infinitesolutions: financing energy transition in cities

Stuttgart, Germany

Stuttgart dream team: developing ‘care-free energy renovation package’ for private home owners

Despite the municipal energy subsidies and technical assistance offered by the local energy advice centre, the annual energy refurbishment rate of the residential sector in Stuttgart stagnates between 1 % and 2 %. The objective of the city is to raise this rate up to 3 % by 2020 and to go, on a voluntary basis, beyond the European Energy Efficiency Directive objectives and scope.

In this context, the city of Stuttgart is developing a tailor-made contracting support service for private house owners. This city will offer an all-round care-free package for those owners who decide to carry out energy renovation of their homes.
In general, the contracting service includes one or all parts of the following services: planning, building and construction, operation and operational optimization, financing, guarantee and risk assumption. Depending on the composition, the service results into different business models.

In Stuttgart, the draft business model is based on the traditional energy performance contracting including the refurbishment of building envelope. Both are offered with an energy-saving guarantee and can be extended to energy supply. The service shall be paid by the contractors or home owners. In all cases the house owners can finance part of the services.

All legal questions were analysed by lawyers and integrated into a model contract. This model contract can be used to create individual contracts for final beneficiaries of the scheme. The final business model will be agreed with possible providers. At this stage, further discussions need to be carried out.

The public contracting support service is being implemented by a strong core team: the municipality, the independent municipal energy advice centre and the municipal energy service company (esco) - Stadtwerke Stuttgart - which are all intensively engaged with innovative services for private households.

Useful materials

Stuttgart at a glance Stuttgart (Germany) is the sixth-largest city in Germany, with a population of 587,655. In the framework of the INFINITE SOLUTIONS project, the city of Stuttgart will capitalise on its experience with intracting and create a financial engineering support service for the owners of residential buildings who wish to refurbish their homes according to high energy efficiency standards.

The city, in cooperation with the private sector, will create a financing framework facilitating energy performance contracting market and mobilising private financing.
The aim of the city is to facilitate EPC market and enable private contracting for integral deep refurbishments - including not only improvements in building equipment as heating, ventilation air conditioning or lighting systems but also building envelop insulations.
Who is implementing the soft loan financing scheme in Stuttgart? Core team
How is the financing scheme implemented? Local Study / Market Study / Business Model

Partners1 2
Who backs the scheme at the political level? City Council Decision on the establishment of the financing scheme
Training materials Presentation on Stuttgart’s scheme
Local communication / marketing tools for the scheme beneficiaries Information sheet (in German)
Infinite Solutions Leaflet in German Infinite Solutions Leaflet in German

Städte und Regionen: Beschleunigen Sie Ihre Energiewende dank innovativer Finanzierungsprogramme!

Download: PDF - 2.6 Mb

More information about Stuttgart

Financing Energy Transition in Cities

Intelligent Energy Europe
Co-funded by the Intelligent Energy Europe
Programme of the European Union

With the support of ADEME

Caisse des Dépôts
With the support of Caisse des Dépôts

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