Energy label: what does it really say about your housing costs?

How is a label produced?

An energy adviser visits the property and records its characteristics: insulation of the roof, walls and floor, type of glazing, heating installation, ventilation and the presence of solar panels. From this the theoretical primary energy use per square metre is calculated. That figure translates into a letter from A+++ to G.

Crucial to understand: the label says something about the building, not about the occupant. Two identical homes with label C can differ by hundreds of euros a year in energy costs, depending on how they are heated and ventilated. Conversely, a low label does not mean the energy bill has to be high, it means the building needs more energy for the same comfort.

Why the label matters financially

• Monthly costs. The difference between label G and label B is often hundreds of euros a year in heating costs.
• Borrowing capacity. Lenders generally allow more borrowing capacity with a better label, and often offer extra room specifically for sustainability measures. The precise amounts change each year, ask your adviser about the current standards.
• Interest discount. Some lenders give a discount on the interest rate for a green label.
• Future value. The expectation is that poorly insulated homes will increasingly be marked down at sale.

What to check yourself

1. Is the label valid? Labels are valid for ten years; check the issue date.
2. Was the label issued after the most recent renovation? A label from before an insulation upgrade understates the property, and vice versa.
3. Does the assessment match what you see? Check whether the registration file states the cavity has been insulated while you see no sign of retrofit insulation in the meter cupboard.
4. What is there to gain first? Usually in this order: draught-proofing, roof and floor insulation, glazing, and only then heat generation, see the order that saves money.

Improving the label after purchase

For most homes the cheapest gain is not the heat pump but the building envelope: insulation and glazing. A heat pump in a poorly insulated home works inefficiently and delivers a disappointing saving. Also look at national and municipal subsidies for insulation, these change regularly, so check the current schemes at the moment you are making plans. If you live in an apartment, insulating the envelope almost always runs through the owners' association and therefore through a decision of the meeting, which you find back in the minutes and the MJOP.