Towards net-zero buildings: The investment case

Overview

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Decarbonizing buildings is key to achieving a net-zero future, but investments to date have been limited due to financial barriers and a lack of proof of relevance for green investments, undermining the viability of projects.
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This report is based on more than 100 building types/geographies use cases with actual electricity tariff structures. It provides quantified evidence of the financial viability of decarbonization projects enabled by the proper sizing of rooftop PV and stationary storage, both for retrofit and new construction.
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Thanks to a simple tool, it became straightforward to visualize the best decarbonization package, ensuring the right level of profitability, CO2 emissions, and energy bill reduction. As such, this lays the groundwork for more informed decisions about decarbonization investments in buildings.

Key findings

Positive investment case

Looking at the combined overall profitability, energy bill reduction, and CO2 emissions reduction for an illustrative dual IRR-bill optimization strategy, our main finding is that investments are valid in almost all cases, halving energy bills and CO2 emissions at reasonable payback periods.
Maximum PV size with Selective use of a battery

Maximizing PV represents a strategic approach to maintaining financial performance while optimizing energy generation, as increasing the PV size generally contributes to an IRR that increases or remains stable, in addition to reducing bills.
Battery investments demonstrate selective economic viability contingent upon specific market and tariff conditions: In about 40% of all use cases, the battery proves to be an attractive investment, yielding a good IRR driven by bill reductions.
Grid burden mitigation

Examining the potential impact of the low-carbon package on grid burden in retrofit scenarios, import peak issues arising from battery operation can be fully addressed while import peak issues associated with heat pump operation can be mitigated in about 80% of cases (issue affecting residential properties mainly).

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