Energy Efficiency Investment: From Necessity to a Smart Business Decision
Investing in energy efficiency does not always begin simply with a company’s desire to reduce its energy bills. In the case of “Eva”, the initial question was much more practical – how to improve a company-owned building where it was no longer possible to maintain comfortable conditions in either winter or summer. When renovating the “Komforts” store building in Daugavpils, the company opted for heat pumps for heating and cooling, installed solar panels and carried out other renovation works. The results can already be seen not only in lower bills but, most importantly, in improved day-to-day comfort.
Company: SIA “EVA” and SIA “EVA-SAT” group of companies
Business activity: Retail of plumbing and heating products – “Komforts” stores
Location: Daugavpils (project implementation site), with stores in six other Latvian cities
Number of employees: 180
Annual turnover: Consolidated turnover of EUR 40.72 million in 2025
Challenge in Daugavpils: An outdated building, inefficient heating and overheating of premises in summer
Solution: Building insulation and partial reconstruction + heat pumps + solar panels
Investment: EUR 248,000
ALTUM support: EUR 73,000 capital rebate (European Union funding granted following successful implementation of the project)
Benefit: Approximately 63% estimated energy savings and energy bills reduced by three to four times
Additional benefit: More comfortable premises and an opportunity to demonstrate the company’s products and solutions to customers in a real-life setting
When a company acquires a building that it intends to use over the long term, sooner or later it faces a crucial decision – continue adapting to the existing problems or solve them. In the case of “Eva”, the answer became clear when the heating system at the “Komforts” store could no longer provide the conditions that employees and customers expect today.
“The building was not in a state of disrepair, but it was technically outdated. The district heating pipes and heating unit were in particularly poor condition. The building envelope and windows also required improvements. It was difficult to maintain a comfortable temperature in winter, while the premises overheated in summer. It was therefore only natural that we had to start considering a more extensive renovation of the building,” says Jānis Apsītis, the project’s architect and designer.
He emphasises that the decision to invest in energy efficiency cannot be reduced solely to a desire to cut energy costs. It was essential to improve a company-owned building intended for long-term use and to find a sustainable solution to its heating and cooling problems. The technical condition of the building’s engineering systems meant that postponing the necessary work was not even considered.
“The need to improve the building, its long-term use and the availability of ALTUM support for business greening with a capital rebate from European Union funds were the combination of factors that encouraged us to act rather than postpone the work,” the architect explains.
“An important point is that, in our case, energy efficiency was not a separate ‘green’ project conceived simply because support was available. The building needed to be renovated in any case, but ALTUM support enabled us to carry out the project on a broader scale and choose more modern solutions.”
Jānis Apsītis, project architect and designer
When Doing Nothing Is Not an Option – From Necessity to a Smart Investment
Asked how the company could be confident that such a substantial investment would pay off in the long term, Apsītis explains that doing nothing was simply not a realistic alternative.
“If you have a system that works tolerably or reasonably well, postponing the work can be a very realistic scenario. But in our case, doing nothing was not an option. The question was not whether to invest, but how to invest more wisely.”
It was important to select technologies best suited to the specific characteristics and location of the building. Particular attention was paid to the choice of heating system. Project manager Jānis Cimdiņš explains that, when developing the solution, the available heat supply options for the particular site were carefully assessed in terms of efficiency, operational considerations and compatibility with the project’s objectives. The characteristics of the urban environment and the practical feasibility of implementation were also taken into account. For example, alternatives such as pellet heating were not practically feasible in the centre of Daugavpils.
“Heat pumps enabled us to solve several problems at once – providing heating in winter and cooling in summer. In this particular situation, it was the most rational solution. Moreover, the building’s main tenant, the ‘Komforts’ store, also sells some of the equipment we selected, so we were able to choose and install the most modern and suitable solution currently available on the market.”
Jānis Cimdiņš, Project Manager
While the installation of heat pumps was largely driven by the practical need for a new heating and cooling system, solar panels offered an opportunity to make the project even more energy-efficient. The solar panels installed on the building’s roof generate part of the electricity required by the building. The company is, of course, aware that solar generation will be lower during winter, but over the course of a year it becomes a significant part of the overall system.
The total investment amounted to EUR 248,000, with ALTUM’s business greening support with a capital rebate playing an important role in the project. The capital rebate amounted to EUR 73,000 of the total loan. Cimdiņš and Apsītis acknowledge that the heating system would have been replaced even without the support, but installing solar panels would most likely not have been a priority.
This is one of the key lessons from the company’s experience: support is not always what prompts a company to begin investing. Often, a company already knows that investment is necessary, but additional support makes it possible to implement the project more extensively, to a higher standard and with the latest technologies, achieving a higher level of energy efficiency.
In the company’s experience, ALTUM’s role was not limited to financing and final project monitoring. Cimdiņš particularly highlights and appreciates the involvement and assistance of ALTUM specialists during project preparation. The opportunity to ask questions and receive answers whenever uncertainties arose was also important.
Implementing the project with support also meant additional discipline. Both the client and the contractors knew that implementation would be inspected and that the funding invested had to correspond to the work completed. From the company’s perspective, this additional discipline was an advantage rather than a burden.
“In our view, it was an advantage to have another supporter involved who, accordingly, also acted as an additional reviewer,” says the company representative.
Photo: Ivars Soikāns
Energy Bills Reduced Threefold and a Building That Adapts to People
In energy efficiency projects, the expected energy savings are calculated before work begins. For this project, the estimated saving was approximately 63%. However, company representatives emphasise that the real benefits are best assessed in everyday use.
Following implementation of the new system, the company’s energy bills are approximately three to four times lower than before. Although energy prices will always remain a variable factor, the company now has a modern system and generates part of the electricity it needs from solar panels, making its energy bills more predictable.
At the same time, Cimdiņš stresses that the main problem was not simply expensive heating, but the inability to provide a comfortable environment – an issue that has now been resolved. The building was commissioned in early spring, which also allowed the company to test the new heating system under winter conditions. The system met all expectations.
“The benefits were noticeable immediately. In rooms where we previously could not maintain a comfortable temperature, we can now do so continuously. The difference between then and now is like night and day. In our view, the clearest benefit of the investment is that employees and customers no longer have to adapt to the building. The building finally adapts to the people.”
Jānis Cimdiņš, Project Manager
Does investing in energy efficiency give a company an advantage over its competitors? “Eva” representatives believe that this benefit cannot be expressed in a single figure, but it can certainly be felt. A renovated building means lower operating costs, more comfortable conditions and less need for major technical investment in the building over the coming years.
“It is about making use of opportunities. If you take advantage of these opportunities, it is only natural that your competitiveness will be higher than that of those who do not. There is also a very tangible benefit for the company itself in having the heat pump technology installed at our own premises. ‘Komforts’ sells this equipment, and the renovated building has also become a kind of practical demonstration site where we can show customers how it works,” says Apsītis.
Proof That It Can Be Done in Latgale – Energy Efficiency Powered by Local Expertise
Company representatives highlight with pride that the investment was made not in Riga or one of Latvia’s largest business centres, but in Daugavpils. This can also serve as encouragement to other businesses in the region.
“We have shown that it can be done in Latgale as well. The renovated building attracts interest from people around us. They ask how the project was implemented, how the systems work and what results we have achieved. This is also important in the broader regional context – when one company demonstrates that such an investment can be successfully implemented, it may be easier for the next entrepreneur to make the decision. This is further proof that ideas can be implemented in Latgale and that doing so makes economic sense.”
Jānis Cimdiņš, Project Manager
Although heat pumps and solar panels are technologies that are not manufactured in Latvia, a large proportion of the remaining investment was implemented using local resources. Latvian-made materials, including timber cladding, were used to renovate the building envelope – the façade and roof. The construction work was carried out by local specialists from Daugavpils or, as company representatives put it, “the whole thing was built by local Daugavpils guys”.
“This project is also an example of how investment in energy efficiency can generate a broader economic impact – not only reducing the costs of one company, but also creating work and orders for local businesses,” adds Apsītis.
Photo: Ivars Soikāns
The investment was not made simply to make the building look better today. Its technical solutions are designed for the long term. This perhaps best sums up “Eva’s” experience with business greening – rather than an experiment with new technologies, it is a concrete and practical investment in the company’s future.
What would the company recommend, based on its own experience, to other small and medium-sized businesses in the regions that are considering energy efficiency investments but remain hesitant? First, do not be intimidated by the initial stages of the project and the paperwork. Once the first and most complicated stage has been completed, the process becomes much easier to understand. It is also important to involve professional designers and energy auditors at an early stage, understand what documentation is required and not be afraid to ask questions.
“The funds have been invested very rationally here and, in my view, the result is extremely sensible. ‘Sensible’ is probably the word that best describes this project.”
Jānis Apsītis, project architect and designer
Businesses can receive ALTUM financing for energy efficiency projects with a capital rebate of up to 30% of project financing (EUR 300,000 to EUR 3,000,000, depending on the region and size of the company). Support is available for investments that help reduce energy consumption, modernise production or introduce renewable energy solutions. The capital rebate means that, following successful implementation of the project, part of the loan is written off, reducing the investment cost for the company. More information is available at altum.lv.
