Building Saving and "Green for Efficiency" Subsidy Program Can Go Together!

News »  Building Saving and "Green for Efficiency" Subsidy Program Can Go Together!

Ten billion crowns for this year and fifteen billion for next year are allocated in the ´Green for Efficiency´ subsidy program for environmental investments, thermal insulation, installation of solar panels, and replacement of water boilers. We spoke to Michal Uryc from the State Environment Fund and asked him whether the subsidy can be combined with building saving.

Who introduced the program?

It is an initiative of the Ministry of Environment, primarily of former minister Martin Bursik. The State Environment Fund is responsible for administering the program. It is not easy because we are supposed to grant ten billion crowns this year and another fifteen by 2013.

Who is the program designed for?

It is intended mainly for owners of family houses who can apply for a subsidy in all three parts of the program. There is a certain limitation for apartment houses whose owners cannot apply for a subsidy for thermal insulation, but can apply for a subsidy for replacement of the heating system. The reason is simple: apartment houses qualify for subsidies fro other programs, such as the ´Panel´ program.

How is the ´Green for Efficiency´ program financed?

It is financed from the sale of emission allowances. The Czech Republic produces less emissions than permitted by the Kyoto protocol. That is why we can sell the allowances to countries than want or must produce more emissions than allowed. Former minister Bursik managed to sell our allowances to Japan. The point is that all the proceeds are invested in further reduction of emissions. We can say that the Green for Efficiency´ program is a good investment for the future.

What can be financed from the ´Green for Efficiency´ programme?

The program supports investments in three areas. One is thermal insulation of buildings which must result in lower cost of heating. Another area is construction of new passive ecological houses. And the third is utilisation of renewable sources of energy for heating and hot water production. For instance, you can apply for a subsidy to install a biomass boiler or solar panels.

Can people apply for the subsidy if they finance their housing from building saving?

Certainly yes. Way of financing is not among the criteria for projects to qualify. In other words, if you are building a passive house, you can take a loan from a building savings banks. The subsidy may help you obtain the loan.

What do you need to do to apply for the subsidy?

You just need to fill in a form. It is designed in such a way that everyone should be able to fill it on their own. The investment is a different case – you need to consult experts because non-professional can hardly calculate efficiencies stemming from insulation, etc. However, the cost of such an assessment is insignificant in comparison with the amount fo subsidy you can receive.

So, how much can you receive?

There are so many possible investment areas that I can give only some examples. If you apply partial thermal insulation on a house with a floor area of 120 sq.m – replace windows, insulate the exterior walls and roof, you can get 102 thousand crowns. The total investment will be bigger but you need to realise that the insulation reduces your annual heating bill. Specific examples and other information is available at the program´s website at www.zelenauspo­ram.cz.

Can you borrow from building savings banks for such investments?

Several banks pledged to join the programme as of May, including some building savings banks or banking groups that include a building savings bank. These institutions will administer the program – that means they will have all the information they need to provide e.g. a loan under favourable conditions. Green investments can be financed from any sources, though, including your own.

Which solar panels does the program support?

The program does not support investment into photovoltaic panels. The program´s philosophy is to support energy efficiency, not business. That is why it supports solar panels for water-heating and not those that make it possible to supply electricity to the power grid.

It is similar with loans provided by building savings banks. To put it simply, whatever fits on the roof of your house serves housing purposes, if it spans a filed, it is business. The criterion is technology, not where the electricity is supplied to.

I suppose that a loan from a building savings bank will be only granted for investments into personal housing needs. People can take loans from building savings banks – if they have building saving contracts – to finance any investments that are supported by the Green for Efficiency program.

If they have not signed a building saving contract yet, they can do it at any time. It is advisable to consult different building savings banks on their specific conditions for granting loans.

The interview was conducted by Jiri Sedivy, Secretary of the Czech Association of Building Savings Banks.

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