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Cost-benefit analysis of nZEB energy efficiency strategies with on-site photovoltaic generation

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  • Pikas, Ergo
  • Kurnitski, Jarek
  • Thalfeldt, Martin
  • Koskela, Lauri

Abstract

Many studies on the deployment of and investment in renewable energy (RE) technologies have focused on job creation associated with energy production at the macroeconomic level and across renewable energy technologies. We propose another perspective, the use of solar photovoltaic (PV) technology to attain a nearly zero-energy building (nZEB) class. The aim of this research is to investigate the costs and benefits for private and public entities when constructing nZEB or adopting nZEB policies. A quantitative research approach is taken when modelling required PV capacities, net present cash flows, subsidies, and job generation. Findings show that at current electricity tariffs and solar PV system capacities and production levels, single family houses, apartment buildings, and other building types require 0.044 €/kWh, 0.037 €/kWh, and 0.024 €/kWh, respectively, in government subsidies on energy sold back to the grid. Office buildings were profitable without the subsidy. In this study, we argue that investments in RE, specifically, PV technology, will bring in approximately 2.1 M€ of additional revenue to the Estonian government over a 20 years period as tax return overruns subsidies. However, nZEB investments are expected to become cost-optimal without subsidies, due to the increasing efficiency and decreasing costs of PV systems.

Suggested Citation

  • Pikas, Ergo & Kurnitski, Jarek & Thalfeldt, Martin & Koskela, Lauri, 2017. "Cost-benefit analysis of nZEB energy efficiency strategies with on-site photovoltaic generation," Energy, Elsevier, vol. 128(C), pages 291-301.
    • Handle: RePEc:eee:energy:v:128:y:2017:i:c:p:291-301
    DOI: 10.1016/j.energy.2017.03.158
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    3. George Stamatellos & Olympia Zogou & Anastassios Stamatelos, 2021. "Energy Performance Optimization of a House with Grid-Connected Rooftop PV Installation and Air Source Heat Pump," Energies, MDPI, vol. 14(3), pages 1-23, January.
    4. Becchio, Cristina & Bottero, Marta Carla & Corgnati, Stefano Paolo & Dell’Anna, Federico, 2018. "Decision making for sustainable urban energy planning: an integrated evaluation framework of alternative solutions for a NZED (Net Zero-Energy District) in Turin," Land Use Policy, Elsevier, vol. 78(C), pages 803-817.
    5. Leurent, Martin & Da Costa, Pascal & Rämä, Miika & Persson, Urban & Jasserand, Frédéric, 2018. "Cost-benefit analysis of district heating systems using heat from nuclear plants in seven European countries," Energy, Elsevier, vol. 149(C), pages 454-472.
    6. Aksornchan Chaianong & Athikom Bangviwat & Christoph Menke & Naïm R. Darghouth, 2019. "Cost–Benefit Analysis of Rooftop PV Systems on Utilities and Ratepayers in Thailand," Energies, MDPI, vol. 12(12), pages 1-26, June.
    7. Chaikumbung, Mayula, 2021. "Institutions and consumer preferences for renewable energy: A meta-regression analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    8. Cailou Jiang & Ying Zhang & Qun Zhao & Chong Wu, 2020. "The Impact of Purchase Subsidy on Enterprises’ R&D Efforts: Evidence from China’s New Energy Vehicle Industry," Sustainability, MDPI, vol. 12(3), pages 1-10, February.
    9. Tori, Felipe & Bustamante, Waldo & Vera, Sergio, 2022. "Analysis of Net Zero Energy Buildings public policies at the residential building sector: A comparison between Chile and selected countries," Energy Policy, Elsevier, vol. 161(C).
    10. Paolo Sospiro & Leonardo Nibbi & Marco Ciro Liscio & Maurizio De Lucia, 2021. "Cost–Benefit Analysis of Pumped Hydroelectricity Storage Investment in China," Energies, MDPI, vol. 14(24), pages 1-20, December.

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