Construction Cost Decomposition of Residential Building Energy Retrofit

Abstract

Buildings are responsible for significant energy consumption and carbon emissions. Green buildings, which incorporate advanced building technologies, offer a solution to reducing energy use. However, high costs associated with green building development present a barrier to widespread adoption. Retrofit projects, involving remodeling, renovation, and redevelopment of existing buildings, offer a viable solution. While prior studies have examined the cost analysis of green and non-green buildings, there is a lack of evidence comparing new and retrofit projects. This study aims to address this gap by providing empirical evidence for the cost decomposition and benefits of new and retrofit projects. Data on energy use, building technology, and costs from 235 certified green homes in the United States were collected, and cost benefits were evaluated. Results show that retrofit projects cost, on average, $1270.5/m2 ($118.0/ft2), which is 30% less than new projects. Land acquisition and development account for 35% of retrofit costs, six times greater than new projects. Excluding land costs, retrofit projects cost, on average, $733.88/m2 ($68.2/ft2), 49% less than new projects. Retrofit projects use similar building technologies as new projects and produce larger energy savings. The cost-benefit values generated by retrofit projects are 86% greater than new projects when considering land costs and 142% greater without considering land costs. These findings contribute to cost management for complex building projects and energy policy for sustainable development. Retrofitting offers great potential to promote the green building movement and suggests effective subsidy programs as a public policy implication.