Will there be penalties for underinsulated houses after the introduction of the EPBD directive?

• By 2030, i.e. within six years, 16% of owners of the least insulated residential buildings (G characteristics) will face renovation, which will include not only thermal modernization, but also the replacement of gas, coal or fuel oil furnaces in Poland.
• It is no coincidence that the Ministry of Development and Technology has submitted for pre-consultation a draft regulation on the methodology for determining the energy performance of a building and the template of energy performance certificates.
• What’s worse, the EPBD directive gives the possibility of imposing financial penalties on owners of houses and residential buildings that are considered to be the worst insulated, i.e. which ones?
• Urszula Zielińska, Deputy Minister of Climate and Environment, admitted in an interview that regulations are being prepared allowing the government to impose penalties on owners of houses and residential buildings if they do not want to meet the new requirements set in accordance with the EPBD directive.
• Generally, we will have a “choice” – as it is now being introduced throughout the EU – if we do not take advantage of the incentives and subsidies to replace furnaces and insulate houses, we will most likely be punished for it. In other words, we will be able to choose subsidies and incentives, or ultimately financial penalties.

The revision of the EPBD directive tightens the requirements that all new buildings, including residential ones, be emission-free by 2030. However, the EPBD directive also does not forget about older energy-intensive buildings, which are to undergo thorough and deep renovation in stages. What does it mean?

What is a thorough renovation of houses and residential buildings under the EPBD directive?

Interestingly, the concept of “thorough renovation” has not yet been fully defined in EU legislation. This definition is introduced in the EPBD.

However, in the EU, in order to realize the long-term vision of changing the energy performance of buildings, deep renovation has been defined as renovation. Thanks to it, old buildings are to be gradually transformed into modern, energy-saving, emission-free buildings. As part of a thorough renovation, a thorough thermal modernization of residential buildings is to be carried out.

The first step in a major renovation is renovation, which transforms old homes and other structures into nearly zero-energy buildings.

However, the definition of thorough renovation is extended to include all modernization works that will increase the resistance of buildings to natural disasters, including earthquakes.

The EU definition of thorough renovation also includes improving fire safety and removing hazardous substances, including asbestos, as well as improving the accessibility and friendliness of modernized buildings for people with disabilities.

Defining a thorough renovation mainly involves the introduction of quite expensive work to improve the energy performance of old, energy-intensive buildings, not only office or official buildings, but also residential ones.

Thorough renovation means carrying out a series of modernization and renovation works, as a result of which a residential building or a building module will become:

• before 1 January 2030 – a building with almost zero energy consumption;
• from January 1, 2030 – a zero-emission building;

According to the EU directive, “Progressive major renovation” therefore means a thorough renovation carried out in several stages.

As part of a thorough renovation, it will also be necessary to carry out thermal modernization of buildings, consisting of:

• roof insulation;
• insulation of walls;
• floor insulation (if possible);
• replacing windows and doors with energy-saving ones;
• replacing the heating installation with an emission-free one.

Thorough renovation also requires the installation of photovoltaic panels on residential and non-residential buildings.

Let us remember that mandatory, thorough renovation will also cover residential buildings, i.e. houses.

How will the thorough renovation of houses in accordance with the EPBD directive proceed in Poland?

Regarding minimum energy performance standards for non-residential buildings, the Council and Parliament agreed that from 1 January 2030 all such non-residential buildings (office buildings, etc.) are to be more efficient than the 16% of the worst-performing stocks, and from 1 January 2033 from 26%.

Regarding the renovation target for residential buildings, Member States will have to reduce the average energy consumption of existing houses and buildings by 16% by 2030 and by 20-22% in 2035, of which 55% of energy savings will have to come from renovation the most energy-consuming buildings. How should this be done? Through a thorough renovation of buildings.

What does the EPBD mean in practice for owners of old houses?

By 2030, i.e. within six years, 16% of owners of the least insulated residential buildings (G characteristics) will face renovation, which will include not only thermal modernization, but also the replacement of gas, coal or fuel oil furnaces in Poland.

In turn, from January 1, 2033, the renovation order will be imposed on a total of 26% of residential buildings and houses in Poland.

Anyone who does not carry out expensive renovations including replacing the heat source, thermal modernization, and installing photovoltaic panels will not only be unable to sell or rent their apartment/house, because, for example, they will not receive a renovation passport.

What’s worse, the EPBD directive gives the possibility of imposing financial penalties on owners of houses and residential buildings that are considered to be the worst insulated, i.e. which ones?

Should the characteristics of energy buildings indicate those that require mandatory insulation?

It is no coincidence that the Ministry of Development and Technology has submitted for pre-consultation a draft regulation on the methodology for determining the energy performance of a building and the template of energy performance certificates.

In this way, energy classifications of buildings on a scale from A+ to G will be introduced, just as energy labels are introduced for washing machines, dishwashers, TVs and heat pumps.

Class A+ is to be assigned to buildings that produce renewable energy and thus have a positive energy result in the balance of non-renewable primary energy.

Class A, on the other hand, will be emission-free buildings, the heating of which does not lead to the production of carbon dioxide and other gases and dust, i.e. smog. As far as we know, zero-emission buildings will also have to produce energy from renewable energy sources.

However, the worst class of buildings G will cover over 15%. buildings with the poorest energy performance. The owners of the most energy-consuming buildings will have to increase the energy performance from class G to class F and will have to do so by 2030.

And it is these poorly insulated and energy-consuming G-class buildings and houses that will be the first to be subject to the need and obligation to carry out thorough renovation and thermal modernization.

Does the government plan to introduce financial penalties for underinsulated houses? What does the revised EPBD say about this?

Urszula Zielińska, Deputy Minister of Climate and Environment, admitted in an interview that regulations are being prepared allowing the government to impose penalties on owners of houses and residential buildings if they do not want to meet the new requirements set in accordance with the EPBD directive.

Generally, we will have a “choice” – as it is now being introduced throughout the EU – if we do not take advantage of the incentives and subsidies to replace furnaces and insulate houses, we will most likely be punished for it. In other words, we will be able to choose subsidies and incentives, or ultimately financial penalties, as illustrated in the interview below.

The penalty for a person who does not thermally modernize their homes is huge energy bills. It is not the role of the state to punish such people additionally, said the Deputy Minister of Climate and Environment in an interview for Plus Radio. – It will be possible to introduce obligations in various ways so that home owners can see the benefits and have help and financial support from the state.

Urszula Zielińska, Deputy Minister of Climate and Environment, answered the question whether it would be mandatory to insulate houses:

Detailed solutions on how sanctions will be introduced are still being developed. There must be some sanctions. Generally, the government’s intention to introduce various obligations is that the benefits should be felt first, and sanctions will only be introduced as a last resort for those who want to use this system to prevent them from doing so. First of all, incentives, benefits, first of all we have to feel the benefits before we incur the costs (sanctions).

Okay, so what does the revised EBPD say about the sanctions that member states can impose on their citizens?

Article 31 of the revised EPBD clearly states:

Penalties

Member States shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this Directive and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive. Member States shall notify the Commission without delay of any subsequent changes affecting the provisions notified in accordance with Article 27 of Directive 2010/31/EU.

As we see, the EU and the EPBD directive give the Member States, i.e. the Polish government, the opportunity to introduce financial penalties if we do not agree to use incentives and subsidies and pre-financing from government programs such as Clean Air in order to thermally modernize and increase the energy class of our house.

The EU is asking the Polish government how severe these sanctions will be, who they will cover and in what situations they can be applied.