13 11, 2018

By |2018-11-26T13:22:49+00:00November 13th, 2018|

The E2VENT system directly targets a special typology that correspond to suburban multi-storey residential buildings built in the 60’s 70’s that are characterized by a high energy consumption, bad air quality due to the lack of air renewal motorized system, and with low architectural interest. To tackle all those problems with one refurbishment strategy, E2VENT offers an innovative yet simple modular and adaptable system. The E2VENT system is an external thermal building refurbishment solution with external cladding and air cavity that embeds different breakthrough technologies that will ensure its high efficiency:
  • A Smart Modular Heat Recovery Ventilation (SMHRV) for the air renewal allows the heat recovery from the extracted air using a double flux exchanger. Indoor Air Quality is ensured while limiting the energy losses.
  • A Latent Heat Thermal Energy Storage (LHTES) based on phase change materials provides a heat storage system for heating and cooling peak saving.
  • A smart management that controls the system on a real time basis targeting optimal performances
  • An efficient anchoring system that limits thermal bridges and allows an easy and durable installation.
[caption id="attachment_1402" align="alignnone" width="174"] View of ventilated facade element.
Source: E2VENT[/caption]
[caption id="attachment_1374" align="alignright" width="128"] View of SMHRV. Source: E2VENT[/caption] [caption id="attachment_1401" align="alignleft" width="268"] View of LHTES. Source: E2VENT[/caption] [caption id="attachment_1376" align="alignright" width="205"] View of the two systems installed. Source: E2VENT[/caption]
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6 11, 2018

By |2018-11-06T10:22:52+00:00November 6th, 2018|

The objective of this section of the Renovation Hub is to present the variety of Business Models that already exist to finance energy renovation, guide you in this large collection to find those that are the most adapted to your needs, provide recommendations for replication, and illustrate the application of most promising ones through Business Cases.  
Today’s measured rate of refurbishment is much lower than what should be observed to remain in line with Europe 2050 ambitions. There is a need to accelerate the market uptake and large-scale implementation of energy efficient refurbishment solutions to bring the renovation level to 3% per year until 2030. The poor market acceptance of innovative and adaptable refurbishment solutions is in most cases due to the fact that these solutions are not associated to an adequate business model. Innovating on the technological side is not enough: there is also a need to innovate on the business side. Innovative business models have already been demonstrated and validated, but their replication is very slow: how can this replication be supported?
The following business models will be presented:

Business models based on One Stop Shop (OSS) concept

Business models based on Product Service Systems (PSS) - Energy Service Companies (ESCO)

Business models based on new and innovative revenue models

  • Feed-in remuneration scheme
  • Developing properties certified with a green building label
  • Building owner profiting from rent increases after the implementation of energy efficiency measures

Business models based on new financing schemes

Each Business Model presentation is structured in four blocks: What? Who How? Why?

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6 11, 2018

By |2018-11-26T13:28:40+00:00November 6th, 2018|

Building owners who do not occupy a building themselves or housing corporations can profit from additional revenue opportunities after undertaking investments for energy efficient measures if they are allowed to charge higher rent from their tenants after the renovation. The higher rent takes the tenant’s energy savings into account. This helps overcome the barrier of split incentives, i.e. the lack of incentives to realize building improvements when owner and occupant are different parties. This business model is based on a regulation that allows such rent increases and is being introduced in a number of countries. Such regulation is possible in situations where a legislation on maximum rents and/or maximum allowable rent increases exists. This is usually the case in the social housing sector, but it may also exist in the wider residential rental sector where buildings are owned by private persons or property companies. As this business model is based on a change in legislation regulating the rental sector, its attractiveness for the building owner directly depends on the details of the legislation, e.g. how much of the energy savings or of his up-front investment a building owner is allowed to recover. It is unlikely that being able to charge higher rents to tenants will be the sole driver for a property owner’s decision to undertake renovation measures. However, the higher rents may still play a significant role in the decision. It is expected that in its current form the business model is mostly applied for the implementation of energy efficiency measures which are usually more cost-effective than renewable energy technologies. But theoretically the business model may also be applied for the implementation of renewable energy technologies (RET), e.g. for the installation of a heat pump which reduces energy costs for the tenant. There are only few new business models and innovative policy instruments which specifically address the barrier of split incentives. This implies that this business model, potentially supported by additional incentives, may play an important role in catalyzing energy improvements of the existing building stock in the large rental sector. The application of the business model is limited to countries or regions that have a regulated rental sector. In this sector, mostly large property owners are active, such as social housing corporations which frequently have the long time horizon, access to capital and technical expertise required to plan and undertake renovation measures.
RentalCal is an international research project funded by the European Union under the H2020 framework. The project aims at developing a methodology for the profitability assessment of energy efficient refurbishment investments in the rental housing sector. The second objective of RentalCal aims at providing comparable and transparent information on the profitability of energy efficiency investments that can be used both for the assessment of investment decisions, and for the comparative analysis of existing barriers in the private rental housing stock of participating countries. RentalCal specifically aims to prepare the ground for investment in the existing rental housing stock, all across EU.

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31 10, 2018

By |2018-10-31T16:52:09+00:00October 31st, 2018|

In today’s construction industry a movement from conventional competition and contract models towards new partnership and collaborative business models can be observed. These partnership business models comprise management and manufacturing methods and correspond more to real businesses in the construction industry. This progress of the market within the construction sector leads to a usage of new business models also in order to overcome traditional price-driven competition towards a more collaborative working environment and a value-driven competition. Moreover, each large building retrofitting project needs slightly different business models according to building ownership, building typology, scope of the retrofitting, requirements, barriers such as available financing, actors engaged, guarantees, referenced projects, etc. The actors in the retrofitting project life cycle should be able to choose the optimal business model, and should be able to realise it (organisation, contracts, resources, knowledge, and technical competences). Solid and well-defined methodology and digital tools are needed for the project based on development and implementation of these novel business models. An individual SME is limited in many ways to reach these goals. The only solution is a collaborative, cluster or networked based approach. In this context, it may happen that the service provider of the One-Stop-Shop business model is a team of contractors that may all be SMEs or with a major contractor and its affiliated partners. Small-medium sized construction companies may thus enter into partnerships with other actors such as suppliers of key components/material and architect/engineering company if these capabilities do not exist in house.   In case of SME cluster collaboration, generally, the SMEs scope, competences and resources are limited for developing large construction investments, for example large real-estate retrofitting projects. Mainly in the public sector, where the competition is based on the "lowest price" criterion, the SMEs have many difficulties to win the projects. An important opportunity is the adaptability and flexibility of SMEs to different contractual arrangements. This can be implemented only by a group of companies covering all required competences, in well-organised collaborative approach. The operation and maintenance organisation and end-users should be directly involved. These actors have key impact on high performing buildings (retrofitted buildings) and with that also on the overall outcome (economic, environmental, social) of the retrofitting project. In this framework, SMEs operating in the construction field and in the same region may look for a holistic coverage of the construction industry market, applying business models which can be profitable by fulfilling a wide spectrum of clients’ requirements. Clusters of regionally active construction SMEs have an increasingly need to be organised into networks or strategic alliances. This will answer to the business opportunities, which require individual resources such as specific expertise, workforce or equipment. For widening the range of competences some of them enter even wider association such as e.g. German Facility Management Association (GEFMA). Nevertheless it has to be underlined that when the client is from the public sector, it is necessary to define the leader of the SME cluster to be possible to contract projects. Definition of the leading SME partner can be a problem. Legal issues have to be cared about (contract forms, assurances in the case of SME bankruptcy, responsibilities and guarantees for longer time).

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23 10, 2018

By |2018-10-23T11:00:30+00:00October 23rd, 2018|

The Property Assessed Clean Energy (PACE) concept has been widely piloted in the US. Under this scheme, local governments issue bonds for renovation projects. The building owner repays the loan through an additional special "assessment" payment on its property tax bill for a specified term (Assessments are comparable to loans as the property owner pays off its debt in installments over a period of various years. But legally, PACE assessments are not considered to be loans). When the property changes ownership, the remaining debt is transferred with the property to the new owner. In other words, PACE financing is a mechanism set up by a municipal government by which property owners finance energy efficiency and renewable energy measures via an additional tax on their property. The property owners repay the "assessment" over a period of 15 to 20 years through an increase in their property tax bills (in the US, property tax payments are made annually or in arrears. Payment modalities may be different in other countries). When the property changes ownership, the remaining debt is transferred with the property to the new owner. [caption id="attachment_1347" align="alignnone" width="600"] Source: PACENation[/caption]
This Business Model is now being adapted to Europe: EuroPACE adopts best practices from the US PACE market and intends to further enhance its reach, scope, and overall impact well beyond the American experience. This Horizon2020 EU funded project started in March 2018 and will develop, pilot and standardise the PACE financing scheme for residential energy efficiency retrofits in European cities.

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11 10, 2018

By |2018-10-11T22:55:20+00:00October 11th, 2018|

In this business model the key player is supported by digital tools supporting home-owners as well as designers in the initial planning of the renovation work. The tool usually act as a guide to optimize the application of the overall retrofitting process by for example collecting all the information related to the initial state of the building to be renovated and the preferences, the needs and desiderata of the building owner. The ICT tool processes the information gathered and suggests an optimised approach to the renovation project. The main advantage is the possibility to effectively manage the whole process in a comprehensive way. The possible disadvantages of the model are the resources needed to produce all process descriptions and checklists needed. It may also be difficult to make sure that all adopt the new working models. The commitment of the whole organisation is needed. As the idea is very much based on creation and availability process descriptions, checklists and tools, the maintenance and keeping the material up-to-date has to be carefully checked. Thus it is highly important to be able to create reliable initial information about the building and rely on the initial model. In order to make reliable assessment about the saving potentials in terms of energy and costs, the actors involved must be able to use appropriate tools for energy performance assessment, and be able to make justified conclusions about the savings. Here the quality of the initial information is highly important. In addition, a solid understanding of the users’ behaviour and willingness to commit to energy savings is essential.

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