Energy Efficiency Renovation Financing Models for Homeowners and Net Present Value Analysis: Case Study from India

Abstract

In India, the lack of financing mechanisms has been identified as a major impediment in achieving energy efficiency (EE) and requires focused research to identify barriers and propose innovative financial models. This paper presents details of selected Government of India initiatives that highlight interlinking strategies of energy efficiency renovations, their financing models, and institutional policies needed for their implementation. These initiatives show that residential buildings have tremendous scope for retrofitting as they successfully attract finances through Energy Service Companies (ESCOs) and Renewable ESCO (RESCO) routes. This research highlights understanding of financial and technical barriers in energy efficiency retrofitting for existing residential buildings. Additionally, it discusses financial models and technical interventions being employed in energy efficiency residential retrofitting projects and demonstrates a retrofitting cost model for an actual case study project for composite climate using various physical and technological interventions. The work includes developing retrofitting scenarios through Government initiatives of technical interventions, then performing energy saving calculations, and finally developing cost model explaining the actual savings and payback periods for the potential intervention’s investments. These steps led to the development of a potential cost model which can assist both homeowners and energy professionals in identifying and implementing energy retrofitting measures in the residential building sector.