Watt’s it Worth? Residential Energy Efficiency Premiums

Hannah Ortega-McCormack, James Carroll, Tom Gillespie and Ronan C. Lyons
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Hannah Ortega-McCormack: Central Bank of Ireland
James Carroll: Central Bank of Ireland
Tom Gillespie: Central Bank of Ireland
Ronan C. Lyons: Central Bank of Ireland

No 11/SI/26, Central Bank Staff Insights from Central Bank of Ireland

Abstract: The Energy Efficiency Premium (hereafter called the premium) - that is, the increase in property price associated with a single grade increase in the BER rating - was on average 1.6% between 2015 and 2024. The premium decreased from 1.9% in 2015 to 1.3% in 2024. In 2024, 59% of properties for sale in Daft had a BER ranging from B3 to D1. If a property were to improve its BER from a D1-rating to a B3-rating, the four BER-grade difference would amount to a premium of 5.2%. The change in the premium over time differs by market segment. The premium is highest for lower-priced properties. However, the premiums converged over the ten years, decreasing for lower-priced properties and rising for higher-priced properties, potentially driven by higher-income households having greater capacity to prioritise energy efficiency.

Date: 2026-07
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