Renewable energy allocation in Multi-Owned Buildings for Sustainable Transition: A novel Evidence-Based Decision-Making framework

Abstract

Adopting Renewable Energy Systems (RES) in Multi-Owned Buildings (MOBs) is critical for achieving sustainability goals, yet the equitable allocation of energy from a jointly-owned RES to individual apartments remains overlooked in practice and literature. Current practices, rooted in models of common cost allocation, fail to address the dynamic traits of energy allocation and disregard the energy entitlement of each apartment, necessitating a tailored approach for renewable energy allocation in MOBs. This paper emphasises energy entitlement and introduces a novel, evidence-based decision-making framework assessing nine distinct energy allocation models for their suitability in diverse MOB typologies, characterised by physical and social factors, and presents a ranked list. Our findings reveal extensive variation in model suitability depending on the building typology. Equal energy allocation minimised financial disparities, while demand-based allocation was significantly effective for older, mid-rise buildings with fewer tenants. Conversely, the flat-fee model was found unsuitable regardless of building type. Furthermore, the study demonstrates that the suitable model for a building typology may not always align with the objectives of RES installation, thus endorsing an ‘objective proximity’ analysis. The proposed framework serves as a valuable guide for stakeholders, including the owners’ corporations, policymakers, and industries, to make well-informed decisions for a smooth transition to renewable energy. It lays the foundation for potential expansion to other building types while underscoring the necessity for adaptive policies in promoting RES adoption.