Deadline Date: September 16, 2026
The European Commission is inviting proposals to establish and strengthen national collaborative frameworks that accelerate the deployment of renewable and energy-efficient heating and cooling solutions in existing buildings, with a focus on heat pumps and solar thermal systems supported by innovative financing and business models.
The focus areas, objectives, priorities and themes of this initiative include the establishment or adaptation of national collaborative platforms for key stakeholders, the detailed assessment of regulatory and market barriers to alternative business models for heat pumps and solar thermal systems, the modelling and evaluation of policy and non-policy options to overcome identified barriers, the development of improved financing schemes and business models such as leasing and energy-as-a-service, the enhancement of market transparency and consumer decision-making tools, and the strengthening of stakeholder capacity across public authorities, investors, utilities, and supply chain actors to support large-scale renewable heating and cooling deployment.
The initiative is funded under the European Commission’s LIFE Clean Energy Transition subprogramme, with a total budget of €6,500,000 and a 95% co-financing rate under Other Action Grants. It is designed to address persistent structural barriers that limit the uptake of renewable heating and cooling technologies in existing buildings. These include high upfront investment costs, split incentives between building owners and tenants, and regulatory and market constraints that hinder the scaling of service-based and third-party ownership models. National platforms will act as coordination hubs bringing together public authorities, financial institutions, industry actors, utilities, and consumer organisations to jointly assess challenges and design practical solutions.
A core component of the action is the comprehensive assessment of national market conditions, including the current uptake of alternative financing schemes and business models. This baseline analysis will support the modelling of regulatory and non-regulatory interventions aimed at improving market conditions, attracting new economic actors, and enhancing transparency and competition in heating and cooling services.
The project will also strengthen the capacity of public authorities by enabling the use of structured analytical outputs, tools, and stakeholder inputs to inform evidence-based policymaking. In parallel, targeted capacity-building activities will improve knowledge and skills across the value chain, including installers, investors, utilities, and consumer organisations, supporting the delivery of high-quality renewable heating and cooling solutions.
Quantitative impacts will be measured through indicators such as stakeholder participation in national platforms, the uptake of project outputs by public authorities, endorsement of proposed measures, and improvements in stakeholder skills and knowledge. Additional energy and climate indicators will include primary and final energy savings, renewable energy generation, greenhouse gas emission reductions, and investment mobilised in sustainable energy solutions. These impacts will be assessed at project completion and projected over five years after the project ends to demonstrate long-term effectiveness.
By combining coordinated governance, regulatory reform, and innovative financing mechanisms, this initiative supports the European Commission’s broader objectives of decarbonising the building sector, improving energy affordability, and strengthening the resilience of the European energy system.
For more information, visit EC.
