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Successful Sustainable Renovation Business for Single-Family Houses (SuccessFamilies)

  • Published 09/11/2012
There is both a need and a significant business potential for one-stop-shop business models where an overall contractor offers full-service renovation packages including consulting, independent energy audit, renovation work, independent quality control and commissioning, and financing. The renovation market for single-family houses could be in the order of hundreds of million Euros per year in each Nordic country.

The Nordic project “Successful Sustainable Renovation Business for Single-Family Houses (SuccessFamilies)”, with participants from Denmark, Finland, Norway and Sweden, deals with development of business models for full service energy efficient renovation of detached houses in Nordic countries. The project was running from May 2009 to April 2012.

 

The background to this project is that majority of these houses are more than 30 years old and need to be renovated, which provides opportunity for implementation of energy efficiency measures. Technical options exist to realise measures leading to important energy savings.

 

However, the studies conducted during the early stage of the project showed that the renovation market is dominated by handicraft-based individual solutions. There is a need for one-stop-shop business models where an overall contractor offers full-service renovation packages including consulting, independent energy audit, renovation work, independent quality control and commissioning, and financing. There is a significant business potential for such a model as the renovation market for single-family houses could be in the order of hundreds of million Euros per year in each Nordic country.

 

The project team analysed emerging business models to offer full-service renovation packages in the Nordic countries. A comparative assessment of the models shows that different types of actors (renovation company, insulation company, energy utility, building product warehouse) can provide such a service. Financing is included in some models. There are differences in how customers are contacted, while the similarities are more on how the service is provided. A main challenge is how 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. Various options to overcome the barriers to promote energy efficient renovation of detached houses are discussed in the final reports.