>construction techniques that minimize the lifetime cost of the building. Here, buildings typically last for much longer than 20 years.
And then there's the whole thing where energy costs may not be fully priced into the use.
It goes both ways. Investing in capex has to be balanced against potential capex and opex market changes, not just today's market.
Unless that 0% rate gets passed onto you, there's a fairly rigid payback wall at 30 yrs where no amount of investment is going to make financial sense. (It's why despite loan terms growing for everything else, mortgages are still capped at 30 yrs.
What happens when the market is flooded with cheap renewable electricity, as is promised? Suddenly your payback period is extended beyond what makes sense.
Or advances in technology result in a cheaper, better insulation material?
And then there's the potential external costs of not just energy, but material and construction. It wasn't that long ago that asbestos singles covered nearly every new house because of its fire resistance and insulating properties.
The cost there also seemed to pay for itself, until we discovered the true cost of asbestos mitigation and removal.
It goes both ways. Investing in capex has to be balanced against potential capex and opex market changes, not just today's market.
Unless that 0% rate gets passed onto you, there's a fairly rigid payback wall at 30 yrs where no amount of investment is going to make financial sense. (It's why despite loan terms growing for everything else, mortgages are still capped at 30 yrs.
What happens when the market is flooded with cheap renewable electricity, as is promised? Suddenly your payback period is extended beyond what makes sense.
Or advances in technology result in a cheaper, better insulation material?
And then there's the potential external costs of not just energy, but material and construction. It wasn't that long ago that asbestos singles covered nearly every new house because of its fire resistance and insulating properties.
The cost there also seemed to pay for itself, until we discovered the true cost of asbestos mitigation and removal.