The Energy Performance Diagnosis (EPD) has become an essential tool for anyone wishing to sell, buy, or rent a property. Beyond being a legal obligation, it plays a key role in managing the energy performance of homes. Discover why it's crucial to understand this diagnosis and how it can influence your real estate projects.
The EPD, an essential tool for responsible energy management
The Energy Performance Diagnosis is a key element in real estate transactions, whether for selling or renting a property. Its main goal is to inform the buyer or tenant about the energy performance of the property in question. This diagnosis helps better understand energy costs and the environmental impact of a home, while also encouraging the renovation of "thermal sieves," energy-hungry homes that require renovation to improve their energy quality. Since the introduction of successive reforms, the EPD has become a more accurate, reliable tool, now enforceable in case of disputes.
The EPD, a mandatory diagnosis
The EPD is part of the mandatory real estate diagnostics, carried out during the sale or rental of a property. It evaluates two major aspects of the home: its energy consumption, also called the "Energy Class," and its impact in terms of greenhouse gas emissions, also called the Climate Class. The result of the EPD is represented in the form of labels, ranging from A to G, where class A, for example, indicates optimal energy performance, and class G corresponds to the most energy-consuming homes.
A reformed EPD for more transparency
Since July 1, 2021, the EPD has undergone a major overhaul to improve its readability and reliability. Unlike the old EPD, whose results could vary depending on the information provided by the owner, the new EPD now takes into account all the technical characteristics of the property. Insulation, heating type, windows, etc., are now integrated into the calculation.
This new version of the EPD also includes the Climate label, which measures greenhouse gas emissions in addition to energy consumption. Furthermore, the results of the EPD are no longer just informative but can now be enforced in case of a dispute. It is important to note that the EPD is primarily enforceable against the diagnostician responsible for it. In case of an error, they are the ones who will be held accountable, not the seller or property owner.
The presentation of the EPD: clearer, more precise
The EPD is now easier to understand for users thanks to a new presentation. The energy label, which ranks the property from A to G based on its energy consumption, is accompanied by the climate label, which ranks the property according to its level of greenhouse gas emissions.
Additionally, the theoretical cost of energy consumption (heating, hot water, lighting, etc.) is estimated. This amount, calculated based on the energy prices of the reference year, must be compulsorily included in real estate listings since January 1, 2022. This allows potential buyers or tenants to have a clearer idea of the energy-related charges of the property.
Ban on renting G-rated homes according to the EPD in 2025
Since January 1, 2025, the Climate & Resilience law imposes a ban on renting homes rated G on the Energy Performance Diagnosis (EPD). This measure aims to encourage energy renovations and reduce the carbon footprint of homes in France. In accordance with this legislation, owners of G-rated homes must carry out renovation work to improve the energy performance of their property before being able to rent it again.
The EPD and the ban on renting "thermal sieves"
This ban affects a significant number of homes and will tighten over time. Since January 1, 2025, homes rated G on the EPD, known as "thermal sieves," can no longer be rented out. Starting in 2028, homes rated F will be affected, and by 2034, homes rated E will also be impacted. These measures aim to encourage owners to renovate their properties to prevent energy-hungry homes from remaining in circulation. It is important to note that overseas territories have an extended deadline: G-rated homes will be affected from January 1, 2028, F-rated homes from 2031, and E-rated homes from 2034.
This legislative evolution pushes owners to carry out renovation work to improve the energy performance of their properties. Several financial aid programs, such as MaPrimeRénov’, are available to fund these works and encourage the energy transition.
Sanctions for failing to meet EPD obligations
It is essential to comply with the obligations related to the EPD, particularly the mandatory inclusion of energy performance information in real estate listings. In case of non-compliance with these obligations, financial penalties are foreseen. A fine of up to 3,000 euros for an individual and 15,000 euros for a company can be imposed. Therefore, it is crucial for property owners to adhere to the new rules to avoid any penalties.
The EPD, a lever for the energy transition
Beyond its role in the sale and rental of properties, the Energy Performance Diagnosis plays an essential role in the national energy policy. By informing property owners, tenants, and buyers about the energy performance of homes, it serves as a lever to encourage energy renovations and the transition to more responsible and energy-efficient buildings.
Indeed, a high-performing EPD can result in lower energy bills for the residents of a home, as well as a reduction in greenhouse gas emissions, thus contributing to the fight against climate change.
Conclusion:
The Energy Performance Diagnosis has thus become an essential element of real estate transactions. With its objectives of improving transparency, accuracy, and the reliability of energy data, it encourages the renovation of more energy-consuming homes.
In this context, our real estate advisors also play an essential role in assisting you. They can guide you in bringing your property into compliance, help you understand the results of the EPD, and advise you on the work needed to improve your home's energy performance.
By consulting our advisors, you benefit from the expertise necessary to understand this new regulation and make the best decisions to achieve your real estate projects.
Author:
Sandrine Hammann - Property Management Manager
As an expert in rental management, I assist you by providing advice and practical information to maximize the profitability of your real estate investments. My goal is to offer you clear answers, helping you optimize the management of your properties.
