Financing energy efficiency measures in buildings - a new method of appraisal

Finnegan, Stephen; dos-Santos, Joseph David; Chow, David H. C.; Yan, Qu O. and Moncaster, Alice (2015). Financing energy efficiency measures in buildings - a new method of appraisal. International Journal of Sustainable Building Technology and Urban Development, 6(2) pp. 62–70.

DOI: https://doi.org/10.1080/2093761X.2015.1025448

Abstract

Our current generation strives to provide the next crucial stepping stone towards sustainable buildings, delivering energy efficiency measures without compromise in ways which are financially viable. Selecting and implementing simple energy efficiency measures (EEMs) to reduce energy use and become more sustainable can be straightforward. More complex measures are under continuous improvement and have a greater range of financial options. Making the right long-term choice is difficult and the United Kingdom (UK) market remains sceptical. The results of this paper show that risk and uncertainty are the two key factors that inhibit wholesale adoption of EEMs and as a result a new method of long-term assessment is proposed. The Energy Efficiency Value Matrix (EEVM) consists of the following functional drivers: Cost, Flexibility, Maintenance, Energy Saving and Product Sourcing. Under these headings a building owner may consider any EEM and make a more informed choice. From residential to commercial buildings, key decision-makers require more impartial information as to why they should choose a particular EEM to deliver energy saving measures, upon which a long-term financial and technical decision can be made.

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