Report on the application of the "Q-SpliT" tool in assessing split incentives for rural energy renovations: RENOVERTY project

Energy poverty remains a persistent and multifaceted challenge across Europe, with rural areas characterised by distinct and often overlooked vulnerabilities. In this context, rural citizens face particular challenges, including lower household incomes, ageing and inefficient housing stock, and limited policy attention. These challenges are especially notable in Central and Eastern Europe (CEE), South-Eastern Europe (SEE), and Southern Europe (SE), where exposure to energy poverty is widespread.

In response, the RENOVERTY project aims to promote energy-efficient building upgrades in these regions by establishing a methodological and practical framework for developing renovation roadmaps in vulnerable rural districts- ensuring that these are both financially viable and socially just. To achieve this, RENOVERTY is collaborating with stakeholders across the rural energy efficiency renovation value chain in several pilot regions throughout the EU- Sveta Nedelja (Croatia), Tartu (Estonia), Bükk-Mak & Somló-Marcalmente-Bakonyalja Leader (Hungary), Zasavje (Slovenia), Parma (Italy), Coimbra (Portugal), and Osona (Spain).

Although rental properties are more common in urban areas, consultations with RENOVERTY pilot partners revealed a significant presence of private rented dwellings in several RENOVERTY rural regions, particularly Osona (Spain), Zasavje (Slovenia), and Tartu (Estonia). Renovating such properties poses additional challenges due to the well-known “split incentives” issue, where landlords bear the costs of upgrades while tenants benefit from reduced energy bills and increased comfort. To address this, the “Q-SpliT” (Quantification of Split Incentives) tool, originally developed under the Horizon 2020 ENPOR project, has been adapted within RENOVERTY, in order to assess how renovation costs and benefits can be fairly distributed, providing evidence to guide equitable financing mechanisms and policy design for rural private rented housing.

This report presents insights from the application of the “Q-SpliT” tool in the three relevant RENOVERTY pilot regions. The findings serve as a valuable input towards the finalisation of the project’s Rural Energy Efficiency Roadmaps, by quantifying split incentives associated with priority renovation measures and, thus, supporting the development of socially just, financially viable renovation solutions tailored to the needs of rural households in the investigated contexts.