Renovation obligation for non-residential buildings
The renovation obligation in effect since 1 January 2022 is a first step towards the long-term objective of carbon neutrality. Every non-residential building unit is obliged to comply with a minimum set of measures and achieve a minimum energy label within five years of sale, other transfers, leasehold or right of superficies.
Minimum set of measures
The minimum set of measures only applies to the individual components of the building unit being transferred.
If the minimum R-value of 0.75 m²K/W is not achieved for roof insulation, roof insulation with a maximum U-value of 0.24 W/m²K must be installed.
If the building only has single glazing, you must replace it with glazing with a maximum U-value of 1 W/m²K.
All central space heaters older than 15 years must be replaced, unless you can prove that the installation meets the minimum installation requirements for renovation.
All cooling systems older than 15 years that use ozone depleting refrigerants or refrigerants with a GWP value of 2,500 or higher must be replaced with cooling systems that do not use those harmful refrigerants.
Minimum energy label
From 1 January 2023, in addition to the minimum set of measures, the building unit must achieve a minimum share of renewable energy of 5% (or label E) within five years of sale (and other transfers), leasehold or right of superficies. The label must be proven using an energy performance certificate for non-residential buildings.
As the owner, you can decide for yourself what additional measures to take to achieve the energy label.
Financial support
A lot of measures are in place to support renovation financially.
Situations in which the renovation obligation applies
The renovation obligation applies:
- to each non-residential building unit transferred as of 1 January 2022,
- when executing authentic deeds of a notarised transfer of full ownership (such as a purchase, or other transfer)
- when establishing a right of superficies or leasehold on all building units with a non-residential use
- for the actual condition at the time of execution of the deed or establishment of the right of superficies or leasehold. If the unit has a non-residential use at the time of transfer, the renovation obligation for non-residential buildings applies. How the building unit will be used after the sale or what function the unit will have thereafter does not make a difference in this regard.
The five-year period starts on the date of execution of the authentic deed or the date of establishment of the right of superficies or leasehold. For example, if the deed expires on 1 February 2023, then the renovation obligation must be met by 1 February 2028 at the latest.
The situation as a tenant
As soon as the non-residential building unit you are renting is sold (or another transfer takes place), the new owner will have to take action to fulfil the obligations. The tenant will have to consider that the work on the building may cause nuisance.
Sanctions
The Energy and Climate Agency of Flanders will initiate the enforcement procedure:
- if no EPC is available five years after the sale (and other transfers), right of superficies or leasehold,
- or if the available EPC shows that the required energy performance levels have not been met.
The implications for you
- If you fail to comply with the renovation obligation, you risk an administrative fine of EUR 500 to EUR 200,000.
- The fine does not cancel the obligation: the Energy and Climate Agency of Flanders will immediately set a new deadline for you to comply with the renovation obligation.