Energy-efficient upgrades increase your home's value

Since 2008, any property sold, rented or built in the Netherlands must be given an energy label registered by an approved energy adviser. Energy labels vary from G (red, least efficient) to A++++ (green, most efficient). The energy label immediately tells you about a property’s energy efficiency. Not all homes have a valid, registered energy label, however. At the time of writing, just 44% of owner-occupied homes have a registered label compared with over 70% of rental properties. If you’d like to know your home’s energy label and how long it’s valid, please visit Milieu Centraal’s website (in Dutch).

Tilburg University and Maastricht University have conducted lengthy studies on the impact of energy labels on asking prices (article in Dutch). Their research suggests that buyers have become more discerning over the years. Indeed, despite demand outstripping supply, homes with a red F/G energy label sell below the asking price. That’s because these homes cost more to heat and will require expensive energy-efficiency upgrades in the future.

Research conducted by the research agency Brainbay in May 2023 (article in Dutch) shows that more energy-efficient homes increase in value, with each upgrade to the next highest category leading to a higher average value. The table below shows the impact of a home’s energy label on the asking price. As you can see, the selling price of a property with label C is on average 11.6% higher than a comparable property with label G. The gap in prices between less and more energy-efficient homes continues to grow, as shown by figures from the Dutch association of real estate agents (NVM). Basically, ‘greener’ homes sell much faster.

You can obtain a better energy label by increasing your home’s energy efficiency. Broadly speaking, you can take the following measures:

• Make sure your property is properly insulated and ventilated.
• Install a hybrid (or electrical) heat pump or connection to a heat grid.
• Install solar panels.

Every home is different. An energy adviser can tell you which measures are right for your home and provide advice on your home’s energy performance (EPA). This advice is unique to your home. The energy-efficiency improvements must meet certain criteria, often technical in nature, which your energy adviser can look at. Your energy adviser can also calculate your home’s energy label and help you to register it.

You can find accredited energy advisers through ABN AMRO’s partners or the knowledge centre for energy efficiency in the built environment (KEGO, website in Dutch).

If you’d prefer to work things out for yourself, you can use the Energy Saving Check or visit Milieu Centraal’s website (in Dutch) for more information.

If have lots of liquid assets, investing this money in making your home more energy-efficient is usually an attractive option. Equally, you could fund upgrades by increasing your mortgage or taking out a second mortgage.

If you’d rather borrow money from a bank, how much you can borrow depends on your income, the value of your home or both. The Dutch government has established rules for these types of loans. Over recent years, it has become increasingly easy to borrow money specifically to make your home more energy-efficient. If you’d like to take out a loan for a home with a low energy label, you can borrow up to €20,000 more to spend on energy-efficiency improvements.

You can also borrow more for a home that’s already been made energy-efficient, as lower energy bills leaves you with more money to cover mortgage repayments. The additional amount you can borrow can be as much as €50,000.

If you don’t want to change your mortgage, consider taking out a green loan. These types of loans are often available at attractive rates. To find out more about loans from ABN AMRO, check out our website.

Lastly, you can access government grants and loans at attractive conditions. To help you choose the right grant for you, the Netherlands Enterprise Agency and Milieu Centraal have released a grant guide for homeowners. These grants can cover up to 30% of the costs.

ABN AMRO offers up to 0.15% off your mortgage interest rate if your home has a registered energy label equal to B or higher or if you have a lower energy label but are planning energy-efficiency upgrades. This is available at the start of a new fixed-rate period, or if you register the energy label within 24 months of the start of your fixed-rate period. Read about how to claim our sustainability discount.

Upgrading your home’s energy efficiency can considerably increase its value. Investing in energy efficiency can save you money and usually makes your home a more comfortable place to live. And besides enjoying lower energy bills, you’ll be giving the planet a helping hand. Win-win!