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Investing in energy renovation: limited costs for EPC improvement

Investing in energy renovation: limited costs for EPC improvement

 

According to a recent simulation by building federation Embuild, investments to lift a home's EPC score to the minimum standard are relatively limited. These improvements, such as upgrading a house from label F to label D, typically require a modest financial outlay. However, transforming a home to label A requires significant investment. 

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The need for energy renovation is becoming increasingly urgent, and the Consultation Platform of Energy Experts recently criticised some of the rules for determining the EPC value. The calculations per square metre can sometimes be perceived as complex and confusing, raising questions about the feasibility of these renovation requirements, especially for households with limited financial resources.

 

Financial benefits of a higher EPC value

 

However, the benefits of a higher EPC score go beyond just energy efficiency; they also contribute to property value. In a simulation of a semi-detached building carried out by Embuild, it was found that investments in roof insulation to bring a house from EPC label F to D are quickly recovered. This effect applies mainly to energy-related renovations and not to additional comfort elements, such as underfloor heating or new kitchens.

 

In addition, the value of a home increases significantly with a better EPC score. According to calculations by the National Bank, a house with EPC label D is worth on average 6% more than a house with label F, and the difference between labels A and F can amount to more than EUR 70,000. This difference in house value shows that energy-efficient renovations can be a wise investment, despite the associated costs. 

Is thorough renovation to label A cost-effective?

 

The path to an energy-efficient home sometimes requires significant investment. The installation of a heat pump in particular can be difficult to make profitable compared to gas installations due to high electricity prices, although a heat pump significantly improves the EPC score. The Flemish government has set a timeline requiring homes to meet label C from 2028, and even label A by 2040. Despite these regulations, the disproportionate taxes on electricity make it challenging to achieve these targets cost-effectively.

 

Yet thorough renovation offers valuable benefits. House prices fell by almost 4% last year, but homes with a good EPC score (C or higher) remained stable or even increased slightly in value. This underlines the long-term benefits of a well-insulated home, both in terms of energy efficiency and property value. 

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