February 2025: North Macedonia

The SUNRISE project, funded under the European Climate Initiative (EUKI), is a strategic initiative aimed at accelerating the adoption of renewable energy solutions, particularly solar energy, in multi-family residential buildings across North Macedonia. Running from 01.11.2022 to 30.04.2025, the project is led by Initiative for Housing in Eastern Europe (IWO) in partnership with Habitat Bulgaria, Lithuanian Consumers Alliance (LCA), Habitat for Humanity International (HFHI), German Solar Energy Company (DGS), and Habitat Macedonia.

The project's primary goal is to eliminate barriers preventing households in multi-family residential buildings from adopting renewable energy, focusing on solar energy. Key tools for achieving this include the promotion of plug-in photovoltaic (PV) systems and the introduction of net metering for annual energy production and consumption. This aligns with the EU’s climate goals, specifically a 55% reduction in greenhouse gas emissions by 2030 and carbon neutrality by 2050. In light of rising energy prices, the project is especially relevant in promoting renewable energy solutions at the household level.

The project also aims to assess the needs and demands of homeowner associations (HOAs) in North Macedonia for implementing small-scale renewable energy measures, to understand financial barriers, and identify key challenges and support mechanisms. ITM Consulting, contracted for this assessment, conducted surveys, interviews, and focus groups with HOA representatives from October to December 2024. The findings highlight significant potential for renewable energy adoption, albeit constrained by high upfront costs, lack of information, and fragmented support systems.

The assessment reveals that financial support, public education, and streamlined legal processes are key to overcoming these barriers. The recommended strategies include increasing public awareness, simplifying legal frameworks, enhancing financial incentives, and ensuring long-term maintenance support. These measures will facilitate a nationwide shift towards sustainable, renewable energy solutions, promoting energy independence and reducing greenhouse gas emissions in North Macedonia.

Read more: SUNRISE Project: Needs assessment of homeowner associations (HOAs) and homeowners for implementation of smaller RE measures in North Macedonia

February 2025: Bulgaria

This report presents the key findings, conclusions, and recommendations based on the assessment of awareness, financial readiness, and willingness of households from two multifamily residential buildings to invest in renewable energy (RE) solutions. The buildings are situated two different neighbourhoods. Zaharna Fabrika a neighbourhood with lower-income households and fewer completed energy efficiency renovations, exhibits greater financial constraints and a stronger need for external financial support. In contrast, Knyazhevo, characterized by higher-income residents and more advanced energy efficiency measures, demonstrates higher investment potential but still faces barriers related to financial planning and skepticism. The assessment is based on survey responses and focus group discussions, highlighting the financial barriers, information deficits, and preferred financing mechanisms for RE adoption.

Key Findings

• Awareness and Information Gaps: A significant portion of respondents lack knowledge about available financing programs and RE solutions, particularly in Zaharna Fabrika. Knyazhevo respondents exhibit higher awareness but still require detailed financial projections.

• Financial Readiness and Investment Willingness: Most households are prepared to invest in RE, with the majority willing to allocate between 501 - 1000 BGN. Higher investment thresholds are observed in Knyazhevo, while Zaharna Fabrika exhibits financial constraints, requiring external financial support.

• Preferred Financing Models: Respondents favor a combination of grants, preferential loans, and flexible financing mechanisms. HOA-led collective loans have strong support, particularly in Zaharna Fabrika, as they reduce individual financial burdens and provide structured access to RE financing.

• Barriers to RE Implementation: Key obstacles include lack of trust among neighbors, unclear benefit-sharing mechanisms, skepticism regarding RE benefits, and administrative complexities.

• Potential for Excess Energy Utilization: Households express strong willingness to contribute surplus energy to the grid, but many are unaware of the potential for financial returns through energy sales or storage solutions.

Read more: SUNRISE Project: Needs assessment of homeowner associations (HOAs) and homeowners for implementation of smaller RE measures in Bulgaria

March 2025: Lithuania

Lithuania has committed and already made significant progress in achieving a climate-neutral economy by 2050, with a strong emphasis on transitioning to renewable energy sources (RES). However, the study highlights some legal and regulatory barriers hindering more rapid and large-scale implementation of renewable energy measures in Lithuania.

Multi-family buildings, representing almost 50% of dwellings in Lithuania, present both opportunities and challenges for implementing smaller RE measures. Most of these buildings need energy renovations creating a need for energy-efficiency upgrades and smaller RE solutions like solar water heaters or heat pumps. However, decision-making for energy renovations in multi-family buildings is complicated while reaching consensus among multiple owners and navigating legal requirements can be challenging.

Lithuanian homeowners may have existing and future demands for smaller RE measures, driven by the desire for lower energy bills, reduced environmental impact, and increased property value. Factors deterring homeowners from adopting RE include economic factors, lack of accessible information, and policy and regulatory challenges. Upfront costs associated with renewable energy technologies can be prohibitive, and there is a lack of awareness regarding potential financial incentives and subsidies. Complex permitting processes and grid infrastructure limitations further complicate project implementation.

Interview results indicate that while general awareness of RES is growing, specific knowledge of technologies, technical parameters, and cost-effectiveness is lacking. Targeted information and training are needed, particularly for HOA chairs, who can then disseminate information to homeowners. Financial benefits are the primary motivator for homeowners to invest in RES, especially reducing energy costs. However, the relatively low cost of electricity for general building needs can make it difficult to convince residents of the value of such investments without state support. State support is crucial but must be easily accessible with a simple procedure.

Addressing these challenges requires a comprehensive approach involving grid infrastructure improvements, streamlined administrative procedures, clear and consistent policies, and effective communication and collaboration among stakeholders.

Read more: SUNRISE Project: Needs assessment of homeowner associations (HOAs) and homeowners for implementation of smaller RE measures in Lithuania

This project is part of the European Climate Initiative (EUKI). EUKI is a project funding instrument of the German Federal Ministry for Economic Affairs and Climate Protection (BMWK). The EUKI competition for project ideas is run by the German Society for International Cooperation (GIZ). The overall objective of EUKI is to promote climate cooperation within the European Union (EU) in order to reduce greenhouse gas emissions. www.euki.de/en