EWI Levelized Cost of Heating Tool

Which heating technology really pays off when considered over the entire service life?
How do subsidies, CO₂ prices in the EU ETS 2, and the requirements of the Building Energy Act change this calculation?
And does switching from a gas heating system to a heat pump pay off for a specific building?

The EWI Levelized Cost of Heating Tool is an Excel-based calculation tool for comparing the life-cycle costs of different heating technologies in residential buildings. It calculates the annualized full costs, i.e. levelized cost of heating in ct/kWh as well as annual heating costs in EUR/year, for eight decentralized heating technologies, ranging from gas boilers and various types of heat pumps to pellet and hybrid systems. The tool also accounts for the regulatory environment: CO₂ costs within the framework of the EU Emissions Trading System for buildings and transport (EU ETS 2), government investment subsidies, as well as the requirements of the Building Energy Act (Gebäudeenergiegesetz, GEG).

The EWI Levelized Cost of Heating Tool for Consulting and Research

The tool makes the economic effects of a heating decision for a specific building directly visible and thus supports well-informed investment decisions under current regulatory frameworks.

The EWI Levelized Cost of Heating Tool in Practice:

Technology comparison: compare the life-cycle costs of various heating technologies for individual residential buildings
CO₂ abatement costs: quantify the costs of climate-friendly heating technologies compared to conventional gas heating systems
Subsidy effect: analyze the effects of government subsidy programs on the heating cost structure
Renovation planning: quantify potential savings through building-specific renovation roadmaps
Sensitivity analyses: determine future heating costs under different price trajectories for energy carriers (electricity, gas, biogas, pellets) and CO₂ costs
Investment decision: support owners, energy consultants, and housing companies in choosing new heating systems

The EWI Levelized Cost of Heating Tool in Detail

The EWI Levelized Cost of Heating Tool is an Excel-based calculation tool. For predefined reference buildings or an individual building, the annual useful heat demand is calculated using the monthly balance method according to the technical standard series DIN V 18599; the heating costs are determined as annualized full costs over a service life of 20 years. For each of the eight heating technologies, the tool calculates both the levelized cost of heating (in ct/kWh) and the average annual total costs (in EUR/year). This is a full-cost calculation, not an optimization: the tool compares technologies but does not automatically select an optimal solution.

The tool can also account for an individual renovation roadmap: for all components of the building envelope (roof, exterior wall, basement ceiling, windows), a renovation date can be specified, with either a conventional or a forward-looking renovation depth. Renovations reduce the heat demand and thus the heating costs of a building.

Schematic Representation of the Model

Figure 2: Schematic representation of the tool

In addition to individual building characteristics, the tool also takes weather and usage data into account. Weather data are available for the 15 climate regions of DIN V 18599, and usage data can be entered individually, for example the hourly indoor setpoint temperature.