ČR needs to triple the number of home modernizations, builders may be lacking

Prague - The Czech Republic needs to triple the annual number of building renovations to meet EU plans on the energy efficiency of homes. A roundtable discussion today to support the initiative Smart Finance for Smart Buildings (SF4SB) on the topic of residential buildings and renovations in Prague revealed that the desire for repairs may face the capacity limitations of builders.

During the debate at the Foundation for the Development of Architecture and Building, it was stated that currently, a percentage of the housing stock is being renovated annually in the Czech Republic. The director of the State Environmental Fund (SFŽP), Petr Valdman, mentioned that previously there were low energy prices, and no one addressed heating costs. "There was a lack of motivation. Now we need to convince people that insulation not only saves energy but also improves the quality of living and increases property value," Valdman added.

A survey by the Passive House Center (CPD) in 2021 showed that partial renovations prevail (63 percent) while 37 percent are more comprehensive. "Three-quarters of renovations are done poorly and unprofessionally," added Tomáš Vanický from CPD. According to the census from 2021, more than half of occupied homes in the Czech Republic, which numbered over 1.95 million, were older than 40 years.

At least partial renovations are being supported by grant tools such as the New Green Savings or the newly launched New Green Savings Light this year. Valdman stated that most applications are directed towards the installation of renewable sources, primarily photovoltaics, but it is necessary to embrace massive renovations so they are not just marginal but that the ratio is at least balanced.

The growing interest in renovations is confirmed by a survey conducted by Ipsos for the building materials manufacturer Ytong. It indicates that 24 percent of households plan to renovate their homes this year. For 15 percent, the expected costs range between 250,000 and half a million crowns, while one-fifth expect costs between half a million and one million crowns. "Czechs want to live nicely, but at the same time, they need to reduce the energy consumption of their homes," added Peter Markovič, CEO of Xella.

Vanický from CPD pointed out that there is a need for comprehensive renovations, which people are reluctant to undertake. "They would rather buy a new phone, which they can get the next day," said Vanický. He added that renovations in buildings would help lead to energy independence for the Czech Republic, which the country and the European Union strive for even more after Russia's invasion of Ukraine.

A problem with the increased number of renovations may be the shortage of builders. During the discussion, it was mentioned that 15,000 people leave the construction industry annually, it is unattractive to young people, and the state does not have a strategic plan to change that. "If renovations ramp up by just 20 to 30 percent, qualified workers will begin to be in short supply," stated Tomáš Majtner from the Association of Entrepreneurs in Construction.

Moreover, suitable renovations could significantly save the state money. A study by Velux, the manufacturer of roof windows, indicates that improvements enhancing light and ventilation in spaces could save over 110 billion crowns by 2050, totaling nearly 15 trillion crowns in Europe.