Energy renovation as a service to property owners
The technical systems of Finnish buildings are typically outdated and in many cases in poor condition, which leads to high energy consumption, excessive electricity and heating bills and high volumes of greenhouse gas emissions. Old technologies are often more difficult and more expensive to maintain than new ones.
Solution: Energy renovation as a service to property owners
LeaseGreen delivers energy-saving solutions for Finland’s existing building stock that help to improve the standard of properties and increase their market value. The solutions include the modernisation of ventilation, heating, cooling and lighting, as well as property-level energy production, such as heat pumps and solar power systems. LeaseGreen implements the investments as turnkey deliveries.
The company maps the potential savings, and the customer can then decide whether to proceed with the proposal. After implementation, LeaseGreen checks that the agreed energy savings targets are being achieved. So far, the service has helped customers reduce the energy costs of their buildings by an average of 24%. It is estimated that projects implemented by the company by the end of 2017 will in total reduce carbon dioxide emissions by around 120,000 tons of CO2 over their life cycles.
Revenue logic and benefits to LeaseGreen
The customer pays a lump sum or a monthly charge, which is typically lower than the amount saved in energy bills as a result of the solution implemented by LeaseGreen. The company also offers customised finance options which enable customers to pay for the service from the costs saved instead of having to commit their own capital. LeaseGreen’s fee is based on energy savings and its independent status in terms of technology choices.
Benefits to customers and end users
Property owners are usually not keen to invest huge amounts of money in order to improve their energy efficiency. LeaseGreen offers a financially viable solution. The savings brought about by reduced energy consumption are always greater than the amount invested by the customer. By choosing the monthly charge option, customers can tackle long-overdue improvements while maintaining a positive cash flow.
LeaseGreen in a nutshell
Main business: heating, plumbing and air-conditioning installations
Net sales: €1-50 million
Launch of circular economy solution: 2013
Share of the circular economy solution of the total business: 100%