Energy Regeneration: Everything you need to know before you start working

Attic insulation is often one of the first steps in energy regeneration

A Lyon apartment rated A in Diagnostic Energy Performance (DPE) sells 15% more than a power refinery. However, between the multitude of aids, technologies and commercials, it is difficult to navigate. Lion Capital is evaluating.

Long considered secondary, the energy renewal of apartments and houses in Lyon is a major concern for buyers. The numbers don’t lie: an apartment in Lyon rated A or B during the Energy Performance Diagnostic (DPE) sells for at least 15% more than the thermal sieve according to the Rhone Chamber of Notaries. A difference that is also explained by the current needs for the renewal of power refineries. Concretely, the price difference is €45,000 for a T3 rated A and sold for €300,000 in central Lyon compared to other homes rated well F or G. For older homes in Rhône, the price difference goes up to 13% between the good and the bad ECD rated. An important contrast, taken into account today by buyers: “92% of buyers negotiate the price of thermal refinery‘, according to analysts from SeLoger. A strong argument at a time when Lyon’s real estate, under pressure, does not allow for discussions because supply is scarce.

92% of buyers negotiate the price of thermal refinery

Usually it can also be explained by context: energy prices are going up and the bill is getting more and more salty. Gas, fuel oil, electricity … Of course, high prices do not survive in this unstable situation, especially because of the war in Ukraine. At the same time, climatic and environmental concerns are also shifting uses. Indeed, before the energy bill accounting calculations, today it is a reality in Lyon: the roller coaster on Lyon temperatures is highlighted with strong and fast contrasts. May 2022 will go down as one of the hottest months in the capital of Gaul since 1945. What’s the link? Building use accounts for one fifth of France’s greenhouse gas emissions.

New tougher rules

Ironically, the topic’s popularity doesn’t make it any easier. At first glance, it should be understood that it is the Diagnostic Energy Performance (DPE) that identifies the note in the form of a letter attributed to each dwelling. However, the previous year was marked by the reform of the Environmental Planning Department in the sense of tighter controls. “With the old DPE, in general, the result was based on consumption alone“, explains Thomas Teixer, MD, a diagnostician at Courtier Diagnostics, based in Lyon. Previously, two communal heated apartments in the same apartment complex could have received the same rating, even though one was renovated and the other not. The expert develops:Today, new rules take into account the insulation of walls, attics, materials used, ventilation, etc. Transactions have also been changed in favor of electricity and the penalization of fossil fuel heating. A step forward caused many properties to turn into a poor rating.

25% of the Lyon apartments concerned

The problem is, a national calendar of individual-binding measures was drawn up during the vote on the Climate and Resilience Act last year. In fact, as of September 1, 2022, properties rated F or G can no longer be sold without being the subject of an energy audit in addition to a DPE. “The problem is that we do not yet know the ins and outs of this review, the content of which remains very vague.”, explains the doctor. Extremely late start-up delay for sellers, is required to provide this data to buyers.

In 2025, the rental of accommodation with a rating of G . will be prohibited

In fact, the September trading is happening right now. Likewise, from August 25, 2022, rents for accommodation rated F or G can no longer be increased. A strong but not very punitive measure in light of what is happening: in 2025, the rental of G-rated accommodation (1% of apartments in the Lyon). Then, in 2028, the rental of housing classified F (4%) will be banned. Finally, the same will be true for E-rated housing in 2034 (20%). In other words, 25% of housing in Lyon can no longer be rented by 2034 according to the figures of Rhone notaries. Challenging repairs, greatly encouraging owners to keep abreast of developments.

The new DPE rules take into account the insulation of the walls and the materials used. Here, a biological buffer foam

insulate and heat up