Does it pay to improve your energy label before you sell?

More and more homeowners are wondering whether it is smart to invest in making their home more sustainable before putting it on the market. A new roof, insulation or solar panels cost time and money — but do they really pay off when you sell? The answer is nuanced, but the trend is clear: a better energielabel (energy label) is paying off more and more. In this article I explain why, and when it might be worth it for you.

What does the research say?

Research by Tilburg University and Maastricht University shows that homes with a poorer energy label structurally sell for less, because buyers are paying ever closer attention to a home's energy performance. Even in the most overheated years of the housing market, homes with a red energy label (F or G) were still sold at a discount.

Research firm Brainbay confirms this picture: every step towards a better energy label leads to a higher average home value, and even small improvements make a real difference. In concrete terms: a home with energy label C sells on average for 10.2% more than a comparable home with label G. And that difference is still growing: figures from NVM (Dutch association of estate agents) and Brainbay show that the price gap between a redder and a greener energy label keeps increasing year on year.

A greener label does not only affect the price, by the way. Homes with a greener energy label generally sell faster and are more often bid over the asking price than comparable homes with a poorer label. For you as a seller, that means less time on the market and a better chance of a good offer.

Why do buyers look so closely at the label?

There is a simple reason buyers have become more critical: a home with a redder label means higher heating costs for the buyer, but also the prospect of expensive sustainability improvements in the (near) future. Buyers increasingly factor that future investment directly into their offer. So a poor label is not just a "blemish" on the energy bill, but a tangible cost that a buyer deducts from the asking price.

On top of that, an energy label is a legal requirement when selling: you simply cannot sell a home without a valid, registered label. In addition, from 29 May 2026 a new, more detailed energy label design has been introduced, with extra information about insulation and specific improvement advice — so buyers can see even more precisely what could be improved in a home, and therefore what they will take into account in their offer.

Where are the biggest gains?

Not every step up the label scale delivers the same amount. Research shows that the biggest jump in value can be achieved with older homes that go from a low label (for example D) to A+, particularly homes built before 1920. The worse the starting label, the larger the relative increase in value from improvement tends to be.

That does not mean improving does not pay off for more recent homes — there too, every step up counts. But if your home currently has an E, F or G, the potential gain is greatest.

Which measures count towards your label?

Since 2021 the energy label has been calculated on the basis of the NTA8800 standard and looks at three things: the home's energy demand for a comfortable indoor climate, the primary fossil energy use of the installations, and the share of renewable energy from natural sources. Measures that often have the greatest effect on your label class:

  • Insulation: roof, floor, cavity wall and glass insulation are often the most cost-effective steps, especially in older homes.

  • Sustainable heating: a (hybrid) heat pump or a connection to a district heating network scores well.

  • Solar panels: increase the share of renewable energy and pay for themselves relatively quickly.

  • HR++ or triple glazing: improves both the label and living comfort.

Not every measure is cost-effective for every home. An energy adviser or your estate agent can tell you, based on your current label and the year of construction, which steps deliver the most for the least investment.

Does it always pay off, for everyone?

Not necessarily. A few things to consider before you commission major sustainability work just before selling:

  • Payback period versus time until sale: some measures (such as a heat pump) take longer to pay for themselves than the time you will still live in the home. Work out whether the investment pays for itself in added value when you sell, not just in energy savings.

  • Small interventions can already make a big difference: you do not always need to aim for the highest label. Going from G to E or D is often already a substantial jump in value, at a fraction of the cost of a full renovation.

  • Financing options: sustainability measures can often be included in your mortgage, even if you are planning to sell. This can lower the threshold for an investment.

  • Timing: some measures (such as insulation) can be carried out relatively quickly, while others (such as a heat pump) need more preparation time. Take this into account if you already have a sale date in mind.

Conclusion: making your home more sustainable increasingly pays off

The trend is clear: a better energy label not only leads to a faster sale, but also to a higher sale price — and that difference is growing year after year. Especially if your home currently has a low label, a targeted investment in insulation or sustainable installations can more than pay for itself when you sell.

Even so, not every measure is worthwhile for every home and every seller. The answer depends on your current label, the year your home was built, your timeline for selling and the type of measure you are considering.

Not sure whether it pays to make your home more sustainable first, or to sell it "as is"? I would be happy to give you specific advice, tailored to your situation and the current market.

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