Large saving on energy bill of households is feasible
Tailored policy is needed
Four out of five households will profit from implementing one or more energy saving measures in their homes. On average this could save 22 percent on the energy bill. In practise, however, there appear to be large differences among households. Particularly the individual heating behaviour of households will determine whether or not an investment is profitable. This is the outcome of analyses conducted by the Energy research Centre of the Netherlands (ECN) on the cost effectiveness of energy saving measures in Dutch households.
Energy saving is not only a means to reduce greenhouse gas emissions; it is also considered an important instrument for reducing housing expenses. ECN has developed a detailed model, focussing specifically on housing expenses, in support of policy makers. Over 4700 households have been examined to find out which measures they can still take. It was also examined how much the measures save on the energy bill and which investments they require. If the homeowner is able to finance these investments with a mortgage, he will be able to profit from the advantages of mortgage interest relief and spread the costs across a longer period. The benefits usually outweigh the costs.
It is also important to take the differences among households into account. As it turns out, it is not the type of dwelling or family size, but mainly the heating behaviour that determines if and how much a household can save on its housing expenses. Gas that is not being used, cannot be saved. When a household uses relatively little heating, for example because the residents are often away, this means that there is less room for saving. This difference can result in a payback period of measures that is three times higher in one household compared to another household. Policy makers need to take this into account. Especially if investing in energy saving were to become mandatory, this might increase rather than lower the costs of some households.
Worthwhile to go all the way
The recent change in Dutch rental legislation stimulates landlords into doing more investments in energy saving. As of 1 July the energy label has become an aspect that also determines how much rent a landlord can ask. Investing in energy saving measures will improve the label and increase the landlord's income from rent. The costs of these measures are largely compensated this way and at the same time the tenant benefits from lower energy costs. ECN analyses have shown that landlords who currently invest in energy saving benefit from going all the way at once. Even after deducting the additional costs, upgrading a rental home with a label G to a label B results in an additional benefit of on average 55 euro per month compared to an upgrade to label F.
For more information please contact: Casper Tigchelaar. The report can be found here.
