Buildings with low energy consumption and minimal carbon footprint are increasingly important for tenants and property owners. As a property owner, each investment has to be justified from several perspectives, but how can you know that an investment will actually be profitable? A climate and energy investment that increases the value of the building – is this possible?
Reduce operating costs through energy savings
Naturally, managing a property incurs numerous costs. Electricity, heating and water consumption usually make up the largest combined part of the fixed expenses, or about 29 percent of the operating costs. On the other hand, the thermal consumption for water and the living areas is also one of the most easily rectified items in the spreadsheet and thereby the quickest way to reduce the operating costs of a building.
Reducing the demand for supplied energy
To reduce energy consumption costs, energy usage must become more efficient. By recovering energy supplied for heating and domestic hot water heating, the building’s total need of purchased energy is reduced, and as a result of this the building net operating profit will increase.
Increasing a building’s net operating profit through heat recovery
The net operating profit of a building consists of rental revenues less all costs (including heating, operation, maintenance, administration, taxes, etc.). By recovering energy that has already been supplied, this will improve the net operating profit and result in a more favourable cash flow.
Energy efficiency increases the value of a building
The value of a building is calculated as the net operating profit divided by direct yield requirements. Since dwellings constitute quite foreseeable investments, as they are rarely empty due to housing shortage and rental revenues have a steady growth in. The direct yield requirement is relatively low in Sweden, even in smaller cities. As a result, an increased net operating profit, together with low direct yield requirements, will lead to an increased property value.
Energy recovery to improve net operating profit and increase the property value
The expenses for heating and domestic hot water preparation can be slashed using energy efficient technological solutions. It is possible to recover the thermal energy in the wastewater, which is otherwise simply flushed out of the building, and return this recovered energy to the building’s energy system.
Evertherm’s solution for the recovery, storage and distribution of heat translates into lower energy costs, a higher yield and maximum climate benefit. You reduce your need for purchased energy and can instead recover up to 95% of the energy from the building’s wastewater. Concurrently with the need for supplied energy decreasing significantly, the increase in the value of the building will normally correspond to more than 100% of the investment cost.
Calculate the value of the building and its potential with energy recovery
As an example, we assume a newly produced property in Stockholm with a total living area of 10,000 m². If we upgrade this building with Evertherm SEW for recovering the heat in wastewater, we arrive at the following numbers:
Energy savings
239.4 MWh/year
Increase in net operating profit
2,0 %
Increase in property value
SEK 8 million
Investment surplus after interest and depreciation
+84,8 %
compared to investment (MSEK)
