MODULE 8. Financial aspects of Retrofitting Projects

The viability of an energy renovation project does not depend solely on technical solutions or performance gains; it also requires a solid understanding of the economic aspects that determine whether an intervention is sustainable and financially justifiable over time. This module focuses precisely on this dimension, providing students with the tools needed to evaluate, compare, and support investment decisions in retrofit projects.

Throughout the various lessons, essential topics will be explored, such as the fundamentals of financing renovation projects, cash flow analysis, the main types of costs (CAPEX, OPEX, and indirect costs), and the most commonly used economic indicators for investment evaluation, such as NPV, IRR, ROI, and Payback Period. Fundamental concepts of Life-Cycle Cost Analysis (LCCA) will also be introduced, highlighting the importance of considering the entire lifecycle of interventions, critical assumptions, uncertainties involved, and best practices to ensure consistent and comparable analyses. The module concludes with a lesson dedicated to the practical application of the LCCA methodology, where students will have the opportunity to test the knowledge they have acquired by solving a realistic problem. A calculation file will be provided to support the financial analysis, allowing students to simulate costs, savings, operational parameters, and results over the lifecycle. This practical component serves as a consolidation of the content, bringing students closer to the type of financial evaluation required in professional energy renovation contexts.