August 6, 2018

The following tool has been developed in the frame of the ABRACADABRA project which has received funding from the European Union’s Horizon 2020 programme.

This document is an interim outline of the development of the financial toolkit, which provides guidelines and tools, and outline process for relevant stakeholders to understand, assess and implement the financial assessment and viable processes required for the deployment of successful building renovation projects.

This toolkit includes an integrated and simplified cost assessment analysis that allows potential investors to carry out an estimation of the Return on Investment (ROI) and payback period for the different energy efficiency measures, a calculation of the Net Present Value as well as the new value of the building after the deep renovation with AdoRe.

The impacts of different regulatory incentives and/or barriers also are introduced in the calculation.

Contextually to the development of this tool the ABRA consortium has been working with project partners on:

  1. An assessment of the current financial mechanisms and models that could be followed by stakeholders and investors interested in proposing a deep renovation through AdoRes
  2. The development of a clear methodology for the development of AdoRes renovation projects that from a procedural perspective will have the financial model at the core.
  3. To establish the viability of using an extension of the allowed constructed surface as a support in the establishment of retrofitting.
Needs Addressed
Retrofitting has been proposed as a method to significantly reduce energy consumption and emission derived from the housing sector. Having said this it remains clear that severe restraints remain; and the concept of a “one solution fits all” is at the very least unrealistic.
Considering that such renovations must be primarily supported by the owners themselves it is evident that any process must ensure also the financial viability of the initiative.