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Business models for full service energy renovation of single-family houses in Nordic countries

Author

Listed:
  • Mahapatra, Krushna
  • Gustavsson, Leif
  • Haavik, Trond
  • Aabrekk, Synnøve
  • Svendsen, Svend
  • Vanhoutteghem, Lies
  • Paiho, Satu
  • Ala-Juusela, Mia

Abstract

In Nordic countries significant primary energy saving potential exists in houses built before 1980. These old houses need to be renovated, which provides an opportunity for implementation of energy efficiency measures. However, there are several economic and market hindrances and the renovation markets are dominated by handicraft-based individual solutions. In this paper we have analyzed the opportunities for implementation of one-stop-shop business models where an overall contractor offers full-service renovation packages including consulting, independent energy audit, renovation work, follow-up (independent quality control and commissioning) and financing. A comparative assessment of emerging business models in the Nordic countries shows that different types of actors can provide such a service. Financing is included in some models. There are differences in how customers are contacted, while the similarities are on how the service is provided. 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 hindrances to promote energy efficient renovation of detached houses are discussed.

Suggested Citation

  • Mahapatra, Krushna & Gustavsson, Leif & Haavik, Trond & Aabrekk, Synnøve & Svendsen, Svend & Vanhoutteghem, Lies & Paiho, Satu & Ala-Juusela, Mia, 2013. "Business models for full service energy renovation of single-family houses in Nordic countries," Applied Energy, Elsevier, vol. 112(C), pages 1558-1565.
    • Handle: RePEc:eee:appene:v:112:y:2013:i:c:p:1558-1565
    DOI: 10.1016/j.apenergy.2013.01.010
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    References listed on IDEAS

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    Cited by:

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    2. Paiho, Satu & Reda, Francesco, 2016. "Towards next generation district heating in Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 915-924.
    3. Rolando Biere-Arenas & Silvia Spairani-Berrio & Yolanda Spairani-Berrio & Carlos Marmolejo-Duarte, 2021. "One-Stop-Shops for Energy Renovation of Dwellings in Europe—Approach to the Factors That Determine Success and Future Lines of Action," Sustainability, MDPI, vol. 13(22), pages 1-24, November.
    4. Wang, Xiaotong & Lu, Meijun & Mao, Wei & Ouyang, Jinlong & Zhou, Bo & Yang, Yunkai, 2015. "Improving benefit-cost analysis to overcome financing difficulties in promoting energy-efficient renovation of existing residential buildings in China," Applied Energy, Elsevier, vol. 141(C), pages 119-130.
    5. Paolo Bertoldi & Marina Economidou & Valentina Palermo & Benigna Boza‐Kiss & Valeria Todeschi, 2021. "How to finance energy renovation of residential buildings: Review of current and emerging financing instruments in the EU," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(1), January.
    6. Minyoung Kwon & Erwin Mlecnik & Vincent Gruis, 2021. "Business Model Development for Temporary Home Renovation Consultancy Centres: Experiences from European Pop-Ups," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    7. Brange, Lisa & Lauenburg, Patrick & Sernhed, Kerstin & Thern, Marcus, 2017. "Bottlenecks in district heating networks and how to eliminate them – A simulation and cost study," Energy, Elsevier, vol. 137(C), pages 607-616.
    8. Kangas, Hanna-Liisa & Lazarevic, David & Kivimaa, Paula, 2018. "Technical skills, disinterest and non-functional regulation: Barriers to building energy efficiency in Finland viewed by energy service companies," Energy Policy, Elsevier, vol. 114(C), pages 63-76.
    9. Balcombe, Paul & Rigby, Dan & Azapagic, Adisa, 2014. "Investigating the importance of motivations and barriers related to microgeneration uptake in the UK," Applied Energy, Elsevier, vol. 130(C), pages 403-418.
    10. Wilson, C. & Pettifor, H. & Chryssochoidis, G., 2018. "Quantitative modelling of why and how homeowners decide to renovate energy efficiently," Applied Energy, Elsevier, vol. 212(C), pages 1333-1344.
    11. Murto, Pekka & Jalas, Mikko & Juntunen, Jouni & Hyysalo, Sampsa, 2019. "The difficult process of adopting a comprehensive energy retrofit in housing companies: Barriers posed by nascent markets and complicated calculability," Energy Policy, Elsevier, vol. 132(C), pages 955-964.
    12. Mainali, Brijesh & Mahapatra, Krushna & Pardalis, Georgios, 2021. "Strategies for deep renovation market of detached houses," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    13. Miguel Macias Sequeira & João Pedro Gouveia, 2022. "A Sequential Multi-Staged Approach for Developing Digital One-Stop Shops to Support Energy Renovations of Residential Buildings," Energies, MDPI, vol. 15(15), pages 1-27, July.
    14. Pardalis, Georgios & Talmar, Madis & Keskin, Duygu, 2021. "To be or not to be: The organizational conditions for launching one-stop-shops for energy related renovations," Energy Policy, Elsevier, vol. 159(C).
    15. Benedikt Maciosek & Mehdi Farsi & Sylvain Weber & Martin Jakob, 2022. "Impact of complexity and experience on energy investment decisions for residential buildings," IRENE Working Papers 22-07, IRENE Institute of Economic Research.
    16. Brown, Donal & Sorrell, Steve & Kivimaa, Paula, 2019. "Worth the risk? An evaluation of alternative finance mechanisms for residential retrofit," Energy Policy, Elsevier, vol. 128(C), pages 418-430.
    17. Murto, P. & Jalas, M. & Juntunen, J. & Hyysalo, S., 2019. "Devices and strategies: An analysis of managing complexity in energy retrofit projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    18. Bertoldi, Paolo & Boza-Kiss, Benigna, 2017. "Analysis of barriers and drivers for the development of the ESCO markets in Europe," Energy Policy, Elsevier, vol. 107(C), pages 345-355.
    19. Donal Brown & Paula Kivimaa & Steve Sorrell, 2018. "How Can Intermediaries Promote Business Model Innovation: The Case of ‘Energiesprong’ Whole-House Retrofits in the United Kingdom (UK) and the Netherlands," SPRU Working Paper Series 2018-19, SPRU - Science Policy Research Unit, University of Sussex Business School.
    20. Klöckner, Christian A. & Nayum, Alim, 2017. "Psychological and structural facilitators and barriers to energy upgrades of the privately owned building stock," Energy, Elsevier, vol. 140(P1), pages 1005-1017.

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