Four ways spending money pays off

Investments are inevitable for homeowners. Don’t just limit yourself to “value-preserving investments” though. After all, there are other opportunities to invest that can really pay off.

It’s no coincidence that “energy-related renovations” is the buzzword currently on everyone’s lips. Indeed, the measures meant with this are hugely appealing:

1. Worthwhile energy-related renovations future-proof a property and reduce the energy costs. This normally leads to an increase in value – and a considerable one at that! If a photovoltaic system is installed that feeds electricity into the grid, then the effect is even greater.

2. You’ll save on energy costs and become more energy efficient in future years. As a rule, you can expect a 30% percent reduction in your energy costs if you completely overhaul an old building’s energy system, for example. A photovoltaic system can cut your electricity bill by up to 50%.

3. Subsidies or grants are likely to be available for such measures. The support provided is mostly regulated at a cantonal level. However, municipalities and, in some cases, private energy suppliers also offer financial support for energy-related renovations. Then there’s the federal and cantonal buildings programme, which funds measures that help to reduce CO₂ or boost energy efficiency. Important: be sure to apply for the funding before you begin any building measures.

4. Since 2020, tax incentives have been available for energy-related renovations, at least for the federal taxes. Some cantons have also adopted these provisions. The investments can be deducted from your taxable income and – specifically in the case of energy-related renovations – spread over a maximum of three tax periods.

You’ll have to spend some money on the renovations, of course. But as explained above, this is well worthwhile. And with good preparation and information, the costs can be minimised. The point at which your investments begin to pay off depends entirely on the respective measure and its effects however. On average, you can expect your spending to pay off after 15 years, though sometimes significantly sooner and sometimes later.

Another important consideration: it’s rare to implement all measures at once. After all, the state of the existing systems usually varies and some may well still be in good condition in terms of their energy consumption. Or they depend on each other. With careful renovation planning, you can not only coordinate measures sensibly (rule of thumb: work from the outside in), but also better plan the financing, too.

Key measures at a glance

• Thermal insulation and insulated windows greatly reduce heat loss; roof insulation is particularly efficient. Added benefits include an improved room climate and sound insulation. Extensive insulation including appropriate windows can cut energy costs by up to 40%.

• Heating: Modern heating systems combined with renewable energies can help you to greatly reduce CO₂ emissions and energy costs. Countless different heating systems are available these days, so the savings potential varies accordingly. It can total up to 30% though. Another nice side effect is that newer systems are easier and cheaper to operate.

• Solar panels: These can be used to generate both electricity and heat. Expect your electricity bill to be as much as 50% lower with such a system, hence it usually pays for itself after just a few years.