Energy efficiency practices: A case study analysis of innovative business models in buildings

Abstract

Over the last two decades, the European Union has significantly improved its legal framework for building energy efficiency. New mandatory standards have led governments to adopt incentive measures that, in turn, encourage the growth of innovative entrepreneurial practices. This study analyzes emerging business models that capitalize on energy efficiency in the building industry. Thirty-seven energy efficiency projects − either retrofit or new construction, supported exclusively by innovative business models featuring the presence of an individual contractor − in five Central and Western European countries are considered. Data is collected on property characteristics, business environment, and energy efficiency measures. Using the Rough Set approach, the analysis identifies core attributes that associate or differentiate the case studies. They include building ownership, energy-related services to be provided to the users, and the duration for which the contractor must be involved. Additionally, other attributes − such as the types of retrofit work, investment costs, access to monetary incentives, and expected payback period − allow us to identify the cases representing best practices for each innovative model. There remain open questions concerning where the boundary between different business models lies and long-term economic self-sustainability, regardless of the availability of incentives.