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What Does a Property’s Energy Performance Certificate Mean?

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Written by Daniella

Any property that is on the market, whether it is for rent or sale, is required to have an Energy Performance Certificate (or EPC), so it is important to know every little detail on this specific certification.

The certification document can inform you of everything you need to know on a property’s energy usage and CO2 emissions, but it also tells you of possible works to be done that can improve the home’s energy efficiency.

Are you excited to learn more about Energy Performance Certificates? Well, then you are in luck, because today’s article by ShMadrid will focus on some of the EPC’s key characteristics.

Related article: Ten Risks of Selling Your House Privately

What you need to know about the EPC

modern home with three separate sections

Photo via Pixabay

The Ministry of Industry, Energy and Tourism have been requiring the label of an Energy Performance Certificate for any property that is up for rent or sale.

The legislative measure is in use in every country within the European Union, and its objective is to improve a property’s energy efficiency.

The document includes all energy aspects of a home, in order to evaluate and qualify every single item that has an influence on it.

The certificate comes with a label, the so-called “energy label”, and all the information is included on the Energy Performance Certificate, which will be given a rating between “A” and “G” on its energy efficiency. “A” will be the highest possible rating for home and “G” the lowest.

A colour represents each of the letters, which makes it easy to see what the label stands for. Red needs (a lot of) improvements, green scores very well. Once the certificate is issued, the label is valid for a period of ten years, starting from the date of issue.

The Energy Performance Certificate is a compulsory measure, as set out in Royal Decree 235/2013 of April 5. The objective of the certification is to provide information on the energy efficiency of a property, and both sellers, landlords and real estate agencies must be able to present the certificate at a necessary moment.

Related article: How to Sell Your Home in Madrid

big house in grey colours

Photo via Pixabay

The Energy Performance Certificate must be carried out by an authorised technician, engineer or architect that is qualified to do these evaluations. The owner is usually the one who is free to choose the company to carry it out.

Certificate costs depend on supply and demand at the moment, as the Government has not yet arranged for a maximum price that may be charged to clients. Before you decide on which company you want to hire for the task, ask for several quotes and compare prices.

As already mentioned, the certificate is obligatory when the owner wants to rent or sell a property, but there are clear exemptions in which case it is not necessary to provide the document:

  • Historical and religious buildings
  • Properties of less than 50m2
  • Destroyed, demolished or temporary buildings
  • Buildings for agricultural or industrial purposes only
  • Dwellings that will not be rented for more than 16 weeks (or 4 months) per year

According to Law 8/2013, and as of June 26, you will be fined for not having the Energy Performance Certificate when needed. Failure to comply with regulations can lead to serious penalties, ranging from 300 to 6000 euros.

What else is important about the energy performance certificate?

About the author

Daniella

Daniella loves to write and translate. Her bucket list is filled with beautiful places she still needs to visit.

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