Rehabilitation

What is the impact on property value after energy retrofitting?

03 JAN 2025
READING TIME:  5  Minutes

There are many ways to increase the value of your home and one of the most efficient is to carry out an energy renovation .

In one move, you'll spend less on electricity and gas and multiply the value of your home, as more and more people are looking for energy-efficient homes.

Increased property value after energy renovation

Carrying out an energy renovation not only transforms your home into a more comfortable and sustainable space , but it also significantly increases its potential sale price on the real estate market. According to various studies, homes with high energy efficiency can increase their value by up to 10% or more compared to similar properties without improvements. If you need financing for this type of renovation, a home improvement loan could be the ideal solution to cover the costs of the necessary investments.

This positive effect is due to the fact that buyers increasingly value sustainable homes that offer energy savings and a smaller environmental footprint . By investing in thermal insulation, efficient heating systems, or solar energy, you'll improve energy efficiency and create a compelling selling point for the future.

Furthermore, stricter environmental regulations and growing awareness of climate change have driven demand for energy-efficient properties. An energy-efficient home is perceived as a smart investment, not only reducing long-term costs but also protecting the environment .

Once the renovation has been completed with improved energy efficiency, a financial return can be achieved through the sale of the CAES.

CAES, or Energy Saving Certificates, are electronic documents that certify that, after implementing energy efficiency measures, a final energy saving equivalent to 1 kWh has been achieved. This means that if you have undertaken a project that allows for annual savings of 500 kWh, you can obtain 500 CAE. But it's not just a certificate; it's also a form of exchange for the savings achieved in a year.

In this way, it becomes a tool for monetizing energy savings and allows you to recover part of your energy efficiency investment. For example, replacing lighting, improving insulation, or installing an aerothermal system, etc. CAEs can be bought and sold, making it easier for Obliged Subjects to contribute to their savings obligations.

Reduction of operating costs and their impact on valuation

One of the main benefits of energy retrofitting is the reduction in operating costs associated with energy consumption. Homes that incorporate improvements such as high-quality insulation, double-glazed windows, or renewable energy systems can minimize electricity bills and reduce heating and cooling costs .

This represents a direct saving now, and also has a positive impact on the property's valuation . Appraisers consider a home with low operating costs to be more attractive and have a higher intrinsic value. In a context of constantly rising energy prices, these improvements become a key asset.

For example, installing solar panels reduces your monthly expenses and can generate additional income through energy compensation schemes. This double economic benefit makes buyers willing to pay more for a property that already has these advantages.

How energy renovation attracts buyers and investors

Energy efficiency has become a decisive factor for buyers and investors. A growing number of people are looking for properties that are not only sustainable but also offer long-term benefits in terms of savings and comfort.

An energy-efficient home stands out from other options on the market because it promises lower operating costs, greater thermal comfort, and a better quality of life . Furthermore, many people are willing to pay a higher price for a home that aligns with their values of sustainability and environmental responsibility.

For investors, these types of properties represent a safe bet. Energy-efficient properties are less likely to depreciate , even in fluctuating real estate markets, as they meet future expectations in terms of regulations and consumer preferences.

Major energy improvements that increase property value

If you want to get the most out of your energy renovation, it's key to focus on the improvements that will truly make a difference in your property's value and your long-term savings. Here are some of the best options for achieving a good return on investment:

  • Thermal insulation : Improving the insulation of walls, ceilings, and floors significantly reduces heat loss, improving energy efficiency and comfort.
  • High-efficiency windows : Replacing old windows with double- or triple-glazed models improves thermal and acoustic insulation.
  • Efficient heating and cooling systems : Installing heat pumps or condensing boilers reduces energy consumption and CO2 emissions.
  • Solar panels : Photovoltaic energy is one of the most sought-after improvements, as it allows for sustainable electricity production and savings on energy bills.
  • LED lighting : Replacing traditional light bulbs with LEDs is a simple but effective measure to reduce electricity consumption.
  • Home automation and smart systems : Incorporating technology that optimizes energy use, such as smart thermostats or sensors, increases the attractiveness of a home.

The role of the Energy Certificate in property appraisal

The Energy Efficiency Certificate (EPC) is a mandatory document for the sale or rental of property in many countries. This report rates a home's energy efficiency on a scale ranging from A (most efficient) to G (least efficient).

Having a high CEE rating improves the perception of a property and also directly influences its appraisal. Homes with an A or B rating typically command a higher market price due to the savings and sustainability benefits they offer.

Additionally, many public grants and subsidies are available for those wishing to make energy improvements. Taking advantage of these opportunities will allow you to reduce the initial costs of renovation and increase the long-term value of your property.

Investing in energy renovation not only transforms your home into a more efficient and sustainable space, but also significantly increases its market value.

Whether you're planning to sell your home or simply looking to improve your quality of life, energy improvements are a sure bet for the present and the future.

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