Improving a property’s BER (Building Energy Rating) can add up to €67,000 to its asking price.
That’s according to new research from the Central Bank of Ireland which assessed the impact of energy efficiency improvements on the cost of a home.
The report found that a single grade increase in a property’s BER was associated with a listed price increase of 1.6% between 2015 and 2024.
The premium derived from each upgrade decreased from 1.9% in 2015 to 1.3% in 2024.
Given the average listed price for properties nationally in 2024 was €395,247, it calculated that each BER grade increase raised listed prices by €5,138 (1.3%).
If the energy rating was increased from a low G to a high A2 – 13 BER grades – the listed asking price would rise by €66,794.
The study noted that the average BER improvement carried out in Ireland is from a D2 to an A2, a nine BER-grade improvement, which would “be capitalised into a property price premium of 11.7%, or €46,242, in 2024″.
BER certs measure a property’s energy usage based on the level of insulation, the efficiency of the heating system and other factors. A-rated homes are the most energy-efficient, while G-rated homes are the least, and typically require a lot of energy to heat.
A separate Central Bank study, suggested retrofitting homes to a BER of B2 or higher can generate significant lifetime savings, particularly for those with a starting BER of C3 or lower. The savings, however, “vary substantially” by initial BER rating, ranging from €9,000 to over €65,000.
“Households with lower starting BER ratings (F and G) achieve the highest net savings despite higher upfront costs,” it said.
You can find out more about the benefits of retrofitting and the grants and supports available to you on the MyHome Retrofit Hub, in association with Energlaze, here.
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