Full Speed Ahead on the Energy Transition
The course has been set for energy policy. Following the historic “no” vote on the national CO2 Act at the polls, the cantons have firmly taken the reins.
Particularly in the Zurich economic region and in Central Switzerland, clear restrictions apply to the replacement of fossil-fuel heating systems. For property owners and future buyers, this shift is of central importance: Energy-efficient renovations not only protect the climate but also sustainably increase a property’s market value, which directly impacts its future selling price.
The rapidly melting Swiss glaciers and the noticeably milder winters demonstrate that global warming is a reality. Switzerland has committed under the Paris Agreement to significantly reduce its greenhouse gas emissions. The building stock is considered one of the main sources of these emissions, as a large proportion of the country’s approximately 1.8 million residential properties are still heated with fossil fuels. Since major national efforts to tighten legislation have failed, the cantons’ ambitious regulations (MuKEn—Model Cantonal Regulations in the Energy Sector) are now taking effect. This jointly developed package is being transposed by the cantons individually into cantonal laws—with direct consequences for the real estate market.
Cantonal Laws Set New Standards
Owners of older properties, in particular, are carefully evaluating the upcoming investments, as alternative heating systems entail higher initial costs. While the purchase price of a traditional oil or gas heating system is often lower, highly efficient heat pumps for single-family homes can cost in the high five-figure range, depending on the system.
The decisive economic factor, however, is the overall balance: Climate-friendly heating systems are more expensive to install, but their ongoing operating costs are significantly more predictable and lower. In the vast majority of cases, a climate-friendly heating system pays for itself within a reasonable timeframe. In addition, the government is providing homeowners with significant financial support. Thanks to substantially increased subsidies from the canton and the federal government, millions are available to cover the cost of replacing heating systems. Following the cantonal council’s approval of the partial revision of the cantonal energy law, the Canton of Schwyz has also established attractive subsidy programs to make the switch financially viable for homeowners.
Strategic Consulting Is Key
Before rushing to replace a heating system, it’s always worth taking a holistic look at the entire building envelope. By specifically reducing energy demand—for example, through improved insulation—the new heating system can be scaled down, which has a positive impact on investment costs.
A wide range of professional consulting services is available to the general public. In all cantons, the official “Impulsberatung” program offers valuable support. In addition, the City of Zurich provides a free, customized service directly on-site as part of its “energy coaching” program.
Conclusion
When drawing up a comprehensive budget or financing a real estate purchase, it is essential to factor in the remaining service life of a fossil-fuel heating system. Anyone considering putting a single-family home on the market in the medium or long term can achieve a significant increase in value by replacing the heating system early on and appeal to the rapidly growing group of quality-conscious buyers.
Would you like to optimize the market value of your property while taking current legislation into account? We’d be happy to provide you with advisory and strategic support.