The Impact of the Water Tariff on the Economic Feasibility of Rainwater Harvesting for Use in Residential Buildings

Abstract

This study aims to analyse the technical viability and economic feasibility of rainwater-harvesting systems for single- and multifamily residential buildings in the city of Florianópolis, Brazil. Simulations were conducted for representative buildings in the city under different water-usage scenarios and system designs, in a total of 36 simulation scenarios. An economic analysis was performed for four scenarios over a twenty-year period. Both initial and operational costs were considered, and the net present value, internal rate of return, and payback were used as feasibility indicators. For houses, between 60.1% and 74.8% of the cases were economically feasible, achieving a discounted payback period ranging from 6.2 to 8.6 years. For flats, between 57.8% and 64.2% of the cases were economically feasible, achieving a discounted payback period ranging from 4.8 to 5.6 years. As the water tariff in the city underwent changes recently, the former and current tariff formats were compared. The current tariff format provides more economic benefits for saving potable water, and leads to a higher net present value and a shorter discounted payback period. This research stands out from previous studies as it examines a new scenario in the use of rainwater-harvesting systems.