HomeGreeners

Advantere School of Management Capstone Project 2023-2024

Housing Energy Retrofitting Financing for people living in Energy Poverty with HomeGreeners Europe, SL.

Ania Marta Castillo Bilbao Carlos Daniel Pérez García

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Housing Energy Retrofitting Financing for people living in Energy Poverty with HomeGreeners Europe, SL.

Ania Marta Castillo BilbaoCarlos Daniel Pérez García

09.07.2024

The Team

Ania Marta Castillo Bilbao

Carlos Daniel Pérez García

Content

Introduction

Overall Strategy Proposal

Research Objectives

Project Plan & Implementation

HomeGreeners Overview

New Financing Tool: SEE

Financing Mechanisms

Hypotheses & Research Design

10

Case Studies & Successful Interventions

Results & Conclusions

INTRODUCTION

Energy Poverty & Retrofitting in Spain

Definition

Energy Poverty is the condition where households cannot access reliable and affordable energy to maintain a decent living standard.

• Limited activities: heating, cooking, and healthy life.

Significance

• It affected 10% of Spanish homes: 4.6 million people in 2023.
• It generates economic inequalities, health issues, and social exclusion.

HomeGreeners Overview

Founded in June 2023 in Madrid, HomeGreeners operates in the Green PropTech and Constructech sectors, offering innovative digital solutions for real estate energy retrofitting.

• Mission: to transform real estate into efficient, smart, and sustainable homes, addressing the urgent need for energy retrofitting solutions in Spain.

RESEARCH OBJECTIVES

Research Objectives

Investigate Financing Tools

Assess Digital Platforms

Provide Recommendations

Implications of EU Directive 2023/1791

Evaluate Energy Poverty in Spain

Alternative financing tools for low-income households:

• Subsidies
• Microcredits
• Social crowdfunding
• Partnerships:
• NGOs
• Governments

Evaluate whether the company's digital platform leverages technologies to:

• Improve efficiency
• Shorten project timelines
• Enhance scalability

Offer strategies to HomeGreeners for scaling energy retrofitting solutions to combat energy poverty in Spain.

• Identify the legal obligations for energy efficiency in residential buildings.
• Identify the challenges associated with compliance by 2030

Assess the current scenario, incidence, and risk factors.

• Focus: socioeconomic outcomes on vulnerable populations

HOMEGREENERSOVERVIEW

HomeGreeners Overview

Foundation & Sector

HomeGreeners was founded in June 2023 in Madrid, specializing in the digitalization of energy retrofitting processes for properties.

Market Opportunity

EU Directive 2023/1791 requires all homes in Spain to achieve an energy efficiency certificate of :

• Class E or higher by 2030
• Class D by 2033

Technological Integration

HomeGreeners uses AI, big data, and andvanced industrial technologies to provide customized and optimized energy retrofitting solutions.

Which creates a significant market for energy retrofitting.

Ciudad

Ciudad

Ciudad

Interactividad

Creatividad

Animación

Business Model Breakdown

Key Partners

Value Proposition

Market Expansion

Customer Segments

Revenue Streams

Target audience includes:

• Landlords
• Property managers

• Technology providers
• NGOs
• Government bodies

• HomeGreeners' platform integrates AI, big data, and advanced industrial technology.
• It offers personalized solutions, optimized resource utilization, and operational efficiency improvements.

• Profits from service sales
• Subscription fees for platform access
• Potential licensing of developed technologies.

• Increase energy-efficient retrofits in Spain
• Expand to Portugal by 2025
• Expand to France by 2027.

FINANCING MECHANISMS

Financing Mechanisms

ESGImpact

InnovativeSolutions

TraditionalFinancing

Partnerships

Collaborates with:

• NGOs
• Local governments
• Private sector

to support energy retrofitting initiatives.

• Subsidies
• Microcredits
• Social crowdfunding

as alternative financing mechanisms to make retrofitting more accessible.

• To reduce financial barriers
• Making energy-efficient homes a reality for low-income households
• While contributing to sustainability goals.

• Loans
• Mortgages

They have limitations for low-income households due to:

• High interest rates
• Strict credit standards
• Long payback periods.

CASE STUDIES & SUCCESSFUL INTERVENTIONS

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Case Studies & Successful Interventions

Successful programs emphasize holistic and coordinated efforts, financial assistance, collaboration with local organizations, public awareness, and education.

Basque Country

The Integral Plan for Energy Sustainability It has successfully reduced energy poverty through energy efficiency improvements, including insulation and modern heating systems.

Cataluña

The RENOVATE Program It provides subsidies and low-interest loans for home renovations, focusing on efficient heating systems, insulation, and solar installations.

Andalucía

The PAREER-CRECE Program It focuses on improving thermal insulation and replacing inefficient heating systems.

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OVERALL STRATEGY PROPOSAL

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Overall Strategy Proposal

Innovative financing mechanisms

Improving supplier agreement

Homegreeners as a Social Enterprise

• Microcredits

• Social crowdfunding

• SEE: A model of community engagement and action in addressing social and environmental issues

• HomeGreeners reduces energy poverty by generating social impact for low-income households.
• HomeGreeners helps homeowners comply with EU Directive 202 3/1791.

Requiring suppliers to donate 1% of material value towards insulating homes of those in energy poverty, enhancing their social responsibility image. HomeGreeners will negotiate terms, track donations, and incentivize suppliers.

HomeGreeners gains a COMPETITIVE ADVANTAGE as a social enterprise by attracting social impact investors and customers, offering adaptive financial solutions, and providing comprehensive retrofitting services.

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PROJECT PLAN & IMPLEMENTATION

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Project Plan & Implementation

Utiliza líneas temporales…

Conduct a comprehensive assessment to identify target households and regions most affected by energy poverty

Steps:

• Use data analytics and surveys to map energy poverty hotspots
• Engage with local communities and stakeholders to gather insights
• Prioritize areas with high energy costs and low-income populations.

Initial Assessment

Pilot Projects

Scaling Up

Continous Monitoring

Launch Pilot Projects in selected regions to test and refine our solutions

Gradually scale up the projects based on the results and learnings from the pilot phase

Implement a monitoring system to track progress, measure impact, and make necessary adjustments

Steps:

• Select pilot areas basef on initial assessment results
• Implement energy audits and retrofitting in pilot households
• Monitor and evaluate the outcomes to identify best practices and areas for improvement.

Steps:

• Set Key Performance Indicators (KPIs) to measure energy savings, cost reductions, and improved living conditions
• Use data analytics to monitor performance
• Review and adjust strategies to ensure optimal outcomes.

Steps:

• Develop a rollout plan to expand to additional regions
• Increase collaboration with local governments and NGOs to support scaling
• Continously refine and optimize processes based on feedback and performance.

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NEW FINANCING TOOL: SOCIAL ENERGY EASE (SEE)

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Overview & Benefits of the SEE Tool

Overview

Introduction of the SEE tool to streamline financing for retrofitting projects.

• Objective: to simplify the financing process and increase accessibility for low-income households.

Benefits

• Simplified Application Process:
• Households can easily apply for financing through an intuitive online platform.
• Automated eligibility checks and instant feedback to applicants.

• Increased Accessibility:
• Flexible financing options tailored to the needs of low-income families.
• Reduced administration problems and faster approval times.

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Implementation Steps of the SEE Tool

Utiliza líneas temporales…

Launch the SEE Tool

Develop the SEE Platform

Integrate SEE with existing services

Train Staff & Partners

• Ensure integration with HomeGreeners' current digital solutions
• Provide comprehensive support and guidance to users durin g the application process.

• Initiate the rollout of SEE with a focus on high-need areas
• Monitor usage and feedback to continously improve the platform.

• Conduct training sessions for HomeGreeners staff and partners to ensure smooth implementation
• Provide ongoing support and resources to address challenges.

• Design and build a user-friendly online platform for SEE
• Incorporate AI and data analytics to streamline application processing.

Click and take a look at our platform prototype.

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HYPOTHESES & RESEARCH DESIGN

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Hypotheses & Research Approach

Hypothesis 3

Hypothesis 1

Hypothesis 2

Hypothesis 4

Innovative Financing Mechanisms increase Adoption

Energy Retrofitting positively impacts households

Profitability is positively impacted through these initiatives

Digital Platforms enhance efficiency

Data Collection

Literature Review

Interviews

Data Analysis

Review existing research and case studies to understand practices and successful models.

Focus on secondary sources and existing case studies. Academic articles, existing reports.

Analyze data from existing sources to validate our hypotheses and identify key trends.

Analyze existing interviews and reports with relevant expertise.

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RESULTS &CONCLUSIONS

10

21

Results of Hypotheses Testing

Hypothesis 3

Hypothesis 1

Hypothesis 2

Hypothesis 4

Energy Retrofitting positively impacts households

Innovative Financing Mechanisms increase Adoption

Digital Platforms enhance efficiency

Profitability is positively impacted through these initiatives

Innovative financing mechanisms showed a significant increase in retrofitting adoption among low-income households...

Digital platforms can reduce project timelines and improved resource utilization...

Energy retrofitting led to improved living conditions, reduced energy costs, and better health outcomes...

HomeGreeners may experience increased gross margin due to higher adoption rates and operational efficiency...

CONFIRMING H1!

CONFIRMING H4!

VALIDATING H3!

SUPPORTING H2!

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Hypothesis 4

Profitability is positively impacted through our initiatives

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Conclusions

Summary

Our approach efectively addresses energy poverty with new technology and financing.

Key Takeaways

• Tech and financing innovations make retrofitting easier and more impactful.
• Partnerships and ongoing monitoring ensure quality and success.

Future Directions

• Expand to more areas and continue improving services.
• Keep researching and developing for energy efficiency.

24

Thank You!

Q&A

Ania Marta Castillo Bilbao Carlos Daniel Pérez García

a.castillo@stu.advantere.org c.perez@stu.advantere.org