Ambitious targets were set in Sweden to increase the share of renewable energy resources and reduce greenhouse gas emissions. Renovating old detached houses can assist in achieving the abovementioned targets, since they make up a great share of the final energy consumption and carbon dioxide emissions in Sweden. Although, several attempts were taken to improve the energy performance of the detached houses, the implementation of energy efficient renovation is yet low due to mainly high investment cost. Former studies evaluated the cost effectiveness of various energy efficient renovations in renovating detached houses in Sweden, but they provided no information how possible climate futures affect the determination and adoption of energy efficiency policies, such as monetary instruments. Accordingly, this study considered three distinct energy renovation packages and analyzed the subsidies required for implementing renovation packages for given interest rates and lifetimes. Furthermore, three different climate scenarios were considered to analyze the effect of possible climate futures on subsidies required. The analyses of results show that increasing the lifetime have greater impact on required subsidies than increasing the interest rate. Furthermore, the results show that variation in future climate conditions changes the required subsidies when implementing energy efficiency renovations. Results can be used as an aid when adopting energy efficiency policies.
Keywords energy renovation, renovation policy, possible climate futures, subsidies