ᐅ Energy-efficient renovation does not pay off! What can be done?
Created on: 23 Aug 2024 11:27
P
PATPATPAT
Hi friends. We are considering buying my in-laws’ timber frame house. The house was built in 1979 and, apart from the roof (14cm (5.5 inches) above-rafter insulation), it is not insulated. The wooden windows are also from 1979. Of course, the windows are old, but overall everything is still in very good condition. The energy costs (electricity + gas) for the 130 m2 (1,400 sq ft) house are 2,600 euros. Compared to insulated houses, this is quite high. Therefore, we have been thinking about an energy retrofit. However, the quote for new windows alone is 60,000 euros. In addition, there would be basement insulation and possibly interior insulation for the roof. We have ruled out exterior wall insulation. Altogether, this would probably total around 80,000 euros (including own labor).
These renovations would certainly reduce the energy costs. But even if I save half of the costs going forward (which is probably optimistic), over 40 years (I will be 85 years old then, I don’t expect to live longer), that amounts to 52,000 euros. So it is far from a cost-effective renovation... and theoretically I would need to replace the windows again after 40 years.
Honestly, I am thinking it might be better to do nothing (apart from aesthetic renovations) and live for the next years in a renovated house (but with a lower purchase price, about 280,000 euros) and bear the “higher” energy costs — especially considering rising CO2 costs, etc. Even if I assume the gas price doubles and receive a subsidy for one of the above renovations, it still wouldn’t be worthwhile. The resale value is also not decisive because the house is in a rural area — so rather a lower-demand location.
What do you think? Am I missing something? Is anyone else in this situation? What would you do?
These renovations would certainly reduce the energy costs. But even if I save half of the costs going forward (which is probably optimistic), over 40 years (I will be 85 years old then, I don’t expect to live longer), that amounts to 52,000 euros. So it is far from a cost-effective renovation... and theoretically I would need to replace the windows again after 40 years.
Honestly, I am thinking it might be better to do nothing (apart from aesthetic renovations) and live for the next years in a renovated house (but with a lower purchase price, about 280,000 euros) and bear the “higher” energy costs — especially considering rising CO2 costs, etc. Even if I assume the gas price doubles and receive a subsidy for one of the above renovations, it still wouldn’t be worthwhile. The resale value is also not decisive because the house is in a rural area — so rather a lower-demand location.
What do you think? Am I missing something? Is anyone else in this situation? What would you do?
Do you only have a quote for the windows? Are the windows currently shaded? If not, such costs are generally not considered part of energy-efficient renovation.
And not everything in life has a financial return. A new kitchen, a new car, a vacation — none of those pay off financially. Investing in renovation so that you have peace of mind for the rest of your life, and so that future generations of children and grandchildren have a better chance of living without frequent natural disasters, might well be worth it. Who knows how those 45-year-old windows will perform at 80 years? Plus, rising energy costs and good incentives.
And not everything in life has a financial return. A new kitchen, a new car, a vacation — none of those pay off financially. Investing in renovation so that you have peace of mind for the rest of your life, and so that future generations of children and grandchildren have a better chance of living without frequent natural disasters, might well be worth it. Who knows how those 45-year-old windows will perform at 80 years? Plus, rising energy costs and good incentives.
Window costs depend on many factors. Saying that a 1m² (10.8 sq ft) window costs a certain amount only applies to a standard, basic house or window.
Nearby, there is a similar house (as my crystal ball suggests) where the entire south gable is made almost entirely of very large double-glazed wooden elements, with a large roof overhang, extremely large lift-and-slide doors, and motorized exterior roller shutters. The house was built in 1978 using the best materials and insulation available at the time, which was far better than what was common until the 1990s. The owner still lives in their dream home, with everything original, including the kitchen, bathroom, and windows. If something breaks, it is either repaired or upgraded to the best current technology.
About 15 years ago, four large glass panes, accounting for roughly one-third of the house’s total glass area, were replaced with modern double-glazed thermal insulation glass because three of the four were fogged up. Two years later, one roller shutter motor failed, so all four motors were replaced and the roller shutter boxes were insulated. Four years later, the oil heating system suffered a total failure and was replaced with the best oil boiler available.
Replacing the four panes cost approximately €16,000 about 15 years ago. The expensive part was the glass (due to size), but it only accounted for roughly one-third of the total cost. The biggest cost factor was figuring out how to get the panes into the house without damaging the large natural garden, as requested by the owner.
Financial payback based on annual savings is not expected, but the replacement was necessary regardless. According to the owner, heating oil consumption has dropped by about one-third... however, no precise data is available on specific savings. The large oil underground tank beneath the garden is refilled every 2 to 5 years, depending on demand and oil prices.
Nearby, there is a similar house (as my crystal ball suggests) where the entire south gable is made almost entirely of very large double-glazed wooden elements, with a large roof overhang, extremely large lift-and-slide doors, and motorized exterior roller shutters. The house was built in 1978 using the best materials and insulation available at the time, which was far better than what was common until the 1990s. The owner still lives in their dream home, with everything original, including the kitchen, bathroom, and windows. If something breaks, it is either repaired or upgraded to the best current technology.
About 15 years ago, four large glass panes, accounting for roughly one-third of the house’s total glass area, were replaced with modern double-glazed thermal insulation glass because three of the four were fogged up. Two years later, one roller shutter motor failed, so all four motors were replaced and the roller shutter boxes were insulated. Four years later, the oil heating system suffered a total failure and was replaced with the best oil boiler available.
Replacing the four panes cost approximately €16,000 about 15 years ago. The expensive part was the glass (due to size), but it only accounted for roughly one-third of the total cost. The biggest cost factor was figuring out how to get the panes into the house without damaging the large natural garden, as requested by the owner.
Financial payback based on annual savings is not expected, but the replacement was necessary regardless. According to the owner, heating oil consumption has dropped by about one-third... however, no precise data is available on specific savings. The large oil underground tank beneath the garden is refilled every 2 to 5 years, depending on demand and oil prices.
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