This variation of the Business Model involves financing by a social housing umbrella organisation that is very common in many countries. It finances the investment programs of the Social Housing Companies within the general budget of the national or regional government. Often, they provide either subsidies or low interest loans.

As this type of financing is often mandatory for the Social Housing Companies (SHCs), this limits the possibility to contract alternative financing (e.g. ESCO financing). Also, this type of financing often comes with imposed savings targets (e.g. renovation to label B), with a restricted budget per social housing unit. This will then limit the insulation capacity and still require a gas fired boiler for heating. In other words, such financing schemes may limit the capability of the SHC to do more deep energy renovations in combination with electrification of the heat supply. The deep energy renovation with prefabricated wall modules may not be feasible either. As this creates a potential strong limit on the flexibility, the Business Model is this case may be more complicated to implement and the business case may turn out not to be positive for an AEPC in comparison to a standard Energy Performance Contract (EPC) or even a separate contractor based approach.

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