Habitat for Humanity Macedonia – Energy Efficient Homes

Habitat for Humanity Macedonia – Energy Efficient Homes

Duration

2009 – ongoing

Recipients

Apartment owners and HOAs in multi-apartment buildings for energy efficiency upgrades, homeowners of single houses for energy efficiency renovation including homes in rural areas and marginalised communities.

Managing body

Habitat Macedonia, in cooperation with Saving House Moznosti and MFI Horizonti

Volume of funding

  • Revolving fund of US$900,000
  • Period of funding: 3 years for loans for windows, doors; up to 7 years for façade
  • Financial terms: 3-6% interest rate, subvention from municipalities for façade 30% (2 municipalities covered 100% of costs for façade, but that practice is not in place anymore)
  • Average loan amount: €2,000
  • Other benefits from implementation of financing mechanism: Providing subvention from municipal budget for energy upgrades of multi-family apartment buildings, motivating microfinance institutions to develop and offer loans to vulnerable groups and to homeowners in rural areas.

Details

The revolving fund was established in 2009 and is used through five different financial models: direct loans to the homeowners; with municipal subsidies; for HOAs; to specialised companies (construction company); through microfinance institutions. The loans for energy efficiency for individual houses are distributed through two partner microfinance institutions: Moznosti and Horizonti. The main objective is to develop sustainable financial models and a set of activities to help Macedonian households living in MFABs to reduce their vulnerability to energy price increases and decrease air pollution. Through these activities six financial models were developed that are supporting households to reduce energy consumption by 20-40%. The programme offered loans to HOAs, developing the first such product as a prerequisite to improving energy efficiency in MFABs. Offering this financial model, the door for lending to HOAs was open, and with that more opportunities for energy efficiency upgrades in MFABs. Partnering microfinance institutions developed and delivered loan products for individual houses, covering vulnerable groups and rural areas.
The process in MFABs goes through five steps:
1. Promoting financial opportunity for energy efficiency upgrades among homeowners
2. Facilitating the process of providing consent among homeowners to start retrofitting of MFAB
3. Offering loans to homeowners/HOAs and examining creditworthiness (if loans go directly from Habitat Macedonia) or linking them with microfinance partners
4. Providing loans for energy efficiency upgrades for homeowners using different financial models
5. Monitoring loan repayment and energy efficiency retrofitting, providing technical advice for homeowners when needed.

 

There are strictly defined roles in the process:
Habitat Macedonia: Facilitating homeowners to reach consent and starting with retrofitting; offering different financial models for energy efficiency upgrades; providing retail loans to homeowners, including HOAs; providing technical support to homeowners; involving local governance in the process of energy retrofitting of MFABs and thus providing sustainable mechanisms for upgrades of housing stock.
MFI Horizonti and Moznosti: providing loans for homeowners in individual houses, covering vulnerable groups and homeowners in rural areas.
Private companies: replacement of windows and doors, façade renovations, roofing, technical assistance, energy audits.
Following this programme, annual reductions of CO2 emissions of 3,670 tonnes and annual energy savings of 7,910 MWh have been achieved.

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