Combination with capital rebate for financial instruments in energy efficiency

This factsheet provides practical guidance on how financial instruments can be combined with capital rebates to support energy efficiency investments, with a particular focus on residential and public buildings. Prepared under the fi-compass Scale Up initiative, it responds to the need to accelerate energy efficiency renovations across the EU by addressing regulatory, operational and market challenges faced by managing authorities, national promotional banks and financial intermediaries when blending loans, guarantees and performance-based grants.

The document explains how capital rebates can be designed as results-driven incentives, converting part of a loan into non-repayable support once predefined energy performance criteria are met. It walks readers through the key stages of setting up such combined instruments — from programming and ex-ante assessment to product design, governance, market testing, implementation and monitoring. Drawing on concrete examples from several Member States, the factsheet highlights how capital rebates can improve project bankability, reduce financing gaps and encourage deeper, higher-quality energy efficiency renovations.

Aimed at policymakers and practitioners involved in EU shared-management funds, this factsheet serves as a hands-on reference for implementing compliant and effective energy efficiency financial instruments under the 2021–2027 Common Provisions Regulation. It offers operational options, practical examples and model provisions for funding agreements, helping programmes maximise impact, mobilise private investment and contribute to EU climate and energy objectives in a transparent and measurable way.