Belder, Christiaan (2022) The effect of different financing methods on the long term financial feasibility of energy efficiency retrofits creating positive energy buildings. Master thesis.
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Abstract
The rising global temperature and the changing of the climate are unequivocally due to human influence. A large part of this is due to the use of energy stored in fossil fuels. Households accounted for 27% of the total energy consumption in the EU. In order to decrease the total energy consumption of households, energy efficiency retrofits(EER) can be applied to housing. Currently, most literature studies the effects of variables such as income, types of houses, and ideology on household energy consumption through case studies. These studies are often in disagreement on the impact of financial variables on the investing in EER. For now, there is little research into the mechanics behind aforementioned variables, which is why this study has explored the economical mechanics behind EER. This has been done through an analysis of the impacts different financing methods on the economic viability of EER on a household level. In doing this, a contribution has been made to finding key variables for economical decision making of households regarding EER. This was done by exploring the potential impact of different EER involving combinations of insulation, heating methods, and solar panels on the heating of an average Dutch terraced house. Thereafter, the cheapest EER which was able to create a net positive balance on a terraced house was selected and the different financial aspects of such a retrofit were calculated and analyzed. The main financial variations used in the study are: Self-funding, Subsidies, Loans, and a hybrid form of government aid and loaning. All of these variations have viable options to create an economically sound Positive Energy Building. The study’s conclusions may be used to guide public policy making regarding incentivizing EER. Among the conclusions are the insights that loaning is at the bottom line more expensive then self-funding, although it can increase the availability to homeowners. Loaning will become increasingly financially viable when gas prices rise relative to electricity prices. Subsidies will make EER financially more attractive to homeowners, although the primary objective of the subsidy giver can impact the type of household mainly benefitting from the subsidy. A hybrid variation of loans and government aid is found to be more efficient spending for the government when compared to traditional subsidizing, while also increasing financial availability of EER to households. Studies looking for insights in, for example, willingness to pay, social returns of aiding with EER, and energy poverty may benefit from the outcomes of this study, and are recommended continuances of it.
| Item Type: | Thesis (Master) |
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| Degree programme: | Environmental & Infrastructure Planning |
| Supervisor: | Geet, M.T. van |
| Date Deposited: | 11 Oct 2022 11:42 |
| Last Modified: | 11 Oct 2022 11:42 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4078 |
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