Developing, piloting and standardising on-tax financing for residential energy efficiency retrofits in European cities and regions (EuroPACE)

March 1, 2019

EuroPACE will develop a scalable on-tax financing mechanism to unlock the huge potential for deployment of energy saving and generation technologies to European households. The scheme is inspired by the successful US PACE scheme that was invented in California in 2008. The project will address several fundamental challenges to EE investment by (1) A Market-Based Approach: EuroPACE will deploy private capital as up-front financing to homeowners, i.e. reduce reliance on grants and subsidies. In turn, municipalities will be the conduit for the repayment via a special levy collected with the property tax bill. (2) De-Risking EE Investment: the long-term repayments obligation is tied to a property and not its owner, (3) Technical Assistance: decision-making processes for homeowners will be optimized by training energy service contractors. They will be held to account by a comprehensive consumer protection code. (4) Aggregation and Standardization: EuroPACE will design standard underwriting requirements and project performance guidelines to enable project aggregation and Green Bonds issuance.  By 2025, The EuroPACE industry will generate measurable impact in the three key areas: