Several trends characterize building labeling in the E.U. as a whole. First, building energy rating is largely dependent on home assessment alone; operational data does not play a role. Second, most member states do not collect the ratings into a central database; as a result, local and national officials are not able to use rating data to understand the state of the building stock (BPIE 2010). Third, in the past, ‘semi-mandatory’ approaches to disclosure also presented a concern: until 2008, the Netherlands had residential energy label requirements at time of sale, but the buyer could sign off to waive the seller’s obligation to provide one. Under this setup, only 7% of houses sold had an energy rating done (Brounen and Kok 2010). Additionally, costs for rating single-family homes in the E.U. range from under €100 to over €500. Apartment ratings cost from under €100 per unit to €400 (Maldonado et al. 2010). The concerns that have been raised include: the need for a common methodology across the E.U., the need for random audits to ensure quality, and the challenge of ratings apartment buildings and individual units in them. Although implementation has taken place within just the past three years, early indications are that building energy ratings are spurring some markets to value energy efficiency. In the Netherlands, Kok and Jennen (2011) find that office space with a green rating is correlated to have higher rent per square meter, at a statistically significant level. In the Netherlands’ housing market, Brounen and Kok (2010) found higher valuations for that homes had an A, B, or C energy rating, versus homes that were otherwise identical but rated at a D or lower.
Voluntary Building Energy Rating Programs Several proposals for voluntary home energy ratings have been put forward in the U.S. The Home Energy Rating System Index (HERS) is perhaps the most well-known, with the U.S. Department of Energy ramping up pilots of a separate Home Energy Score (HES).
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