Business Case for Zero Net Energy Buildings

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What is the business case for zero net energy buildings? How can they be justified in today's economic climate? Find out with my take on how to make a business case for a building that uses no net energy from the grid each year.

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  • TL: Clarify: Growth is still annual 50% rate in 2009
  • TL: Can we have static slide still readable and printable?
  • The green building industry is making huge strides. According to a study by Capital E, green building save at least 30% in terms of energy, reduce carbon emission by 35%, reduce water use by 30-50% and save costs on waste of 50-90%.
  • The green building industry is making huge strides. According to a study by Capital E, green building save at least 30% in terms of energy, reduce carbon emission by 35%, reduce water use by 30-50% and save costs on waste of 50-90%.
  • The green building industry is making huge strides. According to a study by Capital E, green building save at least 30% in terms of energy, reduce carbon emission by 35%, reduce water use by 30-50% and save costs on waste of 50-90%.
  • The green building industry is making huge strides. According to a study by Capital E, green building save at least 30% in terms of energy, reduce carbon emission by 35%, reduce water use by 30-50% and save costs on waste of 50-90%.
  • Business Case for Zero Net Energy Buildings

    1. 1. Jerry Yudelson Yudelson Associates 2011
    2. 2. Take-Aways
    3. 3. Importance of Building Green <ul><li>In the year 2035, 75% of the built environment will be either new or renovated, vs. 2005. We can dramatically transform our energy use and CO 2 production by constructing and renovating all buildings to ZONE standards. </li></ul>McDonalds Corp. HQ
    4. 4. Our Opportunity to Build Green Current US building stock is approx. 300 billion sf. <ul><li>Over the next 30 years: </li></ul><ul><li>52 billion sf will be demolished </li></ul><ul><li>150 billion sf will be remodeled </li></ul><ul><li>150 billion sf will be new construction </li></ul>Starting 2005, by the year 2035, three-quarters of building stock will be new or renovated
    5. 5. Life-Cycle Positive Solution <ul><li>Building energy efficiency is the only Life Cycle Cost-positive solution </li></ul><ul><li>25% of total carbon solution can come from buildings, including homes, stores, offices, hotels, institutional buildings and other structures </li></ul>Choosing Green Choosing Green
    6. 7. Defining Zero Net Energy <ul><li>In general, building energy use from all operating demands will be equal (or less) on an annual basis than energy generated by on-site renewable sources </li></ul><ul><ul><li>HVAC </li></ul></ul><ul><ul><li>Electrical </li></ul></ul><ul><ul><li>Lighting </li></ul></ul><ul><ul><li>Water Heating </li></ul></ul><ul><ul><li>Plug and Process Loads </li></ul></ul><ul><li>Buying power from green sources doesn’t count! </li></ul><ul><li>Seasonally, most buildings demand more power than they produce in winter and generate more than they use in summer </li></ul>
    7. 8. Hierarchy of ZONE Definitions <ul><li>Building energy use from all operating demands will be equal (or less) on an annual basis than energy generated by on-site renewable sources that are connected to the building’s energy systems </li></ul><ul><ul><li>Within building footprint (the best!) </li></ul></ul><ul><ul><li>On the site but not all within building footprint (e.g., Parking structures, ground-mounted, etc.) </li></ul></ul><ul><li>Generated from combustion of renewable sources (e.g., biomass) and some on-site solar thermal/electric energy </li></ul><ul><li>Generated from off-site renewable sources </li></ul><ul><li>Source: S. Pless and P. Torcellini, NREL/TP-550-44586, June 2010 </li></ul>
    8. 9. Is It Even Possible? <ul><li>Of course! BUT… </li></ul><ul><li>Solar AC generation ranges 1200-1800 kWh/KWp in U.S. </li></ul><ul><li>If a 110,000 sq.ft. building uses 1.5 million kWh/year, will need a 1000-kWp system to get net zero </li></ul><ul><ul><li>Actually, need solar thermal also, for hot water needs </li></ul></ul><ul><li>Cost $5 million +/-, or ~$45/sq.ft., net of incentives </li></ul><ul><li>Still an expensive proposition for a typical office </li></ul><ul><ul><li>Living Building Challenge requires this result </li></ul></ul><ul><ul><li>Most LEED buildings get to ZONE only by buying green power from outside sources </li></ul></ul>
    9. 10. Business Case for ZONE <ul><li>Finance & Economic ROI </li></ul><ul><ul><li>Role of incentives </li></ul></ul><ul><li>Risk mitigation </li></ul><ul><li>Marketing & PR </li></ul><ul><li>Building value </li></ul><ul><li>Productivity & health </li></ul><ul><li>Recruitment & retention </li></ul><ul><li>Sustainability reporting </li></ul>Ohlone College, Newark, CA LEED
    10. 11. Who Benefits Most? <ul><li>Government offices </li></ul><ul><li>Corporate offices </li></ul><ul><li>Commercial offices </li></ul><ul><li>Universities </li></ul><ul><li>Research Institutions </li></ul><ul><li>Schools </li></ul><ul><li>NGOs </li></ul><ul><li>Retail/Hotel/Healthcare? </li></ul>NREL RSF, Golden, CO LEED
    11. 12. A Closer Look at Building Types <ul><li>Owner-occupier-operator is easiest </li></ul><ul><ul><li>Recoup costs from myriad benefit streams </li></ul></ul><ul><ul><li>Government/corporate/NGO </li></ul></ul><ul><ul><li>University/school </li></ul></ul><ul><li>Commercial multi-tenant offices </li></ul><ul><ul><li>Harder to justify higher costs with higher rents </li></ul></ul><ul><ul><li>Works when energy use disclosed and rated </li></ul></ul><ul><li>Other building owner/types not so good </li></ul><ul><ul><li>Healthcare </li></ul></ul><ul><ul><li>Hotel/hospitality </li></ul></ul><ul><ul><li>Retail (maybe with iconic windmills?) </li></ul></ul>
    12. 13. Issues? <ul><li>How to overcome first-cost concerns </li></ul><ul><li>How to demonstrate cost-effectiveness in financial terms </li></ul><ul><ul><li>ROI </li></ul></ul><ul><ul><li>Increase in Building Value </li></ul></ul><ul><ul><li>Risk Mitigation </li></ul></ul><ul><ul><li>Intangibles </li></ul></ul><ul><li>Fundamental concern over actual building performance </li></ul><ul><ul><li>Projects need continuous commissioning </li></ul></ul><ul><ul><li>Renewables have to work as planned </li></ul></ul><ul><ul><li>Behavioral issues & plug loads must be managed well </li></ul></ul>
    13. 14. Trends? <ul><li>Low-energy building design know-how widespread </li></ul><ul><ul><li>Cost premium getting smaller </li></ul></ul><ul><li>Codes getting ever more stringent (e.g., ASHRAE) </li></ul><ul><ul><li>Reduces first-cost premium </li></ul></ul><ul><li>Solar cost reductions/efficiency gains </li></ul><ul><li>Conventional energy costs have to increase </li></ul><ul><li>Carbon accounting by many organizations </li></ul><ul><li>Perceived and actual value of green buildings going up </li></ul><ul><li>These are all positive! </li></ul>
    14. 15. The Future is Green! <ul><li>If you want to score, skate to where the puck is headed, not where it is now </li></ul><ul><li>Ask yourself and your clients: how will buildings have to operate in 2015? </li></ul><ul><li>What is the Next Normal? </li></ul><ul><li>Design, build & operate accordingly! </li></ul>Sidney Crosby, Pittsburgh Penguins 2009 Stanley Cup Winners 2010 Olympic Champions
    15. 16. Keep In Touch: www.greenbuildconsult.com Jerry Yudelson Yudelson Associates

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