Decision-making life-cycle cost analysis model for energy-efficient housing retrofits

Abstract

Housing retrofit can reduce energy consumption and decrease long-term costs associated with the operation of a building. The objective of this study is to introduce an approach for evaluating energy-efficient housing retrofit alternatives, using data from a real case. A detailed life-cycle cost analysis (LCCA) of possible retrofitting strategies is performed for the case of a house built in the 1960s in Albuquerque, New Mexico, USA. Based on this case study, an approach is developed to illustrate the impact trend of retrofitting costs on energy consumption savings. By defining three separate cost evaluation zones, comprising of a cost effective zone, an energy efficient zone, and an improvement needed zone, the results of this study can potentially be used not only in decision-making for retrofitting, but also in the evaluation of projects related to energy retrofits. Then, using the proposed methodology for the case study, a normalised model is developed to evaluate the effectiveness of retrofitting efforts according to the investment cost and energy saving in any projects. The model is tested using a real retrofitting project. This model provides guidance for decision-makers on investment amounts for housing retrofit projects.