Residential sector (private residential buildings, social housing)
In a nutshell
Third-party investment is a scheme where the investment on the building is not carried out by the home owner but by a third-party investor. Thus the home owner does not take on a debt but pays a service fee to the investor.
The city of Stuttgart developed a ‘carefree energy renovation package’ for home owners. The package includes: planning, building and construction, operation and maintenance, financing, guarantee and risk assumption. Home owners do not need to secure upfront financing for the replacement of the heating system. This is financed by a municipal ESCO to whom the home owners pay a monthly service fee through energy supply contracting.
Tested and approved
Experience of setting up local or regional third party investment operators is quite recent. French regions seem to be the most advanced in testing out such solutions. For instance, the public-private company SEM Energie Posit’IF in Ile de France Region or the Public Service for Energy Efficiency in Hauts-de-France Region provide integrated energy renovation services including financing to homeowners.
See Stuttgart’s results as part of the Infinite Solutions project.
Webinar "Financing the energy renovation of residential buildings through soft loans and third-party investment schemes" - 31 March 2017