detached house in some need of renovation

Project: One-stop-shop business model for energy renovation of detached houses

The goal of this study is to develop, implement and test a one-stop-shop business model for energy renovation of detached houses. In this model, different actors will cooperate to offer homeowners a cost effective and energy efficient renovation done by a single actor.

Project manager
Krushna Mahapatra (Linnaeus University)
Other project members
Giangiacomo Bravo (Linnaeus University), Svend Svendsen (Technical University of Denmark), Satu Paiho (VTT Ab, Finland), Trond Haavik (Segel AS, Norway)
Participating organizations
Villaägarna Kronoberg, Energikontor Sydost, Smart Housing Småland, Åseda Värme & Sanitet AB, Susen AB, Älmhultsbostäder, Växjö municipality, Länsförsäkring Kronoberg, TMF (Trä- och möbelföretagen), Länsstyrelsen i Blekinge län, Region Blekinge
Financier
The Kamprad Family Foundation
Timetable
1 September 2016–31 August 2019
Subjects
– Department of Built Environment and Energy Technology, Faculty of Technology
– Department of Social Studies, Faculty of Social Sciences

More about the project

About 80 % of the two million detached houses in Sweden are more than 30 years old and in need of renovation. This provides unique opportunities for cost-efficient implementations of energy efficiency measures to significantly reduce (up to 80 %) primary energy use and greenhouse gas emissions. Installation of solar cell systems will increase the renewable energy supply and improve the energy supply security of houses in rural areas.

However, the rate of energy renovation of detached houses is rather slow. Homeowners are more interested in renewing appliances or renovating kitchens or bathrooms; less in energy renovations that require high investments. Financing is often difficult for young families, even though they are the most likely to be interested in energy renovation. They may find it hard to find favourable financing, as the first mortgage loan at low interest rate (85 % of the property value) is used up to buy the property. Elderly may have less difficulties in getting a loan as their original loan most likely has been paid back. On the other hand, they would like to avoid the complexity and hassles of undertaking large scale renovation. They may be unsure of whether the investment will pay off during their lifetime.

On the supply side, the renovation market is fragmented and dominated by a craftsman-based approach with individual solutions. 90 % of Swedish construction and installation related companies are very small, with less than four employees, and many are located in rural areas. They promote their own products or services and lack expertise to undertake energy renovations. Homeowners implement renovation measures in a piecemeal approach, which leads to implementation of sub-optimal solutions that are not cost and energy efficient in the long run. Through collaboration, the companies may attract more homeowners for comprehensive renovation.

Overall goal

The overall goal of this study is to develop, implement and test a one-stop-shop business model for holistic energy renovation of detached houses. In this model, a single actor will coordinate with other actors to offer full-service holistic renovation packages including consulting, independent energy audit, renovation work, follow-up (independent quality control and commissioning) and financing. Homeowners will get a cost effective and energy efficient renovation done by a single actor. The business model developed in this project is expected to be tested in the renovation of four houses in the Småland-Blekinge region.

The project is part of the research conducted by the Sustainable Built Environment Research (SBER) research group.

Staff