Prospects for the Development of a One-Stop-Shop Business Model for Energy-Efficiency Renovations of Detached Houses in Sweden
Abstract: The building sector is the biggest energy user in the European Union (EU) and therefore, has an important role to play in meeting the energy and climate goals ofEU. In Sweden, more than 80% of the two million detached houses are more than 35 years of age. Energy efficiency renovation of those old houses can reduce primaryenergy use by 65% to 90%. However, the current low rate of energy renovations (yearly about 1% of the building stock) in the EU in general must at least be doubledto meet the energy and climate goals. The low rate of renovations is attributed, among others, to the fragmented market where various actors offer their service in piecemeal approach and homeownersundergo a complex decision-making process. The introduction of innovative collaborative business models can simplify that complex process and eventuallyaccelerate the rate of energy efficiency renovations. One-stop-shop (OSS) business model is one such model where a single actor coordinates other actors in therenovation value chain to offer comprehensive renovation packages. This model has started to emerge in some parts of the EU, but the knowledge about it remainslimited in the Swedish context.To examine the prospects for the development of an OSS in the Swedish context, this research investigated the demand (homeowners) and supply-side (professionals)of house renovations, as well as, the general market conditions to develop strategies to promote energy renovation. Online questionnaire survey of homeowners wasconducted covering Kronoberg county (year 2017, 971 answers) and whole Sweden (year 2018, 12194 answers). Interviews were conducted with 21 owners/managersof micro-and small-sized construction enterprises, which are dominant in the house renovation market. Furthermore, 16 interviews were conducted with the ProjectManagers of 4 medium-sized construction enterprises, 4 Loan Officers from four large Swedish banks, and 8 brokers from real-estate agencies. In addition, interviewshave been conducted with the energy advisors of the eight municipalities of Kronoberg County. An analysis based on transaction cost economics and resourcebased theory was conducted to identify the conditions under which the OSS conceptcould emerge in the Swedish market. Market gap analysis, systematic literature review, and consultation with 11 Swedish and international experts in the energyefficiency renovation market, formed the basis for proposing strategies to supportrenovations.The findings demonstrate that the house's age and the age of the homeowner, as well as, annual household income and environmental and energy awareness of thehomeowner, are the factors influencing renovation decisions and homeowners' propensity to undertake energy-efficiency renovations. Findings also demonstratethat there are several homeowners capable to constitute a segment of potential early adopters for one-stop-shop. Regarding supply-side actors, the findings demonstratethat, in theory, one-stop-shop is viewed positively, but still supply-side actors are hesitant to adopt the concept, mainly due to the lack of resources and managementcompetence, as well as, the perceived risks associated with a change of their business model. Nevertheless, this research identified two supply-side actor profiles, whounder certain conditions, could be the coordinators of a one-stop-shop. Strategies are also proposed, to make market conditions conducive for energy-efficiencyrenovations in detached houses.In conclusion, the overall prospects for the development of one-stop-shop for energy-efficiency renovations of detached houses in Sweden can be characterized asmoderately positive. This thesis provides insights on the key issues to be addressed, for one-stop-shop to achieve an acceptable market success and provide a sustainablebusiness to the professionals wishing to become active in the renovation market under this concept.
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