The document discusses the concept of net zero energy buildings (NZEB), highlighting the goal of these buildings to generate as much energy as they consume over a year. It outlines energy consumption patterns in commercial buildings, emphasizing the need for improved efficiency with reference to various initiatives and standards aimed at decreasing energy intensity by 2030. Key technologies and integrated design approaches are identified as crucial to achieving significant reductions in energy usage and transitioning towards net negative energy buildings.

1. Net Zero and Beyond
Jim Schwartz
Director, Global Strategic Marketing
Johnson Controls Building Efficiency
October 2013

2. What is a Net Zero energy building?
“The concept of a Net Zero Energy Building (NZEB), one which produces as much
energy as it uses over the course of a year...”
Steven Winter Associates, Whole Building Design Guide
“Net-zero is possible, even in one of the most extreme climates in the country…”
Dave Elrod, Regional Manager, DPR Construction
“ …efficiency measures…7-10x…more cost effective than applying power generation
technologies.”
David Eijadi, owner, The Weidt Group
Buildings in the 2200 century will be surpassing Net Zero and driving
toward Net Negative energy use—where many buildings give back more
to the grid than they consume
Sources: 1) Net Zero Energy Buildings, Steven Winter Associates, 2013 2) DPR Construction, 2013, 3) BD&C whitepaper supplement to “Zero & Net Zero Energy Buildings & Homes”, March
2011
2

3. Focusing on Net Zero in commercial buildings
US Energy Consumption by Sector
• Macro drivers for energy efficiency
– Rising energy costs
– Growing GHG emissions
– Sustainability goals/image
~5 M bldgs … highest
energy intensity
Identified as top 3
issues for building
owners
[Energy Efficiency
Indicator survey]
• Buildings consume more energy
than any other sector … ~40%
• Commercial buildings are the most
energy intense
Transportation
28%
Commercial
18%
250 M+
vehicles
Residential
22%
– 4.5X residential energy use per sq-ft
• Commercial building energy use
growing faster than other sectors
~115 M
households
Industrial
32%
Buildings 40%
Commercial building sector has highest energy intensity
Sources: 1) Architecture 2030; 2) US Energy Information Administration; 3) US Environmental Protection Agency; 4) Institute for Building Efficiency’s Energy Efficiency
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4. Energy Independence & Security Act of 2007
Department of Energy Net Zero Commercial Building Initiative
2030
All new commercial
buildings
2040
50% of all
commercial
buildings
2050
100% of all
commercial
buildings
In June 2013, President Obama introduced the Better Buildings Initiative to drive
a 20% increase in efficiency for residential and commercial buildings by 2020
4

5. ASHRAE/ANSI/IES Standard 90.1 … the basis for new commercial
building codes
110
100
90-75
90
14% Savings
90A-1980
4% Savings
90.1-1989
80
11% Savings
Net Energy Use Index
(1975=100)
90.1-1999
70
5% Savings
90.1-2004
60
90.1-2007
Actual performance more
like 6% improved
DOE Target – 30% better than
Standard 90.1-2004
50
90.1-2010
40
30
Standard Release
20
Approval
Ultimate DOE Goal
Zero Energy Buildings
Code Adoption
~5 years
10
0
1970
1980
1990
2000
2010
2020
Standards & codes driving energy reduction …
Expect renewable energy to close gap to Net Zero
Sources: 1) May 18, 2010 webinar: “Using the Reference Building Models for the Standard 90.1-2010 Development “, Bing Liu, PNNL 2) Jarnagin, RE. “Weighting Factors
for the Commercial Building Prototypes Used in the Development of ASHRAE Standard 90.1-2010”,PNNL; January 2010.
5
2030
Balance
assumed to
be renewable
energy

6. Today 70% of commercial building energy goes for HVAC and
lighting
Average US Commercial Building Energy Use
Computers
2%
Office Equipment
1%
HVAC ~50%
Other
9%
Refrigeration
6%
Cooking
3%
Space Heating
36%
Lighting
21%
Water
Heating
8%
Cooling
8%
Ventilation
7%
Focus has been on individual areas of energy use, but need to look at the building as a system
Source:
Note:
6
US Energy Information Administration (EIA) Commercial Buildings Energy Consumption Survey 2003 (CBECS 2003). All building types combined;
Data reflects existing buildings. 100% = 91.1 kBtu/sf-yr

7. By 2030, energy intensity in new commercial buildings
can be cut 52% on average1
Drivers of
improvement
Total Building Energy Use Intensity
Portion of
improvement
1.
Lighting
19%
3.
66.7
22%
2.
(kBtu/sf-yr)
Design5
BEMS2
14%
4.0
Other Equip, 11.5
HVAC system2
4.
HVAC system2
12%
4.7
BEMS3
5.
Insulation
11%
3.9
1.6
14.3
Other, 3.9
Insulation
Windows
6.
Plug load
10%
7.
Other eqpt4
6%
8.
Windows
5%
6.6
Plug load, 9.5
3.5
2.2
7.6
Lights, 11.9
32.6
3.2
7.5
4.9
HVAC, 29.9
4.3
No magic bullet … known elements + integrated design process
Baseline
(90.1-2007)
HVAC
Lighting
Plug load
Other eqpt
4
Design elements
5
11.8
2030 potential
Energy Reduction Categories
2030 potential, 4.4 kBTU/sf/yr lower endpoint versus 2011 estimate
Notes:
7
1) At a 4 year payback
2) HVAC energy savings based on HVAC energy usage resized for windows, insulation and BEMS savings, which together reduce HVAC energy usage by 48% through 2030;
3) BEMS (building energy management systems) energy savings based on HVAC energy usage resized for windows and insulation savings, which together reduce HVAC energy usage by 27% through 2030;
includes technologies that enable continuous commissioning, fault detection and diagnostics as well as demand response;
4) Other equipment includes refrigeration, water heating and process gas;
5) Design refers to building shape, orientation, siting, etc.

8. By 2030, energy intensity in existing commercial buildings
can be cut ~40% on average vs. ~15% today
Total Building Energy Use Intensity
(Excluding warehouses, kBtu/sf-yr)
83.1
2.2
Other, 8.6
HVAC system
7.5
BEMS
Insulation
1.9
Other eqpt ,14.2
11.6
8.0
60.6
1.2
Plug load, 6.9
1.6
Other, 8.6
Other eqpt, 12.6
Lights, 15.9
Plug load, 5.6
Lights 7.9
HVAC, 37.5
HVAC, 25.9
Current Energy Retrofit
HVAC
Lighting
Plug load
1
Other eqpt
2030 potential
Energy Reduction Categories
Similar levers as today’s energy retrofits but with better technologies
Source:
Notes:
8
DOE Building Energy Databook (CBECS 2003); JCI internal analysis
1) Other equipment includes refrigeration, water heating and process gas

9. What impact will key technologies have on energy consumption in
new commercial construction?
Total building energy use per year (new construction)
66.7
65
60
Building Energy
Management Systems1
Variable
Refrigerant
Flow
Variable Energy Flow
Simultaneous heating &
cooling chiller heat pump
LED Lighting / Incandescent
Phase-out
Replaces T5/T8 fluorescents
Chilled Beams
55
Predictive Controls
Advanced Lighting
Controls
50
kBTU/ft2
Spray Polyurethane
Insulation
45
40
Cool Roof Insulation
35
32.6
30
By 2030, expect to cut energy intensity by 52%,
Remaining demand will be met through renewables
Meet gap
w/renewables
25
2013
2012
2018
2024
2030
Notes: 1) System comprised of demand response capability, energy performance monitoring/analytics, and integration of component-level controls and sensors; 2) As primary method of building
skeleton insulation; 3) Denotes savings over baseline technology; 4) Technology adoption begins when payback reaches 10 years
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10. Service programs tuned to the equipment life cycle
Programs to drive out early sub-optimal
performance
Connected
Warranty
Optimized Maintenance
Approach
Failures
identify change in
service program
Identify early wear-out
and end of life trend
Risk Mitigation Approach
Calculate the NPV of repair
vs replace as major parts
wear-out.
• Improve up-time and efficiency
• Optimize each service call
• Lower customer cost of
ownership
Data to drive shortest
time to full performance
– lower warranty costs
Break-in
period and
tuning
Random Failures
Predicatively identify and
fix high probability
failures to minimize
faults before end of life.
Wear-out period
Time
Equipment Baseline + Historic data + Real Time Data = Dynamic Intelligence

11. New construction to comprise ~30% of US floor-space by 2030…
Bigger opportunity in existing buildings
Mix of US Building Stock
(sq-ft)
9%
16%
23%
9%
New, 29%
16%
23%
Renovated, 29%
100%
83%
Existing
Buildings
67%
54%
Unchanged, 41%
2013
2010
2015
2020
2025
2030
Source: Architecture 2030
We expect the average age of buildings to remain steady at ~42 years, so the built
environment at the beginning of the next century will be largely buildings
designed and developed in the next 50 or 60 years

12. Challenges going into the next century: the design & construction
paradigm
Traditional Process
Integrated Design Approach
Architect
Owner
Architect
Structural
Engineer
Structural
Engineer
Owner
Building
Operator
Electrical
Engineer
Mechanical
Engineer
Mechanical
Engineer
Civil
Engineer
Cx
Authority
Lighting
Designer
Landscape
Architect
Electrical
Engineer
Project
General
Contractor
Technology
Contractor
Owner
Building
Operator
Cx
Authority
Lighting
Designer
Civil
Engineer
General
Contractor
Landscape
Architect
Up-front focus on Net Zero through integrated design approach
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13. Challenges going into the next century: cost justifying the next
wave of technology
Renewable
Generation
Building
Envelope
Cooling
Reliability &
Self Healing
Enthalpy
Exchangers
Energy
Storage
Thermosyphon
Water Heating
Building Efficiency
Smart Grid
Achieving Net Negative energy use result when technical,
regulatory and market factors come together
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