The economic principle behind Passive House is based on a concept by Amory Lovins of the Rocky Mountain Institute to reduce construction costs through energy efficient design.

By dramatically increasing the energy efficiency of a building, the mechanical system can be radically downsized to the point that the cost savings offset the efficiency investment. In other words, the lack of a boiler or furnace ends up paying for more insulation and better windows and doors.

This efficiency “sweet spot” is the basis for the Passive House performance standards and the key to its financial feasibility.

Source: Krapmeier & Drössler 2001

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