14 04, 2019

By |2019-04-14T18:44:13+02:00April 14th, 2019|

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

Business models based on new financing schemes

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

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5 04, 2019

By |2019-04-05T08:42:51+02:00April 5th, 2019|

Crowdfunding approach is an alternative method, completely different to the common typical business process, used to raise capital through small collective efforts (amounts of money) of a large number of people, friends, family members, customers and individual investors, and finance a project. In particular, it allows to know about a business even before it is launched, and is based on a network of people. Large investments have to be planned using multimedia information systems (text, audio, images, video, animations, …) that should persuade investors (no banks or other institutions involved) without providing guarantees of the business plan. Nowadays, the crowdfunding for real estate sector is only applied to the U.S. market. In Europe, crowdfunding for real estate projects is not allowed yet, but there are various platforms that are already using the concept in different ways (e.g. banks are involved in this business and the amount of the investment is limited). Italy is an example of this approach, and even if it has been the first country to introduce a legal framework regarding equity crowdfunding, the market is still waiting for some changes in order to be as efficient as in the US. The Crowdfunding scheme until now has been used to finance a wide range of projects in different fields, such as art, scientific research, medical, travel, social, civic projects, and only recently has been applied to renovation and the energy efficiency sector.   Crowdfunding can be classified into four different models, according to the revenue model as explained in the following figure:
  • Donation Based Crowdfunding
  • Rewards Crowdfunding
  • Equity Crowdfunding
  • Lending-based crowdfunding
 

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22 03, 2019

By |2019-03-22T13:55:33+02:00March 22nd, 2019|

Green building certification systems assess a building’s performance based on environmental and wider sustainability criteria and provide the evidence that building procures a certain sustainability standard. Green certification can stimulate investments in renewable technologies, even when they are not cost-effective. However, it is generally efficient in niche markets because such certification is on a voluntary based. In this business model a property developer or architect designs and builds buildings certified according to a voluntary green certification scheme, expecting to realize a sales/rent price premium compared to conventional buildings. This is frequently the case in the North American and some Asian markets. This premium should compensate for the additional costs related to the green features of the building, and for the costs of the certification. Drivers for an increasing demand for certified buildings include:
  • Corporate Social Responsibility (CSR): green buildings are part of their green image;
  • Reducing operating costs of green buildings
  • Enhancing levels of comfort for building users, which in commercial buildings may lead to higher productivity and less sick leave;
  • Regulation which mandates green certification, for example for public buildings, and turns voluntary schemes into mandatory ones.
  Most green building certification systems cover a range of environmental and broader sustainability criteria related to energy and water uses, indoor environment and materials used. Some systems also include criteria on functionality and comfort, economic questions and innovation. Normally, a building must fulfil most of the criteria set by the certification systems. There are a variety of voluntary certification systems globally. The most widely used are the U.S. Green Building Council’s LEED standards and the UK based ‘Building Research Establishment Environmental Assessment’ (BREEAM). There are also schemes which focus exclusively on energy related criteria, e.g. the U.S. and Canadian Energy Star label for buildings, the German ‘Passive house’ standard, the French ‘Haute Qualité Environnementale’ (HQE) stardard and the Swiss ‘Minergie’ standard. In addition to certification systems, there are also building rating systems, which do not issue a formal certificate. These rating systems support project developers by setting clear standards on what constitutes a green building. As rating a building is cheaper than undergoing a formal certification process, rating systems are frequently used for residential buildings.

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15 03, 2019

By |2019-03-20T10:47:02+02:00March 15th, 2019|

The H2020 project DREEAM focuses on the deep renovation of social houses managed by a single owner with a large portfolio of residential buildings. The investment scenario model has been developed by Bax & Company in the framework of the DREEAM project to demonstrate the value of scaled investment planning for achieving building owners’ long-term sustainability vision. Applying a “backcasting” approach, energy efficiency targets are considered the starting point for the development of investment strategies which realistically link the building owners’ financial capacity with the renovation measures to be implemented. The current status of the building portfolio is assessed based on the crosscutting dataset built from operational, technical and financial data points at dwelling level. Building typologies (archetypes) and age are key tools for categorising the stock as well as a basis for the design of tailored renovation packages. The integration and visualisation of datasets in an interactive manner allows decision-makers to quickly design and assess alternative investment strategies. Having applied the tool with 10 housing providers across Europe, the tool has helped to bring decision-making energy efficiency investment to board level. The tool offers:
  • Increased importance and agreed investment in data collection and management
  • Adjusted (often upwards) of renovation investments, due to better insight in (financial) feasibility
  • Unlocking of better financial conditions (‘green’ interest discounts) and national and EU grants
                                                                                                                        Example of simplified renovation package                                                                                                                        Example of simplified renovation package

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15 03, 2019

By |2019-03-22T13:36:49+02:00March 15th, 2019|

Energy Saving Obligations are a policy tool obliging energy companies to implement and realise energy savings at the level of end users. It stimulates business models with financial incentives offered by energy suppliers to building owners, renters or energy service companies. Innovative financing options can also emerge under energy saving obligations for utilities. The utility (potentially via an Energy service company or ESCO) proposes incentives for energy efficiency investments, financed through higher energy prices. These incentives offer opportunities for building owners. Despite first intention oriented to energy savings and energy efficiency, energy saving obligations could also be an important driver for renewable energy technology in the built environment. Energy Saving Obligations stimulate energy companies to develop new energy efficiency services for final customers (often in partnership with electricians and installers), or they outsource the obligation and delegate it to the ESCO. Generally, in this business model, energy companies transfer the costs of the energy efficiency measures (and potentially renewables) to final consumers, through higher energy prices. Energy companies, or ESCO partners, need to create financial incentives for consumers to voluntarily implement energy savings in buildings. For instance, in Italy, France or UK, subsidies for saving measures are the most common financial incentive. In order to be able to finance the incentives offered, energy companies are generally allowed to charge higher energy prices to all customers. In many cases, financial incentives for energy consumers are combined with information to encourage energy efficiency measures.

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1 03, 2019

By |2019-03-01T17:43:34+02:00March 1st, 2019|

The traditional building energy renovation is characterised by on time consuming processes, where most of the work is done on-site, and based on very manual processes with barely connection between stages of the renovation. BERTIM proposes a holistic building energy renovation approach encompassing prefabricated timber modules for building renovation supported by a digital tool named RenoBIM for a very efficient procedure from the data gathering, design, manufatring, to the installation phase. The timber solution provides the opportunity to renovate buildings improving energy performance and the RenoBIM tool, based in a digital data flow in BIM, enables reduction of renovation operation time and make more efficient the renovation process. The prefabricated timber solutions provide the opportunity to renovate, improving building energy performance, air quality, aesthetics, comfort, and property value at the same time, while ensuring low intrusiveness during renovation works. The development is based on timber high energy performance prefabricated modules for energy rehabilitation to ensure important building primary energy consumption reduction through high insulation properties. They also integrate windows, insulation materials, collective HVAC systems, renewable energy systems and energy supply systems. Prefabricated modules integrate in the factory all the building components (new windows, balconies, pipes and ducts). In order to enable the integration with enough accuracy and effectiveness, a computer tool  (RenoBIM) based in BIM is also being developed to implement the mass manufacturing methodology from design to manufacturing and allow a digital data flow among the involved stakeholders. The platform includes a methodology and support tools to capture a real building data (using laser scanning techniques) transferring it to a BIM-based Web3D environment and a building renovation project definition and communication with CNC manufacturing system, by means of the usage of BIM, minimising the risk of any possible pre-fabrication mistake. The use of this prefabricated solution timber based for a deep energy retrofitting of the building envelope is firstly aimed at reducing in total buildings (primary) energy consumption by at least a factor of 2 with respect to the current situation, and a cost-level better than traditional renovation activities. In addition, it is expected a reduction in installation time by at least 30%, compared to a typical renovation process for the building type, ensuring also a low intrusiveness and with minor disturbances for users.  
  Concept of building renovation with BERTIM panels and 3D module on the roof           Sketch of the standard insulation panel finished with wood slash 3D timber module to be placed on the roof of the building increasing a new floor for residential purposes Section of the BERTIM modules. On the right part the basic panel and on the left the panel with embedded installation Sketch of a BERTIM module with embedded services where it is depicted the joints between conducts and pipes in the panel

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