Homebuyers increasingly value the energy rating of an apartment building, as the higher the energy rating, the lower the costs. However, Tanel Rebane, Head of Retail Banking at Luminor Baltic, says that the energy efficiency class does not always remain the same as it was when the home was purchased and may change over time. “Buildings are assigned energy labels from A to G. The energy rating gives homebuyers and the bank the opportunity to assess the quality of construction, modernity and environmental friendliness of the building. A high energy rating is an important selling factor – the higher the energy rating, the more favourable the price and financing conditions from the bank,” says Rebane. At the same time, according to him, after the purchase of the house, the original energy rating may not be preserved. “As a rule, when a developer sells a new property, the house has not yet been completed and occupied for at least a year. This means that the energy class is calculated based on ideal consumption costs, and the actual consumption is unknown. “People’s consumption habits change, and if there is a big difference compared to the initial energy class calculations, the actual energy label may be completely different,” he said. Rebane explained that the calculated energy performance certificate is valid for two years after receiving the building’s occupancy permit. After that, it is possible to order an energy performance certificate based on the building’s actual consumption, which is valid for 10 years. The energy class also plays a role in the selling price of an apartment. For example, apartment buildings of energy class A in Estonia are approximately 5% more expensive, and class B – 3% more expensive than buildings with the C and D labels. However, when it comes to existing buildings and their modernisation, according to the Head of Retail Banking at Luminor Baltic, this usually requires a complete reconstruction. For example, in the case of modernisation of old panel buildings, renovation already means replacing the entire heating and ventilation system, updating the façade and roof, and installing solar panels. "However, the renovation of apartment buildings is carried out mainly with the support of the KredEx subsidy program and is usually aimed not only at increasing the energy class, but also at modernization, improving the appearance and saving energy costs. Increasing the energy class is only one of the side effects, albeit a very important one," Rebane added.
