The energy-efficient home: good not only for the planet

An energy-efficient home has many advantages: lower energy bills, a better-heated home and the satisfaction of looking after the environment and your home.

But there are also excellent financial arguments for improving the energy efficiency of your home, as this could help to increase its resale value.

Since 1 January 2010, the law has required landlords to display their energy performance certificates (EPCs) in all property advertisements for the sale or rental of residential property in Luxembourg. In the case of a sale, the notary must have the diagnosis in his possession in order to complete the transaction. Even before these mandatory rules came into force, construction companies were displaying their EPCs, when the results were good, to highlight the energy efficiency of their buildings.

Energy performance results are now widely integrated into the search criteria on real estate agency websites. According to the website, of its 13,576 residential property listings in Luxembourg to date, 9,254 (or 68%) indicate an energy rating. In general, homeowners wishing to sell their property comply more with the legislation than those wishing to rent out their property (74.5% of advertisements for home ownership specify the energy category, compared with only 42% for rental advertisements).

Of the advertisements that mention this information, 81% indicate a diagnosis ranging from class A to class D (the lowest level being I).

Energy performance is becoming increasingly important for buyers and tenants, who are opting for features likely to reduce their bills: double glazing, a new, efficient boiler, loft or cavity wall insulation. These elements can make all the difference when it comes to choosing the property to buy or rent.

Older, less energy-efficient buildings are facing new challenges: from 2021, all new homes must have an A label for energy performance and thermal insulation as part of the government's plan to build near-zero energy buildings. Although this rating is not easily achieved, it is nevertheless synonymous with high performance, which is also reflected in maintenance and operating costs.

Public subsidies are available to make it easier for you to finance your energy renovation projects.

The Klima-Agence offers grants for your climate loans. This financial aid enables work to be pre-financed, with the aim of promoting the sustainable renovation of homes built more than 10 years ago. Here you will find all the state aid available for your project.

Note that it is often much more effective and worthwhile from a financial and energy point of view to carry out a complete renovation project rather than staggering the work over a long period.

A database listing EPCs at national level is about to be finalised. This tool will enable energy regulations to be applied more effectively and provide better quality statistics on the national real estate stock. The government has also introduced new measures for sellers in the PNEC (Luxembourg's integrated national energy and climate plan for the period 2021-2030).

They are trying to regulate sales of energy-intensive properties. The trend is clear: vigilance over energy performance will undoubtedly intensify, and there is a real risk that poor performers will find themselves in the firing line. If you own a property, it's best to act now, before the law forces you to do so.


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