BetterHome: Building Renovation boosted with an innovative service for home-owners. An industry-driven one-stop-shop solution.
Europe faces a profound challenge – to triple the current renovation rate in order to meet its climate and energy goals. The urgency of this challenge is stressed by the reality of inadequate and poor housing causing high energy bills, health issues and a lower quality of life.
At the same time, the building stock represents an exceptional investment opportunity, with the capacity to boost the economy and generate local jobs. The energy renovation market plays an important role in the economy, amounting to a value of €109 billion and generating 882,900 jobs in Europe (2015). Yet, the potential is far greater.
For building owners, the renovation process can be a hassle, shaped by the ambiguity of the measures to implement. Uncertainty is one of the reasons why the renovation rate continues to linger around 1% and private investments remain limited. Achieving the full market potential of renovation calls for a paradigm shift, where a more service-oriented supply-side together with a deeper awareness on the demand-side play key roles.
This case study shows how innovative business models can drive energy renovations across Europe.
BUSINESS MODEL OVERVIEW
BetterHome is an industry-driven one-stop-shop model, which has proven successful in boosting demand for holistic energy renovations in Denmark, since the model was launched in 2014. It was profitable after just three years, with 200 projects in 2016 and is expected to continue its growth. Understanding that renovating a building is a big commitment, this model creates a burden-free experience for the building owner and offers a service that goes beyond replacing building components.
The success of the home-owner-centric business model can be explained by the advanced service-oriented role of the installers.
BetterHome trains and guides the installers on how to approach the home-owner, from the first contact to the finalisation of the process. In support, BetterHome also simplifies and structures the renovation process for the installer, through supportive and innovative digital tools, enabling a better evolution for all involved.
A cutting-edge one-stopshop solution launched by supply-side actors: Danfoss, Grundfos, the ROCKWOOL and VELUX Groups
WHAT THEY OFFER
A burden-free renovation process, enabled by training and digital tools for the installers
Started in 2014
Denmark, and recently launched in Sweden
3500 installers (from 105 organisations), five banks and mortgage providers and four utilities
Mainly single-family houses constructed between 1950 and 1990
~ €13 million in 2017
NUMBER OF PROJECTS
~ 200 in 2016, but demand is growing rapidly
AVERAGE PROJECT SIZE
Mainly deep renovation projects, with investments of ~ €70 000 and energy savings of approximately 30-70%
INDUSTRY IS TAKING THE LEAD
BetterHome is an innovative business model, developed by four Danish manufacturers of building products and solutions, Danfoss, Grundfos, the ROCKWOOL and VELUX Groups, increasing the renovation rate by developing a better renovation service for the home-owner.
The business model is restructuring supply-side services to optimise the owners’ experiences and help them overcome their concerns about embarking on a renovation project.
BetterHome is partnering with key players in the construction value chain, financial institutions providing mortgages, utility companies with energy saving obligations, local governments, real-estate agencies as well as building professionals and installers, in order to deliver a comprehensive one-stop-shop solution. In this service-oriented model, the home-owner is offered tailor-made solutions based on his/her specific preferences, covering energy improvements on the building envelope and heating, cooling, ventilation and hot water systems inside the building.
The process is holistically-planned, optimising the value chain by minimising efficiency losses, miscommunication issues and avoiding lock-in effects.
A FACILITATOR ROLE
As facilitator, BetterHome is transforming a complex and fragmented renovation process into a simple and straightforward procedure for the home-owner.
The process map (Figure) illustrates the connection between a one-stop-shop, the building owner and the installer. For the building owner, BetterHome is a one-stop-shop that ensures a reliable and smooth renovation process. For the installers, BetterHome clusters suitable projects and offers training, guidance and support, helping them to better structure the renovation process.
As in a conventional process, the installer and the building owner enter a contract.