HeatingHelp Newsletter - Efficiency certification

croydoncorgi

The item in HeatingHelp implied that it was actual efficiency gains that created premium prices for highly efficient houses.



The piece in RICS magazine referenced was more to do with premium prices associated via E-E certification.  In other words, if you can get some energy surveyor to put his name to a report that says your home on sale is 'very energy-efficient' (or even just 'better than average'!), you will achieve a price premium, even with no DEMONSTRABLE savings!.



Of course, the irony is that this notional efficiency improvement then has to be achieved IN PRACTICE,and reflected in lower energy bills!  In many cases, this doesn't happen to the maximum extent, or even at all!  Trouble is, individuals have different behaviours and different expectations about matters such as 'comfort'.  What temperature makes a room is 'warm' (or 'cool') enough?



Consumers understand so little about physics that trying to explain why reducing the room temperature by only 1 degree will make a big difference to the energy cost is a real struggle.  Cost-justifying major expense for better insulation, more efficient heat source, etc. is hugely complicated and then proving savings actually made even more difficult.

radiantmaster

Read the fine print

For those who are interested, here is a link to the full report and some quotes taken from the report;



http://www.joinricsineurope.eu/uploads/files/Fullreport.pdf





“However, sellers do not seem to adopt an energy performance certificate

to signal superior building quality to prospective buyers.”



“The results on voting preferences and label adoption show a significantly positive coefficient on the measure of voting ‘green’, which provides some indication that the choice for adopting the energy label may also be driven by ideological beliefs.”



“Thus, the label does not seem to be systematically used by sellers to reveal information on superior

dwelling quality to the market”



“Simple comparisions show that certified dwellings sell for slightly lower prices and are three days longer on the market, on average.”



“In addition, homebuyers and industry bodies have openly questioned the reliability of the information

provided by energy certificates in housing transactions.”



“The thermal characteristics of a dwelling, like insulation and heating system, do not influence the certification decision.”



As can be seen from the above, the facts do not support the conclusion. It must be noted that the authors have a definite political axe to grind and a job to protect. In order to make the facts match their credo, they had to resort to the following algorithm (found in the report), based on what can only be classified as dubious assumptions:



P(EPC)inc = a + βiXi + δnLn + λcCc + εinc



Read behind the headlines or suffer the consequences!!