1. Bank financing for EE in households (Bulgarian market overview)
EC Joint Research Centre
Marko Markov, Econoler
November 2017
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2. Top 7 Demand Drivers for EE investments in Households (Bulgaria)
DEMAND SIDE DRIVERS
(Individual/ Owner) Payment Capacity
Price of energy
Fiscal Support
"Green Premium" / Brown Discount
Facilitation/ Technical Assistance
Availability of Data
Tailored Financial Product availability

3. how the (successful?) retail ee finance program looks like
Technically simple (usually single technology projects)
Well proven technologies only (simple assessment & measurement procedures)
Easily scalable technologies (market best sellers)
Free of charge TA and investment grant availability 
Easy to be identified by end users and implemented
Make it easier for the bank staff to assess – LEME is best
Banks are aiming at scalability due to high transaction costs/loan amount. Finance EE technology that is in high demand and widely available in the local market.

4. reecl – the spark & the fuel
Started 2005
Joint program of EBRD and Ministry of Energy
Credit mechanism for supporting EE in households
Grant component to facilitate the uptake (TA and investment grant)
Grant money coming from KIDSF (administered by EBRD)

5. reecl – the spark & the fuel
Implementation through local partner banks (currently UBB and Piraeus Bank)
Now in the third round of the program (almost all major Bulgarian banks took part in the previous windows)
The program (round 3) closes on December 31st 2018
Energy class B+ or higher should be achieved

6. reecl – how it works Project preparations: LEME and LESI
Obtain technical and pricing offer from eligible contractor/installer
Approach partner bank and submit loan application
Bank experts review the application for REECL eligibility / borrower credibility
Upon implementation of the EE measures – application for grant payment (up to 4 months after the loan agreement date)

7. reecl – grant size
Up to 10% of the investment amount or loan amount (whichever smaller) for single/two family houses
Up to 20% for multifamily building units
Up to EUR 5,000 for individual borrowers
Up to EUR 200,000 for companies
Up to EUR 50,000 cumulatively for rehab. of a single house
Up to EUR 1 million for projects in single multi-apartment building

8. reecl results (as of 2016) 53,000 households financed
Loans for over EUR 83 million extended
Average project size ~ EUR 1,600
Grants for EUR 20,2 million distributed
283,000 MWh annual savings
GHG emissions reduction: 247 tCO2 equivalent annually

9. PIRAEUS BANK Loan for apartment in an multi-unit building:
Up to EUR 20,000 maximum loan amount
Up to 10 years loan term
Loan interest: 7.35% p.a. (Sofibor + margin)
Loan collateral: not required
Investment grant: up to 20% of loan amount
Integrated building level EE project must be in place (min. 3 apartments in a building must commit to implement the project. Not necessary all of them to get financing from the bank)

10. PIRAEUS BANK Loan for single family house:
Up to EUR 20,000 without collateral / Up to EUR 50,000 when collateralized by mortgage
Up to 10 years unsecured / Up to 35 years with mortgage
Loan interest: 7.35% p.a. (unsecured) / 3.44% (mortgage) – floating rate based on Sofix+margin
Investment grant: up to 10% of loan amount
Houses under construction are also eligible

11. UNITED BULGARIAN BANK (KBC group)
Up to EUR 25,000 loan amount
Up to 5 years for loans up to EUR 5,000 and Up to 10 years for loans up to EUR 25,000
Loan interest: 7.50% p.a. (fixed)
Investment grant: up to 20% of loan amount

12. desireE gas program
Joint EBRD – Ministry of Energy project for accelerated gasification (started 2016, EBRD is administrator)
Aiming to facilitate fuel switch in 10,000 households (carbon intensive  natural gas)
Free TA services available for beneficiaries to facilitate the application process
Up to 20% investment grant available
Grant component provided by KIDSF

13. desireE gas program
Two leading local banks supporting the program: FIB and Societe Generale Expressbank
Fixed interest rate of 6,3% p.a. offered
No collateral required
Up to 10 years loan tenor (12 months grace period)
No loan management fees applicable
The DESIREE GAS loans are only complementary to the program. Grant can be accessed by beneficiaries using own funds or other financing sources.

14. Energy Efficiency Financing Specialist
Thank You!
Marko Markov
Energy Efficiency Financing Specialist
Econoler