Innovative business models for the financing of energy efficiency initiatives in residential buildings

Residential buildings being renovated

The building sector accounts for 36 percent of EU-wide greenhouse gas emissions and residential buildings alone consume more than 25 percent of the EU’s primary energy needs. This means comprehensive savings are needed in order to achieve the goal of a climate-neutral European economy by 2050. The financing and implementation of energy renovations in residential buildings requires innovative business models as well as extensive cooperation among financial institutions and energy supply companies.

The European research project RenOnBill (Residential Building Energy Renovations with On-Bill Financing) was supported by the EU programme Horizon 2020. The project consortium of nine European partner institutions developed innovative business models for the financing of energy efficiency initiatives for residential buildings. The focus of the research: so-called ‘on-bill financing’ models, in which energy suppliers finance the investments and are repaid by households through their electricity bills. The project was implemented in close cooperation with energy suppliers, financial institutions and other relevant stakeholders from the four focus countries (Germany, Italy, Lithuania and Spain). This approach ensured that the results of the research are applicable to the wider European market.

adelphi was responsible for the work package ‘stakeholder engagement’, and ensured the strategic incorporation of energy utilities, financial institutions, property owners, tenants and other relevant market players into the project. After a comprehensive analysis of the stakeholder constellation, the project established four national stakeholder platforms. Through interviews, roundtables, workshops and web seminars, these platforms actively engaged relevant stakeholders and enabled them to contribute to the development of ‘on-bill’ business models.