New Covenant Case Study: the LEMON project in Reggio Emilia

Funded under the Horizon 2020 programme, the LEMON Project provides technical assistance to public and private organisations for the energy retrofitting of 622 social housing units in the provinces of Reggio Emilia and Parma.

In the Reggio Emilia province, almost half of the building stock was built before the 1960s, which has deep consequences on energy consumption. At the scale of the thousands of dwellings managed the social Housing Companies (ACERs), it represents a huge potential for energy savings and CO₂ reduction.

The LEMON Projects aims at helping condominiums owners reach a C in the EU energy labelling scheme. To do so, it relies on 2 innovative financing schemes:

• Energy Performance Contract (EPC), which is an agreement between beneficiary and supplier guarantying the latter to be repaid through the savings generated by increased energy efficiency of the housing, ensuring a return on investment within 15 years
• The Energy Performance Tenancy Agreement (EPTA), which is a lease with the rent reflecting the improvements made to the housing and the consequent reduction in energy costs.

Tenants also play a role in the process, as they are also responsible for energy savings. They are therefore provided with a manual and advice on energy savings through awareness campaigns of the project.

By the end of the project in January 2020, LEMON is expected to mobilise €15 million of investment in energy retrofitting and is aiming to reach 5.74 GWh/year primary energy savings, meaning a yearly reduction of 1,159 tons of CO2 emissions.

Read the full Case Study in English and Italian.