THE OBLIGATION TO PROVIDE AN ENERGY AUDIT FOR HOMES THAT ARE THE MOST PRONE TO HEAT LOSS
From 1 April 2023 in addition to the Energy Performance Certifi cate (EPC), energy audits will become mandatory prior to the sale of any house or property that is considered particularly prone to heat loss.
Which properties are considered to be “particularly prone to heat loss”?
Properties that are “particularly prone to heat loss” are those with very poor energy performance, i.e. those that take a lot of energy to heat.
The Energy Performance Assessment evaluates the energy consumption of a property and, through that, its energy performance.
Depending on the fi ndings, the property is rated from A to G. An EPC has been mandatory when selling a residential property or building since 1st November 2006. Properties that are considered to be particularly prone to heat loss are those with an F or G rating. On 1 April 2022 mandatory energy audits will only apply to these properties.
From 1 January 2025, it will apply to properties in the E band, before being rolled out to properties in the D band from 1 January 2034.
What is an energy audit?
The energy audit recommends improvements to the energy performance of the property. It offers two scenarios for proposed work in one or more stages. The aim is to move the property out of band F or G and into band C (or into band B in the case of those properties that started out in band E or D). Except in specific circumstances, the first stage of work must bring the property up by at least one band to at least an E rating.
The energy audit is valid for fi ve years.
What does this mean for the vendor and buyer?
The energy audit establishes recommendations on how to improve the property's environmental impact. There is no requirement to carry out the work but the audit will be among the mandatory disclosures to be made by the vendor. Indeed, the audit must be appended to the promise of sale so that the buyer is fully aware of the nature of any proposed work since this may have a bearing on price negotiations.
How much does the energy audit cost?
Currently the cost is not regulated. For a house, it is expected to be between €500 and €1,000. Its cost is likely to be higher for condominiums. As is the case with other surveys and certificates, it is the vendor who will bear the cost.
Which properties does it affect?
It applies to houses and apartment buildings under sole ownership.
What about condominiums?
The roll-out of the requirement for energy audits on condominium apartment buildings will be staggered between now and 1 January 2026.
The energy audit will be on the building as a whole so it is up to the property management company to comply with this requirement. No additional requirements will be placed on owners of individual units. They will simply have to provide an Energy Performance Certificate