New report gives ten business model frameworks to implement on-bill schemes (OBS) in the EU

 

On-bill schemes are between the most flexible and innovative solutions to facilitate the uptake of energy efficiency upgrades in residential buildings, according to new report by H2020 project RenOnBill: they can be easily adapted to specific market and utility requirements. 

Based on an analysis of four target countries, namely Germany, Italy, Spain, and Lithuania, the report highlights the possible challenges for the implementation of on-bill schemes (OBS) along three dimensions: market readiness, legal/regulatory framework, and utilites’ operational issues. Ten busines model frameworks applicable to this context are identified. 

The report finds that on-bill financing schemes are by far the most flexible type, but that, for small utilities or for the implementation of large programs, on-bill repayment schemes are the preferred solution, as the credit is provided by a third party. Starting from these two general models, RenOnBill considers several variants with different service infrastructures and different typologies of financial arrangements. Furthermore, on-bill schemes can also adapt in their scope and be aimed, for instance, at supporting vulnerable customers against energy poverty or to support the spreading of cutting-edge products and services.

There is a substantial market potential in Germany, Italy and Spain, despite the possible difficulties in addressing this demand. Lithuania is different, as regulatory changes could be necessary to open the market because district heating utilities serving the five largest cities cannot offer energy efficiency services to final users.

On-bill schemes demonstrate to be flexible mechanisms for offering a number of energy efficiency and innovative services. For specific types of utilities, on-bill schemes can even consolidate the position of the company on the market or open new opportunities thanks to their innovative aspects. If well-conceived they may represent a breakthrough for the energy market. In particular, the findings reported for Germany, Spain and Italy can be reasonably extended to similar markets, such as France, Belgium and the Netherlands, which need to refurbish their building stock, especially for reducing space heating demand. 

Read the full report.

Subscribe to the RenOnBill newsletter to stay up to date on the project’s developments.

 financing
 onbill
 residential

Author of the page


  • Other news

    More news

    In the same themes

     financing
     onbill
     residential