Energy Performance Certificates (EPC or ECI)

[John6049]

Background, I have two rented properties, one long term in the UK and one airbnb in Italy. In the UK the energy performance certificates are pretty well established, although there is a lot of dispute over there usefulness.

So on my UK property I am required to have an up to date certificate which is available to tenants. The regulations are in a state of flux, but newly rented properties are going to have a rating of C from 2025 and existing tenancies by 2028.

The UK seems to be following similar moves in the EU. This is all part of the EU's move to zero carbon emissions for 2050, which might sound like miles away but in the UK it is happening in stages with a move to a minimum of B somewhere around 2035 and arriving somehow at A by 2050.

My question, there are now moves to harmonise across the EU on the energy certificates and also to improve the housing stock and make them more energy efficient, so does anyone out there know what rules are being discussed in the EU and Italy in particular, and does it mean that any property that is used for short term rental will need an EPC or ECI of level  C or better within the next few years, even if not occupied outside the summer months? 

Any answers much appreciated. Cheers John

[Bhumika]

Hey @John6049 ,

Did you manage to get any information about this? 

You can also reach out to area-specific Hosts by joining  Local Host Clubs near you to connect with them and know more around your query.

[John6049]

Hi Bhumika,

I have managed to pin down a few answers to this question. Doing some research and other sources I seem to have come up with the following answers:

1- As of now, several countries in the European Union, such as Italy, France, Spain, and Portugal, have regulations that require hosts to provide an energy performance certificate for their property to guests. However, the enforcement of these regulations may vary, and it may not be a requirement for Airbnb to display these certificates on their platform.

2- Law 90/2013 is a law in Italy that transposed the Energy Performance of Buildings Directive (EPBD) into national legislation. The EPBD is a European Union directive that aims to improve the energy efficiency of buildings across the EU, by setting minimum energy performance standards for new and existing buildings, and by requiring regular inspections and assessments of the energy performance of buildings.
The Italian government transposed the EPBD into national law with the passage of Legislative Decree No. 63 of 4 June 2013, which amended Legislative Decree No. 192 of 19 August 2005 on energy performance in buildings. Law 90/2013 provides additional guidance and regulations related to the implementation of the EPBD in Italy, including provisions for the energy certification of buildings, the promotion of energy efficiency in the construction sector, and the development of national plans for improving the energy performance of buildings.

3- Starting from December 31, 2025, all buildings in Italy, both new and existing, must meet the minimum energy performance requirements established by the European Union's Energy Performance of Buildings Directive (EPBD).
The minimum EPC rating required for buildings in Italy will depend on the building's use and the year in which it was constructed or renovated. However, the Italian government has set a goal of achieving a minimum energy performance rating of class B for all buildings by 2030, in line with the EU's climate and energy goals.

The correct minimum EPC ratings for buildings in Italy from 2022 to 2025 are as follows:
From 1 January 2022: minimum EPC rating of class F
From 1 January 2023: minimum EPC rating of class E
From 1 January 2024: minimum EPC rating of class D
From 1 January 2025: all buildings, both new and existing, must meet minimum energy performance requirements, which are yet to be defined.(my guess is it will be C)
These minimum EPC ratings are based on Legislative Decree No. 28 of 3 March 2011, which sets out the minimum energy performance requirements for buildings in Italy. The decree was subsequently updated by Legislative Decree No. 63 of 4 June 2013, which transposed the Energy Performance of Buildings Directive (EPBD) into Italian law.

[John6049]

My observation would be that getting all new and existing property up to an EPC of C  in Italy by 1/1/2025 is going to be almost impossible task so this sets up a very confrontational situation between the EU and the Italian government, although it would look like the government would be breaking its own law as well as an EU directive.

[Marta1828]

Good morning John.

Your notes about EPC and Italy laws is mega useful!

We have the same concern since we live in Germany and "just bought" an apartment for vacation only (summer) in Riva del Garda which is a historic building, remodeled but still Class E...

I am extremely worried because the association is trying to fix that but it would cost a fortune to us since the government tax break would only apply to Italian residents.

I totally agreed with you about the impossible task of changing the energy level in Italy. They are too many old buildings and not enough money to do it.

And this is Trento...what about the southern Italy?

I am wondering if you find out something more about it? your research is very good.

Highly appreciated.

Marta.

[John6049]

Hi Marta,

Thanks for your message. there has been a certain amount of push back by a number of governments, including Italy, against the speed of these new regulations. It's a bit difficult to pin this all down but they seem to be changing the approach.

I find chatgpt is very usefull in extracting complex legal principles and summing it up in easy to understand language. This is part of a very long conversation but it is probably the most important part right now:

-----------------

Question: To sell a house after 2030 will it have to have an energy certificate over a D?

Answer: Yes, by 2030, it is expected that houses in Italy (and across the EU) will need to meet a minimum energy efficiency standard, likely above an Energy Performance Certificate (EPC) rating of "D" to be legally sold. Under the revised European Energy Performance of Buildings Directive (EPBD), all member states are required to establish minimum energy performance standards to improve the energy efficiency of buildings.

------------------

So basically it looks like you can carry on living and using your property for as long as you want but when it comes to selling it, after 2030 it will have to be rated C or over.

I have two houses, one is new and we use it for doing airbnb and is an A, the other I am working on, its very old and was rated a G, but I have been doing a major renovation on it and we have managed to get up to a C. We did this by putting in 14cm of roof insulation and 10cm in the floor. It was actually easier than I thought it would be.

Still cost quite a lot of money but if you are in a block it is well worth investing in. The savings in heating costs are jaw dropping. My neighbours get through two to three deliveries of gas at about 700€ a delivery plus a full lorry load of wood, my airbnb house uses about 100€ of gas and about 100€ of wood for the whole year.

Its always warm and cosy in the winter and its nice and cool in the summer. I can't recommend it enough, insulating your property is the single most important way of improving it.

I have some free time at the moment as I am looking after my mom as she had a fall and one of the things I am doing is updating content on my instagram page so you can go on and see what I did to improve the energy rating. My account is la.rupina. I havent got to the roof insulation yet but it should be up to date in a week or so.

Hope that gives you enough information for now. Would it be useful to post the whole of my conversation on chatgpt?

Cheers

John

[Paula]

Hi @John6049, I am tagging @Marta1828  here so they receive a notification of your message. This way, we increase the chances of them getting back to us.

Quick tip: To tag someone, tap "@" and select the host's username from the dropdown menu 😊

[Marta1828]

Hi @John6049 ! your comments are extremely useful, thank you very much!

We bought a condo that was remodeled with new 3 layers window glass and new sutlers,  smart temperature control devises, etc.

The building is old but in great shape. The condominium voted "no" to the insulation project because it was outrageous expensive, even for the Italian that have some government help through taxes.

For our 110 sqmt. apartment was 127K for adding 15cm layer of insulation on the exterior of the building...I almost got a heart attack. 

Now talking with Italians, they all say that law is going nowhere, politics dream and talk but it is impossible to reach that.

oh well...even in Germany is not possible!

But this is a big warning sign for our next investment, from now on...Class C+ only!

I appreciate your help in this matter John, you are helping me and many more people!

Hope your mom gets well soon.

Marta.

[John6049]

Hi @Marta1828 , yes that does sound very pricey, a couple of points, does that quote include the roof? Most heat is lost through the roof, even in a shared building, if it is an old building it would be a shame to stick 15cm of insulation on the outside. Has anyone calculated the saving based on roof and basement only, you could also include a solar panel system which will help with your rating, also insulation can go on the inside instead of the outside and if the whole building has triple glazed windows thats already a big improvement. Sounds like you have different options available but maybe you need to speak to someone specialised in this area?

Cheers

John

[Marta1828]

Hi John! 

Yes, I totally agreed with you. I guess that is why the majority of owners voted "no" and asked for more estimates. It seams like big companies are taking advantage of the situation...

I don't know if other units have triple windows, it seams like they are older with older shadows (we have new ones).

Definitely after chatting with you, I'll get informed and ask around.

You did a fabulous restoration job on your house in Italy! I can't believe your work! (BTW I am Samkas_world on Insta, giving you likes 🙂

Thanks again for your help!

Have a wonderful day,

Marta.

[John6049]

Hi Marta,

One other bit of information you might find useful, I went through my invoices for the work that has been done on my house. If I remove all the extra items and just add up the base items for the roof, I get a cost of approx €300/m2. Please consider that I am in a rural area where prices are lower and I am also using guys that have done work for me in the past so I am probably getting a very good price and there are many other variables on a building project but it gives you a number to consider when looking at quotes for your work.

Cheers

John