Practices

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Energy performance contract for 64 social dwellings in Schiltigheim, France

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On July 8, 2011, ICF Nord-Est signed with SPIE the first energy performance contract with third-party investment in social housing in France.

The Schiltigheim contract consists of several components:

  • Refurbishment works for the classic comfort upgrading of housing and common areas 
  • Energy renovation to achieve a level of guaranteed performance 
  • Energy performance guarantee for the buildings for 19 years, through an operation and maintenance contract 
  • Financing of energy renovations, which are progressively repaid by ICF on condition of achieving the energy performance guarantee

Under current regulations, the Schiltigheim EPC is not, strictly speaking, a mechanism in which the repayment of energy investments is based on energy savings. The EPC can outsource investments that are subject to a deferred payment by the housing company, together with penalties for non-achievement of energy performance. The energy savings recouped from tenants by the housing company finance only a small proportion of the investments.

The Schiltigheim EPC is the result of a study conducted for two years by the ICF group to define the content and modalities of EPC’s in social housing and to implement it on a pilot site. It is a practical example illustrating the reflection carried out at national and European level, and shows the legal and economic feasibility of alternative financing for energy renovation of social housing.

Like any prototype, this first contract needs to be greatly improved, which can only be done through the replication of such EPC projects. ICF has published two documents (available only in French so far) designed to facilitate the spread of EPC’s in social housing: 

  • A guide to the implementation of EPC’s in social housing 
  • 19 propositions of legal evolutions to facilitate the implementation of EPC’s.