The economic feasibility assessment is an essential part of any energy planning process – whether for district heating networks, renewable energy systems for individual buildings, or heat pump solutions. It ensures that investments are profitable in the long run and provides a solid decision-making basis for operators, investors, and municipalities. In this article, you will learn which factors play a role and why an early economic assessment is crucial for project success.

What is an economic feasibility assessment?

An economic feasibility assessment analyzes whether a planned energy supply is economically viable. It considers various cost and revenue structures and compares them with potential alternatives. Especially in the planning of renewable energy solutions, this assessment is indispensable since sustainable technologies often require higher initial investments but offer long-term savings and independence from fossil fuels.

Which costs and factors are analyzed?

The economic feasibility assessment covers a variety of factors affecting both investment costs and ongoing operating costs.

1. Investment costs

Heat generators: Acquisition costs for heat pumps, biomass boilers, or solar thermal systems
Network infrastructure: Piping for district heating networks, building connections
Storage technologies: Short- and long-term storage, buffer solutions
Building technology (TGA): Heat transfer stations, control systems
Planning costs: Engineering services, feasibility studies, HOAI services

2. Operating costs

Energy costs: Electricity for heat pumps, fuel costs for biomass
Maintenance and servicing: Regular inspections and repairs
Network losses: Heat losses in district heating networks

3. Revenue and savings potential

Reduction of fossil fuel consumption: Lower gas or oil costs
Revenue from heat sales: Particularly relevant for district heating networks
Subsidies and grants: BEW funding, KfW grants, BAFA subsidies

Figure 1: Economic feasibility calculation results in the nPro software

Comparison: Renewable energy systems vs. conventional heating technology

A thorough economic feasibility assessment enables the comparison of renewable systems with conventional alternatives. It often becomes evident that while renewable energies have higher initial costs, they are more economical in the long run.

Table 1: Economic comparison of renewable and conventional heating systems

Criterion	Renewable energy	Fossil fuel heating systems
Investment costs	Higher	Lower
Operating costs	Lower	Increasing (fuel prices)
Subsidies	Attractive (BEW, BAFA, KfW)	Minimal
CO₂ balance	Very good	Poor

When is an economic feasibility assessment worthwhile?

A detailed economic assessment is particularly useful for:

New construction or building renovations to select the optimal heating system
District heating network planning to evaluate feasibility and connection costs
Implementation of heat pump solutions to assess electricity costs and efficiency
Investment decisions for municipalities, utilities, and companies

Use the nPro tool to create economic feasibility calculations for your energy project.

Summary

The economic feasibility assessment is the first and most crucial step in planning sustainable energy projects. It helps minimize economic risks, identify savings potential, and make informed investment decisions. An early analysis ensures that projects remain viable in the long term – especially for district heating networks, heat pump solutions, and renewable energy systems.