Renovation financing: government support for house renovations
The renovation of both public and private buildings is crucial to achieving the climate objectives set out in the European Green Deal. If we want to decarbonise the EU’s building stock by 2050, we need to drastically improve the energy efficiency of our homes, schools, hospitals, offices, etc. However, energy efficient building renovations can be expensive, and the owners might not have the means to finance them. Luckily, renovation financing is offered by the EU itself and the EU countries so that financial barriers don’t prevent the renovation of our buildings.
Current situationThere are currently over 30 million building units in the EU that are consuming too much energy (at least 2.5 times more than the average building) and the expectation is that 85 to 95% of buildings that exist today will still be there in 2050. Although 2050 might sound far away, the scale of the challenge doesn’t allow for any delays and with a current annual renovation rate of only 1% of the EU building stock, we’re still very far from meeting the set goals. To boost renovation in the EU, the European Commission launched the Renovation Wave strategy in 2020, which aims to double annual energy renovation rates in the next 10 years.
Different levels of renovationNaturally, the extent of the renovation as well as the required budget will vary from renovation to renovation and depends on different factors such as the current degree of insulation and the type of heating and cooling system that’s being used. If a building is properly insulated, installing a condensing boiler and partially updating the radiators can suffice to significantly improve its energy efficiency. However, if this is not the case, a full energy renovation might be necessary. This can include investing in a heat pump and/or solar panels, optimising insulation and rethinking the complete HVAC system to minimise energy consumption. In such a case, the costs quickly add up.
Renovation financing in the EUTo push renovations and to address financial issues or investment gaps for building renovations the EU itself and EU countries provide government funding. At EU level renovation financing is provided through various funding streams such as the European Structural Investment Funds and Horizon 2020. On a more local level, EU countries have also set up financial instruments to fund energy efficiency and support the renovation of the national housing stock.
In Flanders (Belgium), for example, the Flemish government is allocating more than 1 billion euros in renovation financing to support building owners and prompt them to renovate energy-wasting buildings. Recently all the premiums available for the renovation of the roof, exterior joinery and technical installations as well as extra insulation, high-efficiency glass windows, a heat pump and a solar boiler have been assembled under the name ‘MijnVerbouwPremie’. A practical online simulator helps people with renovation plans to find out which premiums they can apply for and the amount of money they are entitled to. The simulator relies on information about the joint income, the age of the property, whether you are owner-occupier or not and the various works you plan to carry out.
On top of the renovation financing in the form of premiums, anyone renovating their home in Flanders can also apply for the renovation loan called 'MijnVerbouwLening'. To be eligible for the loan, your home must be situated in Flanders and be at least 15 years old when you apply. The loan can be applied for all works covered by the 'MijnVerbouwPremie'. However, only the lowest and middle-income earners are eligible.
Indoor climate comfort solutions for every budgetSince we at Purmo believe that everyone should be able to enjoy a comfortable indoor climate that doesn’t cost the planet’s climate, we design our range of sustainable heating and cooling solutions to include suitable products for every budget. So, whether you’re looking for low temperature panel radiators, fan convectors, electric radiators, underfloor heating or any other heating or cooling solution to optimise energy efficiency, you’ll no doubt find a good match for your house and your wallet in our extensive product range.
To find out more about our products, get in touch with us or contact one of our distributors.