Building renovations Heat pump subsidy and call for exemplary renovation projects

A.   Subsidy to install collective heat pumps to replace boiler rooms

Context

 Against the background of a hike in energy prices on the European market and in a bid to meet the targets for reducing the Principality’s greenhouse gas emissions by 2030, the Prince’s Government is keen to accelerate the replacement of boilers and collective domestic hot water systems.

The transition to low-carbon energy is often held back by the cost of the investment required to replace equipment, a significant one-off expense, while the additional cost of carbon-based fuels is spread out over time. It is for this reason that assistance is being offered in the form of a subsidy to help with the cost of surveys and buying the equipment needed to switch over to a heat pump.

Compared with electric radiators, heat pumps offer many advantages: they are more energy-efficient, so they emit fewer greenhouse gases and are less expensive to run and, if the pipes and radiators are replaced with fan coil units, they can be used to provide collective heating and air conditioning.

The initiative to conduct energy audits for buildings, which was launched in 2018 has shown that replacing boiler rooms with a heat pump is an option in the vast majority of cases. This can be part of a wider renovation project to improve the building’s energy efficiency and thus reduce its energy requirements. For this reason, the heat pump subsidy is linked to the call for exemplary building renovation projects.

 Scheme

To encourage co-owned buildings to install heat pumps. a subsidy covering 30% of the cost of the equipment and the surveys required to complete the work is available.

However, the replacement of heating and/or hot water supply equipment is a good opportunity to think about the power of the equipment and work on the building envelope (windows, walls, roof) that could help to reduce the power required and, consequently, reduce the investment and operating costs.

Consequently, to ensure a comprehensive approach, the heat pump subsidy is conditional on the support of a Sustainable Mediterranean Buildings of Monaco (BD2M) coach. The cost of this service is fully covered (capped at €5,000).

For full details of the initiative and a list of BD2M coaches, see: https://transition-energetique.gouv.mc/BD2M

The coach will use the conclusions of the building energy audit to reduce the power of the new equipment to a minimum, by suggesting (or not) associated building envelope works (replacement of single glazing, external thermal insulation, etc.), and will be responsible for drafting the applications for the relevant subsidies.

 The cost of the service and environmental programme delivered by the coach, which will combine technical proposals and costings, including potential subsidies, will be fully covered by the subsidy (capped at €5,000).

To encourage co-owned buildings to carry out the associated works, the proposed rate for the heat pump subsidy is flexible:

• 30% of the cost of the equipment and required surveys for installation of a heat pump only;
• an additional 5% payment is available for a heat pump that also supplies domestic hot water;
• and a bonus payment of 20% of the subsidised cost of the heat pump if associated works are carried out to improve energy efficiency beyond what is required by the regulations (replacing woodwork, wall insulation, etc.) and/or if innovative technology is used (wastewater heat pump, geothermal, etc.).

Two caps are envisaged, depending on the size of the co-owned building:

-  €4,000 per apartment for small co-owned buildings (fewer than 20 apartments);

-  €1,000 per apartment for other buildings.

These caps will be adapted to ensure consistency with any additional payments (+5%) and bonuses (+20%).

If innovative technology is used, a cap of €4,000 per apartment is available regardless of the size of the building. Innovative heat pumps that use wastewater, groundwater or geothermal energy are the most efficient, but require significant investment (circular heat exchanger, probes, etc.). Thanks to the subsidy, they will be as competitive as less efficient but cheaper solutions (air-air heat pumps); the latter are not covered by the subsidy.

The scheme only applies to buildings outside the scope of the ocean thermal energy loops, or with proof from the concession holder that it is technically not feasible to connect the building to the loop.

Timeframe: Subsidy payments will be made by no later than 30 September 2024, on the basis of invoices.

Procedures:

The following may apply for this assistance:

-  The property owner in their own name

-  The authorised representative of jointly owned properties where there are a number of joint             owners

-  The legal entity which owns the building

-  Entire co-ownership groups, which may comprise private or public owners, via the managing             agent or representative, where there is no legally established managing agent

Eligible buildings must:

-  Be located within Monaco

-  Be a residential, tertiary or mixed-use building

-  Have had an energy audit carried out

-  Be subject to renovation not demolition/rebuilding

For assistance in drafting and submitting applications for this heat pump subsidy, contact: transition-energetique@gouv.mc / +377 98 98 47 59

Case studies:

In co-owned building X, which has 58 apartments, the transition away from gas would result in a reduction of 32 tonnes of CO₂ equivalent for an estimated investment cost of €110,000, then annual savings of €11,600 on energy bills (using the gas price that applied in winter 2021–2022), giving a nine-year return on investment. The subsidy for installing a heat pump on its own would be €33,000, reducing the return on investment for owners to 6.5 years.

In co-owned building Y, which has 60 apartments, the transition away from gas would result in a reduction of 69 tonnes of CO₂ equivalent for an estimated investment cost of €150,000, then annual savings of €8,700 on energy bills (using the gas price that applied in winter 2021–2022), giving a 17-year return on investment. The subsidy for installing a heat pump on its own would be €50,000, reducing the return on investment for owners to 12 years.

Obtaining and completing the form

To obtain a subsidy application form, you can:

Download the application form for the HEAT PUMP PROGRAMME subsidy

Collating the documents 

The application must include the following documents:

-  A spreadsheet setting out the key administrative data for the project. The template can be downloaded here: Summary spreadsheet for heat pump data

-  The subsidy application form

-  The invoices, certified as having been paid, for the environmental programme, surveys and work

-  The applicant’s bank details

-  The environmental programme put together by the coach

-  Authorisation from the Technical Commission for Hygiene, Security and Environmental Protection to change the building’s energy generation system

Supporting document for the applicant:

 -  A certificate of ownership or copy of a mandate (where acting as a representative)

 -  In the case of co-owned apartment buildings, a copy of the decision of the General Meeting agreeing the work and appointing the authorised representative for the co-owners.

B.  Call for exemplary renovation projects 

Principle and conditions

Assistance may be granted to help property owners and co-owned apartment buildings carry out energy transition projects.

The aim is to accelerate the comprehensive renovation of buildings as part of a BD2M approach   focused on:

• Improving quality of life
• Guaranteeing optimal comfort for users in summer and winter
• Reducing greenhouse gas emissions including by making use of eco-friendly materials or greening
• Reducing energy bills by making use of renewable energy
• Etc.

 The following may apply for this assistance:

• The property owner in their own name
• An agent for undivided joint ownership, in the case of multiple ownership
• A legal entity as owner
• The entire condominium, which may be made up of private or public owners, through its managing agent, or its representative, in the absence of a condominium managing agent

The assistance is spread out over a minimum of three years and can be combined with the other subsidies available for built heritage

 Three sequential subsidies are available in line with project phases and environmental standards:

1. A subsidy for the development of a BD2M environmental renovation programme* 
2. A subsidy for environmental studies of the work and, finally
3. A subsidy for a package of work

Aid is granted, in principle, on the basis of an application file.

 In total, the budget for the call for exemplary renovation projects has been established to cover the following:

• Full support for 50 initial programmes up to a cap of €5,000, including taxes
• 75% support for 40 selected applications for environmental studies, with a cap of €54,000 including taxes and
• 9 winners who will receive a subsidy for work which may be up to 50% of the cost of the work, including:
  • 8 winners in the category covering buildings with surface areas of between 1,000 and 10,000 m²
  • 1 winner in the category covering large buildings (over 10,000 m²)

 Eligible buildings must:

• Be located within Monaco 
• Have been completed before 1990 (delivery date before 01/01/1990) and have a corrected floor area of over 1,000 m² 
• Be a residential, tertiary or mixed-use building 
• Have had an energy audit carried out 
• Be subject to renovation not demolition/rebuilding
• Incorporate a Mediterranean Sustainable Buildings of Monaco (BD2M) approach, and
• Achieve a 50% reduction in greenhouse gas emissions

 Buildings which are being renovated and having an upward extension added are eligible to apply for this call for projects, but they will be subjected to a special scoring grid. Greenhouse gas reductions will need to compare the renovated building and the upward extension to the existing building.

Details of how to obtain this assistance, which is being coordinated by the Mission for Energy Transition, are available in the specifications which can be downloaded here: Specifications for Exemplary Renovation Projects

For the Programme and Study subsidies, the schedule of windows for the submission and review of applications can be viewed below:

For Work subsidies, the schedule for submitting design studies and BD2M design committee meeting dates can be viewed below:

Obtaining and completing the form

To obtain the forms for requesting the subsidy, you can download them below:

 Formulaire de demande de subvention PROGRAMME
 Formulaire de demande de subvention ETUDE
 Formulaire de demande de subvention TRAVAUX

Collating the documents

1 - For the programme and environmental study subsidies

The application must include the following documents:

• A spreadsheet setting out the key administrative data for the project The template can be downloaded here:  Tableur récapitulatif des données du projet "nom du projet"
• The subsidy application form
• Supporting document for the applicant:
  • A certificate of ownership or a copy of power of attorney in the case of representation by a proxy
  • For condominiums, a copy of the proceedings of the general meeting at which the work was approved, mentioning the agent appointed to represent the co-owners
• The invoice, certified as having been paid, for the environmental programme
• The applicant’s bank account details
• A commitment to appoint a coach if the project is awarded a study subsidy, the quote for the coach’s work and the environmental studies required to obtain the level of ambition sought. This should be broken down by phase, study/completion/use, and include payment schedules
• The environmental programme
• Project presentation sheet. The template can be downloaded here:  Fiche de présentation du 'nom du projet'

2 - For The BD2M work subsidy

The application must include the following documents:

- The updated spreadsheet setting out the key administrative data for the project
- The subsidy application form
- The commitment to appoint a coach for the implementation and use phase if the project is awarded the work subsidy
- The UPDATED summary presentation sheet including the following information:
- The draft design document to be presented to the BD2M design committee
- The report of the information/awareness meeting held with residents to present the project’s goals 
- The completed BD2M design committee PowerPoint template
- An A3 visual presentation of the project showing the environmental challenges and suitable for sharing with the general public

Submitting the application for requesting the subsidy

The subsidy application must be submitted to the Mission for Energy Transition:transition-energetique@gouv.mc

Payment of the aid is subject to approval of this file.

* The environmental programme supplements the energy audit and will enable applicants to understand issues relating to comfort in summer, space planning and management of maintenance, among others. It offers an opportunity to propose environmental, health and community actions based on the strengths and weaknesses of the building (layout issues, technical issues, etc.).