What are the consequences for the property with a DPE (Diagnostic for Performance of Energy) of G label in France? From 2023, rental accommodations that consume more than 450 kWh/m2 of final energy per year are considered "indecent accommodations" and are banned from rentals in France. In 2022, nearly 2,032,000 primary residences were classified as G, which is the worst label for DPE performance (energy performance diagnosis). Of those, 812,000 properties belong to the private or social rental sector.
Yes, if its final energy consumption is less than 450 kWh/m2/year! Because the important information is the limit of 450 kWh of final energy by the square meter and by year.
According to Article 1 of Decree No. 2021-19 of January 11, 2021, enforced on January 1, 2023, if the consumption is below 450 kWh/m2/year, the G-label rental apartment can still be rented out in 2023.
NOTA BENE: The rental prohibition only applies to new rental contracts starting from this date.
For example, when we use natural gas to generate heating, gas is the primary energy source. However, some energy will get lost due to inefficiencies in the conversion process. Therefore, the final energy (heating) delivered to the apartment is less than the initial primary energy (gas). On the other hand, if the accommodation heats with electricity, its final energy consumption will generally be much lower than those heated by primary energy (gas, fuel, oil, etc.). That explains why the rental prohibition applies mainly to properties heated with fuel oil or gas.
The DPE result is on the 1st page of the energy performance diagnosis report, and the final energy consumption is on page 3 (annual consumption and expenses: "E.F." in light gray).
Typically, the energy label reflects the primary energy classification. When examining the DPE label of your rental apartment in Paris, you might discover that its energy consumption exceeds 450 kWh/m2/year, which is set as the limit for renting in France. However, the figure we typically talk about is in primary energy, but the final energy matters!
Once you have the yearly final energy consumption, you can calculate a value per square meter and compare the result with the limit of 450 kWh/m²/an.
For example, from the table below, the annual primary energy is 14 942 kWh. And just below, in gray, is the final yearly energy 13 662 kWh.
So, to calculate the annual final energy consumption per square meter of your property, divide the final yearly energy by the surface of your property.
The good news is soon, all DPE reports will indicate the total amount of final energy consumption in kWh/m2/year, making it easier for everyone!
To improve the DPE score and achieve a DPE performance of D class, carry out thermal insulation work starting with the roof, walls, windows (for example, install double-glazed windows), and doors. Therefore, it is essential to check the state of insulation in both habitable and non-habitable surfaces.
The most significant heat loss area is:
Insulation is particularly critical for older homes, particularly those built in Paris before 1974, which tend to lack proper thermal insulation.
To achieve a better energy assessment (DPE) in France, optimizing the heating system is another crucial factor for a successful energy renovation project. Consider changing the energy source of the heating and hot water production in your apartment. Also, install thermostatic radiator valves or insulate the heating pipes. Again, we recommend you seek advice from a professional heating engineer.
Please pay attention to your home's ventilation system, as it plays a crucial role in renewing indoor air and minimizing indoor pollution. Besides, proper ventilation also helps decrease humidity levels, making it easier to heat the air and reducing your heating expenses. Therefore, consider installing either a single-flow controlled mechanical ventilation (VMC) or a double-flow VMC to enhance your ventilation system.
Upgrading your property's DPE (energy performance) rating from class G to class D makes your accommodation eligible for renting, reduces your final energy consumption by almost 50%, and saves on the utility bill. How much does an energy renovation cost? The estimated cost for improving the energy rating from F/ G to D/ E is around 350 euros per square meter.
There are various heating replacement options available in the market, with prices that vary significantly:
By recycling wasted gas back into the system, the condensing boiler can achieve an energy efficiency of 90%. This result is significantly higher than a conventional boiler, whose efficiency typically ranges between 70-80%.
The most significant benefit of a condensing oil boiler is its energy efficiency, with a potential efficiency rating of about 90%.
It can provide energy savings of up to 40%.
It provides energy savings of up to 93%. Besides, pellet boilers do not release harmful carbon gas.
It provides a cleaner environment, eliminating smoke, soot, and ash and reducing dryness within buildings.
GHPs offer a significant advantage over traditional heating, consuming 25% to 50% less electricity.
By harnessing energy from the outside air, aerothermal systems can extract up to 75% of energy, substantially reducing electricity usage for homes and buildings.
Two main factors influence the cost of insulation work in France:
The French government assists the public with its energy renovation projects to decrease the nation's energy consumption.
MaPrimeRénov' is a French government-funded program encouraging energy renovation work on residential properties. Since October 1, 2020, MaPrimeRénov' is eligible for all owners, regardless of their income, whether they occupy their home or rent it out. However, since January 1, 2022, MaPrimeRévov' is reserved for housing built for at least 15 years to reinforce the renovation of old housing. However, it is still possible to benefit from MaPrimeRénov' for all homes built more than two years ago which need to replace a boiler running on fuel. It covers a range of renovation projects, such as insulation, heating, ventilation, and energy audits. The grant amount can be as high as €10,000 for significant renovation work. To apply, you must check your eligibility on Simul'aides, ensure your renovation work meets the criteria, and submit your application through the MaPrimeRénov website.
The zero-rate eco-loan, or eco-PTZ, is a loan applicable for energy renovation work. The loan can be up to €50,000, payable over 15 or 20 years. Banks provide it with a partnership agreement with the government. The eco-PTZ loan applies to equipment, materials, and installation costs. To benefit from this loan, you must choose a bank partnering with eco-PTZ and complete the standard borrowing form with the work estimates and other supporting documents.
MaPrimeRénov' Serenity is another financial program helping with major energy renovation work in residential property and has been in place in France since 2022. It aims to help landlords or tenants with modest or low incomes, with their principal residence built at least 15 years ago. The program finances various energy renovation works, and the amount of aid is according to the candidate's income, with premiums reaching up to €10,500 or €15,000.
The climate and resilience law states that the tenant living in Paris apartment for rent classed at G can request their landlord to carry out an energy renovation. Furthermore, the French Public Service says, "if the judge stipulates that the rental accommodation does not meet the standards of decency required by law, they can force the owner to do the necessary work."
So, optimizing the energy performance is an issue to be addressed sooner or later, for a ban will be implemented in stages, with different deadlines for different energy efficiency ratings.
In conclusion, if your rental property's energy performance is Class G with consumption equal to or superior to 450 kWh/m²/, it is unfit for renting in 2023 due to low energy efficiency. But don't panic! There are still several actions to improve your DPE score, and you can obtain federal aid to finance your renovation project.
Editor: Siyi Chen
Sources: Service Public, Total Energy, Monexpert, Hellio
