Profitability and benefits
An energy renovation pays off – especially in older apartment buildings
Energy renovations can benefit all kinds of housing companies. The financial benefits are greatest for blocks of flats that were built before the 21st century. There are around 260, 000 apartments in such blocks of flats in Helsinki.
Energy renovations are worth carrying out because they benefit homeowners. The energy efficiency of nearly all blocks of flats in Helsinki can be improved in a financially viable manner.
In blocks of flats, energy renovations can potentially cut heating costs by as much as half. This translates to a significant decrease in the maintenance charge and living expenses as well as savings over time, as heating is the single largest expense item of housing companies. Energy renovations also have a positive impact on the value of dwellings.
Some energy renovations also improve comfort of living. Improving the thermal insulation of windows and walls and making ventilation more efficient means that you no longer have to endure excessively hot or cold indoor temperatures or draughts at home.
How profitable will an energy renovation be in the future?
Saving energy becomes economically more worthwhile the more expensive energy prices become. Since energy price trends have been more uncertain in recent years, housing companies may find it challenging to predict precisely how quickly savings from an energy renovation will start to accumulate.
It is important for a housing company to prepare for different cost scenarios. For example, switching to geothermal heating usually eliminates district heating costs entirely, but at the same time increases the electricity bill. When planning a renovation, it is advisable to ask a consultant or contractor to calculate profitability under various energy price developments to ensure a reliable profitability assessment.
Synergy benefits
In addition to energy savings, energy measures can have other benefits, such as improving noise abatement or preventing overheating in apartments.
Energy renovations also provide an opportunity to implement other measures more cost-effectively. For example, energy well projects offer the chance to implement both geothermal heating and cooling, which will improve housing comfort and the efficiency of the energy wells.
Combining renovations yields the best benefits when the housing company has reviewed the different options before starting the project.
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