The Road Ahead. Zero Energy Ready Home Annual EEBA Conference October 17, SAM RASHKIN Chief Architect Building Technologies Office

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1 2017 Annual EEBA Conference October 17, 2017 Zero Energy Ready Home The Road Ahead SAM RASHKIN Chief Architect Building Technologies Office 1 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

2 Before we Begin Zero is a Reverse Engineering Process Brand Promise 2 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

3 ZERH = Six Brand Promises Optimized Advanced Enclosure Enclosure FUTURE READY Water Protection MOISTURE READY Advanced H+AC+H COMFORT READY Indoor Air Quality HEALTH READY Efficient Comps TECH READY Solar Ready ZERO READY 3 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

4 ZERH Staircase Solar Ready Solar Ready Eff. Comps.& H 2 O Distrib. Eff. Comps.& H 2 O Distrib. EPA Indoor Air Package EPA Indoor Air Package Optimized Duct Location Optimized Duct Location HVAC QI with WHV HVAC QI with WHV HVAC QI with WHV HVAC QI + HRV Water Management Water Management Water Management Water Management Independent HERS Verif. Independent HERS Verif. Independent HERS Verif. Independent PHIUS Verif. IECC 2009 Enclosure IECC 2012 Enclosure IECC 2009 Enclosure IECC 2012 Enclosure IECC 2012/15 Encl./ES Win. Ultra-Efficient Enclosure HERS HERS HERS HERS HERS HERS IECC 2009 IECC 2012 ENERGY STAR v3 ENERGY STAR v3.1 ZERH PHIUS+ 4 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

5 ZERH Strategy Efficiency & Performance First! Annual Optimize Efficiency: Enclosure Components Solar Ready Do No Harm: Moisture Protection Assured Comfort Comprehensive IAQ Energy Use Renewable Optional: On-Site Micro-Grid Utility Offsets 0 Minimum Code Home Zero Energy Ready Home Zero Energy Home 5 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

6 ZERH Simple Core Message Wouldn t it be great to know what leading experts would look for in a new home that performs to their expectations? 6 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

7 ZERH Simple Core Message 2009 Well now you do. When building performance professionals are polled, they overwhelming choose homes that meet Department of Energy Zero Energy Ready Home specifications. 7 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

8 ZERH Sample Projects in Pipeline Mandalay Homes: 3,000 Units in Prescott, AZ Caliber Wealth Dev.: 3,000 MF Units in Phoenix Capstone: 200 Units in Flagstaff, AZ LendLease: 500-Acre Community in Denver HF2M: 3,000 Unit Community in Fort Collins Meritage Homes: 4 Subdivisions (CA, AZ, FL) Garbett Homes: 300+ Homes in Salt Lake City Parallel Housing: 91 Units on Atlanta Belt Line Stapleton: 10% Min. Phase 10 in Denver Modular Plants in VT (VerMod) and DE (ZeMod) 8 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

9 Preparing ZERH for the Future Response to question about the secret of his success: I skate to where the puck is going to be, not where it has been. Wayne Gretsky Canadian Hockey Player 9 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

10 So the Question is Where is the housing puck going to be? (FDD) 10 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

11 Use of Internet for Home Buying Frequently or Occasionally 71% 77% 79% 80% 84% 87% 90% 89% 88% 90% 92% Content Source: National Association of Realtors 11 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

12 Buyers will know a lot more about Thermal Defects 12 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

13 Future ZERH Requirements Minimize Thermal Defects: Maximum Framing Factor 8% Ratchet up Air Tightness (1-2 ACH50 instead of ACH50) 13 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

14 Buyers will know a lot more about Advanced Windows 14 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

15 Why Advanced Windows Window 15% of Wall Area Wall R-Value with Windows w/varied Wall Insulation Levels U-Value R-0 R-18 R-39 R R-5 R-11 R-15 R R-5 R-13 R-19 R R-5 R-14.5 R-23 R R-5.5 R-16 R-27 R-34 * In Cold Climates Sources: Holes in the Wall: To Improve the Energy Performance of Walls, Look at the Total R-Value, Journal of Light Construction, February 2014; Multi-Assembly R-Value / U-Value Calculator Cascadia Windows and Doors; Michael Blasnik Presentation, 2014 ACI Conference 15 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

16 Buyers will know a lot more about Advanced Windows 16 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

17 Future ZERH Requirements High-R Windows: R-3 Climate Zones 1-3 R-5 Climate Zones 4-5 R-7 Climate Zones INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

18 Buyers will know a lot more about Moisture Risks 18 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

19 Buyers will know a lot more about Moisture Risks 19 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

20 Future ZERH Requirements Moisture Management: Capillary Break Between Footing and Foundation Stem Wall Mandate Low-Risk Wall Assemblies (e.g., IRC Assemblies with Exterior Insulation or Systems Built Walls such as SIPs, ICFs, ICPs, etc.) 20 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

21 Buyers will know a lot more about Health Risks 21 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

22 Future ZERH Requirements IAQ Measures: HRV or ERV in Cold Climates ERV in Humid Climates High-Capture Efficiency Kitchen Exhaust Smart Ventilation w/on-board Diagnostics 22 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

23 Buyers will know a lot more about True Cost Monthly Utility Bill Lower True Cost Monthly Utility Bill CODE Monthly Mortgage Monthly Mortgage 23 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

24 Buyers $140,000 $120,000 $100,000 $121,706 Average 30-Year Savings All Tour of Zero Homes ~$108,000 $115,622 $80,000 $60,000 $40,000 $20,000 $61,179 $66,766 $0 Affordable Custom MF 24 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

25 Future ZERH Opportunity Engage Transaction Players: Underwriters (Reduced Interest Rates, EEMS) Insurance Companies (Reduced Cost Insurance) Appraisal Associations (Training and Tools for Appraisers) State Housing Agencies (Qualified Action Plan Incentives) 25 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

26 will drive Quality HVAC 26 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

27 will drive Quality HVAC 27 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

28 Future ZERH Requirements Quality HVAC: High-Efficiency HVAC Variable Capacity HVAC Integrated RH Control Smart Optimized Comfort Control Systems 28 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

29 Housing: Low Productivity 180% Labor Productivity Index All Non-Farm Industries +76% 140% 3X 100%% Construction Industry -28% 60% Sources: U.S. Bureau of Labor Statistics, U.S. Dept. of Commerce 29 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

30 Housing: Glacial Innovation 1877: Wood Frame House, Omaha, NE 2015: Typical Wood Frame Structure 30 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

31 Housing: Visibly Poor Waste 31 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

32 Why Trade Partner: Availability Quality Training Cost Productivity Waste 32 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

33 Future ZERH Opportunity Integrate w/ : Kit Manufacturers Panelization Manufacturers Modular Manufacturers 33 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

34 34 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

35 Hurricane Harvey Aftermath: Houston, TX 35 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

36 Hurricane Irma Aftermath: Homestead, FL 36 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

37 Buyers Will Know Resilience Insurance Cost Relative to Base Flood Elevation (BFE) Premium at 4 Ft. Below BFE $9,500/year $95,000/ 10 Years Premium at BFE $1,410/year $14,100/ 10 Years Premium at 3 Ft. Above BFE $427/year $4,270/ 10 Years 37 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

38 6% - 8%* 13% - 15%* 16% - 19%* 38 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

39 Future ZERH Requirements : Fortified Homes Certification Integrated Pest Management 39 INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov

40 Questions? Thank You For More Information: INNOVATION & INTEGRATION: Transforming the Energy Efficiency Market Buildings.Energy.gov