How does it work?

Currently, Energiesprong works with the social housing sector to create initial volume to get first solutions developed in the UK. A housing company finances an Energiesprong retrofit (or new build) by combining savings on energy cost from tenants and on repairs and maintenance. 

The objective is that tenants have the same monthly expenses. The housing association can now add this new income stream to pay for the retrofit.

Tenants pay the housing association an energy service plan (similar to a phone bundle) with an allowance for a guaranteed indoor temperature, plus an allowance for hot water per day and a power bundle for light and appliances.

 

Because the Energiesprong standard guarantees the energy performance of the house and is a real life performance instead of a theoretical measure, the housing association can calculate how much the alternative would cost when the tenant would have to purchase this comfort level through the energy supplier. The housing association can now set the energy plan according to that rate (or under it if it chooses to).

Because the housing companies’ new combined budget needs to cover the total cost of ownership over 30 or 40 years, it drives solution providers not only to lower costs upfront and improve quality, but also to focus on lifetime costs.