Investment costs

In all forms of calculations it is important to set limits and specify the costs and income that are associated with the studied project. The first question you should ask is whether it is reasonable to burden the project with all the supposed investment cost. It is naturally equally reasonable to ask whether all the costs that could be considered to be the result of a particular measure have actually been included. The fact that you cannot always evaluate all the effects in a quantitative way does not mean that you should refrain from describing them. In an uncertain investment climate, the qualitative effects could be the key factor.

Environmental benefits

It is likely that there will be a positive effect on the environment as a result of energy saving measures. Boverket's form includes a box that shows the reduction in carbon dioxide that is anticipated as a result of a proposed measure.
Government grants in this context should of course be deducted from the investment costs.  

Is the investment in energy savings part of another primary investment?

Assume that the necessary replacement of a window results in you selecting a standard that is higher than that required for the performance of the window. The purpose of this selection is to save energy. In this case it is the additional - or the extra cost for the energy saving properties that should be included in the calculation.

Are there any secondary positive effects?

Assume that switching to more energy saving windows also results in a substantial improvement in the sound insulation properties. How should you deal with this in the calculation? This could have a monetary value if there was an increased willingness to pay for the improved sound insulation, and that this in turn resulted in higher rent or other effects such as a better working environment for employees in a business. However, this type of effect does not normally have a monetary value.

Can you divide the considered package of measures into independent stages?

Determine the investment costs and savings for each stage individually by considering the margins. A complete package could be profitable, while the final stage is not.

Is a considered investment a replacement investment that has been brought forward in time?

In theory, an optimal time for replacement could sometimes be calculated for specific components. In this case you must be able to assess the residual values and depreciation for the components. However, it is likely this type of analysis is not particularly useful in this context.

Have all the developer costs, including own work, been considered?

Your own work initiatives have an alternative value and should therefore be included in the profitability calculations.

Taxation aspects

For some property owners the right to VAT deductions depends on the VAT situation of their tenants. 

The effects of energy saving measures on tax-assessment values and property tax for small houses is to all intents likely to be eliminated as a result of new regulations introduced at the turn of the year 07-08.

For owners of other residential buildings, energy measures normally affect the bottom line.

In general, tax consequences are often difficult to interpret and they are usually omitted from this type of profitability calculation.