A [new system](https://www.mlit.go.jp/shoene-label/) will go into effect from April 2024 whereby buildings constructed from that point will be required\* to provide a label to potential renters and buyers that shows the building’s energy consumption rating and insulation level. The stated goal is to enable consumers to understand and compare how energy efficient buildings are when buying or renting.
This is another measure toward Japan’s goal of being carbon neutral by 2050. Previously, higher insulation levels were added to the building code. Coming up, from April 2025, the building code is scheduled to be updated to make insulation level 4 (variously referred to as the 省エネ基準 or energy-saving standard level) the minimum level of insulation required for homes built from then. Another government incentive to build/buy more energy efficient homes is the higher borrowing limit for the home loan tax credit depending on meeting different housing standards.
**The good:** this label system is a step in the direction of empowering consumers by giving visibility to something that was hard, if not impossible, to ascertain without this system, particularly for renters. These things matter for consumers’ comfort, health, and utilities bills.
**The bad:** buildings built before April 2024 are not required to participate in this program. This greatly hurts the goal of being able to compare if you have no way of knowing the numbers for the vast majority of buildings on the market or your current home. I hope many owners/landlords will voluntarily participate – if the building rates highly, I can’t imagine why they wouldn’t.
**What’s included?** See a sample label below for what they are expected to look like.
* Energy consumption rating and insulation level are required for residential buildings/apartments.
* Estimated (normalized) electricity/gas cost is an optional field. When present, it is formulaically calculated from the building’s characteristics such as size, insulation, and appliances to arrive at an estimated energy consumption which gets multiplied by nationwide fixed electricity/gas cost estimates. This estimate is not meant to represent what you will actually pay but rather be used to compare relatively what your cost would be from one house/apartment to another if all other things are equal.
* “ZEH level” is considered met if the building has at least an energy consumption rating of 3 and insulation level of 5.
* “Net zero energy (ZEH)” is met if the yearly energy production of the building (from solar panels, etc.) exceeds its energy consumption and the label is produced by the third-party assessor (BELS).
[Sample label assessed by a third party \(BELS\)](https://preview.redd.it/qrs7i9d1h0dc1.png?width=390&format=png&auto=webp&s=171079c0d9515319876c498b09db59296ce73457)
What do you think about the new system? Will it factor into your decision if you plan to rent or buy in the future? Or would it have if you already own a place you plan to live in indefinitely?
Will owners of rental units renovate or build in the future with better insulation, beyond what is required by the building code? Will highly rated homes command a higher price (or rent)?
Anything else you’d like to see enforced along these lines in the future?
​
(\*) 努力義務 “best effort”
by Traditional_Sea6081