Energy efficiency renovations of single-family houses: importance of economic aspects and suggested policy measures

Panel: 2. Energy efficiency policies: What delivers?

This is a peer-reviewed paper.

Authors:
Krushna Mahapatra, Linnaeus University, Dept. of Built Environment and Energy Technology, Sweden
Leif Gustavsson, Linnaeus University, Sweden

Abstract

In Sweden, more than 80% of the single-family houses are more than 30 years old and majority of them need some renovation. This provides opportunities for implementation of energy efficiency measures, which depends on homeowners’ adoption-decision. Results from several surveys by us showed that more than 80% of the Swedish homeowners consider annual energy cost and investment cost to be the two most important factors in the choice of energy efficiency measures. They preferred investment subsidies and tax deduction on energy efficiency measures, but did not like energy and carbon taxes on energy use. We discuss marketing and policy measures to overcome various obstacles to energy renovation of detached houses. A marketing measure is to introduce one-stop-shop business models where a single actor offers all types of services, including financing, required to undertake energy renovations. A national goal for energy efficiency improvements in existing buildings coupled with a list of actions needed to achieve that goal and tailored incentives will help to establish a market for energy renovations. For an owner of detached house, the goal could be set by energy-certificate, and then one-stop-shop service would provide the plan and actions needed to reach the goal.