Investigating the business case for a zero-energy refurbishment of residential buildings by applying a pre-fabricated façade module

Panel: 5. Buildings and construction technologies and systems

This is a peer-reviewed paper.

Authors:
Juan Azcarate-Aguerre, TU Delft / Faculty of Architecture and The Build Environment, The Netherlands
Thaleia Konstantinou, Delft University of Technology, The Netherlands
Tillmann Klein, Delft University of Technology, The Netherlands
Sybren Steensma, Delft University of Technology
Olivia Guerra-Santin, Delft University of Technology
Sacha Silvester, Delft University of Technology

Abstract

The ambition to renovate the building stock to an energy-neutral quality is getting a lot of attention from social housing corporations and other institutional owners, financial organizations, and users. In the Netherlands, several exemplary renovation projects have the ambition to achieve an energy-neutral objective. One such project is the 2ndSkin Façade refurbishment approach for post-war residential buildings.

Nevertheless, the market intake of such renovation is currently very slow, as housing associations are reluctant to invest the increased cost of a zero-energy refurbishment, despite the energy savings and ongoing benefits for the occupants.

Within the framework of the research project 2ndSkin, this paper presents a prefabricated and integrated façade module that provides the possibility to improve energy performance up to zero-energy use, while ensuring minimum disturbance for the occupants. The study presents a financial breakdown of this case-study concept, in order to outline a more attractive business case. Firstly, three design variations, ranging from a standard external insulation upgrade to a zero-energy renovation, are compared, using a range of positive, average, and negative values for a series of financial and economic parameters. Subsequently, the financial performance of a zero-energy renovation investment is calculated for three different apartment properties with diverse market values, to determine the circumstances that can justify an energy renovation investment.

The analysis showed that, for properties with an intermediate to high market value, the investment can be attractive under current economic and market conditions, but this attractiveness drops for lower-cost properties such as social housing. The study objective is to develop both the technical solution and the related business case to support the implementation of zero-energy refurbishment strategies into diverse real estate market tiers of the residential building stock.