Hauts-de-France Pass Renovation, the technical and financial instrument designed by the regional Public Service for Energy Efficiency
Private period property in the Region of Picardie (France) accounts for 15% of its greenhouse gas emissions. To rise to the challenge of energy renovation across its property portfolio, the region of Picardie (France) has launched a pilot project with the Public Service for Energy Efficiency (PSEE) named Hauts-de-France Pass Rénovation.
Founded on an innovative economic model, through a dedicated public fund, the PSEE advances the amount allocated to renovation works; beneficiaries repay this advance in whole or in part through financial savings generated on their energy bill.
Breaking with the public subsidy, the PSEE focusses on a virtuous, self-regulated economic model to help significantly reduce energy consumption in residential buildings and bring about local economic expansion. Since January 2020, Picardie Pass Rénovation became Hauts-de-France Pass Rénovation.
The first public operator to set up a third-party-financing mechanism, the PSEE thus seeks to implement an everlasting virtuous circle to bring about the expansion of the regional territory: reduced energy consumption across its property portfolio, combating the energy poverty, revival of the local economy in the construction sector and support for innovation.
Supporting business and jobs amongst regional construction professionals:
by increasing solvent demand for energy efficiency measures,
by playing the role of facilitator and the third party of choice, ensuring the quality of works undertaken for beneficiary households.
Supporting sector professionals as they broaden their expertise and their ability to innovate to attain a sufficient degree of energy performance in renovated buildings.
Turning energy savings, so financial savings, achieved through its energy renovation operations, into a resource enabling owner households to repay the advance granted, the key to this being a substantial reduction in final energy consumption of 40 to 75%.
Turnkey technical support coupled with an all-inclusive financing solution, Hauts-de-France Pass Rénovation is a drive clearly focussing on private owners and co-owners of period properties. The mechanism encompasses all phases of the renovation project:
Hauts-de-France Pass Rénovation is granting owners an advance on works, for an average of € 43,000. Once the works have been done, the owner will repay the public body an amount less than or equal to the post-renovation energy savings (on average 40% of savings, for a posted target of 46% reduced final consumption). This advance on energy savings is granted at a rate of 2.5%, given over a maximum period of 15 years, for equipment, and up to 25 years for building insulation works.
No age to renovate !
"It was a craftsman who told us about the Pass Renovation. This service allowed us to find back a real comfort after having lived for a long time in a cold house ; and also to spend less on energy bills. Being able to reimburse 130 euros per month over 25 years is very practical, and then if we are gone in the meantime, the proceeds from the sale of the house will pay off the debt."
Mr. and Mrs. Lambert, a retired couple from Feuquières, also a beneficiary of ANAH financial aid
The security of a project management ...
"The device allowed us to finance part of the cost of the project technical management, so we didn't hesitate! This is an extra comfort not having to manage the work coordination yourself! And then, it was impossible to imagine that a bank would agree to finance 70,000 euros of work over a period of 25 years! That allows us to save energy, to smooth the cost of the work, to enhance our home and to gain considerably in living comfort, all, without tightening our belts."
Mr. & Mrs. Poncet, from Saint-Quentin
By acting on demand and guaranteeing payment for works, the PSEE will contribute towards the emergence of a sustainable local market for dwelling energy renewal, its ultimate ambition to create hundreds of jobs which do not lead to relocation in the construction sector. More specifically, the PSEE will be used to :
To date, more than 700 local companies and craftsmen have joined the Hauts-de-France Pass Rénovation mechanism.
Adapting to the realities of artisanal businesses
"In general, in the context of calls for tenders, there is no advance. However, this is the case for the Hauts-de-France Pass Rénovation: the company can benefit from a 30% deposit at the start of the project, which prevents it from releasing cash flow. And that is the crux of the matter for us as contractors. At the beginning, we were a little sceptical, but today we are starting our third Hauts-de-France Pass Renovation project: all the down payments are done very quickly!"
Jean-Philippe Poncet, Idéal Concept Fermetures, Saint-Quentin (02), FFB member
Dynamise the territory with energy renovation
"This service is very beneficial to encourage people to do renovations, it helps decision-making. Administrative ease, permanent link with a local technician in charge of the support on the territory, quick payment at the end of the work ... Hauts-de-France Pass Rénovation brings dynamism to the building sector. This is a real plus for saving energy and it is very safe for us as a contractor."
Gérard Babron, Roofer, Epaux-Bézu (02) and member of Globe 21 (Local Group for the Ecological Building of the 21st Century)
For partner local authorities, the PSEE is an additional tool to serve the success of their initiatives and policies in terms of energy transition and home improvement.
The PSEE directly involves voluntary local authorities in implementing Hauts-de-France Pass Rénovation. PSEE partners and third parties trusted for how they are managed, they are becoming the relays on the ground for:*
For the PSEE, energy renewal for period properties in rural settings is a significant imperative, especially in towns with fewer than 2,000 inhabitants. The authorities may also benefit from the mechanism for renewal of their municipal housings.
For community-owned housing also!
"As an elected representative, it is in our interest to promote and publicise “Hauts-de-France Pass Rénovation” because it responds to real issues in our territories, against fuel poverty and unsanitary housing. It is also a solution that responds to the challenges of the energy transition. Local authorities are experiencing a constant decline in state endowments, and will soon no longer be able to subsidize anything. With Hauts-de-France Pass Rénovation, the financing of energy renovation is not based on a subsidy, but on a loan from third-party financing which engages the owner's responsibility. It is an empowerment process that can really encourage another behaviour in terms of energy consumption."
Grégory Labille, Mayor of Ham (80)
The energy renovation of a home is not an end in itself, but a new stage in the life of the home and its inhabitants. Once the energy renovations are complete, it is up to the owners to properly use and maintain the new facilities. And also, to adopt the right actions on a daily basis, to avoid unnecessary waste and consumption. For this but also to verify that the renovation has made it possible to achieve the objectives set in terms of energy consumption, Hauts-de-France Pass Rénovation continues to support owners for three years.
The PSEE is forging partnerships with innovative regional ecosystems, to help speed up the territory’s energy transition, including :
Hauts-de-France Pass Rénovation provides its subscribers with several tools as part of its support as part of its support after renovation work, the advantage being to be able to compare the energy spending of each dwelling year after year, such as QUARTHOME, a Home Energy Monitoring System (HEMS). Composed of a tablet, an electricity transmitter, weather sensor, comfort sensor and gas transmitter, the kit allows owners to better understand their consumption, monitor it and reduce it if necessary, the interest being to be able to compare year after year the energy expenditure of each dwelling. 34% of our subscribers are equipped with this HEMS.
The data analysis reported during this support after renovation work takes into account certain factors such as climatic conditions, housing constraints, actual occupancy by its inhabitants, winter and summer comfort, the performance of the insulation installed and equipment operation. A personalized study is carried out for each dwelling allowing a more accurate analysis of the consumption of the dwelling and its owners.
Energy label and evolution before / after renovation
Before work, energy labels were mostly classified in D, E, F or G representing significant energy consumption for the housing concerned (many old housing, built before 1975, very energy intensive, etc.). After work, we see a bigger number of dwellings with labels classified in A, B and C.
According to the law of July 12, 2010 on the national commitment to the environment, “a person in a situation of energy poverty who experiences particular difficulties in his home in having the supply of energy necessary to meet his basic needs due to the unsuitability of its resources or its living conditions ”.
According to the Abbé Pierre foundation, nearly 1/3 of households in the former Picardy region are in energy poverty, more than 60% of which is due to their houses themselves. Getting out of fuel poverty must therefore remain one of the priority objectives of Pass Rénovation accompaniment.
From the ANAH point of view, it is considered that projects achieving at least 35% of energy savings, leaving F or G label by gaining at least 2 energy classes allow households to get out of energy poverty. .
Thus, the PSEE, by allowing significant energy savings, is a tool for getting out of energy precariousness:
Efficiency, BBC Renovation
Energy used in the households
The Region benefiting from the ELENA technical assistance mechanism (European Local ENergy Assistance) dedicated to local energy projects, initiated by the European Investment Bank and the European Commission. The ELENA funding is managed by the Executive Agency for Small and Medium-sized Enterprise (EASME), and will be fed by Horizon 2020, the European Research and Innovation Programme, as part of its action to combat climate change.
For the period 2014-2017 (with an extension until 2019) the Region received a grant by the European Commission and a loan by the European Investment Bank through the EIB-ELENA facility to renovate 2000 housing units. Funded through Horizon 2020 Energy Efficiency, the ELENA (European Local ENergy Assistance) facility is dedicated to local sustainable energy projects.
Who is financing Hauts-de-France Pass Rénovation ?
Delft University of Technology, city of Antwerp, city of Breda, Kent County Council, City of Mechelen, City of Rotterdam, EOS Oostende, Ghent University Fluvius and PSEE work together in “Triple-A: stimulating the Adoption of low-carbon technologies by home-owners through increased Awareness and easy Access”.
Triple-A, coordinated by Delft University of Technology, is funded by the European Interreg 2 Seas program and co-financed by the European Fund for Regional Development (ERFD) under grant agreement No 2S02-029, for the period January 2017 – June 2021
Triple-A will gather specific knowledge and will lead to models for local authorities in Belgium, the Netherlands, France and the UK with the aim to increase the market uptake of energy-efficient single-family home renovations.
To find more on energy efficiency in buildings in Europe