Property tax and energy efficiency in the residential sector. Interviews with EPB certifiers

Abstract

In Flanders a property tax reduction is offered for new constructions if higher standards of energy performance are achieved than the minimum requirements. Preliminary quantitative analysis of the data regarding new constructions in Flanders provides evidence of a bunching effect at the E‐levels required by the property tax incentive. The aim of the study is to investigate whether the property tax played an important role at encouraging additional investments in energy efficiency. Another aim is to understand the mechanisms of decisions making between the client, the architect and the EPB certifier. For this purpose in‐depth, semi‐ structured interviews with EPB certifiers operating in Flanders were undertaken. Findings show that the property tax incentive plays an important role in decision making, principally when the levels required by the property tax are close to the minimum standards as in the recent years. The most commonly used methods to achieve lower E‐levels are PV systems, followed by efficient ventilation systems, heat pumps and airtightness test to a lesser extent. Investments in systems are motivated by a common practice of making the EPB certification after the building permit was released, therefore changes in the design are problematic. At the same time, additional investments in higher levels of insulation beyond the minimum standards required by S‐levels do not contribute significantly to lowering the E‐level. Only EPB certifiers that are also the architects of the project have a more holistic approach and make EPB simulations at an earlier design stage.