Germany can achieve climate neutrality without increasing the energy renovation rate beyond its current level — and without incurring higher system costs as a result.

The analysis shows that the moderately higher costs in the electricity sector are offset by savings in the building sector, meaning no additional costs are imposed on the overall system.

Particularly relevant: a more electricity-system-oriented approach enables a more socially equitable distribution of the burden compared to costly individual building renovations. This is good news for households in tight housing markets.

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