A smart energy service for the commercial rented sector: decision making points and business model considering the learnings from the pilot sites of the SmartSPIN project in Ireland, Spain and Greece

<ns3:p>Background This paper presents an evaluation of the smart energy service for the commercial rented sector developed during the European Commission’s Horizon 2020 funded research project SmartSPIN - Smart energy services to solve the SPlit INcentive problem in the commercial rented sector, highlighting the key decision-making points in relation to energy performance contracting in a rented commercial property. Methods The perspectives of building owner, energy service company (energy service provider) and renters, are examined using a quantitative model that enables to evaluate the Net-Present-Value of the energy efficiency project for each party, considering the contract duration, energy cost savings, energy prices, investment costs and operation and maintenance costs, thereby highlighting the variables that determine the decision-making leading to the contractual agreements for the smart energy service. The business model for the proposed smart energy service is designed using the Business Model CANVAS template, whereas its value proposition is designed using the Value Proposition CANVAS template. Results The proposed smart energy service has been implemented and evaluated by considering the experiences of the stakeholders and the feedback that the pilot participants of the SmartSPIN project in Ireland, Greece and Spain provided during the demonstration activities. This process enabled to identify improvements which eventually led to the business model validation highlighting the value creation for the ESCO businesses. Moreover, further leveraging the experience gained from activities at the SmartSPIN pilot sites and engagement with the key stakeholders, this paper also elaborates on how to create value for the customers. Conclusions This paper shows how a smart energy service for improving the energy efficiency and flexibility in commercial rented buildings can be successfully designed and deployed, through a quantitative and qualitative analysis of its underlying business model, thereby overcoming the split incentive issue.</ns3:p>