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Deliverable 3.2 Report on business models for one-stop-shop service for sustainable renovation of single family house: Report prepared for Nordic Innovation Centre
Mid Sweden University, Faculty of Science, Technology and Media, Department of Engineering and Sustainable Development. (Ecotechnology)
Mid Sweden University, Faculty of Science, Technology and Media, Department of Engineering and Sustainable Development. (Ecotechnology)
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2011 (English)Report (Other academic)
Abstract [en]

The aim of the report is to analyze and develop one-stop-shop business models to offer fullservicerenovation packages in the Nordic countries. The report will contribute to identifypotential models that can be tested in pilot studies and will be an important source of marketinformation for companies planning to develop a one-stop-shop concept.In Nordic countries significant primary energy efficiency potential exists in houses builtbefore 1980. These houses are more than 30 years old and need to be renovated. This providesan opportunity for implementation of energy efficiency measures, but the renovation market isdominated by handicraft-based individual solutions. There is a need for one-stop-shopbusiness models where an overall contractor offers full-service renovation packages includingconsulting, independent energy audit, renovation work, follow-up (independent qualitycontrol and commissioning) and financing. There is a significant business potential for such amodel as the renovation market for single-family houses could be in the order of hundreds ofmillion Euros per year in each Nordic country. Homeowners will get an improved qualityrenovated house with little risk or responsibility which usually is the case with traditionalrenovations, the energy cost will be reduced, market value of the house is likely to increase,mortgage banks will have a safer asset and there are societal benefits in terms of reducedenergy use and greenhouse gas emission. However, there is uncertainty over who will beresponsible for guarantee of the renovation work if the service provider goes bankrupt.Insurance companies could be involved to address this issue.A comparative assessment of models proposed in the Nordic countries shows that differenttype of actors may play the key role in a one-stop-shop for energy efficient renovation ofsingle-family houses. In some models the service provider collaborates with financinginstitutions to provide renovation financing. There are differences on how customers arecontacted, while the similarities are more on how the service is provided. A main challenge ishow to secure independent advising.Even though there is strong business potential for one-stop-shop energy renovation concept,still it has been somewhat difficult to start or run such a business. One of the main reasons isthe uncertainties about the customer base. One way to attract more customers is to offersubsidies for energy efficiency measures. In Denmark, Sweden and Finland there are taxdeductions for labour cost for home renovation and other household work. An amendment tosuch programs to incorporate specific requirements regarding energy efficiency ofimplemented measures could be a way to increase homeowners’ interest in energy efficientrenovation. A guarantee on energy or energy cost saving may encourage energy efficientrenovation of houses as energy cost saving is one of the most important factors in thehomeowners’ decision to implement energy efficiency measures. At present it is less likelythat such guarantee will be given as the full service energy renovation concept is yet to betested and not enough experience exists regarding energy savings potential in the context ofvarying household energy behaviour. Highlighting the energy (e.g. cost reduction) and nonenergybenefits (improved thermal comfort or indoor air quality) of energy efficiencyimprovements may create customer interest in energy efficient renovations. Some of theexisting models include financing by the service providers in collaboration with financinginstitutions. To support the mortgage financing of energy efficiency renovations, governmentcould provide soft loans or subsidies to cover the investment cost beyond the mortgage (base)loan.

Place, publisher, year, edition, pages
2011. , 25 p.
National Category
Environmental Sciences
Identifiers
URN: urn:nbn:se:miun:diva-17904OAI: oai:DiVA.org:miun-17904DiVA: diva2:578738
Projects
Successful Sustainable Renovation Business for Single-Family Houses - SuccessFamilies
Available from: 2012-12-18 Created: 2012-12-18 Last updated: 2012-12-19Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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