10.07.2015   SonSolar

Contextual framework: encouraging use of RES by policies in relation to the energy performance method

The search into policies in relation to the energy performance method that can encourage the use of RES has resulted in a collection of existing and non-existing policies. Three types of policy instruments have been distinguished: regulatory instruments, financial policy instruments and information policies. Policies for both new dwellings and existing dwellings have been searched for. Figure 7 presents existing and new examples of regulatory policies that could be combined with energy performance regulations for new buildings and/or energy performance methods for existing buildings in order to encourage the use of RES[28].

Options RES regulations

in EP policy

Policy instrument

Pro’s

Con’s

Examples

RES obligation when exceeding energy performance standard

No change in design freedom, while adding extra possibilities for RES

Violation of standards is being accepted (contradictorily signal)?

Finnish energy performance regulations (2003)

Obligation for percentage RES in EP calculation

Guaranteed increase in share of RES applied in buildings

Less design freedom

Barcelona Ordinance on Application of Solar Thermal Energy Systems into the Buildings (2000)

Obligation for application RES technique:

1. Combine PV with cooling system

2. Obligatory solar thermal systems for soc. housing

Electricity demand & supply come together

Guaranteed cumulative production possibilities for innovative RES technique

Additional administrative control?

This is an example of using government monopoly

Preliminary idea Italy

Intention in Denmark in 2001, prevented by new government in 2002

Energy performance standards building site

More RES options will be available to consider when considering the scale of a building site.

More design freedom is offered when considering the scale of a building site.

Administration costs will increase since more complicated design control will occur.

Tolerance of non-compliance can increase since building control will be more complicated

Energy Performance of a building site (EPI) (The Netherlands, voluntary information policy)

Exemption of the obligation to perform energy performance calculations if the share of RES is more than a certain percentage of the total energy consumption (70%, in German EnEv)

Saving time and money because mandatory EP calculations do not have to be executed, though this is not a very strong pro as some calculations have to be performed anyway to check the energy concept.

Too little benefits for applicant

Energieeinsparverordnung (EnEv), November 2001 Germany

Figure 7 Regulatory instruments in relation to energy performance regulations that could encourage the use of RES

Financial incentives are used quite often by governments to encourage energy saving or use of RES. Financial incentives can have two directions. One is to impose levies or taxes to prevent undesired behaviour or to compensate for environmental costs and the second is to encourage desired behaviour by providing subsidies or tax exemptions. In an ideal situation these two types of financial incentives are in balance with each other: costs of RES subsidies are paid by revenues from taxes or levies on the consumption of non renewable energy. In The Netherlands, a levy had been imposed on energy use of
households of which revenues are used for subsidies for e. g. solar collectors and photovoltaic panels. Financial incentives are often part of schemes that function separate from energy regulations. Administrative procedures can be complex and can discourage the use of e. g. subsidies. It seems therefore interesting to see what financial RES incentives can be thought of in combination with the energy performance regulations that will have to be implemented according to the EPBD. Figure 8 presents a number of existing examples and new ideas[29]. Since the Build-On-RES objective is to encourage the use of RES, here mainly positive financial incentives such as subsidies or tax exemptions are discussed.

Options financial RES incentives in EP policy

Policy instrument

Pro’s

Con’s

Examples

Subsidy for perfor-mance better than standard

1. Subsidy for better EP performance

Encourage more energy saving than regulated while offering same amount of design freedom (with expectation of more RES application)

Subsidy expenditure needs to be covered, by tax (preferably from same subject)

1. EPR-2002 (The Netherlands) (not existing at this moment — mid 2004)

2. Subsidy for better RES performance

Encourage use of RES while offering same amount of design freedom

Subsidy expenditure needs to be covered, by tax (preferably from same subject)

Subsidy for RES equipment automatically connected to submitting Energy Performance calculation to Building Control

Administrative procedures can be more efficient

Subsidy application will be facilitated, thus encouraging use of RES

Subsidy expenditure needs to be covered, preferably by tax from same subject

No examples available

Cheaper (mortgage) loan when using more:

1. Sustainable options

2. RES

A relation with building mortgage can be strong financial incentive (new buildings)

A relation with building mortgage can be strong financial incentive (new buildings)

If not directly related to EP calculation, more effort will be needed from architect/ developer, which will prevent for applying

1. Green Mortgage (The Netherlands)

Land price policies: e. g. imposing (RES) conditions when selling land for housing development

Land possession is one of few means of power of (municipal) governmental institutions that can be used to fulfil (municipal) green ambitions

Power of governmental institutions may be limited due to juridical reasons when imposing regulations more sever than national law

Reduced Energy Tax for energy consumption of ‘home-produced’ RES

Direct relation between consumption and production.

Administrative control needed

Progressive taxation of non­renewable energy consumption

The application of RES becomes more attractive for large scale consumers of fossil fuels

• Control needed

• A certain basic amount of energy should be taxed at a low rate to avoid that poor people can’t afford energy

Figure 8 Financial RES incentives in relation to energy performance regulations that could encourage the use of RES

Information policies use a rather limited amount of force but try to convince parties just by providing information about the benefits of certain behaviour. Information policies are often considered to be tools that are additional to other policy instruments such as regulations or financial incentives. However, in case of situations where parties are in principle willing to change behaviour but where they do not have the knowledge about what behaviour is best, information policies can be an effective means. Figure 9 presents a number of existing examples and new ideas[30].

Options RES information policies in EP policy

Poficv instrument

Pro’s

Con’s

Examples

RES label

A RES label can be a marketing instrument/ selling argument

In a tense housing market, a RES label will possibly be a relatively unimportant argument

"Solar dwelling label" (The Netherlands, 2003)

RES potential analysis

A RES analysis can provide insight in possible RES options and pay-back times, thus hoping to encourage choosing for RES

Providing RES options and pay-back times can be a too weak instrument for changing behaviour

No example available in the field of housing (in NL available for municipalities and industries, though)

Contribution of RES visible as part of an Energy Performance calculation

Makes RES more visible as part of the energy performance of a dwelling.

Without any obligations

EPA (The Netherlands since 2000)

PITH — Pilot Tailoring Households (The Netherlands, planned to be launched in January 2004)

Covenant between stakeholders on the application of RES in existing dwelling stock of housing companies

Less informal than only informing target groups

Clear targets can be set

Success dependent on willingness of stakeholders

Large number of possible stakeholders, so it is hard to get them all involved

BANS Netherlands

Figure 9 RES information policies in relation to energy performance regulations that could encourage the use of RES

1. Conclusions

The Build-on-RES project has aimed to develop the methodological and contextual framework for the maximum incorporation of RES in an Energy Performance Policy both for new and for existing residential buildings. The methodological framework for a RES oriented Energy Performance (EP) Building Code presents approaches that are available to encourage the use of RES within the calculation of the energy performance of a residential building. An overview of existing approaches in EU member states for calculating the contribution of RES techniques has been presented. An overview of features of these calculation principles allows for comparing their characteristics. The contextual framework for a RES oriented EP Building Code describes the possibilities for encouragement of RES in the context of the introduction of energy performance policies. Combinations in terms of policies encouraging the use of RES and energy performance regulations have been presented. Policies distinguished are regulatory policies, financial incentives and information policies. A number of possible combinations of stimulating RES policies with energy performance regulations that do not yet exist are mentioned. By means of listing pro’s and con’s of the different options possible, it is possible to compare approaches. The contextual and methodological framework for a RES oriented Energy Performance Building Code hopes to provide the essential information for (re)designing energy performance regulations in such way that a maximum encouragement for RES can be provided when implementing energy performance regulations.

Acknowledgements

The results were gathered in the framework of an Altener project and based on the work done in the Build-On-RES project. The authors want to thank the following persons for their co-operation and contributions in the Build-On-RES project: Claudia Boon (OTB Research Institute, The Netherlands) Roel De Coninck (3E, Belgium) Bart Poel and Gerelle van Cruchten (EBM Consult, The Netherlands), Linda Sheridan and Michelle Foster (University of Liverpool, United Kingdom) and Carol Buscarlet (CSTB, France). More information about the Build-On-RES results can be found at www. buildonres. org