Search

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 background to this project is that the majority of these houses are more than 30 years old and need to be renovated, which provides opportunity for implementation of energy efficiency measures. The renovation market is dominated by handicraft-based individual solutions. There is a need for onestop-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 volume of renovation market for single-family houses can reach 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 shows that different types of actors (renovation company, insulation company, energy utility, building product warehouse) can provide such a service. 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 report.

In Nordic countries significant primary energy efficiency 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 barriers and the renovation market are dominated by handicraft-based individual solutions. In this project we analyze 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 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 and there is there is uncertainty over who will be responsible for guarantee of the renovation work if the service provider goes bankrupt. 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.

existing single-family houses in the Nordic countries are to have competitive power compared to new buildings on the future housing market. Good technical solutions exist but need to be combined based on the full range of (standard) solutions in order to reach the low primary energy level of new houses. A one-stop-shop in the form of a full-service concept could be seen as a possibility to make it easy for the homeowner to comply with possible future requirements to realize far-reaching energy savings in connection with extensive renovations, provided that the building sector offers the solutions. Such one-stop-shops in the form of full-service providers of energy efficient renovation of single-family house are missing in the Nordic countries, although this service is vital to open up the market. As part of the Nordic research project `SuccesFamilies´ with the purpose to change the business environment in order to speed up the implementation of sustainable renovation of single-family houses –a sustainable renovation concept suitable for different categories of single-family houses with regard to type and age has been proposed in this article. The sustainable renovation concept includes an ideal full-service concept and technical renovation solutions targeted to different types of single-family houses.

In Nordic countries significant primary energy efficiency potential exists in houses built before 1980. These houses are more than 30 years old and need to be renovated. This provides an opportunity for implementation of energy efficiency measures, but 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, follow-up (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. Homeowners will get an improved quality renovated house with little risk or responsibility which usually is the case with traditional renovations, 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 reduced energy use and greenhouse gas emission. However, there is uncertainty over who will be responsible for guarantee of the renovation work if the service provider goes bankrupt. Insurance companies could be involved to address this issue. The aim of the report is to analyze and develop one-stop-shop business models to offer full-service renovation packages in the Nordic countries. The report will contribute to identify potential models that can be tested in pilot studies and will be an important source of market information for companies planning to develop a one-stop-shop concept. A comparative assessment of models proposed in the Nordic countries shows that different type of actors may play the key role in a one-stop-shop for energy efficient renovation of single-family houses. In some models the service provider collaborates with financing institutions to provide renovation financing. The

Single family houses represent the biggest potential for energy savings within residential buildingsin the Nordic countries. In earlier research project [1] it highlighted that there is a missing linkbetween the single family house owner and various segregated offers of single solutions forrenovation and/or energy efficiency installations. In the two international research projectsSuccessFamiles and One Stop Shop, establishment of new business models as pilots for bridgingthis gap are now being monitored.Two of the pilots as “one stop shops”, a retailer chain in Finland and a daughter company of aNorwegian manufacturer of insulation, are described and discussed.A key issue for any business model which offers an integrated service from analysis of the houseand recommendations for measures is the trustworthiness of the supplier.As a holistic energy efficient renovation project is a “new” and unknown service to single familyhouse owner and at same time a costly investment, it is important for the suppliers to findadequate ways of communicating through each phase of the buying process. There are variouschallenges in each of the phases which have to be solved differently.

The Nordic single-family house renovation market is dominated by a craftsman based approach with individual solutions, traditional warehouses ”do-it-yourself-shops” and some actors marketing single products. To speed up the implementation of sustainable renovation of single-family houses there is a great need for full-service packages including consulting, contract work, follow-up, financing and operation and maintenance. There are few Nordic examples of such service models for renovation of single-family houses which entered the market recently. The success of these concepts is yet to be evaluated. One successful full-service package described in the report is a campaign by an energy company in Sweden who convinced 78% of 456 owners of houses with resistance heaters to connect to its biomass based district heating network. The campaign was successful because of its package offer and information provision with emphasis on economic aspects and functional reliability. The existing technical renovation concepts, typically focussing on application of only a few of the available technical solutions, have not been successful in realizing large scale energy efficiency gains. Renovation of single-family houses might be carried out based on design solutions with good combinations of the possible range of technical solutions including e.g. “passive (insulation) measures” and “solar measures” in order to reach a low primary energy level. Key aspects of reaching a low primary energy level in connection with renovation are described in the form of typical energy renovation measures and technical principles of low energy renovation including recommended extent of measures. Full service and technical renovation concepts should make it easy, simple and secure for the consumer to invest in a low energy renovation of their house. The building sector needs easy to use knowledge and initiatives which ensures that they can offer solutions which fulfil the demand for quality, economy and

In the Nordic Innovation Centre Project, SuccessFamilies, the main objective is to change the business environment in order to speed up the implementation of sustainable renovation of single-family houses – proposing new service concepts that will combine both the technical solutions, financing services as well as other promoting issues to overcome the behavioural, organizational, legal and social barriers that exist in sustainable renovation. A starting point for such a change has been to get an overview of the existing sustainable renovation concepts, i.e. full-service concepts and technical concepts. The paper describes a few Nordic examples of full-service models for renovation of single-family houses which entered the market recently and the provisional success of these concepts. The existing Nordic single-family house renovation market is dominated by a craftsman based approach with individual solutions, traditional warehouses ”do-it-yourself-shops” and some actors marketing single products. To speed up the implementation of sustainable renovation of single-family houses there is a great need for full-service packages. Existing technical renovation concepts, typically focusing on application of only a few of the available technical solutions, have not been successful in realizing large scale energy efficiency gains.

The Nordic research project “Success Families”, is a joint project between VTT in Finland, Danish Technical University, Mid Sweden University and Segel AS in Norway. The aim of the project is to find out how to bridge missing link between the homeowner and the variety of suppliers of relevant products and services. The project started in May 2009 and will conclude in first quarter 2012. This paper presents preliminary conclusions related to stakeholders’ interests and what barriers and opportunities are identified so far in the market place for energy efficient renovation of detached houses. As the work in this project is in progress, the presentation at the conference will include new findings identified after the deadline of this paper.

Ej belagd 20150820

Due to the introduction of low energy standards for new houses as minimum requirements, rising energy prices and generally more focus on energy performance, there is a need for farreaching energy efficiency improvements in connection with renovation if existing singlefamily houses in the Nordic countries are to have competitive power compared to new houses on the future housing market. If the market is able to explain this to the homeowners there is an open market with undreamt-of possibilities. Good technical solutions exist but need to be combined based on the full range of (standard) solutions in order to reach the low primary energy level of new houses. The typical single-family houses identified to have large primary energy saving potential almost descend from the same time period in each Nordic country. The first segment is houses built in large numbers in the 1960 and 1970 before tightening of the insulation standards in the building codes in the late 1970’s due to the oil crisis. The second segment is houses built before 1945 (except for Finland) where a large part of them has been renovated, but energy renovation of those houses today would still account for a large energy saving. The third segment is type houses from the post-war period in Finland. A complete energy efficient renovation of a typical house include post-insulation and sealing of the buildings envelope - roof/ceiling, façade, windows/doors and foundation and maybe slab on ground - installation of a mechanical ventilation system with high efficiency heat recovery and low electricity use and if not already there, an energy efficient heating system based on district heating, heat pump etc. This package of technical solutions can be carried out during an overall or step wise planned renovation dependent on the condition of the house, the financial possibilities of the homeowner etc. Calculation of packages of energy efficient renovation solutions targeted the three segments of houses show that pr