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Green homes & mortgages: quality, health and financial returns for all
why do we not have green homes?
Energy Efficiency & Green Energy Loca8on -‐ Community Sustainable & Healthy Materials Indoor Air Quality Bio-‐Clima8c Design Other Green Design Principles
how do we finance our homes?
can I afford the monthly
payments?
there is one “best” 8me to invest in building
correctly
not over financed but under financed
we ra8onal
long term benefits à immediate benefits
monthly investment à monthly benefits
finance
responsible borrowing
versus
poor construction
mortgage payment
energy costs health costs repair costs
32% ↓ mortgage defaults &
8% higher asset values
=
NET SAVINGS WITH GREEN MORTGAGES
EPC “B” rated apartment
EPC “A” rated apartment
Green Homes qualified apartment
Sale price of 70 sqm apartment
98,000
100,100
104,300
Loan amount 83,300
85,085 88,655
Monthly mortgage payment 580 593 578
Addi8on or reduc8on to monthly mortgage payment compared to “B” apartment
0
13
-‐2
Cost of energy/apartment/month 101 65 33 Total cost of ownership 681 658 611 Net monthly savings: payment difference + energy savings compared to “B “ apartment
0
23
70
Net annual savings for Green Mortgage Qualified versus “B“ apartment
0
276
840
• 15 projects including 4.600 apartments or villas cer8fied or in process
• Cluj-‐Napoca, Iasi, Bucharest, Brasov
“Changing Finance, Financing Change” Workshop
“Changing Finance, Financing Change” Workshop
Luca Bertalot – European Mortgage Federa8on
Energy Efficiency Financial Ins8tu8ons Group
DG Energy
Energy Efficiency & Green Energy Loca8on -‐ Community Sustainable & Healthy Materials Indoor Air Quality Bio-‐Clima8c Design Construc8on Site & Property Management Other Green Design Principles
procedure
• pre-‐cer8fica8on review • pre-‐cer8fica8on scorecard • cer8fica8on • monitoring
Amber Gardens by alesonor - Tunari
One Herastrau Park by One United Properties
Vision by Studium Green – Cluj
Floreasca1 by 1development - Bucharest
Casa Solaris - Voluntari
Lake View by American Eco Homes – Iasi
EFdeN 4C by EFdeN - Bucharest
RoGBC.org – “Projects” – Green Homes
renova8ons
• re-‐weigh8ng of criteria • safety, structural considera8ons • cer8fica8on costs may need to be re-‐adjusted if projects are smaller
• perhaps a logical place for state support
property tax reduc8ons for green buildings effec8ve policy for deep renova8ons
what is it property tax reduc8ons 50%, 35%, 20% for…
buildings with an ‘A’ on the EPC and green
building ra8ng with an interna8onal standard
benefits mul8ple ra8ng tools are supported
the na8onal EPC is supported
efficient use of European funds
benefits flexible -‐ allow to build a business case
s8mulus, investors move first
increases transparency and compliance
creates jobs, innova8on
what is next?
road show – BUILD UPON
inter-‐ministerial support
interna8onal collabora8on
moving forward
• suitable home ra8ng tool + EPC • ensure financial value from cer8fica8on is explicit and monitored
• engage mortgage underwriters about risk • real estate appraisals / valua8ons • engage insurance companies • raise awareness of total monthly cost of home buyer is cri8cal
moving forward
• Na8onal (Central) banks recogni8on of energy savings as addi8onal income
• encourage your banks to par8cipate in the European Commission’s “Energy Efficiency – Financial Ins8tu8ons Group” – study of risk reduc8on
• “sor launch” for poten8al partner banks
COSTS AND SAVINGS OF ENERGY EFFICIENT MEASURES
EPC “B”
EPC “A”
Green Homes
ConstrucAon parameters Increase in construc8on cost from green measures(%)
0%
5%
15%
Construc8on cost (€/sqm) 600 630
690
Addi8onal construc8on cost from green measures(€/sqm) 0 30 90 Total addi8onal construc8on cost from green measures for home 0 2,100 6,30 0
Energy consumpAon (kWh/sqm/year) Energy consump8on for hea8ng
117
70
50
Energy consump8on for domes8c hot water 35 15 15 Energy consump8on for air condi8oning 35 20 10 Energy consump8on for ven8la8on 10 5 5 Energy consump8on for ligh8ng 49 40 10
Total energy consump8on for apartment
246 150 90
COSTS AND SAVINGS OF ENERGY EFFICIENT MEASURES
EPC “B”
EPC “A” Green Homes
Cost of energy Average price of electricity (€/kWh incl. VAT)
0.12
0.12
0.12
Average price of gas (€/kWh incl. VAT) 0.04 0.04
0.04
Annual cost for hea8ng energy (€/sqm/year) 4.89 2.93 2.09 Annual cost for domes8c hot water (€/sqm/year) 1.46 0.63 0.63 Annual cost with air condi8oning (€/sqm/year) 4.11 2.35 1.17 Annual cost for ven8la8on (€/sqm/year) 1.17 0.59 0.59 Annual cost for ligh8ng (€/sqm/year) 5.75 4.70 1.17 Total annual cost of energy (€/sqm/year) 17.40 11.19 5.65 Total annual cost of energy for 70 sqm apartment (€) 1,217.72 783.18 395.79 Average monthly cost of energy for 70 sqm apartment (€) 101.48 65.27 32.98 Energy cost reducAons Average monthly energy savings rela8ve to “B” apartment
0.00
36.21
68.49
MORTGAGE RATE CALCULATION EPC “B”
EPC “A” Green Homes
Size of apartment (sqm)
70
70
70
Price of apartment 98,000 100,100 104,300 Percent of down payment 15% 15% 15% Down payment 14,700 15,015 15,645 Interest (€) 5.5% 5.5% 4.7% Repayment period (years) 20 20 20 Loan value 83,300 85,085 88,655 Yearly payment 6,965 7,120 6,934 Monthly payment
580 593 578
