Enterprises in the Danish household sector stand at the forefront of a new market reality. New product systems, new regulations and new partner relationships point to a transition towards innovating for a business model - a business model that is green. In this transition, a great deal of innovation opportunities lie open for those enterprises ready to fill identified gaps through developing their own green business models within the new market reality of low-carbon. In 2006, the household sector was the second largest consumer of final energy consumption after the transportation sector . At the global level in the mid-1990s, the household energy use was second-placed at 22% behind industrial energy use (Parker, Rowlands, and Scott, 2003) and at the EU level, the households, services and other energy sources sector in 2004 was 15.5% after the energy industries and transport sector . With such a huge share of the energy consumption pattern, the household sector provides opportunities to focus on low-carbon business models that provide energy-effective and -efficient solutions not only to the enterprise but equally important, to the customer's business model - their home. The aim of this paper is to understand what is meant by a green business model and green business model innovation and how does it relate to SMEs in the Danish Household Sector. As the low-carbon debate and discussion is ushering in an emerging market, a key finding is that enterprises lack the know-how and -what, to innovate and incorporate into a business model that is green; the new market reality to stay competitive via innovating green business models. Understanding what green business model innovation is, could be a useful dimension of business model innovation for enterprises in identifying the gaps and realising the solutions. The research and literature in the area of business models is a relatively young phenomenon (Osterwalder, Pigneur & Tucci, 2005; Hamel and Prahalad, 1990; Hamel, 2006), whilst the research on green business models appears scarce. Therefore, this paper will use as a basis, our idea of what is meant by Green Business Model Innovation, and taking into consideration, the Danish context of the Flexplan Case.The paper is based on data captured during a study of innovating green business model practices in small- and medium-sized enterprises from 2006 to 2008 . The unit of analysis used in this study is the individual network partners involved in the Flexplan Consortium Case, and the business model they were trying to innovate. Our research methodology was action research, albeit in an explorative setup. Furthermore, the paper highlights the preliminary results from the Flexplan Case. The Flexplan Case is a network comprised of a number of organisations from the business, government and university sectors. The implication of this study is to further the research in the area of business models regarding green innovation. In addition, to highlight to both the business community and the government sector or policymakers how sustainable houses have changed the network organisations' business model and those of other stakeholders; in particular the Councils.