1. Structuring and Implementing Schemes to Improve Energy Efficiency in the Residential Building Sector The Experiences of KfW
Gudrun Gumb
Senior Project Manager
KfW Bankengruppe, Product Development Housing Programmes
June, 19th 2009

2. KfW Bankengruppe in brief
Promotional bank of the Federal Republic of Germany
Founded in 1948
Shareholders: Federal Republic of Germany (80%), German federal states (20%)
Headquarters: Frankfurt am Main; branch offices: Berlin and Bonn
Representative offices: around 50 offices and representations worldwide
Balance-sheet total at the end of 2008: EUR 395 billion
Financing volume 2008: EUR 70,6 billion
4.228 employees in 2008
Rating: AAA/Aaa/AAA

3. KfW Bankengruppe Environmental and climate protection
Environmental and climate protection is a major promotional
priority!
Total commitments in this sector in 2008: EUR 19.5 bn
Förderbank and Mittelstandsbank EUR 14.5 bn
KfW Entwicklungsbank EUR bn
KfW IPEX-Bank EUR bn
DEG EUR bn
Commitments in 2008 for:
renewables EUR 5.3 bn
energy efficiency EUR 8.1 bn
KfW Bankengruppe is one of the world's biggest financing institution for energy efficiency and renewable energy

4. Energy Efficiency in the Residential Building Sector Agenda
Basic facts
Regulatory Framework
Programme Details
KfW-Efficieny House Standard
Summary: Incentives and Factors of Succes

5. Energy Efficiency in the Residential Building Sector Basic Facts
Capability of energetic renovation in Germany
39 mio housing units
75% built before 1979
potential of renovation 20 mio housing units
Programme started in 2001
loans
Commitment volume of roughly 24 billion euros
1,2 mio housing units
Sponsored by federal funds
Budget to fund programme incentives: 2008 through 2011 annually app. EUR 1.4 billion

6. (Energieeinsparverordnung – EnEV)
Energy Efficiency in the Residential Building Sector Regulatory Framework
„Information and
Consulting“
„Promotional
Programmes“
I N S T R U M E N T
I N S T R U M E N T
German Energy Conservation Ordinance (EnCO)
(Energieeinsparverordnung – EnEV)
 Energy efficiency requirements for new and existing buildings
and other regulations

7. Energy Efficiency in the Residential Building Sector Programme Details
New building
Building stock
Energy-Efficient Construction
Energy-Efficient Rehabilitation
subsidised interest loans
max EUR per housing unit
additional repayment bonus possible
KfW-Efficiency House standard or
single measures
grants as an alternative to loan max EUR per housing unit
additional special support available
subsidised interest loans
max EUR per housing unit
KfW-Efficiency House standard
two promotional stages
Higher energy efficiency means better conditions.

8. Primary Energy Demand (kWh/a)
Energy Efficiency in the Residential Building Sector KfW-Efficiency House Standard
Primary Energy Demand (kWh/a)
kWh/a
= 100 % of NL
85-44 kWh/a
= 70% of NL
65-33 kWh/a
= 55 % of NL
Abbreviations:
NL = New Building Level according EnCO

9. Energy Efficiency in the Residential Building Sector KfW’s on-lending system
Capital
market
refinancing loan (maturity e.g. 20 years)
loan to homeowner (maturity e.g. 20 years)
Funding
Bank
Individual
homeowner
Interest rate: 0.66%*
Interest rate: 1.41%*
Interest
subsidy
Margin for credit risk and handling 0.75%*
German
Government
* p.a. eff.

10. Energy Efficiency in the Residential Building Sector Summary: incentives and factors of success
Incentives for houseowners
subsidised intrest loans
additional repayment bonuses possible
grants possible
Higher efficiency means higher promotion
Energy Efficiency
Factors of success to reach broadscale impacts
Transparency and Standardization
KfW-Efficiency House as a successful brand for energy efficiency in Germany - confirmed by an energy consultant
KfW‘s Onlending – System

11. Structuring and Implementing Schemes to Improve Energy Efficiency in the Residential Building Sector The Experiences of KfW
Gudrun Gumb
Senior Project Manager
KfW Bankengruppe, Product Development Housing Programmes
June, 19th 2009

12. Commitment Volume mio EUR
Annex: Energy Efficient Construction and Rehabilitation budget and promotional effects
V O L U M E
Y E A R
Budget p.a. mio EUR
Commitment Volume mio EUR
Investments mio EUR
Housing Units number
2006
1.500
6.998
11.845
2007
850
4.970
10.739
2008
1.400
6.669
13.387
quarter
1.500
1.466
2.673
63.084

13. Annex Energy Efficient Construction and Rehabilitation - Energy-efficient Construction
Promotional goal/ target group:
To finance the construction of KfW-Efficiency Houses/ all investors who construct a KfW-Efficiency House
Construction or initial purchase of KfW Efficiency- Houses
Eligible measures:
Conditions:
- Financing share
Loan amount
Loan term
Disbursement amount
Fixed-interest period
Free of redemption
Off-schedule repayment
100% of the construction/investment costs
No more than EUR 50,000 per housing unit
Up to 30 years
100%
10 years
At least 1 year, no more than 5 years
At no cost at any time during the fixed-interest period

14. possible dep. on degree of + addl. grants for special support
Annex Energy Efficient Construction and Rehabilitation Energy-efficient Rehabilitation (Loan Variant)
Promotional goal/ target group:
save energy and reduce CO2 emissions in residential buildings / all investors in measures at resedential buildings
all measures that contribute to achieve KfW-Efficiency House; individual measures thal fullfill the technical requirements of the program
Eligible measures:
Up to 100% of the eligible costs
No more than EUR 75,000 or 50,000
per unit
Up to 30 years
100%
10 years
Up to 5 years
At no cost at any time during the fixed-interest period
Conditions:
+ addl. repayment
bonus (5% or 12.5%) is
possible dep. on degree of
rehabilitation
- Financing share
Loan amount
Loan term
Disbursement amount
Fixed-interest period
Grace years
Off-schedule repayment
+ addl. grants for special support

15. Annex Energy-efficient Rehabilitation program (Grant Variant)
Promotional goal/ target group:
To save energy and reduce CO2 emissions in residential buildings/ owners (natural persons) of single and two-family houses or apartments
Eligible measures:
all measures that contribute to achieve KfW-Efficiency House including planning and supervision, as well as secondary work; individual measures thal fullfill the technical requirements of the program
Conditions:
5% of the eligible investment costs, no more than EUR 2,500 per housing unit
- individual measures
- KfW-Efficiency House KfW-Efficiency House 70
10% of the eligible investment costs, no more than EUR 7,500 per housing unit
17.5% of the eligible investment costs, no more than EUR 13,125 per housing unit
+ addl. grants for special support