Published on: April 30, 2025
Challenges to the Established Financing Model
For over a decade, the renovation wave in Bulgaria has depended on 100% grants through the National Renovation Program. In 2023, the grant intensity was reduced to 80% for the final phase. Between 2012 and 2024, only 162 multifamily buildings in Plovdiv city and region were renovated under national programs. At the current pace—less than 1% of buildings renovated over a decade—achieving energy efficiency targets and modernizing the residential stock remains a major challenge. Furthermore, over-reliance on public funding discourages private investment and creates a dependency that undermines the long-term sustainability of renovation initiatives.
European and National Policies for Decarbonizing the Residential Building Stock
The revised Directive (EU) 2024/1275 on the energy performance of buildings sets new, ambitious requirements. Member States, including Bulgaria, are mandated to develop national renovation plans, outlining specific policies and measures to unlock the full potential of building stock decarbonization.
A Path Toward Accelerated Home Renovation
Meaningful progress can only be achieved by restructuring existing financial instruments and transitioning to blended financing models. This includes the creation of flexible co-financing mechanisms, guarantee schemes, and stronger collaboration between the public and private sectors. This in turn will also encourage broader involvement of businesses and the development of new business models.
The Key Role of The Banking Sector and the Need to Raise Awareness
Whole-building renovation projects, particularly those initiated by homeowner associations, have the potential to benefit from both national grant schemes and dedicated credit products, as demonstrated in several European countries. However, in Bulgaria, banks traditionally assess risk based on individual credit histories and primarily offer consumer loans tailored to single clients—an approach that does not align with the scale, complexity, and collective benefits of whole-building renovation efforts.
To unlock financial support, it is essential to translate the technical ambition of such projects into financial and risk-related terms that resonate with lenders. Fully renovated buildings demonstrate significantly enhanced technical performance, leading to greater energy savings and long-term financial benefits compared to individually renovated dwellings. Furthermore, ambitious projects that integrate advanced measures and require higher upfront investments may initially be perceived as riskier by lenders; however, they often deliver superior long-term value through energy savings and enhanced asset performance—advantages that are further secured when supported by risk mitigation tools such as performance guarantees, public co-financing schemes, or insurance mechanisms.
MultiHome Service Hub: A Platform for Dialogue
MultiHome provides a trusted platform for dialogue among citizens, public authorities, businesses, and financial organizations. Coordinated by the Energy Agency of Plovdiv and supported by all 18 municipalities in the region, MultiHome offers centralized access to technical expertise, trusted suppliers, free consultations, monitoring, and packaged renovation solutions for owners of both single-family and multifamily buildings.
Constructive dialogue among all stakeholders, combined with a focus on clear, sequential actions to raise awareness and overcome barriers to financing residential renovations, will foster the adoption of innovative approaches and facilitate the achievement of sustainable solutions.
Teodora Marinova
Managing Director of Quadro Synergy Ltd.
E. office@quadrosynergy.eu
W. https://quadrosynergy.eu