The research has received funding from the Seventh Framework Programme (FP7/2007-2013) under grant agreement n° [314363].

Analyzing financial schemes for retrofitting projects

Financing major renovation projects is not an easy task, and frequently the effectiveness of business models and incentive schemes is crucial for the efforts success. The ZenN demonstration projects illustrate the significant impact of ownership structures and the design of subsidies from both national and local sources.

One of the tasks within ZenN has been the assessment of efficiency and effectiveness of the business models and incentive schemes applied in the demonstrators in order to validate and evaluate transferability of applied financial instruments to other projects.

The report “Economic and ownership structures” presents the financial mechanisms applied within each ZenN demonstration site as well as the entire funding process starting from obtaining the funds and finishing on finalizing the investments and examining the challenges encountered as well as financial benefits. The purpose of this part of the report is to provide valuable experiences and insights into the process of financing deep energy-efficient retrofitting of existing buildings.
Both the building types and the ownership structures vary in each of the ZenN demonstration. Naturally, the ownership structure affects the decision making process and the financing possibilities of the renovation. Therefore, the report can serve various investors either public or private. 

In three out of four ZenN pilot cases, subsidies from both the national and local sources (apart from the EU funds, own resources and drawn loans) have been an important part of the retrofitting process. The regional source was dominant in the case of Spain (Basque Government), the French demo site was financed both with the use of national, as well as regional funds in similar proportions, however the Norwegian investment was financed to a larger degree by the municipality’s subsidy (local funds). The only case that did not apply for any grant apart the ZenN funds was the Swedish site. 

The owners’ satisfaction with the applied financing schemes was quite high. Majority of the building owners indicated they would either use the same financial model again in future projects or would be willing to recommend the solution to other building owners. This however, does not mean that financing of the renovation was an easy road. On top of that local and national financing programs and plans are not long term and change every few years. This has been mentioned as a common barrier faced by building owners willing when willing to renovate their buildings. 

For detailed analysis of ownership structure and financing schemes read the latest ZenN report uploaded on the ZenN website www.zenn-fp7.euexternal link

For more information:
Ewa Wojtczak, ASM,

Updated: 2016-09-14


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