Energy efficiency in real estate
Tomasz Wozniak 
April 4, 2023
Tomasz Wozniak
April 4, 2023 Improving energy efficiency is one of the most effective ways to reduce the environmental impact of real estate. It can also lead to significant cost saving over time. This month we will look at some practical steps that improve the energy efficiency of real estate portfolios and extend their lifespan. We will also outline ways in which we can help with such projects.
First step for someone looking to improve the energy efficiency of their property would be to conduct an energy audit – it involves hiring a professional who visits the property and provides you with a list of improvements that would increase the energy efficiency of your property. During the inspection the auditor will be inspecting the building’s insulation, windows and doors.They will search for air leaks, inspect heating, cooling systems and so on.
Insulation – insulation is an important factor in keeping the building energy efficient. Consider upgrading the insulation to reduce heating and cooling costs.
Air leaks – air leaks around windows, doors and vents make heating and cooling more difficult and hence more expensive. Once localized, consider sealing the air leaks.
Lighting – another major component in energy consumption. Consider swapping traditional lightbulbs for CFL or LED lighting to reduce overall cost.
HVAC – proper maintenance and occasional upgrade of HVAC (Heating, Ventilation and Air Conditioning) systems will lead to reducing overall energy usage of the property. Consider upgrading to high-efficiency HVAC to reduce the overall cost of the lifespan of the property.
Appliances – like HVACs, consider upgrading your appliances (washer, dryer, refrigerators) to energy-efficient models.
At HIC we arrange financing solutions that allow for such projects. Despite challenging market conditions, we are seeing plenty of credit available on the market, especially for projects that can extend the lifespan of the property.
Our network of funding partners offers senior as well as mezzanine debt, both of which can be used to undertake these projects. Pricing will vary greatly so get in contact with us and we can discuss your circumstances in more detail.
We currently focus on Western and Southern Europe as well as Australia and North America.
Additionally, we work with number of experts that can provide our clients with energy audits and carry out required renovations.
One of Europe’s key real estate markets, United Kingdom, is already implementing measures to ensure that properties are climate efficient. UK is using an Energy Performance Certificate rating, which goes form A (highly efficient properties) to G (least efficient). It is now illegal to let out properties with ratings of F and G and from 2028 properties that are being let will have to achieve at least C. According to Open Property Group, 41% of homes in England have an EPC Rating of “C” – owners of remaining 59% of homes in England should start planning their projects in advance to ensure compliance by 2028.
Improving energy efficiency of real estate assets in Europe is at the core of what we do at Holocene.If you have such (or similar) requirements please do get in touch at [email protected].