Why don’t we have energy efficiency ratings on properties for sale or rent in the United States like the European Union does?

Why don’t we have energy efficiency ratings on properties for sale or rent in the United States like the European Union does?

Recently, I was on vacation in France and noticed that advertisements of properties for sale contained 2 colorful charts ranking properties on a scale from A to G.  Here is an example of what I saw on every French real estate listing: 

I took a picture of the charts and later used google translate to figure out what was being measured. The title in green translates to “Energetic performance,” which I assume is more correctly stated as Energy performance in English. The larger chart on the left details the amount of primary energy consumption, in kilowatt-hours per meter squared, with A designating “very efficient housing” and G designating “extremely energy-consuming housing.”  The smaller chart on the right-hand side measures how many greenhouse gasses are created as that electricity is burned, in terms of kilograms of carbon dioxide per meter squared, with A signifying low CO2 emissions, and G signifying very high CO2 emissions. 

After researching these Energy Performance Certificates further, I learned that the EU mandates them for sellers and landlords.  Since 2021, the rating considers the property’s heating, hot water, insulation, cooling, and ventilation systems to calculate energy consumption. The rating on the left is the Energy Label, while the rating on the right is the Climate Label. Further, along with the ratings, the surveyor provides recommendations for upgrading a property’s energy efficiency, including an estimate of the costs to do so. Interestingly, these ratings may affect a property’s selling price. A 2020 study in France demonstrated that energy-efficient apartments sold for an approximately 17% higher selling price than D-rated apartments. Also, new regulations have been introduced mandating expensive energy audits for F- and G-rated properties at the seller’s cost, and over the next 5 years, the rental of G-rated and then F-rated properties will be phased out. 

Why should the US adopt similar disclosures on properties for sale?

  • US purchasers/renters should be informed about the energy costs of a property they are looking to purchase or rent; ratings would allow them to further their sustainability desires.
  • Involving a third-party surveyor means the purchaser/renter receives an unbiased opinion on energy consumption and prevents misleading disclosures from sellers/landlords.
  • Because more energy-efficient properties are more highly valued by the market, homeowners and landlords would be encouraged to invest in energy efficiency prior to listing their properties for sale or rent.
  • Greater demand for energy-efficient dwellings means more investment in energy-efficient technologies, leading to lower prices for these energy-saving technologies and fewer greenhouse gasses. 
  • Purchasers/renters would be knowledgeable about the quality of their future home’s heating and cooling system and insulation, potentially leading them to prioritize healthier air quality and a more comfortable environment. 

Why should architects advocate for Energy Performance Certificates in the US?

  • Architects across the country would be incentivized to create more energy-efficient dwellings that the market values more highly while also contributing to reducing greenhouse gasses.
  • Architects could use these disclosures in combination with LEED rating systems to make sure projects meet design hurdles, increasing the value of their projects. 
  • Architects could better align with clients who are increasingly focused on ESG (Environmental, Social, and Governance) goals. 
  • Architects could drive a wave of sustainability across the industry by getting other stakeholders like developers, engineers, and property investors to focus on climate change. 
  • Architects who are proficient in energy-efficient design could distinguish themselves through this public disclosure and attract more business from clients focused on sustainable dwellings. 

Source:  https://www.frenchentree.com/french-property/selling-homes/french-property-need-to-know-energy-performance-certificates/

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