Those intending to energy renovate a family house or building will be able to apply for co-financing from the state treasury at the beginning of 2024, as by the end of this year, the Ministry of Physical Planning, Construction and State Property will adopt a new energy renovation program for family houses until 2030. The amount of co-financing will depend on the category of energy renovation and whether the house was damaged in the earthquake, with the state investing 1.83 billion euros, of which 0.9 billion euros for co-financing.
For the first implementation period, it is planned to allocate 120 million euros in 2023 and 2024 for the implementation of public calls for the energy renovation of family houses (both damaged and undamaged in the earthquake), along with an additional 25 million euros for the implementation of the public call for the energy renovation of family houses for citizens at risk of energy poverty. The source of these funds is revenue obtained from the sale of emission units in Croatia, and the money for co-financing in the following years will be defined by action plans for program implementation. The Ministry states that the draft program has been prepared and sent to state administration bodies for opinion, after which it will be subject to public consultation for feedback from experts and the interested public. It will then be revised according to the collected comments and suggestions and sent to the Government of the Republic of Croatia for adoption.
New and Old Criteria
By the end of 2023, the conditions and criteria for the public call for the energy renovation of family houses will also be published, with the announcement of the public call and the acceptance of applications planned for the first quarter of 2024, during which the existing co-financing rate of up to 60 percent of the justified cost for undamaged buildings and 80 percent for buildings damaged in the earthquake will be maintained. After that, new public calls will be planned based on the new program, and the amount of co-financing will depend on the category of energy renovation. The Ministry is introducing several key innovations into the new energy renovation program.
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The new energy renovation program until 2030 will also propose increasing fire safety, ensuring healthy indoor climate conditions, improving mechanical resistance and stability of the building, and installing elements of green infrastructure.
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One of them is the increase in the scope of energy renovation measures, i.e., the range of measures to improve the energy efficiency of homes and reduce the energy demand for heating and cooling spaces. Measures on the envelope will continue to be encouraged, as well as the installation of renewable energy sources (RES), and the new program will propose additional measures: increasing fire safety, ensuring healthy indoor climate conditions, improving mechanical resistance and stability of the building (to increase its earthquake resistance), and installing elements of green infrastructure.
With the new program, several categories of energy renovation will be available to citizens, although the possibility of applying for individual measures will still be retained. Integral energy renovation includes a combination of several measures of such renovation. It necessarily includes one or more measures on the building envelope, while deep renovation encompasses energy efficiency measures on the envelope and on technical systems. Comprehensive renovation, in addition to the energy renovation of the building (integral energy renovation or deep renovation), also includes measures to increase fire safety, measures to ensure healthy indoor climate conditions, and measures to increase the earthquake resistance of the building.
The Ministry indicates that projects with a higher level of energy renovation will be more encouraged, so up to 40 percent of justified costs will be co-financed for the application of individual energy renovation measures, and up to 60 percent for integral energy or deep renovation. Additionally, there are plans to continue to strongly encourage the energy renovation of family houses damaged in the earthquake. According to the European directive, the new program introduces an energy savings criterion, which will encourage projects that will yield greater savings in thermal energy needed for heating spaces and primary energy compared to the state before renovation. After the Ministry adopts the energy renovation program for family houses, the Environmental Protection and Energy Efficiency Fund will announce a public call for co-financing the energy renovation of family houses and define the conditions of the call.
Instructions for Application
What a homeowner who wants to energy renovate a family house, business, or residential building needs to do and where to start is explained by architect Željka Hrs Borković, director of Saeptum and consultant for architecture and energy efficiency.
– The first step in initiating the energy renovation of a building is the preparation of project documentation. To apply for co-financing from domestic or EU funds, one must have completed documentation: an energy audit, the preparation of a report, and the issuance of an energy certificate, as well as the main project of the energy renovation of the building with a bill of quantities and design prices. The project documentation is prepared by authorized designers, and the certificate is issued by authorized energy certifiers. If only the external envelope of the building is being renovated, a main architectural project is required, and if the heating, cooling, and lighting systems are being changed and renewable energy sources are being introduced, a mechanical and electrical project must also be made. For family houses, the procedure has been simpler so far, requiring only an energy certificate and a contractor’s offer, but in this case, it is also recommended to prepare a main project – says Hrs Borković.
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1.83 billion euros the state has announced it will invest in the energy renovation project for family houses, of which 0.9 billion euros for co-financing.
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When it comes to multi-apartment buildings, co-owners make a decision to initiate energy renovation and select a designer based on a majority of co-owner signatures. In addition to this documentation, general documentation about the building must be collected, proof of ownership, proof that the building is existing – a use permit, etc. Once the building receives funding for renovation, a contract is signed, and only then is a tender for the contractor announced, and a company is selected for the execution of the works. Along with the contractor, a construction supervision expert must also be selected. The energy renovation of a building can be initiated by the owner at their own expense or apply for domestic or European funds for co-financing. Co-financing for energy renovation, depending on the source, is usually 60 percent, and in the case of deep or comprehensive renovation, it can be up to 80 percent. This means that the owner or co-owners of the building must secure the remaining part for the execution of the works. In multi-apartment buildings, this is realized through a loan that is repaid from the reserve fund.
Co-Financing All Steps
Hrs Borković explains that the process of energy renovation is generally identical for all sizes of buildings and consists of several steps: energy audit and certificate, main energy renovation project with a bill of quantities and design prices, decision on energy renovation and application to European or Croatian funds, self-co-financing, approval of co-financing or financing, selection of the contractor and supervising engineer, execution of works with design and expert supervision, and final energy certification of the building after the energy renovation has been completed.
– Energy renovation of a building is an opportunity for its thorough modernization and significant reduction of energy consumption. The invested capital is returned through reduced energy costs and increased comfort of living and market value of the property, contributing to sustainable development. Energy savings are usually between 50 and 70 percent when it comes to heating costs, but there are many additional benefits: maintenance and renovation costs are reduced, the building is modernized, its lifespan is extended, and living in it will be more comfortable and healthier. Additionally, the value of the property increases by 15 to 20 percent and contributes to sustainable development – states Hrs Borković.
She also emphasizes that co-financing is possible for all steps of renovation from new European and Croatian funds for the period from 2021 to 2030: energy audit and certificate, main energy renovation project, execution of works and expert supervision, project application and management, and final energy certification. Many companies operate in Croatia, such as Saeptum, whose consultants deal with the preparation of energy renovation projects for application to public calls for co-financing and supervision. Some of them also carry out part of the works, such as E.ON, which, in addition to design and consulting, is involved in the installation and activation of solar power plants and provides a service on a ‘turnkey’ basis.
