The launch of the “Household Savings” program will be at the end of June

A program with a budget of 200 million euros

The launch of “Household Savings” program will be at the end of June

NAFTEMPORIKI.GR WEDNESDAY, MARCH 17, 2010 13:10 LAST UPDATE: 17/03/2010 16:22

Source: http://www.naftemporiki.gr/news/cstory.asp?id=1790845 The launch – and the submission of applications – of the program “Household Savings” is expected at the end of June, as the Minister of Environment, Energy and Climate Change Tina Birmpili announced today at a press conference. According to the Minister, the announcement of the Program will be made as soon as some legal procedures are completed. The program, with a budget of 200 million euros, provides subsidies for energy-saving interventions in homes through: a) loans with interest rate subsidies b) direct 30% subsidy of the eligible budget c) 100% subsidy of the energy inspection costs and a deduction from taxable income of up to 2,500 euros (doubling the tax reduction). The Program will be funded by EPAN II and resources from the CIP. It includes two subprograms: Subprogram A: Homeowners will be able to submit a proposal for loans with interest rate subsidies if their individual declared income does not exceed 30,000 or their family declared income does not exceed 50,000. Subprogram B: Homeowners will be able to submit a proposal for a direct subsidy of 30% of the eligible budget if their individual declared income does not exceed 15,000 or their family declared income does not exceed 25,000. In the case of owners of an apartment building participating as a single building, the income limitations of Subprogram A will apply. The entire Program will be administered by the contracting banks, which will bear the cost of administration, and a coordination role will be on TEMPME A prerequisite for participation in the Program is the carrying out of an energy inspection and the maximum eligible budget cannot exceed 15,000 euros. Eligible residences are single-family houses, apartment buildings (if they are the main residence for 50% of the owners) and individual apartments under conditions relating to the heating system, which are used as the main residence. All houses must have a building permit before 1/1/1980 and be located in an area with a zone price equal to or less than 1,500 euros/sq.m. The subsidy rate is 30% of the eligible budget. The subsidized works include: thermal insulation of the rooftop, roof and shell, replacement of the burner or boiler with a new oil-burning or natural gas boiler, installation of window frames with double glazed panes, insulation of pipes, sunshades, solar water heaters, etc. As it was explained, the 100% subsidy of the cost of the energy inspection (1 euro per square meter) concerns the proposals that will be included in the program, while the level of interest rates will result from the negotiations with the banks and the competition between them. The interest rate subsidy from YPEKA amounts to 5%, resulting in a final interest rate close to 1%. As was also noted, there are no filing fees and for any applications that are rejected, the owners will not be asked to pay anything to the banks. According to the Minister of Environment, the “Household Savings” program will ensure new jobs, energy savings and a reduction in heating costs. The benefit for the consumer is estimated at 1,600 euros per year, while upon completion of the interventions it is estimated that the energy consumption will be reduced by 60%. In detail, following is the process of implementation of the Program 1. After the announcement of the Program, the potential beneficiary invites an energy inspector to carry out an energy inspection to determine the energy category of the house, the proposed interventions for upgrading it by at least one category, the savings that will be achieved per proposed intervention and the corresponding cost per intervention. 2. Submission of an application accompanied by the necessary supporting documents to a contracting bank. In the case of an apartment building, all applications must be submitted to the same branch. Expenditure relating to works to be carried out after the certificate has been issued is eligible. 3. Receipt of applications by the bank / Check of supporting documents of the file / Check of eligibility of the application based on the criteria. 4. After the end of the application submissions date, evaluation and ranking based on the energy saving to intervention cost criterion / Issuance of a Decision approving the applications / Notification of the approval to the contracting bank / Informing the Beneficiary. 5. Implementation of works. 6. 2nd energy inspection / Issuance of a second certificate / Audit of the energy upgrade of the house / Certification of the physical and financial scope of the project. 7. For those who are included in the Sub-Program A (interest rate subsidy), the loan disbursement starts upon the approval decision. To complete the disbursement, the beneficiary submits: a) the documents proving the expenditure, and b) the second energy inspection certificate and the implementation of the project is certified by an administrative audit. For those who are included in Sub-Program B (direct subsidy), for the payment of the subsidy, the beneficiary submits: a) the documents proving the expenditure, and b) the second energy inspection certificate and the implementation of the project is certified by an administrative audit. 8. Sample check of the implementation of the physical object by the Special Service of Energy Inspectors (E.Y.EP.EN.) of YPEKA. 9. Audit/supervision by TEMPME of payment procedures. ND: The funding of the program is reduced by 50% “It took 5 months for the government to admit that there were ready funding sources for the “Household Savings” program,” noted the responsible sector heads of the New Democracy party Kyriakos Mitsotakis and Kostis Chatzidakis, noting that the government finally used the NSRF, as was the plan of the New Democracy government. As they point out, the program, as presented today, has four main differences compared to the program presented last July: a) It is reduced by 50% in its funding compared to the amount of 400 million euros that the ND government had foreseen b) It reduces the intensity of aid through the NSRF, making the program less attractive for citizens c) It adds the income criterion to the criterion of the zone price for the eligibility of buildings, which, as they stress, especially in the case of apartment buildings, makes the program not only bureaucratic, but also unfair, d) It does not use the ΚΕΠ for the submission of participation applications to the program, something that would help the citizens substantially. Also, it is noted, that the tax incentives presented seem extremely vague and weak. In conclusion, the representatives of the opposition call on the government to increase the budget of the program, as “by cutting it in half, the program becomes less efficient and less useful both to society and to the construction sector that is affected by the crisis”. “By following the method of over-commitment, which they finally decided to follow, they can use 400 million euros. As long as they do not keep the NSRF funds “on hold” for projects that will not ultimately be carried out, while there may be immediate performance projects”, Mr. Mitsotakis and Mr. Chatzidakis point out.