Retrofitting has been proposed as a method to significantly reduce energy consumption and emission derived from the housing sector. Having said this it remains clear that severe restraints remain; and the concept of a “one solution fits all” is at the very least unrealistic.
As it has been repeatedly supported via the Abracadabra project any potential solution must deal with significantly complex issues at technical, legislative and regulatory levels, and of course at financial and economic levels.
The work carried out on financial terms has focused not only in providing a financial tool to represent the needs analysis but rather to develop an framework that will have cost efficiency as a key consideration.
The work carried out has considered the following preliminary findings before proceeding to the development of the toolkit:
- The financial viability of a project within a reasonable time period is heavily affected by the existing level of energy consumption;
- Simplistic financial models have failed to deliver convincing results. It is therefore the intention of the present work to develop a comprehensive model that includes relevant items.
This document is an interim outline of the development of the financial toolkit, which provides guidelines and tools, and outline process for relevant stakeholders to understand, assess and implement the financial assessment and viable processes required for the deployment of successful building renovation projects.
This toolkit includes an integrated and simplified cost assessment analysis that allows potential investors to carry out an estimation of the Return on Investment (ROI) and payback period for the different energy efficiency measures, a calculation of the Net Present Value as well as the new value of the building after the deep renovation with AdoRe (Add-ons and Renewables).
The impacts of different regulatory incentives and/or barriers also are introduced in the calculation.