A rapidly changing regulatory environment, concerns surrounding the search for reliable contractors, and subsidies that may be seen as not substantial enough to cover the investment required as part of an energy retrofitting project: despite a keen awareness when it comes to their wealth and property, Luxembourg residents are hesitant to take the plunge and renovate their homes to be more energy-efficient.
A European study conducted by BNP Paribas in conjunction with the Toluna - Harris Interactive institute (11,700 people surveyed in Europe, including 700 in Luxembourg) looked at Luxembourg residents’ perceptions when it comes to energy retrofitting issues.
The results reveal a paradox: although residents of the Grand Duchy strongly associate property value with energy efficiency, they struggle to take corresponding action. What are the main barriers to people energy retrofitting their homes? And how can these barriers be overcome?
‘The main obstacles are financial and practical in nature. Many residents feel lost when faced with procedures they perceive to be complex,’ observes Marie Delhaye, Head of ESG Projects at BGL BNP Paribas.
1. Shifting regulations according to perceptions
The study reveals that Luxembourg residents have greater confidence in public authorities than elsewhere in Europe when it comes to supporting energy transition and retrofitting initiatives. But despite this, 62% of Luxembourg respondents also think that energy performance regulations change too often. This is a matter of perception.
2. A lack of clear information
The Energy Performance Certificate (EPC) remains poorly understood. The majority of respondents admit that they find it difficult to comprehend its complexities or identify the priority work needed to improve the energy rating of their home.
3. A question of confidence
Information is recognised as easier to access by residents of the Grand Duchy than it is elsewhere in Europe. However, for 69% of respondents, it remains difficult to find trustworthy contractors. Many do not know who to turn to for support.
‘Working with skilled tradespeople is crucial. Before committing to renovation work, homeowners need to feel confident. The survey reveals that this is the second most important motivating factor,’ stresses Ms Delhaye.
4. Profitability and timeframe
The economic argument remains a decisive one. For 53% of residents surveyed, there is no point in renovating if you are not planning on staying put for long.
However, with the government aid currently available – including the social top-up for low-income households – and the energy savings that can be achieved through well-targeted renovation work, the investment can pay for itself in just a few years.
This combination of perceived complexity, regulatory instability, and uncertain profitability fuels a cycle of inaction. ‘It is essential to make the process more transparent and to demonstrate the economic benefits of retrofitting projects in concrete terms,’ says Marie Delhaye.
To help remove these barriers, the bank offers practical solutions, with one example being co-ownership loans, which enable co-ownership associations to access collective financing aimed at improving the energy performance of a residence and helping them simplify the process.
With its financial solutions and expertise, BGL BNP Paribas aims to make it easier to go from ambition to action and to demonstrate that renovation work can be profitable, accessible, and beneficial at every level.
