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Understand your property’s energy rating

Among the many administrative obligations to be fulfilled by property owners, the completion of an energy performance diagnosis (EPR) has been a legal obligation since 1 January 2011. On April 1, 2013, the law further tightened these controls, so that today more than 60 criteria of a dwelling are examined to establish the energy rating of a property. Nowadays, getting a good energy rating can be a real asset to enhance the value of your property, an element that can considerably vary the price of an apartment or house.

Property Energy rating: definition

In general, the energy rating of a house or apartment is an indicator for measuring its annual energy consumption. Thus, real estate properties are given a letter ranging from A (for those who consume the least) to G (for those who consume the most). Thus, a property that obtains an energy rating A must have an annual energy consumption of less than 50 kWh per square meter. On the other hand, the same annual energy consumption for a dwelling classified in G will be higher than 450 kHz per square meter.

Thus, this ranking highlights the fact that there are disparities in energy consumption between the different housing units that make up the housing stock in France, with a variation of one order of magnitude from 1 to 9. In general, the most poorly rated houses or apartments suffer from very poor insulation or many thermal bridges. These are generally old properties, which have not been recently renovated. The French average is around 250 kWh of energy consumed annually per square meter, i.e. an energy classification in E.
- Comprendre la classe énergétique de son bien immobilier

Impacts on the quality of the property

In general, carrying out an energy performance diagnosis gives an idea of the average expenditure to be made in terms of energy consumption, and therefore of the renovation work to be carried out if it is too high. The annual energy bill can be doubled depending on the rating of your apartment. We, therefore, measure the financial consequence of classification for the owners or tenants of a property.

In fact, in the situation of tenants or potential buyers, the poor energy classification of a property can constitute a real disappointment, in anticipation of future high bills to be paid. Thus, the legal obligation of the energy performance diagnosis is intended as an incentive for the owners concerned to act, via renovation actions in terms of heat and insulation. In fact, the State and local authorities have set up various forms of aid in this area, whether in the form of tax credits or direct subsidies. The stated objective is to achieve an average annual energy consumption of 50 kWh per square meter in France.

How to establish the energy rating of a property?

The energy performance diagnosis of a property must be given to its purchaser or tenants by the owner. It is to be carried out by a company specialized in real estate diagnosis. However, an owner who does not wish to sell or rent can also make an estimate online, using various simulators that exist. While the latter is not able to provide as accurate a ranking as professionals, they can provide a good basis.

The method generally used for ECD is called 3CL, and applies to dwellings built after 1948 and individually heated. But what is the procedure in the case of a building built before that date or heated collectively? In such cases, the energy bills established over the last three years the building’s consumption provides the basis for calculating the energy rating. This includes both heating and domestic hot water bills. Regardless of the method used, all dwellings can be assigned their energy rating, regardless of their age.

The real estate value of the property influenced by energy performance

In the end, this energy performance criterion should not be neglected by the owner of an apartment or house. If he wishes to occupy the dwelling, a poor rating will mean high energy bills. On the other hand, if he wishes to sell his property, a good energy rating could allow him to set a price 6 to 13% higher than that of an equivalent dwelling with a lower rating. And conversely, a property misclassified as energy-poor may lose 3 to 19% of its value. 
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