Lithuania has made significant strides toward achieving a climate-neutral economy by 2050, with renewable energy (RE) at the heart of this transition. However, while the country continues to expand its RE capacity, some key challenges remain—especially for homeowners in multi-family buildings. A recent study highlights how legal, financial, and informational barriers are slowing the adoption of small-scale renewable energy solutions, despite a growing interest in energy efficiency upgrades.  

The research is part of the SUNRISE project.

Funded by the European Climate Initiative (EUKI), the project is focused on supporting the deployment of solar power installations in multi-family buildings across North Macedonia, Bulgaria, and Lithuania. 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.

Challenges for Multi-Family Buildings

Multi-family buildings make up nearly 50% of Lithuania’s housing stock, presenting a major opportunity for implementing smaller RE solutions like solar water heaters, heat pumps, and rooftop PV systems. 

However, several factors complicate the process: 

• Complex decision-making – Unlike single-family homes, these buildings require approval from multiple owners, making it difficult to reach consensus on energy renovations.
• Regulatory hurdles – Permitting processes can be lengthy and complicated, discouraging homeowners from pursuing RE investments.
• Financial constraints – While homeowners recognize the long-term benefits of RE, many struggle with the high upfront costs and lack awareness of available subsidies or low-interest loans.
• Limited knowledge – Even as general awareness of RE grows, many homeowners lack technical knowledge about system performance, costs, and maintenance.  

What Motivates Homeowners to Invest in Renewable Energy?

Despite these challenges, the research shows that financial benefits are the strongest motivator for RE adoption. Homeowners are primarily interested in lowering their energy bills, reducing environmental impact, and increasing property value. However, the relatively low cost of electricity for shared building needs means that without state support, many remain hesitant to invest.  

Another key finding is the critical role of homeowner association (HOA) leaders in driving change. Targeted training programs can equip HOA chairs with accurate, practical information on financing options, administrative procedures, and technology benefits, enabling them to guide their communities toward informed decisions. 

Accelerating Renewable Energy Adoption in Lithuania

To unlock the full potential of RE in Lithuania’s multi-family buildings, a multi-faceted approach is needed:  

• Simplifying administrative procedures – Reducing bureaucratic barriers and streamlining permitting processes to make RE adoption more accessible.
• Expanding financial support – Increasing grants, subsidies, and low-interest loans to help cover installation costs.
• Enhancing information accessibility – Developing targeted awareness campaigns and training HOA leaders to share RE knowledge effectively.
• Strengthening grid infrastructure – Addressing technical limitations that prevent easy integration of RE solutions into existing energy networks.  

Building a Sustainable Future

Lithuania’s renewable energy adoption depends on proactive policy changes, financial accessibility, and community engagement. 

By removing barriers and providing the right support, the SUNRISE project is building a cleaner, more energy-efficient future. 

As Bulgaria continues to embrace renewable energy (RE) solutions, the differences in financial readiness, awareness, and willingness to invest between neighborhoods highlight the need for tailored approaches to energy transition. A recent assessment of two multifamily residential buildings—one in Zaharna Fabrika and another in Knyazhevo—provides valuable insights into the factors influencing RE adoption and the steps needed to bridge existing gaps.

The research is part of the SUNRISE project.

Funded by the European Climate Initiative (EUKI), the project is focused on supporting the deployment of solar power installations in multi-family buildings across North Macedonia, Bulgaria, and Lithuania. 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.

By overcoming key barriers, SUNRISE is making it easier for communities to embrace cleaner, more sustainable energy solutions.

Understanding the Two Neighborhoods

The study compares two contrasting communities in Bulgaria: Zaharna Fabrika, a lower-income neighborhood with limited completed energy efficiency renovations, and Knyazhevo, a higher-income area with greater investment potential but lingering skepticism toward RE solutions. While both neighborhoods show an interest in RE, their financial and informational barriers require distinct solutions.

Key Challenges Identified

The research identifies key challenges for the adoption of renewable energy (RE) in two neighborhoods: Zaharna Fabrika and Knyazhevo. These challenges include gaps in awareness and information about available financing programs, with Zaharna Fabrika residents particularly uninformed. 

While most households are willing to invest in RE, Knyazhevo residents have a higher investment capacity, while Zaharna Fabrika households need substantial external financial support. Trust issues, complex administrative processes, and skepticism about the benefits of RE also hinder adoption. Additionally, many residents are unaware of the financial benefits of contributing surplus energy to the grid.

Strategies to Accelerate RE Adoption

To accelerate RE adoption, the research recommends several strategies. 

These include targeted awareness campaigns tailored to each neighborhood’s needs, enhanced financial support mechanisms such as grants and preferential loans, and facilitating collective financing through homeowners’ associations (HOAs). 

Simplifying administrative procedures and reducing bureaucratic barriers would also help, along with educating households about energy sales and storage solutions to encourage the efficient use of surplus energy. 

These efforts aim to make RE adoption more accessible and practical for residents, fostering greater participation in sustainable energy solutions.

Moving Forward

The findings from Zaharna Fabrika and Knyazhevo reinforce the importance of targeted, community-specific approaches to RE adoption. Financial incentives, regulatory reforms, and structured information campaigns will play a crucial role in overcoming existing barriers. 

By implementing these strategies, Bulgaria can accelerate its transition to a more sustainable energy future, ensuring equitable access to renewable solutions for all households.

As climate change continues to impact our planet, transitioning to renewable energy sources like solar power (PV) has never been more urgent. Not only do these sources help reduce greenhouse gas emissions, but they also enhance energy independence. 

This is where the SUNRISE project comes in. 

Funded by the European Climate Initiative (EUKI), the project is focused on supporting the deployment of solar power installations in multi-family buildings across North Macedonia, Bulgaria, and Lithuania. 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.

By overcoming key barriers, SUNRISE is making it easier for communities to embrace cleaner, more sustainable energy solutions.

Why Solar Energy?  

Switching to solar power isn’t just good for the environment—it can also help families save money on energy bills and become more energy independent. However, despite its benefits, many people face significant challenges when trying to install solar panels in their apartment buildings. These include:  

• High upfront costs
• Complicated legal and bureaucratic processes
• Lack of clear information and support
• Concerns about maintenance and long-term reliability

The SUNRISE project aims to break down these barriers by promoting plug-in photovoltaic (PV) systems, which are easy to install and require minimal effort from homeowners. It also advocates for net metering, allowing households to sell excess electricity back to the grid—helping them save even more.  

What Have We Learned from the research in North Macedonia

To understand how to best support homeowners, a team of researchers conducted surveys, interviews, and focus groups with residents and homeowner associations in Skopje and Bitola. The findings were both encouraging and eye-opening:  

• People Want Solar Energy – 75% of those surveyed said they were aware of solar power, and 72% would invest in it if financial barriers were reduced.
• Money Is a Major Concern – 68% cited high upfront costs as the biggest challenge, and only 21% felt financially secure enough to make the investment without outside help.
• The Legal Process Is Complicated – 64% of people in apartment buildings said getting approval from all residents was difficult, slowing down the transition to renewable energy.
• Better Information Is Needed – Over half (55%) of participants were unaware of existing financial aid options, like subsidies and low-interest loans.
• Maintenance Worries People – 51% of respondents were hesitant to invest because they were unsure about long-term maintenance and repair costs.  

The Path Forward  

To make solar energy more accessible, the SUNRISE project recommends:  

• Increasing financial support – Expanding subsidies and creating low-interest loans to help with the initial cost.
• Simplifying legal procedures – Making it easier for residents in apartment buildings to install solar systems without excessive paperwork.
• Boosting public awareness – Running information campaigns so people understand how solar energy works and where to get financial support.
• Ensuring long-term maintenance – Setting up reliable services for installation, repairs, and upkeep.  

With the right support, North Macedonia can start helping families reduce energy costs, protect the environment, and achieve greater energy independence.  

The SUNRISE project is working on cleaner, greener future. 

Europe is facing a dual crisis—an escalating housing shortage and a pressing need to reduce carbon emissions. With over 900,000 people homeless each night and 30 million vacant homes across Europe, the paradox is striking: while many struggle without adequate shelter, millions of properties remain unused. At the same time, residential buildings account for 36% of CO₂ emissions and 40% of energy consumption in the EU. 

Zuzana Matloňová, representing Habitat for Humanity International for Europe and the Middle East, recently addressed these urgent challenges at two key events: the Right to Energy Forum and Reclaiming Vacant Spaces to Create Housing Solutions. These gatherings brought together experts dedicated to reshaping Europe’s housing landscape. These events showcased real solutions—solutions that Habitat for Humanity is already driving forward. 
 

At the Right to Energy Forum, organised by Right to Energy Coalition, Zuzana took part in a panel discussion alongside representatives from Justice Ensemble, Housing Europe, and Ecodes, moderated by Lea Segura from Friends of the Earth. Her focus was on How smart, community-driven renovations can lift people out of energy poverty in Central and Eastern Europe (CEE). 

“One of the greatest ironies is that, unlike in Western Europe where renting is more common, most people in CEE own their apartments. However, rather than providing financial security, these homes are often a burden due to high energy costs. Poor insulation, outdated heating systems, and inefficient household appliances leave many families choosing between heating and essentials like food,” she highlights. 

Habitat for Humanity’s EU funded ComAct and ComActivate projects, tackle this crisis with a three-pillar approach: 

1) Technical Solutions – Conducting energy audits and planning cost-effective building upgrades.
2) Financial Support – Identifying the best financial models, from government subsidies to commercial mortgages. 
3) Community Engagement – Encouraging homeowners to work together for large-scale, collective renovations. 

Zuzana also drew connections between these projects and another Habitat initiative: Empty Spaces to Homes, which focuses on transforming vacant buildings into affordable housing. Both projects share the goal of maximizing energy efficiency while respecting planetary boundaries. 
 

The second event, Reclaiming Vacant Spaces to Create Housing Solutions, hosted by FEANTSA, explored innovative ways to repurpose empty spaces into homes. Habitat for Humanity presented a bold vision to bridge the gap between overcrowded living conditions and the millions of vacant properties left unutilized. 

During the roundtable discussion, Habitat-promoted Social Rental Agency model emerged as a promising solution. Successfully implemented in Poland in 2021 by Habitat for Humanity, this initiative allows private homeowners to lease properties to social rental agencies, which refurbish them and rent them out at below-market rates to vulnerable groups. This model proved critical during the Ukraine crisis, providing immediate housing for displaced families. 

Taking it a step further, Habitat’s Empty Spaces to Homes project presents a holistic strategy for transforming vacant spaces. It incorporates: 

- Social Impact – Creating stable, affordable housing for those in need. 
- Financial Viability – Leveraging government incentives and sustainable financial models.
- Environmental Responsibility – Demonstrating how repurposing existing buildings can cut CO₂ emissions by up to 85% compared to new construction. 

Given that the construction sector accounts for 35% of Europe’s total greenhouse gas emissions, Empty Spaces to Homes is also developing carbon footprint assessment methodologies to align with EU sustainability targets. 

While these projects offer practical, scalable solutions, Zuzana emphasized that real change requires more than just technical and financial interventions. Advocacy and public awareness are crucial. As she put it, “We can do many fantastic things in-house, but if we don’t tell the world about it, it is as if it doesn’t exist.” 

Every person can play a role in this movement—whether by supporting policy changes, spreading awareness, or engaging in local initiatives. The fight against energy poverty and housing shortages is about transforming systems to create sustainable, long-term solutions. 
 

With pilot projects already underway, Zuzana and her team at Habitat for Humanity aim to expand these initiatives across Europe and beyond. By blending research, financing, environmental sustainability, and community action, ComActivate and Empty Spaces to Homes are leading the way toward a future where housing is easily accessible as well as energy-efficient and sustainable. 

Europe’s housing and energy crisis is complex, but solutions exist. With coordinated action, innovative models, and a commitment to advocacy, we can turn vacant spaces into homes, lower energy costs, and build a future where no one has to choose between warmth and food. 

Can a transition to a greener economy be just if millions of people still lack access to safe, affordable housing?

As Europe embarks on its ambitious journey toward a climate-neutral future, it risks overlooking one of the most foundational elements of a truly Just Transition: housing. Far more than just shelter, housing underpins economic stability, social equity, and environmental sustainability. Ignoring this critical pillar means leaving behind the very communities most affected by the green transition—workers in transitioning industries, low-income families, and marginalized groups. Unless housing becomes central to the green agenda, the promise of justice in this transition will remain unfulfilled.

When we talk about the EU’s Just Transition policies, it’s easy to applaud the generous funding streams and financial mechanisms aimed at reskilling workers, diversifying economies, and encouraging green investments.

Yet housing—an essential pillar of economic stability, social equity, and environmental resilience—remains largely overlooked.

Without access to affordable homes, workers and families in transitioning regions face significant barriers to stability and inclusion. Energy-inefficient housing compounds these challenges, driving up utility costs and disproportionately affecting low-income households already struggling with the economic effects of the green transition and creating a widening gap between those who can adapt to a greener economy and those left behind. These pressures risk creating a two-tier society where sustainability becomes a privilege rather than a shared benefit.

By integrating housing into Just Transition policies, we can ensure that revitalized regions are not only economically diverse but also socially inclusive, environmentally sustainable, and livable for generations to come.

Affordable and energy-efficient housing is vital to achieving a fair and inclusive Just Transition, particularly in coal-dependent regions where energy poverty is disproportionately high.

Retrofitting homes offers a tangible solution, reducing utility costs for vulnerable families, lowering greenhouse gas emissions, and creating stable, local jobs for displaced coal workers.

In addition to retrofitting homes, rethinking how we use existing resources such as vacant real estate presents another powerful strategy for addressing both housing shortages and climate goals. Across Europe, millions of homes and buildings sit vacant, representing a significant opportunity to address both housing shortages and climate goals.

Affordable housing can be created by converting vacant real estate, a strategy that significantly reduces the embodied carbon emissions of Europe’s building stock—one of the largest contributors to CO2 emissions.

Europe’s housing crisis is not a matter of scarcity but of misaligned priorities.

Across the continent, 38 million homes sit vacant, alongside underutilized industrial spaces and office buildings left empty by the remote work revolution. Projects like ‘Empty Spaces to Homes’ (ESTHer), funded by the Laudes Foundation and led by Habitat for Humanity International, demonstrate what is possible. By retrofitting unused spaces and implementing governance models such as Social Rental Agencies, ESTHer has transformed vacant properties into affordable, energy-efficient homes for vulnerable populations. This approach not only addresses housing shortages but also aligns with climate goals by reducing the reliance on high-emission new construction.

Despite these innovative examples, the scale of these initiatives is by no means sufficient, and housing focus remains largely absent from the EU’s Just Transition framework to the local actions on the ground. The Just Transition Fund, for instance, prioritizes industrial transformation and worker reskilling while providing only limited support for housing initiatives. Yet, housing is a critical enabler of both climate action and social equity.

To truly embody the principles of justice, Europe must elevate housing as a central pillar of its green agenda. A dedicated Housing Commissioner could play a pivotal role in addressing this gap. The Commissioner’s role could be to champion initiatives that prioritize housing in Europe’s journey to meet climate and social equity goals. This includes advocating for sustainable construction practices, prioritizing retrofitting over new construction, and encouraging member states to integrate housing into their Just Transition plans. For coal-phase-out regions, retrofitting projects offer transformative potential—reducing energy poverty while providing employment opportunities for displaced workers. Achieving these goals requires more than funding—it demands governance models that promote long-term sustainability, financial systems that extend beyond temporary subsidies, and a construction industry committed to innovation and responsibility.

Housing must transition from being treated as an afterthought to becoming the missing piece in Europe’s Just Transition agenda puzzle.

This piece is also an effective way to bridge high-level policy frameworks with tangible impacts on affected communities, ensuring a Just Transition that leaves no one behind.

Author: Laura Palencikova, Project Officer, Habitat for Humanity Europe and the Middle East