Linking financial incentives with the energy savings achieved
The Commission presents possibilities for "smart financing for smart buildings". Besides informing on details of the Investment Plan for Europe and the associated funds, the Commission suggests that financial incentives for the renovation of buildings, provided by public funds, should be linked to the energy savings achieved.
Although it might sounds logical that the achieved energy savings determine the amount of financial support since it aligns with the target of reducing buildings' energy use and corresponding CO2 emissions, there are several issues that need to be noted. First, if a building with very poor energy performance saves 50% of its energy use due to a renovation, it would proportionately receive a rather high level of financial support. However, it would most probably still not have used all reasonable opportunities for improving the energy performance and, in all likelihood, it would nto undergo a further deep renovation for a number of years. Target values of energy performance after renovation might be helpful to prompt building owners towards even better levels of energy performance. A combination of both approaches might be a possibility, but it has to be ensured that the programmes are kept simple to understand and to follow through.
Read more here