Increase property value and improve net operating income with energy recovery

Climate-smart houses are becoming increasingly important for tenants and tenant-owners. How can you as a property owner know that an energy investment pays off?

Properties with low energy consumption and minimal carbon footprint are becoming an increasingly important issue for tenants and tenants. As a property owner, every investment must be justified from several perspectives, but how can you know that an investment actually pays off? A climate and energy investment to increase property value – is it possible?

Reduce operating costs through energy saving

Managing a property of course means some costs. Electricity, heating and water consumption usually account for the largest total of fixed expenditure, about 29% of operating costs. On the other hand, the heat consumption of water and living space can also be seen as the most impressionable entries in the spreadsheet, thereby the fastest way to reduce the operating costs of the property.

Reduce the need for energy supplied

To reduce energy operating costs, you need to streamline energy consumption. By recycling the supplied energy for heating and domestic hot water, the property reduces the total need for added energy and as a result, net operating income in the property increases.

Increase the property's net operating income through heat recovery

Net operating income in a property is rental income minus all costs (including heating, operation, maintenance, administration, taxes, etc.). By recycling already supplied energy, improved net operating income and a more advantageous cash flow follow.

Energy efficiency increases property value

The property value is calculated as net operating income through dividend yield requirements. Since housing is quite predictable investments, as they are rarely empty due to housing shortages and have steady growth in rental income, the dividend yield requirement is relatively low in Sweden, even in smaller locations. Therefore, increased net operating income, together with low dividend yield requirements, leads to an increased property value.

Energy recovery to improve net operating income and increase property value

Expenditure on heating and domestic hot water can be cut significantly with energy-efficient technical solutions. You can take advantage of the thermal energy contained in the waste water, which is otherwise flushed out of the property, and return it to the property's energy system.

Evertherm's solution for the recycling, storage and distribution of heat provides lower energy costs, higher yields and maximum climate benefit. You reduce your need for purchased energy and can instead reuse up to 95% of the energy from the property's waste water. While the need for energy supplied decreases significantly, the increase in the value of the property normally corresponds to over 100 % of the investment cost.

Calculate the value of the property and the potential of energy recovery

We take an example of a newly produced property in Stockholm with a total boarea of 10,000 m², whose rent is SEK 1,550/m² (which is the maximum rent ceiling per square meter to receive investment support for rental housing from the County Administrative Board). The dividend yield requirement is based on geographical location and population density, and in large cities it usually averages 3%. If we upgrade this property with Evertherm SEW for recycling heat in wastewater, we will get these figures out:

energy conservation

239.4 MWh/year

Increase in net operating income

2,0 %

Increase in property value

SEK 8 million

Investment surplus after interest and depreciation

+84,8 %

Increase in property value
compared to investment (SEK million)

Try counting for yourself

If you want to see exactly what a circular energy system would mean for your real estate economic key figures, you can try counting yourself via our calculator.