of how to implement renewable energy, ers in the short and long run. A building sector basedenergy efficiency and energy savings in all countries on energy efficient housing locally may develop ex-and in all sectors of the Baltic Sea Region at the port potentials in our region and on a European level,next BSPC conference September 2009 and to the too. The necessary climate policy is also the long-termUN climate conference in Copenhagen November policy in terms of employment and social welfare.2009, too.I hope that a number of the 25 proposals will inspireThe 25 proposals is produced by “The Ecological in all the countries of the region.Council”, a Danish think-tank, an independent, non-governmental organization. This Ecological Council Copenhagen, 20th October 2008.maintains close contacts and dialogues with the Dan-ish building sector, with the private and the public Anne Grete Holmsgaard, MP, Folketinget, Denmark.energy policy institutions. The summary will be dis- On behalf of the chairmanship of the BSPC workingtributed via my collegues Parliamentarians of the group.The historical villa ‘Åhuset’was insulated from the out-side in order to reducehumidity and to preserve theoriginal wooden panels andstuccoThe Danish Ecological Council - October 2008 3Summary of the 25 ProposalsA: The Energy-labelling Scheme has to be has to be above 1,33. These factors correspond tomore efficient simple payback times of approximately 10 years and3 years, respectively.Proposal 1: All houses should be EMO-labelledFor larger renovation tasks of the building envelopeat least every 10 years and the labelling process(new roof, new windows or additional glazing, frontshould be supervisedrenovation, etc.) the energy standard should be re-To promote energy-saving in smaller multi-storey quired to comply with the regulations for new build-buildings and single-family homes, all houses should ings. This should apply regardless to whether betterbe labelled - in Denmark called the EMO-label - insulation is profitable or not, as later improvementwithin a specified date, e.g. before the end of 2010. of the energy standard (as a single project) would beHouses with a bad energy standard, e.g. energy-class much more expensive.C1 or worse, should be EMO-labelled at least everyAll proposals made by the energy-advisor in the5 years as it is the case with larger multi-storey build-EMO-report should clearly show the potential energyings. All other buildings should be labelled everysavings. Finally it might be considered to let the10 years. The Joint Secretariat for Inspection andreport show possible improvements of the renovationEnergy Labelling should ensure that labelling is actu-to indoor climate and living comfort, as those im-ally been carried out. EMO-labelling is also a pre-provements add value to the building and to the livescondition for the introduction of a green property tax,of the residents.see suggestion 4.Proposal 4: Incitements to carry out profitable sug-Proposal 2: Publication of electricity and heatinggestions from the EMO-report within 3 yearsconsumption, as well as publication of an EMO-report We suggest to increase property tax by 10%, if prof-itable energy projects in the EMO-report are notSince the Energy-Labelling Scheme for multi-storeybuildings only applies to electricity consumption of‘Hedeboparken’ in Roskilde was renovated by replace-common areas, it should show if any shared instal-ment of windows and front insulation with a new outerlations use particularly much energy, e.g. a sharedbrick walllaundry room. Otherwise the EMO-labels are notcomparable. For multi-storey buildings this informa-tion should be supplemented by the actual electricityand heat consumption of every single apartment.Those figures can be obtained from energy providersand administrators. The basis for calculation of thetheoretical energy consumption should be shown inthe EMO-report or should be obtainable from EMO-advisors.Proposal 3: Adjustment of rules regarding profit-ability of investmentsAccording to the EMS, energy-advisors have to rec-ommend all profitable investments. But with the cur-rent requirements to profitability, profitable invest-ments with even relatively short payback time are notconsidered profitable. Therefore investments with alife span of more than 10-15 years should be definedas profitable, when the saved amount multiplied bylife span and divided by the invested amount is atleast 1,10. In the building regulations this factor4 25 proposals for energy saving in dwellingsrealized within 3 years. The renovation could be Proposal 7: Lower fixed fees on distict heating billssubsidized, e.g. by 20 %, if the work is carried outMax 18-22 % of the distict-heating revenue shouldby registered businesses and is completed within 2- over a period of 5 years- come from the fixedyears. Alternatively it can be made obligatory to real-fees that constitute payment for the heat supply-ize all profitable proposals in the EMO within e.g.obligation. Alternatively all district heating can be3 years.paid according to consumption, and a minimum feeis introduced to compensate for the fixed fee.B: More efficient organization of taxes, feesand subsidies to energy savings Fixed fees for electricity and gas are changed to vari-able consumption charges in the same way.Proposal 5: Green property taxesProposal 8: Installation of intelligent electricity-In order to make energy improvements more attrac-meterstive, property taxes should depend on energy con-sumption. The electrical supply companies should install orencourage installation of intelligent meters that canProperty taxation can depend on the energy label, suchmeasure and calculate the cost of used electricitythat it is e.g. 30 % lower on a Low-Energy Class 11over shorter time periods, e.g. over an hour. Thishome compared to the worst energy class. The ener-gives the consumer opportunity to choose electricitygy standard depends on the age of the building. Thisprices that vary during the day.could be taken into account by letting property taxesdepend on the average energy standard for houses In the beginning this could be done on a voluntaryof the respective age group. The re-organization can basis, such that interested consumers are offered flex-be made without reduction of the total property tax ible meters at cheap prices. When the system is test-revenue. Owners of houses, which are being energy ed, and when the advantages of placing most powerimproved, can at any time ask for a new energy label consumption in times of large supply - and low pric-and thereby get lower taxation. The system can be in- es - become bigger, it can be made obligatory fortroduced e.g. by 2010. Not all existing family homes either specific or all customers.can be energy-labelled before this date. The energylabel/property taxation can therefore be introduced Proposal 9: Higher fees on energy, combined withgradually according to the age of the building, such generally lower taxthat the oldest buildings, which have the biggest Higher energy fees combined with a tax reform, suchsaving potential, are labelled first. Alternatively, all that revenue from energy fees is used to lower in-properties that are not energy-labelled by 2010 can come taxes, and the overall tax level is not increased.be put in the worst group. After that a voluntary Hereby even more energy savings will be profitableenergy labelling can place the property in a better and more ambitious climate-goals can be realized.energy class.Proposal 6: Possibility to be exempted from build-Energy Labeling density- and distance rules in case of addedinsulation in outside wallsLow ConsumptionThe rules on building density are the reason that low-energy houses with thicker outer walls can only bebuilt with a smaller indoor area than conventionalhouses. They should therefore be changed to be cal-culated on the basis of total area minus outer walls.Unless there are special circumstances, the buildingregulations should allow exemption from distancerules to neighbours or roads, in case more insulationresults in higher roofs or thicker fronts.1: Low-Energy Class 1 is a voluntary standard definedas 50 % below the maximum energy consumption re-quired for new buildings in Denmark from 2006. ClassHigh Consumption2 is 25 % below the mandatory requirements.The Danish Ecological Council - October 2008 5C: Proposals for Subsidies plementation of renewable energy in both existingand new buildings. This serves to make energy reno-Proposals 10: Establishment of a heat-saving fund vations cheaper through standardized methods, butalso to make it easier for the owner to oversee theEstablishment of a heat-saving fund, possibly as partwhole project.of the Electricity-Saving Fund. The fund is financedby a heat-saving contribution on oil and gas used A knowledge and competence center is needed tofor heating, and on district heating, in the same way gather and communicate knowledge of possibilitiesas the electricity-saving contribution. The purpose and expenses for increased energy efficiency, in bothof the fund is to promote heat-saving campaigns, existing and new buildings, to the building industrysupport labelling of heat-saving appliances and to and other interested parties.subsidize heat-saving projects.D Tighter regulations for buildings and productlabellingProposal 13: New building regulationsA political agreement on building regulations hasbeen reached, that Low-Energy Class 2 will be ob-ligatory by 2010, and Low-Energy Class 1 is aimedat for 2015. The last mentioned can be moved for-ward, such that Low-Energy Class 1 will be obliga-tory at the latest by 2012. Higher energy standardsshould also be required for renovations, since there isa very high potential for energy savings which is notrealized, because today’s requirements are not ambi-tious enough. There should also be wider standardsThe Electricity-Saving Fund is a success. A heat-saving for profitability and payback time (cf. suggestion 3)fund could become a success as well and increased monitoring of compliance to the rules.Proposal 14: Higher requirements for insulationProposal 11: Establishment of demonstration areas standard of windowsEstablishment of a demonstration project in a hous- The existing labelling system should be upgradeding estate or in a municipality. Exhaustion of climate from an U-value of 2,0 to 1,5 W/m2 for the completegasses in the project should at least be reduced by window, and for all kinds of windows. The labelling21% through energy savings and increased use of system should be obligatory instead of the existingrenewable energy. The project could include electric- voluntary one. The energy balance of the completeity, heating and possibly transportation. window should be looked at, not merely the pane,and it should be ensured that only the best windowsProposal 12: Demonstration projects for energy get the label A.renovation of buildings and establishment of aknowledge and competence center Proposal 15: Energy labelling of district heating-ap-pliances2Examples are needed to show how to renovate themost common housing types to a considerably better An energy-labelling system for district heating ap-energy standard. This is why there should be subsi- pliances should be introduced. This will enable thedies for demonstration projects to show how existing consumer to choose a more efficient district heatingtypical houses can be renovated to the level of low- appliance. If the heat-saving fund is established (seeenergy houses. The demand is particularly high for suggestion 10), it could finance this system. Theresingle-family homes. New renovation methods could should also be requirements to and inspection of thebe developed and cost estimates could be standard- insulation of the district heating pipes leading to theized. These examples could also show how to reno- appliance.vate with respect to the architectural elements of thebuilding.Standardized solutions need to be developed on mar-2: In Denmark 60% of the households - flats as well asket conditions to promote energy efficiency and im- single family houses - are supplied by district heating6 25 proposals for energy saving in dwellingsings. The expense could be included in the heatingbalance which also includes the obtained savings.Proposal 18: Maintenance and investment plan forall multi-storey buildings larger than 1.000 m2To assist the carrying-out of all necessary mainte-nance and investment tasks (among these energysaving projects), it should be obligatory for alllarger rented apartment buildings to have an all-round maintenance and investment plan. This shouldalso apply to cooperative apartments and apartmentswhich are owned by the resident. For these anamount per m2 should be charged for maintenance,as it is done in private rented apartment buildings.F Proposal for private rented apartmentsProposal 19: Rent increases caused by energy reno-vation should be temporary and realization of en-ergy savings can be demandedToday the owner has to pay the immediate expensesof an energy improvement, but he benefits from apermanent higher rent income, also after the invest-ment is paid back. The tenant benefits from the en-ergy savings, but has to pay the permanent rise.E Easier financing and realisation of energy- This is a barrier for energy investments. If the rent in-saving measures crease was temporary, the tenants would be more in-Proposal 16: Financing of energy savings over en-ergy bills/easier access to loansEnergy suppliers can make the realisation and financ-ing of energy savings in single-family homes easierby offering help with choosing solutions, with invit-ing offers from contractors and with financing ener-gy-saving measures through energy bills. It could bemade easier to obtain smaller loans (e.g. less than100,000 kr./13,000 Euros) for single-family homeswithout having to pay tax for making the documentsand bank fees.For all types of multi-storey buildings it would helpto make sure that it is easy and simple for the ownersto project, realize and finance the project. In case anenergy supply company or ESCO (Energy ServiceCompany) is in charge of an energy renovation, itcan take care of all parts of the process: identificationof projects, choice of solutions, obtaining tenders,realisation, financing and charging expenses.Proposal 17: Obligatory energy control in all largerbuildingsA lot of properties don’t have energy control in theirheating system, although this could often lead to con-siderable energy savings. Therefore obligatory en-ergy control should be established in all larger build-The Danish Ecological Council - October 2008 7terested in energy improvements - whereas the prop- Proposal 21: Adjustment of regulations for multi-erty owner would be less interested. A possible solu- storey buildingstion is to leave all responsibility and trouble withRenewal of the central heating system should beenergy consumption and payments to an energy pro-financed by the property account for exterior mainte-vider or ESCO-company.nance, and it should be ensured that cooling expensesBoth owner and tenants should be able to demand are not added to the heating bill. Energy-saving in-the realisation of energy savings, provided the rise in stallations which increase maintenance costs, e.g. so-rent is temporary and that the total expense (rent and lar heating systems, ought to make it legitimate toestimated energy cost) is not increased. If the energy claim higher maintenance charges. At the momentinvestment involves maintenance costs, they should the owner the has to pay the increased maintenancebe paid by the owner according to usual regulations. expenses according to the Danish Law on HousingRegulation.Proposal 20: Money in an investment account canonly be used on fireproofing and energy saving Proposal 22: The Property Owners’ Investmentmeasures Fund (GI)3 should increase subsidies for researchprojectsIt should be ensured that money in the investmentaccount according to the Law on Temporary Housing The GI has a capital of nearly 1 billion Dkr. andRegulation can only be used on fireproofing and supports development projects, to which it has con-energy saving measures - not on general maintenance tributed a little over 10 mio DKK in 2006. We sug-as it is the case today. The Property Owners Invest- gest that the fund increases its subsidies to researchment Fund should monitor this. If the amount on projects with an energy saving aim.the investment account (in a properly maintainedproperty) is bigger than the equivalent of 3 years’ G Proposals for community (non-profit) housingpayments, the property owners should be able todemand that the amount is used on energy saving Proposal 23: Increased budget for building expens-measures. es for low-energy community housesCommunity low-energy houses need a higher budget3: In Danish: Grundejernes Investeringsfond limit for the building phase. The current limit is toolow to make building of low-energy houses possible,8 25 proposals for energy saving in dwellingsand it does not take into account that the costs for liv- H Proposals for public buildingsing in the community house because of lower energyProposal 25: Reduced energy consumption in pub-costs can be the same, even though the costs of build-lic buildingsing might be higher.The State has agreed to realize all energy improve-Proposal 24: Extra funding for energy-related parts ments with a payback time of less than 5 years,of community housing renovation including residences of public officials, institutionsand others. This should be changed to payback timesThere should be additional economic support forof less than 10 years, and should also include inde-projects that improve energy efficiency of commu-pendent institutions that receive more than half ofnity housing, especially if renovation complies withtheir revenue from the State. Money to enable publicthe standard of Low-Energy Class 1 or 2.institutions to finance energy savings in addition toCommunity housing should be required to be energy- their budget should be provided, e.g. through centralrenovated according to the same guidelines as state- loan options.owned buildings. That means realization of all en-Municipal and county buildings should comply toergy projects with a payback time of less than 5equivalent rules, again including independent institu-years, and will require further subsidies to the com-tions. Since municipalites and counties have verymunity housing sector. If a Heat Saving Fund isrestricted budgets, they should be able to invest inestablished, it could, among others, subsidize theenergy improvements in addition to their expenseenergy-related parts of a renovation.limit. Municipalities can currently get loans for en-ergy renovation beyond usual municipal loan limits.The same should apply to counties/regions4.4: In Denmark 5 regions provides hospital services etc.,while the 98 municipalities provide public schools, day-care, care of the elderly etc.Part of the renovation of ‘Hedeboparken’ in Roskilde was a new outer brick wall with additional insulation behind itThe Danish Ecological Council - October 2008 9