Development of an Optimization-Based Methodology for Subsidy Programs in Residential Buildings

International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems (ECOS), pp. 1905–1916

Abstract

The success of the energy transition in the building sector depends not only on the technical feasibility but also on the economic viability of energy modernization measures.Subsidy programs for building owners and energy prices exert a strong influence on this economic viability and thus on the spread of low-emission building energy systems.Against this background, this study presents a bi-level optimization approach to determine cost-efficient subsidy strategies.At the upper stage, the government aims to reduce subsidies to reach CO 2 targets.At the lower stage, individual building models optimize their total costs by modernizing the heat conversion technology or insulating the building shell.To achieve solvability, the lower model is implemented into the upper model as a discrete set, resulting in a single-stage problem.The model determines the minimal subsidy rates that make the purchase of the technologies and measures worthwhile for the building owner, depending on a CO 2 target aimed by the government.Results show that the introduction of subsidy programs has a considerable steering effect on emission savings.The targeted promotion of low-emission heat supply technologies, such as HPs, with up to 40 % subsidy quota in combination with subsidies for insulation measures contributes significantly to their installation in existing buildings and thus to the achievement of climate protection goals, if the future expansion of renewable energies in the electricity mix is taken into account.With the current costs and emission factors of pellet, the promotion of pellet heating can further contribute to strong emission savings.

Authors 4

1. Nico Fuchs Aachen E.ON Energy Research Center Institute for Energy Efficient Buildings and Indoor Climate

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen University, E.ON Energy Research Center, Institute for Energy Efficient Buildings and Indoor Climate

2. Jonas Baumgärtner Aachen E.ON Energy Research Center Institute for Energy Efficient Buildings and Indoor Climate

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen University, E.ON Energy Research Center, Institute for Energy Efficient Buildings and Indoor Climate

3. Dominik Hering Aachen E.ON Energy Research Center Institute for Energy Efficient Buildings and Indoor Climate

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen University, E.ON Energy Research Center, Institute for Energy Efficient Buildings and Indoor Climate

4. Dirk Müller Aachen E.ON Energy Research Center Institute for Energy Efficient Buildings and Indoor Climate

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen University, E.ON Energy Research Center, Institute for Energy Efficient Buildings and Indoor Climate