Towards net-zero buildings: The investment case

Looking at the combined overall profitability, energy bill reduction, and CO2 emissions reduction for an illustrative dual IRR-bill optimization strategy, our main finding is that investments are valid in almost all cases, halving energy bills and CO2 emissions at reasonable payback periods.

Maximizing PV represents a strategic approach to maintaining financial performance while optimizing energy generation, as increasing the PV size generally contributes to an IRR that increases or remains stable, in addition to reducing bills.

Battery investments demonstrate selective economic viability contingent upon specific market and tariff conditions: In about 40% of all use cases, the battery proves to be an attractive investment, yielding a good IRR driven by bill reductions.  

Examining the potential impact of the low-carbon package on grid burden in retrofit scenarios, import peak issues arising from battery operation can be fully addressed while import peak issues associated with heat pump operation can be mitigated in about 80% of cases (issue affecting residential properties mainly).