Good Practice > Financing instruments > Life-cycle analysis – Egnellska house in Falun

Life-cycle analysis – Egnellska house in Falun

Region: Dalarna
Implemented on: Regional level
Target group: Building owners


Through using a LCC concept for calculating the costs of materials, installations etc., the renovation project Egnellska house could be shown to be economic even with a demanding energy target of 59 kWh added energy per square metre and year.

One of the innovative parts of the procurement process was a financial reward and penalty system for the contractor: If the contractor was doing better (in this case regarding weatherization), he would be given a reward. If the contractor did not meet targets and requirements (in this case: weatherisation and ventilation) there was a penalty to pay. In the end the ventilation operation was particularly innovative in that it uses five different systems what makes it demand-driven to a high extent.


  • Contributing to regional, national and EU energy and climate targets;
  • Testing new tools in the context of the regional collaboration forum for the construction industry;


  • By giving top priority to energy efficiency from the very start of the planning process and using LCC costing methods, it was possible to reduce the cost of certain energy-efficiency measures to the same level as in a traditional construction project.
  • The public property management company is also planning for those tenants that show exceptional results in energy savings to be granted a financial reward.


The building will be monitored for at least two years before the final energy consumption can be determined. Currently, one year later, results seem to be fulfilling the targets.

Lessons learnt:

  • LCC can be used as a tool to ensure the costs of different measures and actions;
  • Performance-based procurement of the ventilation system proved to work extremely well, while using weatherizing levels as the basis for rewards and penalties did not work well due to insufficient measurement data.
  • A solar cell facility is currently being installed, providing the building with better energy values than before.
  • Monitoring of performance cannot be finalised earlier than 2 or 3 years after the end of the building work, as drying process, tuning procedures and system regulation are examples of factors affecting long-term energy consumption levels.


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