Financing the Energy Transition in Dutch Co-owners Associations

Abstract

Buildings owned and managed by Dutch co-owners associations are a big part of the national housing stock and play an important role in achieving energy and climate targets. Yet, many struggle to finance energy renovations. This thesis asks: How can co-owners associations in the Netherlands overcome financial barriers to their energy transition with the support of public-private financial models?
In order to answer the main research question, four subquestions are created. The first sub-question clarifies the demand side by mapping the financial barriers. The most significant barriers for co-owners associations are high up-front costs, difficult collection of funds, and lack of sufficient funding. The second sub-question, also done by desk research, defines available financial models for Dutch co-owners associations. In the Netherlands, we have public and private financial resources. Across these models, the key differentiators are who pays the investment costs upfront, how costs are recovered, and how savings or revenues flow back. The allocation of risk also differs. After the sub-questions that involve desk research, the third sub-question involves a first round of semi-structured interviews with homeowners association board members and Dutch financing experts. The outputs are used to create a financial instrument framework. This framework is intended to support co-owners associations in selecting a financing route for deep energy renovation. The framework consists of four sequential steps: (1) Project and barrier profile, (2) Finance-ready dossier, (3) Selection of financial instruments, and (4) calculate and compare net monthly impact. The last sub-question validates the framework model by a second round of interviews with the homeowners association board members and financial experts. The feedback is implemented and used to refine the framework.
This qualitative, multi-method design delivers five outputs: (a) Overview of barriers (b) and opportunities for co-owners associations, (c) a list of design requirements from the board members to provide financing models, and (d) a financing instrument framework that structures decision-making and documentation for financing deep renovations (e) policy recommendations resulting from the synthesis of the analytical and empirical research. The main output is a practical framework that supports co-owners associations to compare relevant public and private instruments, understand their eligibility and data requirements, and structure a finance-ready dossier. In doing so, the framework reduces the risk of missing requirements and supports associations in making informed funding decisions for their energy transition. For policymakers, the findings are translated into actionable guidelines aligned with the Homeowners Association Acceleration Agenda. For financial experts, the framework and finance-ready dossier concept improves communication with co-owners associations.