FINancial Schemes for Providing Innovation in the Energy Renovation

Introduction

INSPIRenov (FINancial Schemes for Providing Innovation in the Energy Renovation) aims to develop financial instruments and commercial bank products for the energy efficient renovation of residential buildings in Bulgaria.

Objectives

INSPIRenov results will contribute to:

1. Increased private sector investments.
2. Better use of public funding.

This will be achieved by developing, introducing, and testing a blended financing scheme (BFS) to provide access to private financing for energy efficient (EE) renovation.

Financing Scheme

The final BFS will be supported by:

• A risk-sharing mechanism.
• Loan guarantees.
• Other financial instruments.

The commercial loan component will be structured to match homeowners’ financial habits, taking into consideration:

• Optimal grant rate intensity from a public budgetary point of view.
• Relevant business interests of commercial banks.

Impact

The final results of the project will be suitable for streamlined usage by the National Decarbonisation Fund of Bulgaria (NDF) after its establishment. This will support the ambitious EE renovation strategy for the country, fully in line with key reforms, such as:

• The European Green Deal.
• Renovation Wave.
• Fit for 55.