Energy Cards For Buildings (Opportunity for Insulation Sector)

The long-awaited obligation for property owners to obtain an energy classification card for their properties will go into effect across the country at the start of the new year, marking a new era for the Turkish construction sector and energy efficiency.

The requirement was first introduced by the Energy Performance in Buildings (BEP) regulation in 2008 and has been pending implementation since then. It will apply only to new buildings at first, while the owners of existing buildings will be allowed a grace period until 2017 to obtain an energy classification card, which will grade a building from A to G for its energy efficiency based on various energy saving indicators, including space heating solutions, insulation and the materials used in construction.

Speaking to the Anatolia news agency on Sunday, Insulation Manufacturers Association President Kubilay Ulu claimed that 2011 will be a significant year for the insulation sector due to the new regulations.

Besides the requirement of having an energy card, the Law on Building Inspection, which was put into effect in only 19 provinces in Turkey as part of a pilot project, will be implemented throughout Turkey after a Cabinet decree, Ulu asserted, adding that this will make sheathing and insulation in buildings absolutely mandatory. “Escaping the obligation to install insulation will not be possible,” he averred.

Building owners will be able to receive their energy classification cards from energy efficiency consultancy companies that are authorized by the General Directorate of Electrical Power Resources Survey and Development Administration (EİE). As of June of this year, only 17 companies have been granted authorization with many others are still waiting for a response to their applications for a license. Many such companies argue that the process will be particularly difficult considering that millions of buildings that will require official inspections and, hence, at least several hundred companies will required to ensure that inspections are conducted properly and in a timely fashion.

Explaining that owners of buildings that are not insulated will have to pay heavier property taxes starting in 2012, despite the fact that they will not be required to comply with the new building codes until 2017, Ulu concluded that the earlier the buildings are insulated, the easier it will be for property owners.
The energy cards will also have an indirect effect on the construction sector by raising the prices of buildings with higher energy grades, while lowering the prices of buildings that are not equipped to conserve energy or have bad scores. A building with a G grade will not attract many buyers; thus, owners will be forced to improve energy efficiency to increases the attractiveness of their properties.