The Next Generation funds for the energy efficient renovation of buildings represent great opportunities for the construction sector. Due to current climate change, the effects of the pandemic and the impending energy crisis, A set of European funds has been launched to incentivise the economy, technological change, and the energy-efficient refurbishment of buildings..
Everyone, from a real estate company to the owner of a modest rural dwelling, can benefit from the resources allocated to encourage the renovation of obsolete, inefficient, and highly costly technologies.
In this article, we will describe What are these new incentives called funds about? Next Generation. We will explain Why are they important for everyone and how can EVALORE help you in the process of processing such rehabilitation aid.
What are European Funds?
European Funds are a set of resources intended to invest in a healthy economy and a sustainable environment.. Within European funds are the European Structural and Investment Funds (ESIF), which contribute the most resources, the European Cohesion Fund, and the European Regional Development Fund (ERDF).
European Funds deal with areas such as:
- Research and Innovation
- Digital technologies
- Low-carbon economy
- Sustainable management of natural resources
- I support small businesses.
The overall objective of European funds is to transform the economy to make it more sustainable, digital, and cohesive. Furthermore, from 2020 onwards, a number of measures were created European programmes Recovery and Resilience to mitigate the effects of the pandemic. These programmes are run with NextGenerationEU Funds.
In Spain, the management of the ESI Funds and of the NextGenerationEU Funds falls to Ministry of Finance and Public Administration.
What are the NextGenerationEU Funds?
The Next Generation Funds, along with the Multiannual Financial Framework, are the Financial instruments to support the economic and social recovery from the effects caused by the COVID-19 pandemic. The Next Generation EU funds have €750 billion to be allocated between 2021 and 2027. These European funds are applied to objectives related to sustainability, the implementation of renewable energies, energy renovation, among others.
In Spain, actions funded by European funds are those that guarantee compliance with the Recovery, Transformation and Resilience Plan (RTRP) approved in 2021. For aspects related to energy efficiency renovations, it is the Ministry for Ecological Transition and the Demographic Challenge, through the IDAE, that is responsible for calling, coordinating, and monitoring renovation aid, which is managed by the Autonomous Communities.
¿Why are the NextGenerationEU Funds important for the energy rehabilitation of buildings?
A series of data will help to understand the opportunities offered by the Next Generation funds in the current circumstances:
- The building stock in Spain accounts for 30% of final energy consumption
- Only 0.31% of existing buildings have undergone energy-efficiency refurbishment
- Existing buildings are being driven towards sustainability.
- Wanted to assist municipalities facing demographic challenges, which account for 12.1% of Spain’s total population
- They are aimed at small businesses and individuals.
- To stimulate the economy by fostering technological change
What energy efficiency renovation grants are funded by the NextGenerationEU Funds?
Current aid as of March 2022
PREE 5000 Programme
It is an energy efficiency and rehabilitation programme reduction in final energy consumption and CO2 emissions in the park of buildings in municipalities with demographic challenges. It encompasses actions ranging from changes to the thermal envelope, the replacement of thermal generation facilities and the improvement in lighting energy efficiency. It is intended for individuals or legal entities, community associations, owner associations, companies, and local authorities.
Public Building Rehabilitation Incentive ProgrammePIREP)
This Programme The scheme aims to promote the sustainable refurbishment of public and institutional buildings for all types of public use: administrative, educational, care, sports, healthcare, cultural or public service facilities, etc. The projects to be funded must reduce non-renewable primary energy consumption by at least 30%. The aim is to fund two categories of buildings:
- Line 1. For buildings to be renovated whose works handover takes place no later than 30 September 2024
- Line 2. For buildings to be renovated whose works acceptance takes place by 31 March 2026
according to Official Bulletin, the deadline to apply for the grants starting from March 11 is:
- Forty-five calendar days for the operations on line 1
- Ninety calendar days for the works on line 2
Aid pending renewal for 2022
PREE Programme
It is an energy rehabilitation and reduction of final energy consumption and CO2 emissions programme for existing buildings. It had a budget of €402,500,000 and was in force until 31 July 2021. Like the PREE 5000 Programme, Grants are available for improvements to the building envelope, replacement of thermal generation systems, and enhancements to lighting energy efficiency.. It was aimed at natural or legal persons, community associations, associations of owners, companies, and local authorities.
EVALORE already has successful cases from this programme!
Assistance awaiting its launch in 2022
Rehabilitation programme for economic and social recovery in residential settings
It is a programme that is part of the Recovery Plan. Its objective is to achieve more than 510,000 renovation projects in housing by 2026. This programme includes six sub-programmes of aid:
- The rehabilitation of housing and regeneration of public spaces in neighbourhoods requiring transformation
- Support for rehabilitation offices
- Building refurbishment
- Improving the energy efficiency of homes
- The drafting of rehabilitation projects and the preparation of the Existing Building Book (LEE)
- The promotion of social rental housing in energy-efficient buildings.
Previous aid before the Next Generation Funds aid framework
PAREER II Programmes
This was the second round of the grant scheme for the energy-efficient refurbishment of existing residential buildings. It remained in force until 2018. Under this grant scheme, a non-repayable grant of between 20% and 30% of the eligible costs was awarded, supplemented by a repayable loan at Euribor + 1%, with a maximum repayment term of 12 years and a 1-year grace period.
PAREER-CRECE Programmes
This was the first call for applications under the grant scheme for the energy-efficient refurbishment of existing buildings. It remained in force until 2016. Under this grant scheme, a non-repayable sum of between 20% and 30% of the eligible costs was awarded, supplemented by a repayable loan at Euribor + 1%, with a maximum repayment term of 12 years and a 1-year grace period. It is worth noting that the grant amount per application was €120,000.
¿How can you apply for Next Generation Funds energy efficiency grants?
Each energy efficiency rehabilitation aid programme has steps to be followed by the applicant. In this regard and in general terms, The steps are as follows:
- The person, community, legal representative or rehabilitation agent, must collect the identity and project information documents
- Must be Prepare descriptive reports on both the project and the energy savings achieved by the renovation.
- Ought to Calculate the amount of aid to request. To do this, budgets must be provided and the subsidised items identified.
- The documentation must be attached via the platforms corresponding to the management of aid and grants from each autonomous community
- If it proceeds to the justification phase, where invoices, photographic records and other documents are provided.
Due to the complexity of ordering and preparing the necessary documentation, Usually, a company specialising in consultancy and sustainability is hired to manage all the necessary documentation to grant the subsidy, as is the case with EVALORE.
At EVALORE, we have extensive experience in energy consulting and managing international certifications such as LEED, WELL, BREEAM, and Passivhaus. Therefore, we can help you simplify the process of managing energy efficiency grants.
Although the emergence of this series of aids is very recent, at EVALORE we already have success stories from projects that have been granted the requested subsidies.
¿What is EVALORE's role as a rehabilitation agent?
The rehabilitation agent it is a figure that will help manage the procedures for energy efficiency grants aimed at the residential sector. According to the Royal Decree for the PRTR an agent considered to be rehabilitative is:
“…the natural or legal person, or public or private entity, that can carry out actions for promotion, monitoring, management of public aid, access to financing, preparation of technical documentation or projects, or other actions necessary for the development of rehabilitation or improvement actions that may be financed through any of the programmes included in this Royal Decree.”
In conclusion, a rehabilitation agent simplifies the process and centralises management. With the help of EVALORE, process efficiency, safety, and assurance increase significantly.
In addition to serving as an advisor for aid management, At Evalore, we are also specialists in implementing various international certifications. like the WELL Certification, Passivhaus, BREEAM, LEED, among others. To this list we must add the Spanish certification Airfirst, seal with the same intention and purpose as WELL Health-Safety Rating.
In Spaces Evaluate We can help your home, community or building to qualify for energy efficiency renovation grants. Don't hesitate to get in Contact us.
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