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Residential Building Energy Renovations with On-Bill Financing

Project description

New financing mechanism for greener buildings

The uptake of deep energy renovations (ERs) in the European building stock is a top priority and in line with the European Green Deal. Enhancing energy efficiency financing mechanisms is essential to achieve this target and ensure widespread use of ERs in Europe. The EU-funded Ren-on-Bill project aims to scale up investments towards deep ERs of residential buildings, while promoting the development and implementation of on-bill schemes based on cooperation with the financial institutions accepting repayment by drawing on utility bills. This method, successfully adopted in Canada and the United States, is expected to significantly lower default rates and bring several benefits to the European building energy renovation market and its society.

Objective

Ren-on-Bill’s overall objective is to scale up investments towards deep energy renovations (ER) of residential buildings by promoting the development and implementation of On-Bill Financing schemes, based on the cooperation between energy utilities and financial institutions.

On-Bill Financing (OBF) is a method of financing ER investments that draws on utility bills as repayment vehicle. OBF has been in use for more than 30 years, and it is especially widespread in the USA and Canada, where it significantly drives the building renovation market, with over 1 billion $ investments reached by 2013. Compared to traditional loans, default rates have been found to be lower, thus making OBF a lower risk instrument for investors. In Europe, although a few attempts have been made, OBF has not yet had a significant impact on the residential energy efficiency building renovation market.

In detail, the project will:

- Analyse and define the residential building ER and OBF market context to enable replication of suitable OBF schemes across Europe;

- Engage key stakeholders (in particular energy utilities, financial institutions, representatives of the final user and ER market side) through national stakeholder platforms;

- Develop tools to structure the residential sector’s ER financing demand allowing allows utilities and financial institutions to assess ER investments based on a transparent methodology and to bundle investments accordingly;

- Develop suitable utility business models for the deployment of deep energy renovation OBF schemes for residential buildings in Europe;

- Implement selected OBF business models at the 3 Ren-on-Bill partner utilities through a collaboration for strategic development of pilot on-bill financing schemes;

- Exploit the insights gained over the project horizon to support European-wide dissemination of knowledge on OBF schemes towards utilities, financial institutions and policy-makers.

Fields of science (EuroSciVoc)

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Keywords

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Programme(s)

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Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

CSA - Coordination and support action

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) H2020-LC-SC3-2018-2019-2020

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Coordinator

CREARA CONSULTORES SL
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 373 750,00
Address
CALLE MARQUES DE AHUMADA, NUM.5, PLANTA.3
28028 Madrid
Spain

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SME

The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.

Yes
Region
Comunidad de Madrid Comunidad de Madrid Madrid
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 373 750,00

Participants (11)

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