RENÉ VAN GENUGTEN FINANCING ENERGY SAVING SOCIAL HOUSING IN NL: HOW WE TACKLE THE SPLIT INCENTIVE ISSUE

Transcription

1 RENÉ VAN GENUGTEN FINANCING ENERGY SAVING SOCIAL HOUSING IN NL: HOW WE TACKLE THE SPLIT INCENTIVE ISSUE

2 THE CONVENANT ENERGY SAVING RENTAL SECTOR IN NL Parties: National Government (Minister of Housing) Nederlandse Woonbond (Dutch Union of Tenants) Aedes, association of housing corporations Vastgoed Belang (private/commercial landlords) Scope: Focus on existing rental housing stock 2,4 million social dwellings 0,4 million private rental dwellings Target for social housing: Average energy index 1.25 (= energy label B) by the end of 2020 Means energy saving of 33% from 2007 until 2020

3 ENERGY PERFORMANCE OF SOCIAL HOUSING STOCK IN 2012 Energy Performance Monitor SHAERE: Present average Energy Index: 1,73 Target 2020: 1,25 At the present rate of renovations we do not reach the target!

4 TOTAL INVESTMENT NEEDED: 8 BILLION Until ,000 label steps have to be made Requires investments of approximately 8 billion Maatregelen Totaal Energiemaatregel Slecht naar Goed Energiemaatregel Redelijk naar Goed

5 THE DUTCH APPROACH Hardly any legal obligations Hardly any subsidies or grants Based on motivation: Bottom Up Creating sense of urgency, enthusiasm and support amongst tenants, landlords and local authorities TACKLING SPLIT INCENTIVES: Striving for lower total cost of renting, means Rent including energy costs

6 TOTAL COST OF RENTING APPROACH Bottom Up: decisions at project level (deep renovation, refurbishment) The rent goes up, heating costs go down Higher rent finances investment In fact energy efficiency is financed out of saved energy cost As long as total costs of renting don t go up, there are benefits for all parties involved: Landlords because of improvement quality and higher value of housing stock Tenants because of lower renting costs, protection against rising energy prices, higher quality, comfort and health Local and national governments because of CO2 reduction and improved quality and affordability of housing stock

7 Liesbethstraat 33 's-heer Arendskerke Total cost of renting 511,= Liesbethstraat 33 's-heer Arendskerke Total woonlasten cost of 499,= renting 497,= HR107 + zonneboiler + vraaggestuurde ventilatie Klik op de foto of plattegrond D voor een grotere afbeelding Klik op de foto of plattegrond voor een grotere afbeelding eferentie nr: ype: dres: laats: uurprijs: ervicekosten: nergielabel: em. energiekosten: 5966 Eengezinswoning Liesbethstraat 33 s-heer Arendskerke 394,11 2,55 D 115,00 Referentie nr: Type: Adres: Plaats: Huurprijs: Servicekosten: Energielabel: Gem. energiekosten: 5966 Eengezinswoning Liesbethstraat 33 s-heer Arendskerke 426,39 2,55 A 71,00 laapkamers: nstallaties: eschikbaar per: ijzonderheden: 3 CV 15 maart 2005 Tussenwoning Slaapkamers: Installaties: Beschikbaar per: Bijzonderheden: 3 CV 15 maart 2005 Tussenwoning nkomen: eeftijd: unten vanaf: Maximaal 2500,00 Vanaf 23 jaar 10 Inkomen: Leeftijd: Punten vanaf: Maximaal 2500,00 Vanaf 23 jaar 10 reageer terug reageer terug

8 4 billion = 75 billion investments Stretching the total cost of renting approach to the limit

9 Energiesprong (energy leap) Market development program to improve energy performance of buildings Created the deal to refurbish houses to energy neutral levels << VORIGE VOLGENDE TITEL VAN PRESENTATIE 17 DECEMBER 2010

10 Before After Energy Leap

11 What makes The Dutch Approach a success? The financing structure for Housing Corporations: Relatively easy upfront financing by system of mutual guarantee Relatively low interest en IRR Longterm financing means relatively long period of payback of investment The Dutch Social Housing Sector is ONE BIG REVOLVING FUND Key legislation: The rent value system that provides for higher rent levels for high energy performance / green labels The individual rent allowances, which makes relatively high rents affordable for low income households (So the Dutch approach also fights energy poverty) The absence of legislation containing investment obligations. This is important because it is counterproductive for acceptance, motivation and enthusiasm

12 DUTCH APPROACH UNDER HEAVY PRESSURE Financial structure is threatened by new tax on rental dwellings: Annual cash out of about 1.5 billion Housing corporations perhaps not allowed to deliver Energy Services. Should be left to commercial energy providers Upfront financing of energy renovation becomes a big problem

13 SOLUTIONS TO THE FINANCING ISSUE? Best solution: Maintaining the financial & financing structure of the social housing sector in the Netherlands! Hands off the tenants money! Use energy bill to invest Challenge: Lowering the costs of the investment at projectlevel through INNOVATION & STANDARDISATION & INDUSTRIALISATION Means More, better, faster, cheaper Supported by EIB-financing, Revolving Funds, Horizon 2020?