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How to boost one-stop-shops for integrated home energy renovation in the EU?

Panel: 7. Policies for a green recovery in the buildings sector

This is a peer-reviewed paper.

Authors:
Francoise Refabert
Krushna Mahapatra, Linnaeus University, Sweden
Brijesh Mainali, Linnaeus University, Sweden
Jean-Charles Hourcade, CIRED, France

Abstract

Among the set of public policy measures recommended by the European Energy Performance Building Directive, One-stop-shops for housing energy-efficient renovations (OSS) are outlined as “accessible and transparent advisory tools“, playing the role of a "trusted third party" and “aggregating housing renovation projects”.

The aim of this concept of one-stop shops is to make available information and advice to consumers at a single point of contact and to make energy retrofits simple and straightforward, which requires provision of pre-renovation energy and building inspection audit, a design of the energy renovation and a tailor-made financial plan, coordination of the renovation process, provision of, or easing of access to affordable financing and finally, monitoring of energy consumption. However, the existing one-stop shops do not correspond to a standardised service offer, neither to energy savings thresholds, technical criteria, or quality of renovation specifications. As homeowners do not particularly prioritise energy efficiency when they want to improve their homes, and their willingness to pay for advice is low, in advance of retrofits, most of one-stop shops need a support from the public sector.

We draw on the experience of the Innovate Project funded by EU H2020 programme and of the Third-Party Financing Companies set-up in France to suggest that one-stop-shops be established as services of general interest (SGI). A national facilitating framework, defining conditions for the public service obligations imbedded in the SGI and providing guidance with implementation conditions adapted to local markets, are key factors in helping local authorities favour OSS initiatives and make the marketing of energy-efficient retrofits viable and attractive to the private sector, while limiting windfall effects.

The envisaged revision of the Energy Performance of Buildings Directive is an opportunity to set stricter energy efficiency criteria for housing renovation. One-stop-shops, defined as services of general interest, would be a key measure to implement them on the ground in a way that is adapted to local conditions. Furthermore, One-stop shops for energy-efficient renovations could be instrumental in easing the financing of renovations: helping banks to assess the compliance of housing renovations with the energy efficiency and other investment sustainability criteria and broadening the financing offer as experienced by Third-Party Financing Companies in France.

The extension of financing could be achieved, in particular for households in fuel poverty, through the issuance of low-carbon, low-energy financial assets dedicated to energy renovation, for which the one-stop shops would ensure the completion of the renovation works and their compliance with quality and performance controls.

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