Assessing the Value of Commercial Building Low-carbon Retrofit in Edinburgh City in Scotland

Abstract

The purpose of current work is to assess the economics in the retrofit of non-domestic buildings in the UK, and recommend policy mechanisms to bridge the gap. This paper gives an overview of evaluation methodologies, incl. the technology assessment mechanism, financial cash flow valuation method, and the novel real option approach for assessing the value of new buildings designed in a low carbon retrofit readiness status. Detailed analysis of potential benefits from retrofitting existing commercial buildings in Edinburgh City is carried out. Resultshows substantial financial value in retrofitting a buildingover a lifetime through assessing the option value.The economic viability of retrofitting a commercialbuilding to low carbon design in Edinburgh is proven to be very high. Thus, new buildings are proposed to design in a ‘Low Carbon Building Retrofit Readiness’ status (‘LCB Readiness’) and it would be beneficial to develop a standard orbest practice for low carbon design for commercialbuildings.