Dutch Research Shows Targeting Worst-Insulated Homes Could Slash Energy Poverty by Half
Delft, Wednesday, 8 April 2026.
TNO research reveals that isolating 23,000 homes with the poorest energy ratings delivers exceptionally high gas savings per euro invested compared to average properties. The study demonstrates that a €500 million investment in homes with F and G energy labels could save energy-poor households over 800 cubic meters of gas annually, reducing their energy burden significantly while contributing to national climate goals.
Strategic Focus on Energy Label F and G Properties
The Netherlands Organisation for Applied Scientific Research (TNO) has identified approximately 23,200 energy-poor households living in homes with the worst energy labels F and G [1]. These properties represent the most cost-effective targets for intervention, with insulation improvements requiring an average investment of €21,291 per home [1]. The total cost to upgrade all these severely underperforming properties to meet insulation standards would reach €500 million [1][2]. TNO economist Peter Mulder, lead author of the study, emphasized the efficiency of this approach: “Per geïnvesteerde euro is de gasbesparing in woningen van huishoudens met energiearmoede hoger dan gemiddeld” [3]. Gas savings per euro invested are approximately one-third higher in energy-poor homes compared to average properties [1].
Substantial Energy Savings and Cost Relief
Energy-poor households in homes with F and G labels can achieve gas savings exceeding 800 cubic meters annually if their properties are upgraded to energy label A standards [1][2]. For the broader group of energy-poor households, average gas savings reach 513 cubic meters per home annually [1]. Based on gas prices from mid-2024 to mid-2025, when the average variable gas tariff including tax was €1.30 per cubic meter [1], these savings translate to annual cost reductions of €667 for typical energy-poor households and over €1,040 for those in the worst-performing properties [1]. The analysis becomes particularly relevant given current energy market volatility, as gas prices have surged 45 percent since the outbreak of the Iran war [4], though a temporary ceasefire was established on April 8, 2026 [4].
Broader Context of Energy Poverty in the Netherlands
Energy poverty affects a significant portion of Dutch society, with approximately 330,000 households (4.0% of all households) experiencing this challenge as of 2023, down from over 500,000 households (6.4%) in 2000 [1]. However, with the discontinuation of the temporary energy allowance of €1,300 per year for low-income households in 2024, energy poverty levels returned to 2000 levels [1]. The definition encompasses households with income below 130% of the low-income limit that spend more than 8% of their disposable income on energy costs [1][2]. Approximately half of energy-poor households live in poorly insulated homes with energy label D or lower [1]. The problem has intensified recently, with about 500,000 households currently paying more for energy than they can afford [2].
Geographic Distribution and Policy Implications
Energy poverty shows distinct regional patterns across the Netherlands, with the highest concentrations in the northern provinces, where larger homes and colder winters create greater energy demands [1][2]. The largest potential energy savings from insulation improvements can be achieved in these northern regions [2]. While most homes with the lowest energy labels are owner-occupied [2], nearly two-thirds of the 256,000 energy-poor households in substandard housing live in social housing [1]. On Wednesday, April 8, 2026, the Tweede Kamer debated approaches to energy poverty with experts [3][4]. The Dutch government has established agreements with housing corporations to phase out the worst energy labels by 2029 [1], though the effectiveness of current subsidy programs remains questionable as they often benefit wealthier households rather than those most in need [1].