For people who are unable or unwilling to invest in sustainable measures in their homes, but who want to live sustainably and comfortable, Housing subscription (Woningabonnement®) is an attractive alternative to the normal energy bill. Obviously also investing (own money) or borrowing is possible. A resident can choose the measures and decide what he wants to pay per month. One chooses measures within the existing energy budget remaining the In the municipality of Deventer we came up with a housing subscription scheme.
Through this model, we wanted to make the renovations possible also for citizens who don’t have much money. In order to explain how the housing subscription works, let’s imagine that you have a house and your monthly energy bill right now is 150 EUR. If you come to us to get a housing subscription, you will still pay 150 EUR per month maximum but we will help you to install some energy efficiency improvements in your house and lower your energy bill. We will assess the state of your house and how many people live there, check the energy bills for last two years, and we will advise you what kind of renovations can be done in frame of the housing subscription. Though in the end, you will choose the measures to be installed. What is interesting in this model, you can choose only partial renovations and i.e. install double glazing in the first year and then after 5 years you can decide to change whole windows. Normally, we sign contracts with house owners for 15 years. After installing the energy efficiency measures, you will still pay 150 EUR monthly but only 90 EUR will go to the energy provider and 60 EUR will go to us to pay off the renovations that were made in your house.same, someone else chooses for comfort or additional measures and is ready for more there to pay.
LOCAL AND REGIONAL COOPERATION
The Housing Subscription (Woningabonnement) was developed with business partners (WDW), Housing company Rentree, KonnecteD, Province Overijssel and the Municipality of Deventer.
Local parties join forces to make Deventer sustainable. To start the "Woningabonnement" for the first inhabitants in 2015, the Municipality of Deventer gives a (higher-risk) loan of € 400,000. On this basis, complementary loans could be attracted. In a collaboration with the company WDW Developing Management (passed in WOAB Overijssel), this entrepreneur has taken the initiative to develop the concept and to allow start of the scale. First for 20 citizens in Deventer (2016), currently 600 properties and thus the basis for further up-scaling. The investment for this volume (€ 6.000,000) is provided by the Energyfund Overijssel.
HOW DOES IT WORK?
An organization (foundation) is being set up which (by franchising) providers entitles put the Housing Subscription (Woningabonnement) in the market. The
consumer determines, based on an analysis of consumption and savings which measures are desirable. The provider delivers the goods and services (at
market rates) provides product warranty and more importantly: give an energy performance guarantee. The provider is closing the contract with the consumer. The provider works with subcontractors who perform the work. In addition to the Foundation there is a financial organization that provides funding providers. According to the national and european financial rules there must be an organization with a banking license.
This is currently work on progress. In the pilot the energy bill is paid to the Deventer Energy Cooperative. With Kredietbank Salland (a local A-rated bank) is an agreement made at a fixed fee per contract to take over the debt and risk of default. Companies that will implement sustainability measures made agreements about the deployment of people from the labor market. So two goals are achieved. Boosting the local job market, there is a stimulus to the economy of Deventer and we are simultaneously working on becoming an energy-neutral city.
The consumer ultimately decides on the basis of their own pockets concerning housing costs which offer is selected. Furthermore, the consumer decides on more saving measures or one measure of energy generation via a green energy bill equivalent.
With this experience we are being to scale up the project.
Can it be organized just as simple as the mobile phone. The answer is yes.
HOW IS IT FUNDED?
The government funding is providing risk capital. Thus, in the form of private equity (equity participation comparable or subordinated loans). Subsequently (at normal rates) financing from the market recruited on the basis of this risk capital (ratio 15 to 85%). This leverage is realized. The € 0.4 million of the city of Deventer and additional resources from private parties and Energy Fund Overijssel € 6.0 million withdrawn from the market. In cooperation with several municipalities, this can be increased at a national and European scale, this amount can be increased many times.
CAPTURING OBJECTIVES, QUALITY AND GUARANTEES
To structure the process we established an umbrella foundation. This defined social goals, quality and guarantees to consumers accommodated. Providers may only select the Housing Subscription (Woningabonnement) apply when they accept the rules. For this purpose we did realise a quality mark and energy savingsregulation guaranteed for 15 years.
The road to a comprehensive approach to the Woningabonnement is not yet free of thresholds. Not all barriers are removed. Deventer and Overijssel connot overcome all the challenges alone. Therefore, Housing Subscription (Woningabonnement) is ideally suited for a City Deal in the context of the EU Urban Agenda.