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What you need to know about Denmark’s housing ‘energimærke’

Denmark uses a graded marking system for buildings including houses, indicating energy efficiency and giving important information to homebuyers.

What you need to know about Denmark’s housing 'energimærke'
Renovations like better insulation can improve the energy rating assigned to a house, benefitting potential sellers and buyers alike. File photo: Linda Kastrup/Ritzau Scanpix

The energy marking – called an energimærke in Danish – is an indicator of the amount of energy a building uses and is a form guidance that can be used by potential buyers of a property, the Danish Energy Agency (Energistyrelsen) explains.

In addition to being an easy-reference grading that is attached to a property, the system also provides an outline of valuable improvements that could be made to the building’s energy properties.

Houses, public buildings and business properties are all given an energy mark, but people hoping to become homeowners in Denmark are naturally most likely to be interested in how the system works for the first of these three categories.

A building must be given an energy marking whenever it is put up for sale or rented out. You’ll see the relevant letter on listings on estate agents’ websites, allowing you to compare the energy markings of different properties.

The marking given to a building can range from A to G, with A the best rating and G the worst.

The ‘A’ score is further divided into three sub-scores: A-2020, A-2015 and A-2010. The more recent the year, the better the rating. These were introduced after new types of building and low energy houses were developed and are usually only seen on new builds.

What do the letters mean?

The energy markings are based on calculations of the energy consumption of the property, which in turn indicates how efficient it is.

The marking is given following assessment by a consultant who takes measurements and looks at factors including the quality of the insulation, windows and doors and the heating system. Overall energy consumption is then calculated, factoring in standardised values for weather, number of occupants and use patterns.

It’s worth keeping in mind that this calculated energy consumption (beregnet forbrug) on which the energy marking is derived can be different from the actual consumption of the occupants.

For example, some people tend to save on energy use in their homes by switching off lights, taking cold showers and using appliances at night, while others leave windows open when the heating is on or have occupants with high-use habits, such as people who work from home or spend extended hours using desktop computers for gaming.

READ ALSO: How people in Denmark are changing their energy use to keep bills down

This means that the actual energy consumption of the house or building depends on who is using it. The energy marking is based on standardised, assumed consumption values. It provides information on the quality of the building, rather than on how it is used currently.

Additionally worth noting is that the energy used to supply a building is only part of the calculation when assessing the grade it should be awarded. Also factored in are the technical properties of the hardware, such as a water pump, installed in the building.

The type of energy used to supply the building and the way it is produced also plays a role. Electricity, district heating, oil, gas and firewood all have different ‘factors’ which are accounted for in the overall calculation. These values are not static: a building’s energy marking can change if it gets a new energy source as national or regional infrastructures or technology are changed.

These energy factors come from an EU building directive that forms the framework of Denmark’s energy marking system.

You can find the energy marking of any building in Denmark on the Energy Agency’s SparEnergi.dk website.

Why is the energy marking important when buying a home? 

A good energy marking tells you that a house or apartment is relatively cheap to heat and holds in heat well while also holding up to ventilation needs, real estate media Bolius notes.

It can also tell you that a building has efficient heating sources or something like solar panels, which will help give it a better grading.

The current climate of high energy prices mean that the energy marking can make a huge difference in your living costs. The same house heated by an ageing individual gas heater will be much less efficient – and have a lower marking – than one on the district heating network.

READ ALSO: European electricity prices soar as tough winter looms

Homes with good energy markings can often be sold for more than ones with worse ratings, if all other factors are equal.

Potential homebuyers should be interested in the energy rating of a house or building because it gives an idea of the condition of the property in terms of its energy efficiency: how well insulated and economical it is, how much it costs to heat up and how much electricity it is likely to use.

When houses are put on the market, sellers are obliged by law to provide an energy marking (with the exception of properties under 60 square metres, but a report can also be requested in these cases). Energy markings are valid for 10 years and can normally be reused within this timeframe, unless major changes are made to the building.

This means that a report is produced or already exists, telling interested buyers not only what the rating of the house is, but also what potential improvements could be made to make it more efficient.

A report might, for example, state that added roof insulation or switching out an individual gas heater and joining the district heating network would pay off in the long term through saved energy costs.

The report helpfully points out three specific places in the building which are the most suitable for energy improvements, Bolius notes, while also providing information on all other potential upgrades.

In addition to potential savings on energy, you can also see how much you will reduce CO2 emissions by carrying out the recommended renovations.

What should sellers be aware of?

Sellers are responsible for ensuring an energy marking is provided when they put their house on the market.

If the property is being sold using an estate agent, the agency will normally arrange this.

People who own apartments must request the assessment through the association (ejerforening or andelsforening depending on the ownership structure) that manages the building. This is because the energy marking is not calculated based on the individual apartment, but on the entire building within the relevant ownership association.

Sellers may also consider carrying out energy renovations before putting their house on the market. According to Bolius, several studies have shown that a better energy marking results in a better selling price. The average house will net the seller an average 500 kroner extra per square metre for every letter by which the energy marking is upgraded.

A subsidy scheme for energy renovations, ‘Bygningspuljen’, was launched by the Energy Agency in 2020.

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How will Nord Stream pipeline leaks affect gas bills in Denmark?

Gas prices increased on Wednesday morning in the wake of gas leaks from the Baltic Sea Nord Stream pipelines and Russian threats to close off remaining gas supplies to Europe.

How will Nord Stream pipeline leaks affect gas bills in Denmark?

The stock market price of gas rose from 15 kroner per cubic metre on Tuesday morning to 18 kroner per cubic metre on Wednesday, according to energy analyst Kristian Rune Poulsen of Green Power Denmark.

“The gas leaks in the Baltic Sea have made the market nervous and prices increase by 5-10 percent in the wake of that,” Poulsen told news wire Ritzau.

“But on top of that, [Russian state gas monopoly] Gazprom has threatened to shut off supplies to Europe through Ukraine and that has made the price of gas go up even more,” he said.

The two Nord Stream gas pipelines linking Russia and Europe were hit by unexplained leaks, Scandinavian authorities said on Tuesday, raising suspicions of sabotage.

The three gas leaks on the Nord Stream 1 and 2 pipelines were visible Tuesday in waters off Denmark with huge areas of bubbling spreading from 200 to 1,000 metres in diameter, the Danish military said.

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The leaks occurred off the Danish island of Bornholm in Danish and Swedish economic zones, but in international waters.

“The Nord Stream pipelines were already inoperative for an indefinite amount of time, so the reaction on the market has been limited,” Poulsen said.

Russia is still sending some gas to Europe – around one-fifth of pre-war levels, the analyst said.

If Gazprom follows up on its threat to shut off another pipeline – which travels through Ukraine – the remaining amount would be halved, he said.

“That would hit the sparse supplies we actually have,” he said.

Gas prices are still some way from a peak on August 26th, when the price reached 30 kroner per cubic metre.

“Since August 26th, the trend has in fact been downwards, and the price was roughly halved [compared to the August peak] up to yesterday,” Poulsen said.

Consumers who use gas to heat their homes in Denmark will nevertheless feel the impact of Wednesday’s price hike, however.

“Consumers cannot follow gas prices hour by hour like with electricity prices,” Poulsen said.

“If the price is high, their gas bills will also go up. But they will not see that until three months from now when the next heating bill comes,” he said.

The analyst said he expects gas prices to remain high at around 20 kroner per cubic metre throughout the winter, and even during the following winter.

“The next two winters look like they will be very expensive if you use gas,” he said.

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