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Financing the energy renovation of public and residential buildings: Two new guidebooks
Financing the energy renovation of public and residential buildings: Two new guidebooks
12 April 2017 - 09:31

Whereas ensuring proper energy renovation of the EU’s building stock is crucial to achieve our energy transition, austerity and cuts in public budgets limit the action of local authorities. So, as part of the Infinite Solutions project, a number of local and regional governments have been testing 3 innovative financing schemes… and it works!

Through two guidebooks, the 11 project partners are providing guidance to other local and regional authorities and stakeholders for setting up financing schemes to save energy in buildings.

1) Guidebook on Internal Contracting

The purpose of Internal Contracting is to enable the municipality to finance multiple investments aimed at energy savings without being bound to an external contractor. It is based on the following process: a “client” department within the local authority submits an energy-saving project. The project and its energy-saving potential are examined by the energy department. If the payback period proves acceptable and the project cost-effective, an agreement is signed between the two departments. The “client” department starts repaying the investment the following year. These repayments are then used to finance other projects.

2) Guidebook on soft loans and third-party investment

Soft loans allow home owners to borrow money to carry out energy-efficient renovation work in their homes for a lower interest rate than the standard market conditions.

Third-party investment is a scheme in which the investment on the building is not carried out by the homeowner but by a third-party investor. Thus the homeowner does not take on a debt but pays a service fee to the investor.

Infinite Solutions in a Horizon 2020 project also supported by ADEME and Caisse des Dépôts.

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