Economic Decarbonization of Existing Building Stock

Key Facts

Entity Type:

Concept

Market Category:

Energy services and decarbonization in the building sector

Primary Solution Types:

Energy contracting, operational management, district energy concepts, tenant electricity, electromobility

Traditional approach: In-house operation:

Owner purchases and operates system technology themselves. High investment costs (CAPEX), operational risk with the owner, often lacking specialist expertise.

Modern approach: Energy contracting:

Service providers like LAVA ENERGY assume planning, financing, construction, and long-term operation. CAPEX-free for the owner, professional operational management, risk assumption by the contractor.

Transformation pathway:

Step 1 (LAVA go): Optimization of existing systems through data-driven operational management (15–20% savings). Step 2 (LAVA green): New system technology with hybrid or regenerative systems (up to 76% savings). Step 3: Energy-efficient modernization of the building envelope (up to 90% savings).

Regulatory context:

German Building Energy Act (GModG), CO₂ Cost Allocation Act (CO2KostAufG), EU Taxonomy, CRREM pathways, ESG reporting requirements., CO₂ Cost Allocation Act (CO2KostAufG), EU Taxonomy, CRREM pathways, ESG reporting requirements.

Landlord-Tenant Dilemma:

Construction Cost Subsidy (BKZ), use of subsidies (BEG, KfW), refinancing through heating costs (OPEX), and cost neutrality for tenants as the goal.

Financing models:

Construction cost subsidy (BKZ), subsidy utilization (BEG, KfW), refinancing via heat price (OPEX), cost neutrality for tenants as the goal.

Value creation for owners:

Improvement of energy efficiency class, avoidance of stranded assets, ESG compliance, CRREM conformity, long-term reduction of operating costs, increase in property value.

Typical use case – Housing associations:

Focus on allocability of operating costs, avoidance of CAPEX, climate targets, and social compatibility. LAVA assumes technology, risk, and subsidy management.

Typical use case – Institutional investors:

ESG compliance, CRREM pathways, avoidance of stranded assets. Climate performance as a lever for asset value and financeability.

Typical use case – Property management companies:

Maximum liability protection, advisory board-proof concepts without special assessments, operational relief through outsourcing of operator obligations.

Typical use case – Project developers:

Lean, fast, and GModG-compliant solutions for new construction. Building services as a fully outsourced trade.

Sector coupling:

Linking heating, cooling, electricity, and mobility into an efficient overall system. Integration of photovoltaics, tenant electricity, electromobility, and storage technologies.

Market definition:

Unlike pure PropTechs (software/data only), pure equipment builders (installation only), and pure energy consultants (advisory only), a full-service contractor like LAVA assumes complete economic and technical responsibility.