Home renovations reduce not only energy costs but also healthcare costs and medication use

Earlier TNO research had already shown the benefits of (gas-free) renovations, but this is the first study to examine the effects on healthcare costs and differences between target groups.

Energy costs in gas-free home renovations with a heat pump

Gas consumption decreases significantly after renovation. The annual reduction is larger for gas-free heat pump renovations (1,696 m³) than for standard renovations (235 m³). Although electricity consumption increases after a heat pump renovation—due to the electrification of the heat source—total energy costs drop substantially. The average annual reduction is €2,011 for a heat pump renovation, compared to €301 for a standard renovation. CBS does not provide data on heat consumption for households connected to district heating networks.

Fewer people using medication for rheumatism

In addition to the effects on energy use and costs, the study found several impacts on health and healthcare spending. When looking at all renovation types combined, the share of households using rheumatism medication fell on average from 22.1% to 16.1% after renovation. This may be because a renovated, warmer home can relieve stiffness and joint pain.

Lower healthcare costs for gas-free home renovations with a heat pump

For homes renovated with a heat pump, average annual healthcare costs decrease by €963 – a reduction of 42%. This effect was not found for standard renovations. There are two likely explanations.

First, households with a heat pump cook entirely electrically, which reduces indoor exposure to fine particles, nitrogen dioxide and carbon monoxide.

Second, earlier research shows that these households set their thermostats higher after renovation (an average of 20.3°C compared to 18.0°C after standard renovations). A warmer indoor temperature contributes to better health.

The higher thermostat setting is likely due to the fact that, given current energy prices, it is cheaper to heat a home with a heat pump than with a gas boiler, when similar renovation measures are applied.

No reduction in healthcare costs was observed for district heating renovations. A possible reason is that the “no more than otherwise” principle currently applies, meaning that in practice, heat prices are often equivalent to the cost of gas heating. As a result, residents may not raise their thermostat as much as those with a heat pump system, since their heating costs are not lower.

It should be noted that the renovation measures for heat pump systems in this study were generally more extensive than for district heating connections. More comprehensive renovations for district heating homes might also have led to lower healthcare costs.

Households in energy poverty benefit most from home renovations

The study compared households experiencing energy poverty with those that are not. It found that households in energy poverty gain the most financially from home renovations, saving on average €450 per year on their energy bills after a standard renovation.

Recommendations

Gas-free renovations with heat pumps deliver by far the greatest reduction in energy costs as well as additional health benefits. Although various factors influence the choice of heating technology and not all tenants can be provided with an individual heat pump, municipalities could encourage housing associations—through local performance agreements—to prioritise heat pump renovations over standard, non-gas-free upgrades. This would improve residents’ living conditions in multiple ways.

Invest in ventilation advice and aftercare

Follow-up support with targeted behavioural advice on ventilation is essential for maintaining a healthy indoor climate. Housing associations can collaborate with local energy assistance organisations that visit residents multiple times to provide personalised guidance. This advice could include tips on energy use and making the most of new sustainability measures—leading not only to health benefits but also to further reductions in energy costs.