The IQ Energy program for homeowners associations was launched in April. From now on, Ukrainian homeowners associations can raise a loan for home insulation and get a 40% refund on its repayment. “Economichna Pravda” (EP) tells how to do it.
The EP begins a series of articles on existing energy efficiency programs in Ukraine. How the Ukrainians, ACMHs/condominiums, businesses and utilities get help in implementing their projects – this is what will be discussed in our next materials. Let’s start with “IQ energy” programs funded by European donors.
Under the new IQ program, the associations of co-owners of multifamily houses (ACMHs) can receive 40% compensation of the expenses associated with heat insulation of houses. The corresponding program started in April 2018.
A similar program – partial compensation of the expenses associated with heat insulation of a house – operated for two years for individual homeowners. They were able to get 35% compensation – up to 3 thousand euros. In 2018, it was decided to expand and launch the pilot IQ energy project for ACMHs.
How and wherefore ACMHs can get compensation
Energy Efficiency Financing Program in housing sector of IQ energy for ACMHs provides for compensation of 40% of the loan amount in “OTP Bank”. At present, only this institution gives credits for ACMHs. Money can be obtained for equipment, materials, related products for thermal modernization and for installation works.
“The customer buys these goods for credit, upgrades housing, registers on the site and applies for compensation. This must be completed within four months. At the time of applying, the loan should be outstanding,” Oksana Bulgakova, manager of IQ energy program, explains.
The program website contains a catalogue of energy-efficient goods and technologies that can be purchased and used for thermal upgrading within the program framework.
“Compensation will help to purchase quality materials that meet European standards, and attract contractors who have the appropriate certificates and perform their work qualitatively,” Bulgakova emphasizes.
What is the maximum amount of compensation?
For individuals, the maximum amount of money that can be repaid is 3 thousand euros. There is no such limitation for ACMHs. The IQ energy program compensates 40% of any loan amount for upgrading the multifamily house. The maximum amount of the loan offered to an ACMH is 2 million UAH.
The total budget of the program is 15 million euros. According to Bulgakova, this will be enough to finance projects in 2018 and partly – in 2019.
The program is funded by the Eastern European Energy Efficiency and Environment Fund E5P, the largest contributors of which are the European Union and the Swedish International Development Cooperation Agency – Sida.
Which projects are preferred?
IQ energy program cooperates only with ACMHs, but the organizers promise to offer solutions for other types of associations of co-owners of multifamily houses. At that, participation in the program can take the ACMHs, which work for at least a year. Applications from junior associations will be considered on an individual basis.
“It’s very likely that there will be a refusal, but we will take into account what they want to do. If they work 10-11 months and are ready to make a down payment, then we are ready to consider the application. If the ACMH was created three weeks ago, then it’s yet not time to appeal to the program,” Bulgakova explains.
If the applicant has experience in lending in other banks, and there are documents confirming the implementation of thermal modernization works, this will be an advantage.
Priority areas for financing the IQ energy program – installation of meters, individual heat supply units and integrated insulation of the building from the outside.
Two thirds of the inhabitants of the multifamily house should vote at the meeting for the ACMH participation in the IQ energy thermal upgrading program.
How IQ energy renders assistance when implementing the project
Certified engineers and IQ energy experts consult ACMH free of charge at all stages of project implementation, starting with the meeting of residents and completing with monitoring quality of the works performed.
“We will advise at the stage of decision-making on modernization, we will recommend technical solutions and construction companies. We work with all large companies and suppliers of materials that have the experience of integrated thermal modernization of buildings,” Bulgakova notes.
IQ energy consultants with experience in banking sector will assist in preparing the documentation for a bank loan. Moreover, at least once a week the certified engineering specialist will personally monitor quality of the work performed during the project implementation.
Volodymyr Rykhlitskyi, “Strong Communities” movement
The original article is published by “Economichna Pravda“