Energy Modeling for Determining Improvement ROI

Usually when we see an energy model, it is filled with high efficiency equipment, a well-insulated envelope and several other goodies to make a building as efficient as possible.  However, most projects have real budgets and it is critical to understand not only the overall system, but to calculate the return on investment from each component.

An energy model is most simply explained as a computer-based simulation designed to predict building energy consumption given a predetermined set of variables and assumptions.  This model is not designed to simulate the exact building characteristics, but rather to give the design team a set of reasonably accurate parameters from which to make informed decisions.

One project we are working on is a 60-unit residential conversion of an older loft warehouse building here in Chicago.  This architecturally landmarked building features oversized windows and existing exposed brick walls – nice assets for the end use, but challenging from a standpoint of budget and energy efficiency.  The project is targeting LEED Silver under NC 2.2 with a large emphasis on EA in achieving the same.

Performing the analysis with an emphasis on the financial return of each improvement enabled us to quickly develop a hierarchy of improvements for the client to select from; thereby maximizing the energy savings from each available project dollar.

In this instance, we were able to determine that a $100,000 investment in windows with a higher U value had a far greater impact on the efficiency of the building envelope than a similar investment to upgrade the exterior wall insulation.

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