FAQs

Because we spend more than 90% of our time inside buildings, the quality of our buildings and of the indoor environment have a big impact on our daily lives. This is most starkly illustrated when we look at the statistics about energy poverty. A large proportion of households in energy poverty are living in buildings that are in poor condition and the occupants are more likely to suffer from chronic illnesses as a result. Apart from that, as the building gets older and less effective, the bills increase and we are paying more each month for worse living conditions.

Comprehensive energy renovation is the sustainable answer to energy poverty. Building renovation ensures reduced energy consumption of the household, better temperature control inside the house, and better living conditions. In addition, it is a smart decision for your future – it will increase the value of an apartment by 20-30%.

The comprehensive renovation is a renovation that looks at the entire building, improving its main systems and making it more efficient in terms of energy consumption. Instead of just renovating the facade or fixing the insulation, the comprehensive renovation gives a new life to the building.

The Energy Performance Contract (EPC) is an agreement between the ESCO (the energy service companies) and the building owners with which the renovation is financed using energy savings that will be generated once the renovation is completed.

F3 has created a unique EPC+ template, which includes additional necessary health and safety measures, because we believe deep renovation ensures longevity for buildings, delivers more energy savings and provides a safer and healthier environment. We would be happy to speak to any Service Provider and construction companies looking to implement renovation services.

The ESCO (Energy Service Company) is a natural or legal person that delivers energy services and/or other energy efficiency improvement measures in a user’s facility or premises, and accepts some degree of financial risk in doing so. Payment of provided services (in total or partially) is based on reached energy efficiency improvements and fulfillment of other criteria agreed upon regarding these targets.

The Service Provider has an important role in the comprehensive renovation of buildings, as he:

• • • guarantees a certain level of energy savings in a building, certain indoor and water temperature, qualitative construction work and its regular maintenance throughout the duration of the contract;
    • will assess the efficiency opportunity, purchase equipment necessary to improve performance, and install the equipment.

The EPC+ has been created by F3 including additional necessary health and safety measures and a longer-term.

An EPC might last 5 years and promise energy savings, which are guaranteed during the 5 years that the contract lasts. The EPC+ lasts 20 years, and, apart from the energy savings, also guarantees safety, health, and comfort during all the duration of the contract.

For the EPC+ to be possible, F3 provides forfaiting through the BEEFs, so that the residents can pay for the renovation during the 20 years, resulting in smaller parcels, covered mostly by the energy savings that resulted from the renovation.

Any renovation involves big investments. Typically an ESCO obtains a short-term loan from a bank to cover the expenses, and the loan is paid back when the owners pay for the renovation. However, the investment is high also for the owners, and it might be very heavy to pay back for all the renovation on the short-term. The Forfaiting is a solution to guarantee that the owners can make the payment during a longer period of time (20 years), but the ESCO is still able to return the initial short-term loan. At the same time, the fact that the contract is now longer (20 years) guarantees also the results for 20 years.

When we forfait an EPC+, it means that our fund (a BEEF) buys the ESCOs future incomes. In other words, we pay the ESCO part of the money which renovated home owners will pay over the life of the contract. The ESCO can then repay the bank for its working capital loan used to implement renovation projects. The rest of the money due to them will be paid as we receive the monthly payments from the residents (now make directly to the Fund), and the ESCO continues maintaining the building quality through all the contract period.

We forfait the EPC+ after one or two heating seasons, because we first need to make sure that the building has achieved the savings, quality and received the measures promised by ESCO.

Forfaiting is a great solution for both the ESCO and the owners. We are able to offer it because we have investors who look for long-term investments that have a positive impact in society and on the building sector, and therefore are interested in investing in our BEEFS.

The Energy Efficiency is a simplified way of offering the whole package: an EPC+ contract with one of the Service providers that partner with us, the forfaiting of the EPC+, guaranteed results and easy payment.

We are the first performance based financing instrument for multifamily building renovation, and therefore we have managed to gain significant expertise in this field.