The energy label records a building’s energy performance on a scale from A to G. It is compulsory on sale, letting and completion, and certain buildings are now subject to a statutory minimum level.
Legal basis
The requirement rests on the European Energy Performance of Buildings Directive and is implemented in the Buildings Energy Performance Decree and the Living Environment (Buildings) Decree. Since 1 January 2021 energy performance has been determined under the NTA 8800 standard, expressed in kilowatt hours per square metre per year. Since 1 January 2023 office buildings larger than one hundred square metres may not be used without at least label C, and municipalities enforce this through administrative measures. The 2024 recast of the Directive requires Member States to tighten requirements further for the worst-performing buildings, which will be worked out in national rules over the coming years.
How it works in practice
The label is prepared by a certified adviser and registered; it is valid for ten years. On sale and letting it must be handed to the buyer or tenant and the label class must appear in the advertisement. For rented homes the label feeds into the housing valuation system and therefore into the maximum rent. For business premises the label requirement is a point to address in the lease: who bears the cost of the measures needed to meet the standard?
Where it goes wrong
Landlords of office space assume the label obligation rests with the tenant; the municipality, however, addresses both user and owner. A second error is an outdated label after renovation, so that actual performance differs. Third, leases frequently lack any provision on sustainability measures and how their cost is passed on.
Related terms
The label connects to the housing valuation system, the environmental permit and the lease of business premises.
Does your property fall short of the standard? Our energy law specialists assess the obligations and the allocation of costs.
