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Tax deductions, subsidies and certificates

In Germany for energy-saving projects, loans are available at a 1.6 percent interest rate, and in France at no interest. The loans run for 15 years and are for amounts up to €20,000 and €30,000. This money can be used to install a heat pump and additional insulation – and typically halves the energy consumption. Rather than paying for electricity, one repays the loan. Money and energy are saved.

Another incentive is “white certificates”, where energy companies are obligated to save a certain amount of energy. Rather than achieving the savings themselves, the company can buy certificates which document energy-reduction measures that have been carried out elsewhere – for instance by a housing cooperative that has installed additional insulation or a control system.

White certificates have been introduced in several countries in Europe, though implemented differently. In France the scheme has cut 56 TWh, which is the equivalent of the electricity produced in 16 gas-fired power stations.