A Business Case for Home Performance Contracting

Prepared by Pacific Northwest National Laboratory, September 2012 for the U.S. Department of Energy


The U.S. Department of Energy recognizes the enormous potential for improving the energy efficiency, safety, and comfort of existing American homes. This report gives an overview of the needs and potential opportunities that exist in the U.S. housing market for home performance contracting. This report can serve as a resource for weatherization contractors, HVAC contractors, builders, and others considering entering the home performance contracting industry. 

The report discusses opportunities and trends in the industry, along with market drivers such as consumer demand; federal, state, and local programs; and utility and non-governmental programs. Different business models applicable to the home performance industry and points of entry are described and a discussion of the distinctions between weatherization and home performance companies is included. Studies were conducted of eight companies who have successfully entered or transitioned into the home performance industry from various related fields. Analyses of these companies are provided, including business metrics, start-up costs, and marketing approaches. Case studies of each of these businesses are also included.


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