Energy renovations and energy label upgrades are popular. But many people renovate blindly
4 out of 10 Danes want a sustainable lifestyle. Among other things, this includes living in an environmentally friendly municipality. However, affording your dream house in your dream municipality can be expensive.
The green transition has truly made it onto Danes’ list of priorities, and figures from Dansk Byggeri (the Danish Construction Association) show that almost 3 out of 5 homeowners have already taken the plunge and carried out an energy renovation of their home. Many of these are carried out to get a new energy label. The same figures also show that there are big differences in price between homes with different energy labels. This also indicates that how much it pays financially to invest in an energy improvement varies depending on which energy label you have.
At Brikk, we have therefore looked at how much it pays to invest in an energy renovation for each energy label, if you are also after a financial gain in terms of how much your home can rise in value.
The biggest difference is from energy label B to A, and the smallest from energy label E to D
The biggest difference is between energy labels A and B. Here the difference is 16% (335.662 kr. on average in home price if you have energy label A rather than energy label B).
The second-largest difference in absolute terms, but the largest in percentage terms, is between the worst energy label, energy label G, and energy label F. Here the difference is a full 22%, which corresponds to 284.816 kr. on average.
The smallest difference is between energy label E and energy label D. Here the difference is just 48.720 kr. in average added home value, which corresponds to 2.8%.
When does it pay to invest, and how much?
You cannot know for certain whether the renovation you carry out will make your home 16% or 22% more valuable through energy renovations that lead to a better energy label. But the 16% and 22% from upgrading to A or F are a good indication of the most you should invest in an energy improvement, and therefore how much it pays to invest.
So if you want to carry out an energy renovation and raise the value of your home, it is definitely worth considering if it takes you up to energy label A or F.
On the other hand, if your home has energy label E and an energy renovation takes it up to energy label D, the renovation may cost more than the amount your home has gone up in value.
Below you can see the full list of energy labels and the possible price increases from upgrading.
Among other places, our study has been published in Byens Ejendom, which shares knowledge about urban development in Denmark. See the publication here
Brikk is a new kind of estate agent that gives you far more for far less. Read more about us here
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