Financing building energy renovation through public, private, and crowdfunding schemes: evidence from Greece, Cyprus, and Croatia

Peer-reviewed paper 3-102-26

Investment in energy efficiency and deep renovation of buildings in the European Union continues to be constrained by limited access to financing. Although Member States have introduced a range of support schemes and financial institutions have expanded offer of renovation-related products, financing arrangements remain fragmented and insufficient. This paper presents a comparative analysis of financing instruments for building energy efficiency and deep renovation in Greece, Cyprus, and Croatia, using a common methodological framework.

The analysis covers public financing schemes, including grants, subsidies, and tax incentives, alongside private and market-based instruments such as loans, green mortgages, energy performance contracting, and equity-related mechanisms. Particular attention is given to their structure, targeting, and combination in practice, including the use of hybrid public–private financing schemes. The findings indicate that financing instruments are largely implemented in isolation, with limited coordination between public support and private finance.

Based on the mapping results, the paper examines crowdfunding as a complementary financing option within renovation financing frameworks. Different crowdfunding business models are analysed, including donation-based, reward-based, lending-based, and equity-based approaches, with respect to their potential application to building renovation. The analysis assesses how these models differ in terms of capital mobilisation, risk allocation, investor involvement, and compatibility with public support schemes and conventional bank finance. The paper concludes by discussing the conditions under which crowdfunding models may be integrated into hybrid financing schemes for building energy renovation and the limitations and regulatory considerations associated with their use.