Will energy classes change the prices of single-family homes?
In 2024, regulations will come into force that divide buildings into energy classes. This will happen in a way similar to what we know today from the colored labels of household appliances. Based on energy consumption, each house will be assigned to a specific class – from the best A to the worst G.
– Simple letter markings will replace the “sliders” that we know from the previous energy characteristics of buildings. The new markings are to be more legible. This is very important when selling and renting houses and apartments, because from April 1, 2024, it is mandatory to present an energy certificate to the buyer or tenant. Such a document is valid for 10 years or until the building is renovated – explains Wojciech Rynkowski from Extradom.pl.
What do the different classes mean?
To better understand what energy classes and certificates refer to, let’s decipher the kWh/m unit2*year. It means the total energy consumption per square meter of the building over the whole year. If a family living in a house with an area of 100 m2 consumes 8,000 kWh of energy per year (all sources included, i.e. electricity, gas, district heating, etc.), the building will have a coefficient of 80 kWh/m2*year. This is a very good result, but still not enough to qualify for the highest category “A”
So what is the energy consumption (expressed in kWh/m2*year) necessary for heating, cooling, water heating or lighting qualifies a given facility for individual classes?
- AND – from 0 to 63
- B – from 63 to 75
- C – from 75 to 94
- D – from 94 to 113
- E – from 113 to 131
- F – from 131 to 150
- G – 150 and more.
Class A – from 0 to 63 means very low energy consumption. It will probably cover modern buildings equipped with their own renewable energy sources and alternative heating and ventilation solutions.
Class B from 63 to 75 and C from 75 to 94 – these are mostly buildings that are even a dozen or so years old and have an efficient heating system, proper thermal insulation and are equipped with energy-saving windows.
Class D from 94 to 113 – includes buildings with average energy performance and most older but well-maintained houses and buildings.
Class E from 113 to 131, F from 131 to 150 and G 150 and more – these are usually old and unrenovated buildings with low or very low energy efficiency. In their case, it is recommended to conduct an energy audit, which will help determine what actions should be taken to achieve the greatest possible improvement in energy performance with economically justified renovation costs.
What does this look like in practice?
Let’s analyze the example of an apartment heated by electricity (in such a case it is easy to estimate the actual energy consumption), in a tenement house from the 1930s, where the roof was renovated, the plot was drained and the foundations were dried. In the apartment itself, all the windows have already been replaced with energy-saving ones. In this apartment, the energy consumption is about 110 kWh/m2*year, which means that it is classified as class D. This is not a coincidence that it is the middle of the scale, because most well-maintained buildings and single-family homes have similar or better characteristics.
– The real problem is the so-called energy vampires, i.e. buildings classified as E, F, and especially G, which suck energy and money out of the owners’ wallets. I am deliberately writing about energy here, not heat, because during the summer heat we use almost as much energy to cool our premises as we do to heat them in winter. It is true that an air conditioner or a fan has a lower demand for electricity than a heater, but unlike the latter, it often works 24 hours a day – adds an expert from Extradom.pl.
How will energy classes affect the prices of houses and apartments?
– In my opinion, this will increase the range of real estate prices by several or even a dozen or so percent. The automotive market is a good comparison. Here, a large group of buyers invest in economical cars, often with hybrid drive, counting on lower petrol consumption. Similarly, many people will be ready to pay more for a house, only to incur significantly lower costs for its operation – summarizes the Extradom.pl expert.
Does this mean that older homes belonging to class E, F, or G will not find buyers?
– I think there will be many investors interested in such buildings. It will depend on the amount of subsidies for thermal modernization that can be obtained from the state budget. The money for this purpose is to come from the National Reconstruction Plan and it results from the government’s announcements that these will be significant funds. In the case of buildings with old, healthy walls, purchasing such a facility and its thorough modernization using subsidies may be profitable (especially if the purchase price of the property is attractive due to the low energy class to which the building is assigned), says Rynkowski.
Will the introduction of the division of buildings into energy classes affect the prices of single-family houses?
– Probably yes, but I do not expect any sudden changes. The real estate market is a complicated mechanism, but it remains in a kind of equilibrium. In my opinion, energy classes will cause a temporary decrease in interest in more expensive houses of category A or B due to a few percent increase in prices, and then investors’ attention will turn to much cheaper ones with the F or G marking, which we will buy with renovation and thermal modernization in mind – adds Wojciech Rynkowski from Extradom.pl.
The increase in demand for older buildings will also slowly increase their prices, and then buying an energy-efficient house of class A or B will become attractive again. The market balance will be disrupted for a short time, but in my opinion there will be no abrupt changes caused by the introduction of energy classes of buildings.
