One of the major challenges of the energy transition in Europe is not equipping new buildings with energy efficient components, but rather the renovation of the existing building stock. Renovation volumes remain low in France in the light of public policy objectives and, for example, in comparison to the size of the German renovation market. In order to demonstrate the value of energy efficient renovation, the French BuildInterest platform has initiated a hands-on approach to tackle several issues with regard to energy efficiency in renovation projects. The aim of the pilot action is twofold to define a “renovation package” on the one hand to support homeowners; on the other hand to create easily-financable solutions.
First of all, the pilot will define a “pilot process” or “customer route” for renovation works so that customers will benefit from a ready-made, comprehensive range of services to achieve energy efficient renovation works. The path towards renovation works today remains too fragmented given the number of players involved in the process; such as those who carry out the diagnostics, those who carry out renovation works, the ones in charge of guaranteeing and the financial players. Consequently, there is a need for a quick, inexpensive and reliable process to replicate renovations works at a large scale. The main obstacle to renovation often remains a lack of trust and knowledge from homeowners and investors and rather than a lack of financial resources. Consequently, defining a solid and reliable process to support the customer, throughout the all duration of the renovation works, would bring more trust.
This pilot project will aggregate different EE technologies for renovation (Isolation, RES, IOT, energy performance monitoring, Grid connections) and finance it through the improvement of existing loans (Eco PTZ – pret vert) or new loans. The first aim here to prove that practical solutions exist when it comes to energy-efficient renovation. Projects will thus be centered on deploying reliable technologies. For now, the following criteria have been listed: ease of installation, system reliability, energy gain, cost, good quality and performance.
The project is taking place under the watchful guidance of 3 heavyweights of French sustainable building sector (Caisse des Dépôts et Consignation (CDC), Crédit Foncier de France (CFF) and Fibres Energivie cluster). As a public institution, the CDC carries out missions of general interest for the State; it has invested several billions of euros in ecological and energy transition. The CFF is the French biggest real estate bank proposing loans to private individuals. As to Energivie, it is only French cluster dedicated to materials for building; it gathers all actors across the value chain.
Soft loan to finance the renovation package
In the “renovation package”, several innovative technologies are included to improve energy efficiency in buildings. Aside from the benefit this presents for customers, banks also profit from this. Traditionally, banks have a hard time evaluating energy efficient renovation due to absence of data on technological – and therefore economic – performance of renovation works. The pilot project will define a recommended package for energy efficient renovation, which is composed of mature and affordable technologies that will be deployed with a financial guarantee or loans better suited to the constraints of renovation works, such as duration. For selection of technologies, the following criteria are taken into account: ease of installation, system reliability, energy gain, cost, good quality and performance.
The package can then be financed through the improvement of existing loans (Eco PTZ – pret vert) or new loans better adapted to the renovation constraints to:
- Solvency (Include the energy efficiency gain in the solvency calculation)
- Duration (up to 30 years like in Germany/Kfw or 30 years performance guarantee in Energysprong model).