CASE STUDIES - B
FINANCIALLY VIABLE
WINDOW RETROFIT
PROGRAM
SUMMARY
- Bex estimates a window replacement cost of $3,200,000.
- By 2025, the client will retrofit all window systems with allocated capital reserve budget of $2,500,000.
- There is a shortfall on window replacement costs of $700,000 between now and the time of install. Over the next two years, the client would need to increase maintenance fees by $8,750/year/unit.
- Currently, the client pays $20,000 every year for glazing refurbishments.
- New window systems will reduce heating and cooling cost, while reducing cost future glazing refurbishments.
- Currently there are no energy incentives for windows on condo buildings. Both IESO and Enbridge commercial incentive programs do not contribute to Window retrofits.
- A Finance Program is available offering financing at city lending rates (~3%) over 20 years. The loans are securitized through the energy and cost savings achieved through energy savings initiatives like window retrofits.
- The Finance Program will be awarding 10 to 16 existing multi-residential and commercial buildings with a Deep Retrofit Grant equal to 25% of project costs up to $500,000 (depending on Floor Area).
FINANCIALLY VIABLE WINDOW RETROFIT
OPTION 1 – PROJECT FINANCE LOAN AT 6%
ENERGY COMPARISON
Total Building Use (kWh) Building Electricity (kWh) Building Natural Gas (kWh) Electricity/Suite (kWh) Natural Gas Use/Suite (m3)
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
COST COMPARISON
Electricity Cost/Unit Natural Gas Cost/Unit Refurbishment Cost/Unit Window Reserve Fund/Unit Annual Loan Payment/Unit
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
TOTALS
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
TOTALS
AS IS
YEAR 1
With no escalation on energy prices by year 3, residents of the bulding will see an overall savings of $98/Year/Unit ($8/Month/Unit). Based on current Carbon Tax and energy price estimates, residents will see overall savings $212/Year/Unit in year 3.
*Assumptions are based on a 6% loan over 30 years with no Energy Savings Guarantee.
FINANCIALLY VIABLE WINDOW RETROFIT
Option 2 – Finance Program Energy Retrofit Loan at 3%
ENERGY COMPARISON
Total Building Use (kWh) Building Electricity (kWh) Building Natural Gas (kWh) Electricity/Suite (kWh) Natural Gas Use/Suite (m3)
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
COST COMPARISON
Electricity Cost/Unit Natural Gas Cost/Unit Refurbishment Cost/Unit Window Reserve Fund/Unit Annual Loan Payment/Unit
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
TOTALS
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
TOTALS
AS IS
YEAR 1
With no escalation on energy prices by year 3, residents of the building will see an overall savings of $94/Year/Unit ($8/Month/Unit). Based on current Carbon Tax and energy price estimates, residents will see overall savings $208/Year/Unit in year 3.
*Assumptions are based on a 3% loan over 30 years with no Energy Savings Guarantee. Residents can retain $300,000 from their window reserve fund and receive more debt.
FINANCIALLY VIABLE WINDOW RETROFIT
Option 3 – No Loan
ENERGY COMPARISON
Total Building Use (kWh) Building Electricity (kWh) Building Natural Gas (kWh) Electricity/Suite (kWh) Natural Gas Use/Suite (m3)
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
COST COMPARISON
Electricity Cost/Unit Natural Gas Cost/Unit Refurbishment Cost/Unit Window Reserve Fund/Unit Annual Loan Payment/Unit
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
TOTALS
AS IS
YEAR 1
SAVINGS IN YEAR 1
SAVINGS IN YR 3
TOTALS
AS IS
YEAR 1
With no escalation on energy prices by year 3, residents of the building will see an overall savings of $1,369/Year/Unit ($114/Month/Unit). Based on current Carbon Tax and energy price estimates, residents will see overall savings $1,483/Year/Unit in year 3.
*Assumptions are based on all funding coming from condo owners. Each condo owner making an upfront payment of $17,500 to cover the short fall of $700,000 (difference of capital cost and current Window Reserve fund).