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Renovation: Solutions to overcome financial barriers

18.03.2025 VORHERIGER ARTIKEL NÄCHSTER ARTIKEL
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Despite Switzerland’s ambitious climate goals, energy-efficient building renovations are struggling to take off, hindered by profitability concerns and high initial investment costs. An NPR project is proposing two innovative solutions.

In Switzerland, energy-efficient renovation is a key tool for meeting the country’s CO2 reduction targets by 2050. However, despite public incentives, the renovation rate remains low. One of the main obstacles is the profitability of necessary investments: “Our results show that passive renovation—building insulation—is not always economically viable, even when subsidies and tax benefits are taken into account,” explains Nils S. Tuchschmid, a researcher at HEG-FR and leader of the SAFFTESIS collaborative project.

By analyzing standard buildings using data from construction partners, the research indicates that over a 30- to 50-year period, profitability often remains negative. “Without subsidies, it would even be impossible,” he adds.

Active renovation, on the other hand, which includes replacing heating systems, can be more advantageous. Switching from oil to district heating or from gas to a heat pump, for example, has better profitability potential, especially given rising gas prices.

Another major obstacle to energy-efficient renovation is the upfront financing of the work. Property owners must advance funds before benefiting from subsidies and tax savings: “This is the problem we are trying to solve,” says Nils S. Tuchschmid.

The researchers are working on two complementary solutions: a one-stop service and an impact fund. The one-stop service would streamline administrative procedures by providing a centralized entry point for property owners looking to renovate. Such a structure would optimize costs and improve access to subsidies. In France, similar initiatives already exist, though they are often limited by bureaucratic hurdles.

The impact fund, on the other hand, would act as a bridge loan, immediately covering the share of subsidies and tax incentives to which a property owner is entitled. “The idea is to offer attractive financing for both property owners and investors,” explains the researcher. This model could encourage more renovations.

The SAFFTESIS collaborative project is coming to an end, and researchers are now exploring ways to implement the impact fund. “We are looking for funding to bring this fund to life and to develop a practical guide covering regulatory and tax aspects,” concludes Nils S. Tuchschmid. At the same time, a new study on sustainable private debt in Europe is underway. These combined efforts could ultimately give a new boost to energy-efficient renovation in Switzerland.

Switzerland’s climate goals require not only technical innovations but also financial innovations.

Redaktion : Charly Veuthey