An analysis of total cost for 100% energy and water off-grid vs on-grid
Basic data
List of costs
Summary
We would like to emphasise the following in terms of our methodology for the below.
Prices are indicative and are based on August 2023 data averages
The analysis is based on Estonian real estate and construction prices
In order to compare different options, our methods considers prices in the following manner:
- There is road access to the plot (otherwise the cost of building/installation of any pre-fabricated house would be more expensive);
- There is no existing house on any of the plots (no extra demolition costs);
- 100% off-grid plot has no electricity connection option within 400m and no borehole;
- On-grid option has a connection possibility within 400m, but has no borehole;
- Plot price average: euro per square meter (€/m2).
Calculating the average cost of land
How are the plots comparable
X-factor location
All plots in the comparison are next to the sea-, lake- or riverside and neighbours are at least 400m away.
Proximity
All plots in the comparison are no further than 20km from each other per each region.
Similar plot benefits
No paperwork done, no buildings to demolish, relatively similar requirements for plot preparation.
REGION
OFF-GRID €/m2
ON-GRID €/m2
Pärnumaa, next to the sea
€8/m2
€13/m2
Harjumaa, next to the sea
€40/m2
€64/m2
Valgamaa (Otepää area) next to a lake
€5/m2
€7/m2
TOTAL average
€17.7/m2
€27/m2
Average cost of land
off-grid €17.7/m2
on-grid €27/m2
Calculating total cost
Cost of the plot: our calculation will consider the plot size to be 5000m2 as this would mean that neighbours would be relatively far (for on-grid as off-grid typically does not have neighbours).
off-grid €88,500
on-grid €135,000
Cost of water access: water in Estonia is widely available, but we will use the example anyhow.
off-grid €30,000
inc. all elements for water cleaning and recycling and installation
on-grid €14,000
inc. borehole, pumps, pipes, installation
Cost of electricity: off-grid system vs on-grid (we will add the cost for solar panels for the on-grid house as otherwise the cost of maintenance would need to be calculated separately.
off-grid €33,000
incl. all elements and installation
on-grid €20,000
inc. the cost of joining the grid, solar panels, installation
Other costs: we will assume that all other plot preparation and building costs would be the same, €200,000 for this calculation.
€200,000
€200,000
Other resources: Connecting to the grid takes administration and time. Building a borehole takes administration and time. Extra permits, building and licences.
N/A
N/A
TOTAL (inc. VAT)
off-grid €351,500
on-grid €369,000
Summary
Do your research
Make sure you consider the total cost of your project. We wrote about the total cost calculation for building in the countryside here.
Take price offers
A builder might not give you a price for the borehole or plot preparation. Make sure you take price offers for all the building process stages.
Analyse contracts
When your initial research clearly identifies the best offer(s), ask for their contract template to analyse the obligations the contractor would take and what is on you. This will show you further possible “extras”.