Retrofit cost-effectiveness: Estonian apartment buildings

Abstract

The economic viability and investment cost of the energy retrofit of apartment buildings are analysed through different energy efficiency levels. To analyse retrofit policy cost-optimal energy efficiency levels and investment costs, a baseline of measured actual energy usage of apartment buildings was created and then individual energy-saving measures and retrofit packages were composed. The cost-optimal level over a 20-year period for apartment building retrofit was a low-energy-building energy performance level, with an investment cost of €150–170/m². Retrofit to low energy building level would be economically viable but the investment capability of apartment owner associations is found to be insufficient for the necessary investments to achieve low-energy-building energy performance. Therefore, it is necessary to determine what levels of financial support can encourage retrofit to occur. The analysis of the current retrofit shows that subsides will increase investment by apartment owner associations into energy efficiency improvements. The target group for energy efficiency retrofit subsidies should be apartment buildings that reach low energy building performance level or at least match the energy performance requirement for new buildings.

Keywords:

• apartment buildings
• cost-effectiveness
• cost estimates
• energy consumption
• energy efficiency
• retrofit
• Estonia

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by institutional research funding IUT1-15 ‘Nearly-Zero Energy Solutions and their Implementation on Deep Renovation of Buildings’ of the Estonian Ministry of Education and Research, and ‘Reducing the Environmental Impact of Buildings through Improvements of Energy Performance, AR12059’ (financed by SA Archimedes supported by the European Union through the European Regional Development Fund (ERDF).