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Is Passivhaus financially feasible in Jordan?

Numerous studies have investigated the benefits of the Passivhaus standard in Europe – demonstrating that homes designed and built to the standard can reduce the space heating demand by up to 78% compared to a typical new build. In terms of cost-benefit analysis, research has shown that the cost premium of homes built to the Passivhaus standard currently ranges from 4% to 8%, and is expected to fall over time and when implemented at scale. The estimated payback period of buildings designed to Passivhaus varies greatly and depends on numerous factors such as construction costs, government incentives, energy prices, and discount rates. Current estimates range from as little as 5 years to 25 years.

But is the Passivhaus concept viable in Jordan? At Joule, we have conducted a preliminary study to assess the financial feasibility of applying the Passivhaus concept on a villa with a gross floor area of 1,000 m² in Jordan. The results show that the cost premium of adopting Passivhaus principles is as follows:

  • Thermal insulation: JOD 19,405
  • Windows with superior thermal performance: JOD 5,464


Thus, the total cost premium would be approximately JOD 24,869 – which represents 5% of the total construction cost of the villa (assuming an average construction cost of JOD 500 per m² of gross floor area).

In terms of benefits, the study shows that applying the Passivhaus concept achieves a net saving of up to JOD 94,769 in heating cost and JOD 11,180 in cooling cost over the course of the villa’s lifetime (30 years), with a payback period of less than 6 years*.

*Assuming a diesel boiler. The net savings vary according to the heating system adopted , the gross floor area of the building, and its architectural design.

A graph showing the cost premium of applying the Passivhaus concept in Jordan along with the payback period. The graph demonstrates that the payback period is less than 6 years, with total net savings reaching up to JOD 105,946 by the end of the building’s lifetime (30 years).