U.S. Department of Energy - Energy Efficiency and Renewable Energy

Building Technologies Office – Run a Program

Business Model Resources

Business Models Guide
Business Model Planning Resources – Working with Partners
Sample Program Administrator Business Model Schematics
Business Planning Resources for Program Administrators

The Better Buildings Neighborhood Program and its partners have developed a number of business planning resources. These resources can be used by Better Buildings grant recipients, program administrators, and others to help formulate plans for long-term program sustainability.

Business Models Guide

The Better Buildings Neighborhood Program Business Models Guide serves as a resource for Better Buildings grant recipients, program administrators, and building contractors who are or may be interested in expanding their services into the residential energy efficiency market. It is intended to:

• Help non-utility program administrators understand key market actors and their perspectives and business drivers, and position these program administrators for effective partnership opportunities, which will help them enhance their business strategy to achieve long-term program sustainability.
• Help contractors work more effectively with program administrators, expand their business into energy efficiency, enhance their current business strategy, or better understand the perspectives and business drivers of other market actors.

Full Report
Executive Summary
Introduction
Contractor/Retailer Business Models
Program Administrator Business Models

Access individual sections of the guide based on your specific area of interest using the table below:

Business Planning Resources – Working with Partners

The following business planning resources can be used to identify and develop business partners to share in delivery of a successful building energy efficiency program.

• A Business Case for Home Performance Contracting – Developed by the U.S. Department of Energy's Building America program, this report gives an overview of the needs and potential opportunities that exist in the U.S. housing market for home performance contracting.
• The Partnership Evaluation Framework: How to Evaluate a Potential Partner's Business Model and Identify Areas for Collaboration – This table shows business model frameworks, their relevance, key metrics, and questions for consideration.
• Best Practices for Energy Retrofit Program Design: Business Models Recommendations – This paper, developed by the Home Performance Resource Center, presents recommendations for energy upgrade programs to facilitate industry growth and support contractor business models.
• Contractor Blueprint: Getting from HVAC to Home Performance – Developed by the California Center for Sustainable Energy in collaboration with the Home Performance Resource Center, this report guides HVAC contractors through the process of transitioning their HVAC business to home performance contracting.

Sample Program Administrator Business Model Schematics

The following sample business model schematics outline five different approaches that a program administrator might consider when developing their plans for operating without grant funding.

• Sample Business Plan Framework 1: a program seeking to continue operations in the post-grant period as a not-for-profit (NGO) entity.
• Sample Business Plan Framework 2: a program that builds private sector capacity, then phases out and stops operating.
• Sample Business Plan Framework 3: a government entity running a commercial PACE program in the post-grant period.
• Sample Business Plan Framework 4: a program seeking to continue in the post-grant period as a marketing contractor to a utility.
• Sample Business Plan Framework 5: a program that establishes itself as a government entity, then operates using a fee-based structure.

Business Planning Resources for Program Administrators

The following business planning resources for program administrators are also available.

• Business Model Worksheet – The Business Model Worksheet is a worksheet for program administrators to map out their own programs' business model framework.
• Workshop: The Business of Energy Efficiency – The Better Buildings Neighborhood Program held a workshop October 24-26, 2011, to support program administrators as they developed business plans for post-grant operations. Workshop participants learned about various energy efficiency market business models and discussed strategies for long-term program sustainability. A detailed agenda, workshop materials, and presentations are available on the Workshop Web page.
• Residential Retrofit Program Design Guide – This Residential Retrofit Program Design Guide focuses on the key elements and design characteristics of building and maintaining a successful residential retrofit program. It takes the reader through the essential elements of designing, implementing, and evaluating residential retrofit programs. The material is presented as a guide for program design and planning from start to finish, laid out in chronological order of program development.
• Run a Program – This section of the Better Buildings Neighborhood Program website provides step-by-step guidance on how to design and run energy efficiency upgrade programs.