Residential buildings opportunity assumptions – General assumptions Cost of capital 12.7% 2020 electricity price $198/MWh43 2020 gas price $150/MWh Average floor space per household 193m2 Total Greater Geelong households in 2020 111,348 Alignment with strategic priorities Capex Barriers44 Opportunity Action required to realise opportunity Residential Basic retrofit to improve building insulation including sealing areas of Split incentive building air leakage, weather stripping doors and windows, insulating attic Upfront capital envelope and wall cavities. Low energy prices (basic) owner $8/m2 3,243 -270 -$0.4 Assumptions HVAC energy savings of ~15% can be achieved Home Average lifespan of insulating materials assumed to be 25 years. Assume 12% penetration rate above BAU. Residential Retrofit to ‘passive’ standard at time of regular building renovations. Split incentive building Includes installing high efficiency windows and doors; increasing Upfront capital envelope outer wall, roof, and basement ceiling insulation; mechanical Low energy (advanced) ventilation with heat recovery, basic passive solar principles. prices $64//m2 38,436 -196 -$1.4 Long payback Homeowner Assumptions HVAC energy savings of ~70% can be achieved. Based on an adjustment to the average retail price projections (sourced from MMA’s Report to Federal Treasury: Impacts of the Carbon Pollution Reduction Scheme on 43 Australia’s Electricity Markets).
Residential buildings – opportunity assumptions General assumptions Cost of capital 12.7% 2020 electricity price $198/MWh43 2020 gas price $150/MWh Average floor space per household 193m2 Total Greater Geelong households in 2020 111,348 Opportunity Action required to realise opportunity Capex Barriers44 Alignment with strategic priorities Residential building envelope (basic) Basic retrofit to improve building insulation including sealing areas of air leakage, weather stripping doors and windows, insulating attic and wall cavities. Assumptions HVAC energy savings of ~15% can be achieved Average lifespan of insulating materials assumed to be 25 years. Assume 12% penetration rate above BAU. Home owner 3,243 -270 -$0.4 $8/m2 Split incentive Upfront capital Low energy prices Residential building envelope (advanced) Retrofit to ‘passive’ standard at time of regular building renovations. Includes installing high efficiency windows and doors; increasing outer wall, roof, and basement ceiling insulation; mechanical ventilation with heat recovery, basic passive solar principles. Assumptions HVAC energy savings of ~70% can be achieved. Homeowner 38,436 -196 -$1.4 $64//m2 Split incentive Upfront capital Low energy prices Long payback 43 Based on an adjustment to the average retail price projections (sourced from MMA’s Report to Federal Treasury: Impacts of the Carbon Pollution Reduction Scheme on Australia’s Electricity Markets).
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