2.II.v. Financial instruments and incentives for existing buildings – OVERVIEW

In Austria, a large number of renovations, especially in the residential sector, are financially supported by subsidy programmes⁶ provided by the Austrian provinces. The conditions under which these subsidies are granted focus on the improvement of building quality in terms of higher comfort and better energy performance (i.e., buildings with lower space heating demand and lower greenhouse gas emissions). Most subsidies are distributed in the form of non-refundable payments (one-time non-repayable investment expense).

Federal subsidies⁷ (national schemes) on building renovations have been provided since 2009 for privately owned single-family households. The renovation campaign of 2016 (“Sanierungscheck” 2016⁸) grants financial support for the thermal insulation of roofs, external walls, floors, replacement of windows and exterior doors and for changing the heating system into a renewable heating system. The available grant of federal subsidies lies between 3,000 and 5,000 € depending on the level of renovation (either according to OIB Guideline 6 or with higher quality according to klimaaktiv⁹ criteria).

There is also a list of on-going individual initiatives in the Austrian provinces. Salzburg, for example, provides a cost-free online energy accounting system for building owners and managers. This programme encourages stakeholders to enter the real energy consumption of their building into the database and to obtain an annual or monthly overview of their energy consumption. By this initiative, the energy consumption of buildings can be monitored both by the owner and by the province¹⁰. The aim of this initiative is to raise the awareness of the consumers and thus to increase renovation activities.

Austria also managed to effectively mobilise investment through numerous projects of the European Investment Bank (EIB) in the building and energy sectors, which are aimed at reducing GHG emissions by funding increased renovation activity as well as the exploitation of renewable energy sources. This includes the European Local Energy Assistance (ELENA) scheme, where up to 90% of the project development costs are funded by the EIB.

Austria also actively participates in the De-Risking Energy Efficiency Platform (DEEP), which the European Commission has established together with the Energy Efficiency Financial Institutions Group (EEFIG), in order to change the risk assessment approach for investments in energy efficiency measures by potential investors.  

A green loan with a 0-% rate, can be obtained for renovation works in residential buildings for insulation, ventilation or an efficient heating system. More information is available at http://homegrade.brussels/.

Since 2004, energy premiums are given for renovation works on insulation, mechanical ventilation, efficient heating systems and thermal regulation. The premium level is defined based on the income of the applicant and the type of building (single-family house, multi-family house, non-residential/industrial).

Table 5: Subsidies for energy efficiency improvements in buildings.

Since 2007, the Brussels-Capital Region calls for exemplary projects in order to enhance and support renovations and new constructions. The purpose is to demonstrate that it is possible to achieve high performing and environmentally friendly buildings within a reasonable budget. Overall, the calls for projects launched between 2007 and 2013 have seen 243 selected projects (for a total of 621,000 m²), 189 of which were completed, with financial support for 27 million € from the Region.

In order to stimulate energy renovation, a package of financial incentives and subsidies for individual measures is available. The main focus for individual insulation measures is roof insulation, wall (outside, cavity, inside) insulation, floor insulation and high efficiency glazing. For individual RES measures there are grants for thermal boilers, heat pumps and domestic hot water heat pumps. Each year, substantial budgets are spent. The most popular measures are roof insulation (45,000/year) and double glazing (30,000/year).

Table 6. Energy grants Flemish Region (2014-2019); source: Flemish Energy Agency.

In order to promote integrated renovations, the 'total renovation bonus' was introduced in 2017. If combined within a period of five (5) years, substantial bonuses are granted on top of the basic grants, starting from the third measure and for each following measure (max. 7).

Since October 2016, a new fiscal incentive for a period of five (5) years has been introduced for 'IER-EPBD-renovations', or deep energy renovations, achieving an E-level of max. E90. A reduction of 50% (E90 or below) or 100% (E60 or below) is granted on property taxes for a period of five (5) years. In order to put the emphasis on the frontrunners, only the E60 reduction is available from 2020 on.

Since 2015, public funded zero-interest loans for renovation of up to 15,000 € over ten (10) years are granted for a total budget of 175 million €. In 2018, this loan became exclusively targeted towards vulnerable families that meet one of a series of well-defined criteria, e.g. income level, being under guidance for energy poverty by a local authority, or a beneficiary of the social energy tariff.

Concerning residential buildings, there are two main forms of incentives aimed at improving energy performance:

• Allowances covering part of the cost of renovation works (Table 5). These basic allowances may be increased according to household income (Table 6).
  A new subsidy system ('Primes Habitation'⁸) has entered into force in June 2019 for residential buildings. It is based on an energy audit. For some allowances (mainly insulation), the amount of the support is calculated by comparison between the situations 'before and after works' stated in the audit.
• Short-term credit (Ecopacks / Renopacks⁹) or mortgage loans (Accesspack¹⁰) at preferential rates. The amount of allowances for the proposed works shall be deducted from the loan amount.

Table 5. Types of eligible works for an energy allowance and amount of basic allowances (as of 1 June 2019).

Table 6. Increase in basic allowances by household income categories (as of 1 June 2019).

The Energy Efficiency Act provides for schemes and mechanisms which may be applied to encourage energy efficiency, as follows:

1. energy performance contracts;

2. energy savings certificates;

3. financing from the Energy Efficiency and Renewable Sources Fund or from other financial intermediaries;

4. other national or European support schemes and mechanisms.

The “National Programme for Energy Efficiency of Multi-Family Residential Buildings” was launched in February 2015 by the Bulgarian government. The programme is being implemented across the country and has a financial resource of BGN 2 billion from the state budget. The programme can provide up to 100% of grant funding to eligible projects. Buildings eligible for support are multi-family residential buildings, provided they meet the national minimum energy performance requirements for existing buildings – energy efficiency class "C". There are key principles for ensuring the programme complements the Operational Programme “Regions in Growth” 2014-2020, which also provides grant support for renovating residential buildings (see section 3 for further details).

Under the Local Taxes and Fees Act, buildings which were commissioned before 1 January 2005 and which have acquired an EPC with an energy efficiency class of B, C or D are granted exemption from immovable property tax. This exemption can be for three, five, seven or ten years depending on the date of commissioning, the energy efficiency class, and whether RES is used to offset consumption of the building itself.

Until now, the role of the government has been crucial in the success of building energy renovation. In 2013, 2014 and 2015, the government adopted four building renovation programmes for single-family houses, multi-family houses, commercial buildings and public sector buildings, for the implementation period of 2014 to 2020.

The programmes for the energy renovation of both single-family and multi-family houses that were implemented by the end of 2016 provided financial incentives for integral renovations as well as for implementing individual measures to improve energy-efficiency.

In 2015, 9,574 projects for implementing energy efficiency and installing RES in single-family houses have been completed and about 476 million kuna (64.9 million €) has been disbursed from the national Environmental Protection and Energy Efficiency Fund (EPEEF).

Over 2,300 projects or requests from building managers have been approved and contracted under the programme for the energy renovation of multi-family houses and a total funding of more than 279 million kuna (37.5 million €) was approved.

From 2015 to 2020, the Ministry of Construction and Physical Planning published five public calls for project proposals: four calls for the energy renovation of public sector buildings and one call for the energy renovation of multi-apartment buildings in the frame of which 1,455 grant agreements were signed. The total value of the projects amounts to 4.17 billion kuna (549.1 million €), of which more than 2.09 billion kuna (275.6 million €) is provided in the form of grants.

The financial instrument ‘ESIF Loans for Energy Efficiency in Public Sector Buildings’ was also established with a total amount of 402.8 million kuna (53 million €) implemented through the Croatian Bank for Reconstruction and Development (HBOR). Eligible beneficiaries are public sector entities to which, before applying for a loan, the Ministry of Construction and Physical Planning issued a Decision on Financing the project with grants under the call ‘Energy renovation and use of RES in public sector buildings’.

Also, 170 requests for the energy renovation of commercial buildings have been received, of which 80 have been approved, and for which 46 million kuna (6.2 million €) has been secured. Of those approved projects, 43 projects have been completed, for which about 20 million kuna (2.7 million €) has been paid.

Regarding the implementation of the Programme for the energy renovation of public sector buildings, 57 public procurement procedures have been published for the provision of energy services and 20 agreements on the energy performance of buildings have been signed. The estimated value (excluding VAT) is about 364 million kuna (48.9 million €).

During 2016, a further seven (7) contracts for building energy performance were signed for an estimated value (excluding VAT) of 219 million kuna (29.4 million €).

Regarding the implementation of the Programme for the energy renovation of public sector buildings through energy service contracting (ESCO), 12 contracts for building energy performance were signed for a value (excluding VAT) of 621 million kuna (83 million €).

Croatia successfully implemented the national energy management information system (EMIS), a web application for gathering and monitoring energy and water consumption, as well as for measuring energy savings  for all  public sector buildings.

Existing programmes for the energy renovation of buildings are currently being adapted for the new financing period of 2021 – 2026 according to the conditions of co-financing from EU funds, as described below.

• The Programme for energy refurbishment of public sector buildings 2016-2020 (OG 22/2017).
• The Programme to encourage the construction of new and the renovation of existing buildings to NZEB - published on the official website MCPP (December 2018).
• The draft Programme for Combating Energy Poverty, which includes the use of RES in residential buildings in assisted areas and areas of special state concern for the period of 2019-2021. The draft programme was completed in September 2019 and submitted for further reference procedure and adoption by the Government of the Republic of Croatia.

Securing the upfront cost for a deep renovation appears to be the biggest obstacle. In order to alleviate the problem, a range of financial incentives are being formed.

The RES and Energy Conservation Fund was established in 2003 to finance investments in energy efficiency improvement measures and RES. The revenues of the fund come from the imposition of an energy charge per kilowatt hour for electricity consumption to all end-users. Currently the fund subsidises the partial cost for roof insulation, the PV system in existing homes and an energy audit in a small- and medium-sized enterprises (SMEs).

The scheme 'I save – I upgrade' finances renovations of homes and buildings owned or used by SMEs and for which an application for an urban or building permit has been submitted before 21 December 2007. It is co-financed by the European Cohesion Fund for housing and the European Regional Development Fund for SMEs. The scheme provides grants for renovating homes and business buildings if they reach specific energy-related criteria. Eligible costs include insulation, windows, high-energy performance technical building systems, lighting, and RES for heating, cooling and domestic hot water. A higher subsidy is provided to buildings that will reach NZEB level.

Another incentive is the establishment of the 5% extra building space allowance for buildings that reach energy class A, with at least 25% of their primary energy consumption coming from RES, established in 2014. Most of the interest for this incentive comes from developers of large buildings. This incentive can also be used in the construction of new buildings. The MECI, in collaboration with the Department of Special Planning and Housing, has suggested to the Minister of Interior a revision of the incentive in light of the forthcoming revision of minimum energy requirements by 2020.

For increasing renewable electricity in buildings, the net-metering scheme was commenced in 2013, followed by the net-billing scheme. These schemes are the main drivers for installing PV systems in existing buildings. As by the end of 2019, around 15,000 PV systems have been installed. 

As of 2015, a reduced VAT is applied in home renovation and includes thermal insulation, windows and PV systems. Reduced VAT can be used along with other subsidies available. 

The main financial incentives for building renovations in the Czech Republic are direct subsidies from operational and national programmes. There are three main operational programmes that provide financing for building renovations, targeting a wide range of potential applicants from the public and private sectors. A list of some operational and national programmes are:

Operational Programme Environment (2014-2020)

Regions, municipalities, state organisational units, state organisations, public research institutions and research organisations, universities, non-governmental non-profit organisations, contributory organisations, churches and religious societies, etc. can apply. The programme aims at public buildings with the main focus on insulation of the building envelope, replacement and refurbishment (repair) of hole fillings; implementation of measures demonstrably affecting the energy performance of the building or improving the quality of the indoor environment; implementation of forced ventilation systems with waste heat recovery, implementation of systems using waste heat, replacement of the source for heating, cooling or hot water production in case of renovations and construction of new public buildings.

Integrated Regional Operational Programme (2014-2020)

This programme aims at apartment buildings only. Apartment block owners and unit owners’ associations (excluding natural persons not doing business) can apply for this programme. The main focus is on reducing energy consumption by improving the thermal properties of buildings (insulation, cladding, roof, and ceiling and floor constructions); heating or hot water installations (replacing fossil fuel sources with environmentally friendly sources); transition to environmentally friendly sources (biomass or natural gas boilers, heat pumps or combined heat power); water and heat distribution systems.

Operational Programme Enterprise and Innovation for Competitiveness (2014-2020).

Entrepreneurs can apply for buildings owned by businesses within this programme. The main focus is on: insulation and replacement and refurbishment of opening fillers; other construction measures having a demonstrable impact on the energy performance of the building; installation of ventilation systems with waste heat recovery; modernisation of lighting systems; and installation of renewable energy sources.

New Green Savings (2015 – ongoing)

The programme is funded by the profits made from the sale of emissions allowances and is focused on improving the energy efficiency of residential buildings, on the construction of new energy-efficient buildings, the replacement of heating systems and the use of RES.

Programme ENERG

The programme is a soft-loan programme for financing energy efficiency measures for small- and medium-sized enterprises. The programme aims to facilitate SMEs in the capital city of Prague in securing financing for their projects through soft loans aimed at reducing energy intensity in their activities, in order to achieve savings in their final energy consumption. The purpose of the programme is to fill the gap as regards financing enterprises, which cannot apply in the operational programmes in the capital city due to high GDP per capita The programme is funded by the profits made from the sale of emissions allowances.

Programme PANEL 2013+ (2013 – ongoing)

Owners of apartment buildings, housing cooperatives, community of apartment owners, natural and legal persons, cities and municipalities who own an apartment building may apply. The main focus is on reducing the energy performance of dwellings; repairing construction failures; repairing and modernising common areas; and modernising sanitary units.

EFEKT Programme

The Ministry of Industry and Trade also runs the EFEKT Programme which supports minor investments and non-investment projects. For a detailed description, see 2.II.vi.

Financing for energy efficiency measures in buildings in Denmark is primarily a matter for the commercial sector. Building owners have easy access to capital for improving their buildings through the well-functioning Danish mortgage system. The system gives owners of new as well as existing buildings the opportunity to borrow money at attractive rates and conditions; in 2020 the interest rate has been below 1%, and for some types of loans the interest rate has been negative. 

On an annual basis, between 10 and 13 billion € – equivalent to 2.1-2.7% of the value of the building stock – is invested in various forms of renovations and other investments in buildings. There is a wide range of national schemes which aim to boost investments in energy efficiency in buildings.

Among these initiatives are:

1. A tax-deduction scheme⁴ for deducting salary expenses for works in relation to green initiatives in private buildings. It is possible to get a tax deduction of up to DKK 12,200 per person per year (in 2019) for working wages, incl. VAT related to renovation services performed in the home. The deduction is possible when replacing windows, improving heating systems, replacing heat control systems, etc. So far, the scheme has no expiry date. 
2. The 'BetterHouses (Bedre Bolig)'⁵ initiative, a one-stop shop for assisting homeowners as regards cost-optimal energy savings. As of 2017, the scheme has been extended to include apartment blocks and large buildings.
3. The 'Building scheme (Bygningspuljen)'⁶ initiative is a scheme with DKK 200 million allocated to energy savings in buildings in the 2021-2024 fiscal years. As the savings potential is greatest in housing, efforts are focused solely on this segment. The grant is given to building owners who can document the greatest energy saving potential (maximum saving in kWh/m²).
4. The 'Competitive subsidy scheme related to private enterprises (Erhvervspuljen)'⁷ initiative is a pool of DKK 300 million per year in the 2021-2024 period, for savings in process energy in the industrial and service sectors, including commercial buildings.
5. Finally, a new subsidy-scheme for replacement of oil heating boilers will be open from 2021. The scheme covers the 2021-2024 fiscal years with DKK 20 million per year to support the replacement of oil heating equipment with heat pumps.

Figure 2. The 'Bedre Bolig' ('BetterHouses') campaign - www.BedreBolig.dk.

Financial grants are available for renovation of apartment buildings and detached houses. Grant schemes are managed by Fund KredEx.
Existing apartment buildings that were built before energy efficiency regulations came into force (in 2009) and which have not been renovated, usually have an EPC class of E or F (Figure 2).

A 30% or 40% grant can be applied to EPC Class D, and a 30%, 40% or 50% grant can be applied to EPC Class C major renovations achieved after the completion of renovation works. Different grant shares are based on property values and regional location: higher grants for rural areas where property values are lower (up to 50%) and lower grants in the two largest cities of Tallinn and Tartu where property values are high (30%).

In addition to the EPC class, requirements are also in place for the thermal transmittance in the building envelope, the heating system, and the ventilation system. Fulfilling the thermal transmittance requirements for external walls usually means the creation of an insulation layer that is 150-200 mm thick. Fulfilling the thermal transmittance requirements for the roof usually means 300-400 mm of insulation layer. New windows must be triple-glazed windows. The heating system has only two requirements: the system must be balanced, and radiators must be equipped with thermostats in order to allow room-based indoor temperature control.

Special attention was paid to the requirements regarding the ventilation system. Requirements are set for the airflow rates and sound level. Fulfilling those requirements means installation of mechanical ventilation system. Higher grant share (EPC class C) requires a mechanical supply and exhaust ventilation with heat recovery.

Figure 2. EPC classes for apartment buildings.

For detached houses, a 30% grant can be applied when single energy efficiency renovation works are performed. In that case, achievement of the prescribed EPC class is not required. The 50% grant can be applied when major renovation works are performed. In that case, achievement of an EPC class C is required.

To encourage energy-efficient renovation, the Finnish government has introduced various financial instruments and incentives. For public and private sector buildings, financial subsidies are available for investments in energy efficiency as well as energy auditing. For households, certain repair and renovation works, e.g., the repair and/or installation of a heat pump, etc., are tax deductible, which enables households, among other things, to hire professionals for repairs to improve energy efficiency.

The Housing Finance and Development Centre of Finland (ARA) can grant interest subsidy loans for new construction, renovation and purchase of housing, mainly for rental and social housing. Renovation and energy subsidies and subsidies for the elimination of health hazards, as well as special-needs investment subsidies for improving the housing conditions of various population groups, are granted from state funds.

At the end of 2019, the Ministry of the Environment set a new subsidy scheme for energy efficiency improvements in residential buildings, that is available in the period 2020-2022. The subsidy is available for owners of small houses, for private housing companies (row houses and blocks of flats) as well as for publicly owned residential rental buildings (built with public funding). The required improvement of energy efficiency is verified with an energy performance certificate. The subsidy applications will be handled by ARA.

There is also a subsidy for deploying charging points for electric vehicles in residential buildings. The subsidy is available for housing companies and housing rental companies, as well as parking facilities owned by housing and rental housing companies.

In recent years, joint procurement and green procurement funding has started to make headway in Finland. The largest joint green procurement project is underway; several municipalities have joined with green funding providers to purchase solar panels. There are also other types of green funding to promote the uptake of renewable technology.

For private home and building owners

Until 2019, the energy transition credit tax (CITE)¹⁰ was a tax benefit following the purchase of the most efficient materials and equipment in terms of energy saving and reduction of greenhouse gas emissions. The amount of the credit depended on the system type and its price (deduction of 30% of the price). The only proof needed to get the tax benefit was the sales receipt, provided the equipment had been installed by a professional holding the required qualification/certifications (RGE).

As it was mentioned above, this tax credit is gradually replaced by ‘MaPrimeRenov’, a new direct aid for energy transition of low-income households, available since 1 January 2020. The tax credit, fixed at a lump sum, was henceforth paid at the time of the energy works (maximum delay of 10 days). The tax credit was maintained only for one year, in 2020, towards middle-income households. In 2021, all low and middle-income households will benefit from this new aid.

In response to Article 7 of the EED, energy suppliers have to promote and support energy savings among consumers (Energy Saving Certificates Scheme). These Energy Saving Certificates can be awarded for complying with the energy saving standards, or they can be more specific, and often imply heating system-based action, e.g., financing of a heating system refurbishment.

Since 2009, the 0% Eco-Loans (loans with a 0% interest rate) have enabled financing of building renovations, in particular to improve heating systems. In order to access the 0% Eco-Loans, the renovation must be substantial (roof or wall insulation, replacement of at least half of the windows, installation of a high-performing HVAC system, RES heating or domestic hot water system), or achieve a minimum energy performance of the building. These loans are designed for property-owning individuals to finance major renovation works. The maximum amount is 30,000 € over a 15-year period.

In addition to that, financial support provided by the National Agency for Housing Improvement (Anah)¹¹ is helping low-income households to finance renovation works if they reduce their energy consumption by at least 25%. The level of financial support varies depending on the income of the beneficiaries (50% of the investment can be funded), with a maximum amount of 19,000 €.

Finally, a reduced VAT (5.5%) applies for renovation works in residential buildings. To take advantage of this VAT reduction, materials used must respect technical characteristics adopted by a ministerial order¹².

A special tax credit, ‘Denormandie dans l’ancien’, was created in 2019 to encourage energy renovation of housings in areas where housing demand is low. Around 240 cities are targeted, essentially with the planning programme called ‘Action Coeur de Ville’, where rental investment is supported by a tax credit of 25% of the energy renovation costs. In return, home owners have to rent their housing at a capped price.

For public building owners

Very low interest loans (‘éco-prêt logement social’), European subsidies (FEDER) and tax reductions on property tax are proposed to social housing companies, in order to encourage energy renovation of their building stock.

Low interest loans (‘Ambre’ loan) and public subsidies are also proposed to public local authorities.

The KfW²³ promotional programme 'Energy Efficient Refurbishment'²⁴, funded by the Federal Ministry for Economic Affairs and Energy, is the most significant provider of financial incentives for energy efficiency in the German housing sector. The programme aims to promote energy savings and greenhouse gas reductions as well as to encourage investments and create or safeguard jobs.

The level of financial support available is linked to the ambition of the refurbishment. There are in total six (6) deep retrofit promotional levels: starting with the Efficiency House 55 as the most ambitious level, followed by Efficiency House 70, 85, 100 and 115 as well as a separate level for heritage buildings (Table 5). The figures indicate in % how much of the maximum primary energy requirement specified by the Energy Saving Ordinance 2013 the house needs.

In terms of partial debt relief, the incentive starts at 25% and reaches up to 40% at the most ambitious level, the Efficiency House 55. The maximum loan is 120,000 € per housing unit. Alternatively, there is an option to apply for a grant for investment²⁵ (a maximum of 48,000 € per housing unit).

For those customers who do not target a comprehensive refurbishment of their building or housing unit, KfW offers promotional loans for packages of measures and single measures such as windows, or insulation (maximum 50,000 € per housing unit). There is also an option to apply for a grant (a maximum of 10,000 € per housing unit).

The promotional programmes are available for all private investors in the residential building sector in Germany as well as housing companies at equal conditions.

Table 5. Efficiency-House-Standards defined by comparing to the corresponding value of the reference building of Germany’s Energy Saving Ordinance; repayment subsidy in % of the maximum loan amount;
grant for investment in percentage of a maximum investment of 120,000 € in case of Efficiency-House, and 50,000 € in case of single measures.

National programmes have been established to facilitate the uptake of energy efficiency measures in buildings.

• The 'Energy Savings in Households II (Eksikonomisi kat’ Oikon II)' programme, launched by YPEN in 2018, provides financial incentives for implementing energy renovation measures in households. The eligible interventions focus on building envelopes, heating and cooling systems as well as DHW systems.
• The 'ΕLEKTRA' programme outlined in Law 4608/2019 is a new programme for energy efficiency renovations in public buildings. This programme will provide loans to General Government bodies in order to implement energy efficiency investments in their buildings. Loans will be financed or co-financed by the national part of the National Investment Programme as well as by beneficiaries' own resources. Recently, an addition to the project’s design made it possible to finance part or all of the investment by using Energy Service Companies (ESCOs). The programme is expected to be launched in autumn 2020.
• The 'Energy Savings in Households (Eksikonomisi kat’ Oikon)' programme, was launched by the former Ministry of the Environment, Energy and Climate Change (YPEKA), to promote energy retrofitting of existing buildings. This programme offered a set of financial incentives for household owners to implement energy efficient technologies that focus on the building envelope, the heating and cooling systems, and DHW systems.
• The national programme 'SAVE I (Eksikonomo I)', addressed to municipalities of over 10,000 inhabitants, provides subsidies for implementing energy efficient technologies in buildings owned or used by municipal services. The subsidy provided was up to 70% of the cost of the energy efficiency measures. A total budget of 82 million € was allocated during the first phase of the programme (2009 - 2012). The proposed measures included building envelope measures and equipment for efficient heating, lighting, ventilation, cooling and control systems. This first phase proved to be successful and was welcomed by local authorities. The programme was therefore extended and is on-going.

In order to receive financing within the aforementioned programmes, an EPC must be issued by an approved expert before the funding application is filed; a second one is issued after the measures are completely implemented in order to verify the energy benefit.

In Hungary, there are different subsidy programmes for supporting the energy efficient refurbishment of buildings. The KEHOP programme¹⁵ focuses mostly on public buildings, with 100% subsidy of costs. The GINOP/VEKOP¹⁶ programme supports energy efficiency and renewable energy systems of buildings used by SMEs. TOP programme¹⁷ (Operational Programme for Urban Development) supports energy efficiency and renewable energy systems for municipalities. A residential retrofit programme is under preparation providing loans with 0% interest rate and supports higher efficiency boiler installation instead of old units and changing old fridges to high efficiency units with 50% subsidy cost. A bottleneck is that programmes are mainly ad-hoc, often restructured, and funds run out quickly.

Ireland has introduced multiple financial incentives including:

• Better Energy Programme – grants are available for energy efficiency upgrades and RES in homes and community buildings.
• ACA - The Accelerated Capital Allowance (ACA) is a tax incentive operated by Revenue which encourages businesses to upgrade to the most energy efficiency equipment.
• Local Authorities will upgrade their housing stock under Phase 2 of the social housing retrofit programme to bring dwellings that are more than 40 years old (30% of the social housing stock) to a B2 equivalent BER.
• The Public Sector Energy Efficiency Strategy and its associated support programme are designed to assist public bodies in achieving the national energy efficiency targets of 33% by 2020, and 50% by 2030.
• Scale-up and improve the Sustainable Energy Communities and Better Energy Communities programme and enlist a wider range of organisations to anchor its collective approach. This will be done through establishing new partnerships, creating more visibility within communities, and attracting matching finance.
• Develop the necessary supply chain, including working with Regional Skills Fora to train skilled workers.
• Develop a smart finance initiative to provide a competitive funding offer with State support. A guarantee-based product will offer both a degree of risk-sharing to lenders, and an additional leverage effect, which means that the funding is used in a more efficient way.
• Expand salary incentive schemes within existing SEAI programmes, including setting up public and private sector pioneer programmes for these models and consider other ‘easy pay’ methods.

Tax deductions (Ecobonus), introduced by the 2007 Italian financial law, are key drivers of energy efficiency improvements in the private housing sector and have stimulated 40 billion € in investments so far. They consist of 50-65% reductions of personal income tax (IRPEF) and corporate income tax (IRES) granted to cover expenses incurred for the overall energy performance upgrade of the building, including major and minor renovations.

Since 2017, Ecobonus has been enhanced with the introduction of specific interventions for condominiums with a tax deduction rate of 70-75%, and with the mechanism of credit transfer now extended to all beneficiaries, including banks and credit institutions. For these reasons, the NECP identifies Ecobonus as a measure to fight energy poverty.
Moreover, the SuperEcobonus scheme, with a tax deduction rate of 110% for anti-seismic and energy renovation interventions, was introduced on 1 June 2021. As the Ecobonus, it is addressed to multi- and single-family houses, but it is mainly addressed to major renovations. In addition to contributing to the achievement of the renovation goal for existing buildings, the SuperEcobonus has been designed to restart the economy affected by the Covid-19 crisis and, in particular, to relaunch the construction sector.

Decree 28/2012 incentivising scheme, dubbed 'Thermal Account', is operational since 2013 and encourages energy performance improvements in public buildings and renovations to NZEB standards. Since June 2016, the incentive mechanism allocated 200 million € per year to public buildings, strengthened and simplified procedures and widened the range of eligible applicants and measures, including building automation. The incentive grants up to 575 €/m² over a maximum five (5)-year period and covers up to 65% of expenses for NZEB renovations. This incentive can be combined with other grants (i.e., regional ones) of up to 100% of eligible costs.

The Governmental PREPAC Programme (in force since November 2014)¹¹ has been a widely used measure since its launch in 2016, and has stimulated interventions as well as information and technical assistance activities necessary to be able to renovate 3% of the floor area of central government buildings annually, in compliance with Energy Efficiency Directive (EED) Article 5. In transposing the EED, the Legislative Decree 73/2020¹² Programme has been refinanced for the period 2021-2030.

The White Certificate mechanism, introduced by the Ministerial Decrees of 24 April 2001, still represents an important incentive mechanism for energy efficiency in Italian buildings. They are negotiable securities that certify the achievement of energy savings in the end use of energy through interventions and projects to increase energy efficiency.

For the years from 2020 to 2024, the contribution for building safety within the territory of the Italian municipalities was confirmed by the Italian Government; resources have been increased from 4.9 billion € to 8.8 billion €, allowing safety measures and interventions for the energy efficiency of buildings to be implemented.

Funding activities for buildings during the period 2014 – 2020 include:

• activities to promote the efficient use of energy resources, reducing energy consumption and transitioning to RES in the manufacturing sector¹¹ (grant programme for industrial and commercial sector building renovations;

• activities to promote energy efficiency in residential buildings¹² (grant programme for multi-residential sector building renovations;

• activities to promote energy efficiency in state buildings¹³ (renovation programme to ensure the fulfilment of Directive 2012/27/EU for central government buildings);

• activities to promote energy efficiency in local municipality buildings¹⁴ (renovation programme to ensure the target fulfilment of Directive 2012/27/EU for local government buildings);

• an emission allowances trading tool¹⁵ comprising

  • greenhouse gas emissions reduction – activities for low-energy buildings (programme to promote NZEB and the exemplary role of public buildings);

  • greenhouse gas emissions reduction of national significance for protected architectural monuments (specific programme for renovations of architectural monuments);

• other activities which include building renovations¹⁶.

The financing mechanism in place for technologies based on RES (solar panels, heat pumps, wood-fired boilers, etc.) and the refurbishment of building envelope elements set minimum energy efficiency requirements. For building envelope elements, the aid scheme has been linked to the use of sustainable insulation materials.

Subsidy schemes for the refurbishment (PRIMe House⁷) of existing residential buildings have been reviewed, are regularly updated and a top-up was introduced mid-2020 as part of the Covid-19 recovery programme (Neistart Lëtzebuerg). Priority is put on deep renovations where a very good energy class is reached after refurbishment⁸. In addition, the more a building element is insulated, the more specific aid is granted. More sustainable insulation materials are also promoted by a bonus system.

Another new feature is Climate Bank, which provides a zero-interest rate or a reduced interest rate for loans granted for energy refurbishment projects. Mandatory energy advice is foreseen for this aid and the energy expert is required to control the implementation of the measures.

The zero-interest-rate loan is reserved for low-income households in order to unlock such investments (with a maximum loan of 50,000 € over a period of 15 years). In addition to granting investment aid, costs for the mandatory energy advice are paid directly by the state budget. Households above the low-income threshold can apply for loans with reduced interest rates (the measure is limited to a loan of 100,000 € over a period of 15 years, with the loan rate in principle being reduced by 1.5%).

Further financial instruments are described under section 2.II.iv.

Given the extensive building stock and the lack of energy-efficient buildings during the post-war period, the potential for improvement of the energy performance in existing buildings is rather high. The prevalence of a mild climate, which consequently results in little incentive among owners to renovate, given the low financial benefits of doing so, has been a contributor to the low level of investments in this sector.

Investments in the integration of Renewable Energy Sources within the residential sector and the commercial sector continued with solar renewables being installed on a large scale and reaching 9% of the final energy consumption in 2019.

In addition, a scheme has been developed to promote the deep renovation of residential properties. Households eligible for this scheme must undergo works which reduce energy use to become 20% better than the NZEB level. Eligibility will also require a maximum heating energy demand of 15kWh/m².year, similar to passive house levels.

Most housing units are owner-occupied single-family homes and apartments; due to the already low amount of energy used as well as the moderate energy costs, there is not much to gain financially by achieving further energy savings. Financial incentives planned as part of the LTRS are expected to be crucial in enabling investment on a large scale in this sector.

Schemes currently running (or soon to start) at the beginning of 2020 are:

Adjustment of energy tax on gas and electricity (all building owners)

In order to promote sustainability (and a shift from the use of natural gas to the use of electricity) with a financial incentive, there will be changes in the energy tax (by means of a ‘Tax Slide’) and in the ‘Surtax Sustainable Energy’ (ODE = Opslag Duurzame Energy), which will have an effect on the energy bill. The ‘Tax Slide’ comes down to a higher tax on gas and a lower tax on electricity. On balance, the energy bill of a household with an average energy consumption remains the same. In addition, a reduction in the ‘Surtax Renewable Energy’ and an extra discount on the energy bill will result in a total discount of 100 euros on the energy bill in 2020.

Energy Investment Tax Deduction (EIA) (companies)

This is a financial scheme (tax deduction for investments in energy saving measures) for companies to facilitate sustainable / energy-efficient investments and thereby accelerate the energy transition. This concerns investments in sustainable construction, insulation and heat, energy-efficient lighting, generation of sustainable energy and improvement of the energy label.

 Environmental Investment Tax Deduction (MIA) & Depreciation of Environmental Investments (VAMIL) (companies)

The government wants to stimulate investments in new or renovated buildings. The Ministry of Infrastructure and Water Management and the Ministry of Finance have made this even more attractive with two investment schemes. The Depreciation of Environmental Investments Scheme (VAMIL) allows entrepreneurs to determine the manner of depreciation of the investment themselves (up to 75% of the investment costs). By choosing a favourable time, they can achieve liquidity and interest benefits. The Environmental Investment Allowance (MIA) scheme offers tax deductions of up to 36% of the investment amount. This deduction is in addition to the usual investment deduction for entrepreneurs.

Investment subsidy Renewable Energy (ISDE) (companies and individuals)

This scheme is currently aimed at sustainable installations such as heat pumps. The ISDE is broadened so that subsidy for insulation is also possible. Until 2030, 100 M€ per year is available for the ISDE.

 Subsidy for Energy Saving Own Home (SEEH) (individuals)

In order to facilitate owner-occupiers in the short term in making their homes more sustainable, a total of 90 M€ is available for 2019 and 2020 via the Subsidy for Energy Saving Own Home (SEEH) scheme. As of 2021 the SEEH merges into the broader Sustainable Energy Investment Subsidy (ISDE).

VAT refund and offsetting scheme for PV (companies and individuals)

The Netherlands encourages solar panels among small users by returning the VAT on the purchase of solar panels and by enabling the redelivery of electricity at an attractive rate with a netting regulation.

Reduced VAT rate (companies and individuals)

A reduced VAT rate applies for the installation of insulation material and (insulating) glass. The VAT rate has been reduced from 21% to 6%.

Energy-saving measures programme (private individuals)

With small measures and little money, such as better adjustment of the heat installation and the application of radiator foil, large savings can be made on the energy bill and direct reduction of CO₂ emissions. This is why the Energy Saving Measures Programme (PRE) has been started in collaboration with municipalities and market players. 93 M€ is available for this.

Exemption from energy tax for self-generated energy for energy cooperatives (private individuals)

Members of energy cooperatives (groups of private individuals) no longer have to pay tax in the first level of the energy tax for the part of the jointly generated renewable electricity allocated to them. It is also being investigated whether a development facility can be set up, for energy cooperatives to finance development costs.

Extension of mortgage norm (individuals)

In the Netherlands, a mortgage is not allowed to be higher than a certain percentage of one’s income. This percentage is the ‘mortgage norm’. However, people who implement energy-saving measures in their own home through a mortgage can get a higher loan for that investment (so, in these cases the mortgage norm is extended). A certain amount of the loan can also be disregarded if, before 1 January 2015, the house has an A++ energy label or higher, or an energy index or energy performance coefficient of no more than 0.6. A certain amount of the loan can also be disregarded if a mortgage is provided to finance a zero-energy-home. The scheme is updated annually.

Heat fund (homeowners)

There will be a heat fund that provides attractive loans for all homeowners to make their home more sustainable. This heat fund will be accessible to everyone, including those who currently do not have access to financing. In February 2020, the heat fund has started to provide financing with terms of up to 20 years for individual homeowners, and up to 30 years for Associations of Homeowners (HOA) of eight apartments or more (matching the lifespan of the sustainability measures)¹¹. An interest rate comparable to that for mortgages with a National Mortgage Warranty (NHG) with the same loan term applies. In combination with the available subsidies for insulation and sustainable heating options, the financing costs for sustainability will decrease. Owners can thus increasingly recoup the costs for sustainability measures through a lower energy bill (housing costs neutrality).

Regulation Reduction Landlord levy (RVV) for sustainable investments (landlords)

Housing associations and other landlords receive, among other things, a discount from the landlord levy of 100 M€ per year from the government for the social houses of which the energy class is improved with at least 3 energy class levels. This discount can be used to finance energy saving investments.

Stimulation Scheme for Natural Gas-Free Rental Homes (SAH) (landlords)

This scheme supports the connection of rental homes to a heating network. In total, this concerns 200 M€ from the money available for the Energy Investment Allowance (EIA). This compensation scheme is currently being designed in consultation with the landlords.

Renovation accelerator

The renovation accelerator (see also section 2.II.iii) bundles the demand from housing associations for (hybrid) heat pumps, insulation materials and other energy saving measures. The Ministry of the Interior and Kingdom Relations organises the renovation accelerator in collaboration with various parties such as Techniek NL (trade association of installation companies), Bouwend Nederland (trade association of construction companies), the Construction Agenda (cooperation between various construction-related parties), RVO and the umbrella organisation of social housing associations (Aedes). When making (rental) homes natural gas-free, improving the building envelope (insulation) is of great importance, in addition to the energy source. After all, heat demand can be greatly reduced with insulation, better insulating glass and greater airtightness. By aggregation of investments of several housing associations, it becomes more attractive for heat providers and construction companies to develop a more affordable (joint) offer. This leads to innovation, higher quality, cost reduction and thus a lower price. The renovation accelerator aims to match supply and demand. The renovation accelerator will also take over part of the tendering process and work from housing associations. Naturally, the individual housing association continues to decide on its own assignments. The renovation accelerator supports housing associations by bundling part of the demand in the ‘Startmotor’ (starter motor) and bringing it to the market in a multi-year, predictable manner. Until 2024, 130 M€ will be made available for the renovation accelerator.

For small residential buildings, incentives are established to motivate owners to upgrade their buildings when renovating, so as to approach the standard for new buildings. Subsidies are offered to develop a thorough plan for the upgrade and to cover some of the investment. The support scheme is connected to the EPC and is also coordinated with preferential loans. There are subsidies for single technologies as well, such as heat pumps, bio-solutions for heat, solar energy, etc.

For multi-family residential buildings and non-residential buildings, there is financial support for mapping building portfolios as a basis for larger energy upgrading projects covering all parts of a portfolio. While upgrading projects, owners are able to access subsidies when using best available technologies with high energy standards. For buildings owned by municipalities, there are preferential loans available as well. The use of energy performance contracting for buildings owned by municipalities has increased in recent years, to take advantage of the described incentives. This has initiated large energy projects with a 25-35%³ reduction of energy consumption in existing buildings.

The main measures to support investment in the energy efficiency of existing buildings include:

• • The Act⁵ introduces financial support called 'Stop Smog' programme⁶ for single-family homes owned by people who cannot afford a good quality boiler or home insulation in terms of thermo-modernisation of buildings and replacement of heating devices. Co-financing will cover 'low-emission projects', i.e., replacement of high-emission heating sources with devices that meet emission standards, or connection to a heating or gas network, while simultaneously implementing a thermal-modernisation of the building. These investments can even be 100% covered by public funds, i.e., without the financial participation of energy-poor households⁷. The act provides for the cooperation of the government with local authorities, where 30% of the contribution is provided by the commune, and the remaining part of the programme (70%) is financed from the state budget through the thermo-modernisation and renovation fund. Eligible for this incentive are municipalities experiencing problems with air pollution, families owning/using single-family houses in such municipalities, and modest-income households (income and other criteria set by the municipality);
  • The 'Clean air' comprehensive programme, funded by the state and addressed to individuals, which aims to improve energy efficiency and reduce or avoid the emission of dust and other pollutants by single-family homes;
  • The Fund for Thermo-modernisation and Renovations⁸. The eligibility criteria for this fund are set out in the Act on supporting thermo-modernisation and renovations. The programme for renovation and thermo-modernisation of residential buildings is aimed at improving the technical condition of the existing housing stock, in particular for common areas of multi-family buildings. The main goal is to provide financial assistance to investors who carry out thermo-modernisation or renovation projects of existing single-family buildings with the participation of commercial bank loans. This aid, also known as 'thermo-modernisation bonus', 'renovation bonus', and/or 'compensation bonus', is the repayment of part of the loan received for the implementation of the project or renovation.

In more recent years, there’s been a special focus on providing different financial instruments to support building renovation. These instruments vary for residential and non-residential to public buildings, and address not only the rehabilitation of the building envelope (mostly for residential) but also the installation/replacement of different technical building systems or the promotion of RES (especially solar thermal collectors or PV).

Below is a list of the most relevant and recently implemented instruments that support the renovation of buildings which include, among others, energy efficiency and/or RES in buildings:

Additional information can be found in the website “Portugal 2020”¹⁷. Some reports, e.g. the Joint Research Centre 'Accelerating energy renovation investments in buildings'¹⁸ report, also present detailed information.

Another type of incentive that currently exists focuses specifically on tax reduction, namely concerning municipality taxation of real estate and building renovations. Some municipalities provide tax reductions for better labelled buildings, typically A and A+, or buildings whose renovation improves the energy performance by two (2) labels.

Since 1997, the main financial tools supporting the renovation of residential buildings have been provided by the State fund for the development of the housing stock (SFRB). The conditions for credits are set in Act 150/2013¹⁴ as well as ministerial decrees determining the type and height of provided credits and subsidies. Financial tools focus on multi-family houses. The total amount of credits for the period of 2006-2019 represents 1.33 billion € for the renovation of 299,151 apartments. Funding of single-family houses from SFRB was at a very low level. In order to increase the interest of owners to undertake major renovations of single-family houses (ensuring energy savings), a new programme was set up in 2016 targeting the low level of renovated existing single-family houses (40.71%)¹⁵. As of May 2019, the highest possible grant is 8,800 € per single-family house.

The renovation of public buildings since 2015 has been additionally supported by the subsidies provided by Envirofond. The subsidy is granted from the sale of greenhouse gas emission quotas. In the period of 2015-2019, an amount totalling 388 million € has been distributed. Other possibilities to cover the funding of public buildings are the usage of own financial resources and from 2019 by using a tool for guaranteed energy services.

The 'Green for households' project¹⁶ is focused on subsidies for PV systems, solar thermal collectors, biomass boilers and heat pumps. Until now, approx. 23,400 systems were supported with a total grant amount of 41.25 million €.

EU structural funds are generally used for the renovation of both non-residential buildings¹⁷ and public non-residential buildings¹⁸.

Financial resources for the renovation of public buildings, mitigating fuel poverty in households and developing demonstration projects are planned in the Operational Programme for the implementation of the European cohesion policy in the 2014-2020 period¹². A strong focus is placed on mobilising private resources. A special budget in the operational programme is available to support the development of energy performance contracting, partly (115 million €) with grants and partly (50 million €) with financial instruments.

In several Slovenian municipalities, ELENA technical assistance was supported by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), respectively. A number of municipal public buildings and buildings of the central government are subject to calls from promotors or ESCOs. However, the ESCOs market in Slovenia is moderately developed (experiences are limited) and new domestic and foreign private investors are in demand. Low energy prices and much lower profitability of deep renovations compared to certain individual measures are a challenge for new financial instruments in revision of the long-term strategy. 

The Eco Fund will further provide grants and soft loans for the renovation of existing residential buildings and to intensify awareness, information and energy advisory activities; new financial products are currently available as soft loans from commercial banks for renovating residential buildings (e.g. factoring, pilot projects of energy performance contracting and loans on behalf of the reserve fund in multi-family buildings are initiated). The energy renovation of existing buildings will rely to a great extent on the funds from the EIB, the funds of the Republic of Slovenia, private funds and on the EFSI.

The National Recovery and Resilience Plan¹³ (2021), Component 2: Sustainable renovation of buildings, allocates 86.05 million € for investments in sustainable construction and renovation of buildings. The details have in 2021 not yet been defined. The plan also announces preparation of the legal ground to establish a systemic financial source for energy renovation of central government buildings.

The website of the Ministry of Infrastructure¹⁴ contains a list of the financing options currently available for building energy renovations in all sectors.

In order to encourage and promote the implementation of renovation actions that favour energy savings, the improvement of energy performance, the use of renewable energy and the reduction of carbon dioxide emissions in existing buildings, the Spanish administration, through the Institute for Energy Diversification and Savings (IDAE), launched a specific programme of support and financing endowed with economic funds. This programme also served to achieve the objectives established in Directive 2012/27/EU on energy efficiency, and created opportunities for growth and employment in different economic sectors, especially in the construction sector, to favour urban regeneration.

Sweden provides different types of incentives, e.g., administrative, economic and informational, including research and market introduction of efficient technologies to support energy efficiency measures in the existing building stock.

Tax deduction schemes

For single-family houses there is a tax deduction system⁷ in place to stimulate renovation. Since 2009, the average total amount of deductions amount to about 11 billion SEK^8,9 (~ 1 billion €). Since 2021, there is also a tax deduction system in place for owners of single-family houses or apartments to stimulate the instalment of ‘green technology’ (instalment of grid-connected PVs, systems for storage of self-produced electricity and installation of charging points for electric vehicles). For apartment owners, the instalment must be made to explicitly serve the apartment owners. As of November 2021, with the system having been in place for less than a year, deductions amount to about 800 million SEK (80 million €).

Past and present financial support for the private sector

• Support aimed for stimulating the renovation and energy efficiency of rental housing in areas with socio-economic challenges, 2016-2019;
• Green bonds.

Past and present financial support for the public sector

• Municipal investments, green loans for energy-efficient apartment buildings and credits for renovation with greater energy efficiency;
• Governmental grants for the renovation of school premises with the aim of improving the learning and working environment and reducing the environmental impact, 2015-2018;
• The Public Real Estate Cooperation Fund – exchange of experience and driving development.

Financial support for energy efficiency measures in residential apartment buildings 2021

In June 2021, the government issued an ordinance for supporting energy efficiency in apartment buildings (SFS 2021:664), in force since 1 October 2021. Summarised:

• Financial support may be provided for additional costs that improve energy performance by at least 20% in apartment buildings with a primary energy number above 100 kWh/m² per year;
• The eligible additional costs of investments shall be determined in accordance with Article 38 of Commission Regulation (EU) No 651/2014;
• Support can be granted to buildings that predominantly contain residential apartments that are leased with a tenancy, cooperative tenancy or condominium;
• The support can be granted with a maximum of 50% of the eligible dossier. However, for medium-sized enterprises, the support may not exceed 40% and for large enterprises, not more than 30% of the eligible base;
• The requirements for caution and prohibition of distortion of particularly valuable buildings must be taken into account by having the issue of building permits investigated before the support is applied for;
• In order to receive support, the person implementing the actions must contribute to the training of new professionals in the construction sector through active collaboration with relevant upper secondary schools and the Swedish Public Employment Service (Arbetsförmedlingen), as well as by receiving apprentices;
• An independent expert shall approve the energy efficiency actions and the additional costs of investments to which the application relates, and certify after completion that the measures have been implemented, what the additional costs are and what energy efficiency is estimated to have been achieved.

In September 2021, Boverket's regulations and general advice on support for energy efficiency in apartment buildings were published, to enter into force on 1 October 2021 (BFS 2021:6). In connection with the ordinance, Boverket was also given a specific assignment from the government to inform owners of apartment buildings (the target group) about the financial support available. In connection with the entry into force of the regulation, Boverket also produced guidance on the application procedure.

The UK has a wide range of financial instruments and incentives in place, spanning domestic, non-domestic and public sector buildings. While some instruments can be used to drive energy savings in the short term, others can serve to drive and enable future innovation and progress. Examples of Government action include:

Domestic

• Continuing the Energy Company Obligation (ECO) scheme³³, worth £640 million per year, which has already installed over 7 million energy saving measures in 2.2 million homes since 2013. The Government has pledged to maintain at least the current level of ECO funding for domestic energy efficiency until 2028.
• Committing to an additional £6.3 billion of public investment to upgrade the energy performance of fuel poor homes and social housing. Further details on this will be made available in due course.
• Supporting the development of the supply chain through six Local Supply Chain Demonstration projects³⁴, as well as a £10 million Whole House Retrofit competition³⁵ to trial innovative, cost-effective projects for whole house retrofit. 

Non-domestic

• Launching the ‘Boosting Access for SMEs to Energy Efficiency’ (BASEE) innovation competition in March 2019³⁶. This offers up to £6 million to fund the development of new, innovative scalable business models or solutions that reduce costs, simplify processes and encourage the take up of energy efficiency by Small and Medium Enterprises (SMEs) at scale. Fourteen projects were selected to receive Phase 1 funding to develop feasibility studies for their solutions. Eight of those projects were awarded Phase 2 funding to develop their solutions.
• Working to better understand how the UK can better facilitate energy efficiency in the electricity system. The Electricity Demand Reduction Pilot³⁷ offered organisations £6 million of funding for projects which could improve energy efficiency and security of supply through delivery of electricity savings at peak times. This pilot has finished and the evaluation was published in July 2019, alongside a call for evidence which ran to September 2019.

Public Sector

• Continuing to enable greenhouse gas emission reductions through the Public Sector Energy Efficiency Loan Scheme. The capital pot for England stands at £312 million as of the end of 2019/ beginning of 2020, and is planned to increase to a total of £385 million by 2020/2021. This funding, managed by Salix Finance, has delivered over 17,000 projects, significantly improving energy performance in the public sector.  
• Funding a programme called Modern Energy Partners³⁸ working to develop integrated energy efficiency solutions on campus-scale public sector sites (e.g. hospitals, military sites). The pilot phase concluded in March 2019 and the second phase of the project commenced in April 2019.  

See UK National Energy Efficiency Action Plan⁷ details above.

Refer to the English Report for details.

See Section 2.II.iii.