Energy Efficient Myth Busters

Similar documents
The Most Effective Energy Upgrades for Existing Buildings

BSC Building America High Performance Homes: Today & Tomorrow. Peter Yost Senior Building Scientist

ENERGY & WATER EFFICIENCY: HOME ASSESSMENTS. Jim Riggins Monument, CO

Residential New Home Construction Checklist

BALTIMORE GAS AND ELECTRIC COMPANY (BGE) Home Performance with ENERGY STAR Program. Rebate and Incentive Instructions

Designed with the environment in mind.

Modular Construction. Live/Work Urban Infill Townhome. Modular Construction. Enclosure Design. San Francisco Bay Area Net Zero Urban Infill

Welcome. High Performance Mechanicals for Houses That Work. Energy Design Conference - Duluth, MN. February 21 st, 2018

Energy Efficiency Practices for the Low- Income Population

Monty Anderson Construction Group Home Address: 3251 Great Oaks Boulevard Kissimmee, FL Certified: Score: 164

Ways to Save. Energy efficiency tips to help you lower your monthly power bill. 1 Ways To Save

Overview. Case Study 2008 Building America Prototype ICI Showcase House. Daytona Beach, Florida. Project Team: ICI Homes, Building Science Corporation

Triple E New Construction. Doug Manthey Conservation Technologies Chad Trebilcock Minnesota Power

New Jersey Home Performance with ENERGY STAR Home Performance Audit/ Software Data Collection-2011

Riverdale NetZero Project Summary of Costs and Expected Performance

NEW HOME CERTIFICATION PROGRAM 2018 PROGRAM GUIDE

Equipment Specifications and Required Information Quantity Rebate

Address Account # Member # Equipment Specifications Quantity Rebate. ENERGY STAR Appliances

Pro Eco-Energy. Home Assessment

Evaluate your insulation. Look for a tag in the attic that shows the R-Values of insulation in the floors, walls and ceiling.

Customized Energy Audit Report

Home Energy Audit. 170 Security Circle Suite 104 Athens, GA

Basic Home Energy Audit

How to Build High-Performance Homes for Less Than $150/Square Foot

Energy Efficiency Programs in Action Case Study: First things first The Home Energy Assessment Sandwich, MA

Triple E New Construction. Doug Manthey Conservation Technologies Chad Trebilcock Minnesota Power

A GUIDE TO KASPRZAK ENERGY EFFICIENT CONDOMINIUM HOMES

InterNACHI Home Energy Inspection for th Street

Audit Date: Auditor: Jimmie Sparks Client Name: White Bear Lake Audit Phone: x123 Neighborhood Energy Connection

A smarter, healthier way to live.

EARTH ADVANTAGE HVAC REQUIREMENTS

2013 Southern Nevada Home Tour

UPGRADES. [Energy Efficiency] Base Points

HOME ENERGY SAVINGS GUIDE

WATT s Up? What You Can Do To Reduce Your Home Energy Costs

Tips To Help Conserve Electricity

Julie Klump, POAH Rick Fenuccio, Tom Hartman Marc Rosenbaum Melpet preliminary heat loss and energy model results and implications

NAHB Green Home Building Guidelines. 3.1 Prerequisites. ResCheck. Energy Efficiency

4. A 2 X4 knee wall, if insulated, should be to what R value? 5. The clearance between insulation and a furnace vent should be:

How to save money on energy at home

HOME PERFORMANCE ENERGY ANALYSIS

Energy problems in small apartment buildings

Home Energy Assessment Report

Energy Efficiency Programs in Action

Northeast Oklahoma REC s Do It Yourself Home Energy Audit Silver Level

ELECTRIC WATER HEATERS

Consumer Features & Benefits of Energy Efficient Products

10 DEEP RETROFIT CASE STUDIES. Iain Walker Lawrence Berkeley National Lab

Are you warming up with space heaters?

Energy Options for Residential Heating. Juergen Korn, P.Eng.

Low-Impact Remodeling

Energy Upgrade California Home Upgrade Offered by The Energy Network

New Jersey Board of Public Utilities and its Clean Energy Program. Residential Energy Efficiency Programs. NJCleanEnergy.com

SAMPLE. Home Energy Audit Report and Guide to Energy Efficiency. Proprietary information belonging to Lightly Treading, Inc.

Better Buildings By Design What are the best HVAC solutions for low-load, high performance homes? February 6-7, 2013

endless advances for your customers WATER HEATING SOLUTIONS FOR BUILDERS

Building and Remodeling to Save Energy 1

It pays to save energy. Guide to Xcel Energy rebates, incentives and programs for residential customers in Minnesota

furnaces get the right heating system

Energy efficiency: Present and Future. Paul Kando Midcoast Green Collaborative

ThermWise Home Energy Plan Mail-In Plan

SnuggPro DATA COLLECTION FORM

Home Performance Science

Energy-saving tips. For apartments and condos. pse.com/multifamilyretrofit. Bellevue, WA Puget Sound Energy. P.O. Box /17

Audit Date: Auditor: Sarah Hayden Client Name: College of St Benedict Audit Phone:

2013 REPOWER INCENTIVE GUIDE

Insulate your exterior walls. Air seal and insulate your attic

EXISTING MULTIFAMILY OREGON CASH INCENTIVES. Standard Incentives SAVE MONEY AND ENERGY NOW AND FOR YEARS TO COME.

the STABLES Passive House Certifi cation Pending 3 bedrooms + offi ce / 4th bedroom 3 full bathrooms /- sq ft of living space

EnergyMeasure HOME DATA COLLECTION FORM

WHY IS BUILDING SCIENCE IMPORTANT?

Joe Konopacki 10/26/2016. Attic & Crawlspace Ventilation. What results from poor ventilation? Attic & Crawlspace Ventilation. Overview Why ventilate?

Geothermal Heating and Cooling Using Ground Source Heat Pumps. Prepared by: Steven Forrester, P.E. Principal

FirstEnergy Program Overview

Saving Energy Around the Farmstead

2015 NATURAL GAS EFFICIENCY REBATE APPLICATION

2011 NATURAL GAS EFFICIENCY REBATE APPLICATION

ENERGY PERFORMANCE SCORE

Energy-Efficient Makeup Air Units BY HUGH CROWTHER, P.ENG., MEMBER ASHRAE

LEED for Homes V4 Provisional Alternative Compliance Paths for the Canadian market March, 2017

Solar Decathlon 2011 Weatherization Plus Health Leaking Shower Diverters Benefits of Quality Management

Uniform Dwelling Code 2017 Updates SPS 323

Bedroom 100. True or False: Space heaters are more energy efficient and inexpensive to heat large areas than central heating systems.

Supplement A- Improving Forced Air Heating Systems

HOME ENERGY SAVINGS GUIDE

Basic Building Science insights for Spray Foam, HVAC and Moisture

Passive House. The Design, Construction, Testing and Lessons Learned RochesterPassiveHouse.blogspot. com

Steve Jackson President, Enervison and Enviromatics Group Board of Directors, CHBA-Edmonton Region

12 SIMPLE TIPS TO REDUCE HEATING COSTS. QUESTIONS AND ANSWERS ABOUT: Rising fuel prices Envelope changes Space heating Water heating

LOW TEMPERATURE HYDRONIC HEATING FOR COLD CLIMATES TRAVIS SMITH PRESIDENT T AND T MOUNTAIN BUILDERS INC

GEOTHERMAL COMFORT SYSTEMS

Saving Home Energy for Real Estate Professionals

The 2018 Ventilation Extravaganza. Rick Karg Residential Energy Dynamics 2018

GEOTHERMAL: THE SMARTER CHOICE

Presented by: Dave Hoffman, P.E., LEED AP Gipe Associates, Inc.

Home Energy Assessment Rebate Guide

NAECA Water Heaters. Tankless (Instantaneous) < 2 gallons Natural Gas 75,000 Btu 200,000 Btu Oil 105,000 Btu 210,000 Btu Electric

DO IT YOURSELF ENERGY AUDIT

Energy Saver 101: Home Energy Audits

EXHIBIT 1. Washington Home Energy Savings Program Measures, Incentives, and Qualifications

Transcription:

Energy Efficient Myth Busters The cold hard facts about energy efficient upgrades Steve Romme March 3, 2017 1

Agenda Introduction Efficiency vs Optimization Myth Busting Summary Q&A 2

Introduction I am NOT An engineer, architect, physicist, chemist A builder, framer, plumber, electrician, HVAC specialist A rater/certifier I am A researcher, technologist and financial analyst who knows how to get the most for my money An financial-based environmentalist A plain talking independent guy, that doesn t mix words 3

92% 70% Energy Efficiency Higher efficiency rating $571/yr Energy $571 Mortgage $ 37 Total $608/yr Energy Costs Lower energy costs Cost of Ownership Lower net payment (energy bill + mortgage increase) $157/yr Energy $157 Mortgage $ 74 Total $231/yr Optimization Lowest total cost of ownership (mortgage + energy) Whole house analysis Tradeoffs insulation, HVAC, windows, or lights? 4

Know Your Potential Savings Utility Costs of Non-Optimized New Home 2,432 sq. ft. NG Energy Service Charge $453 Major Appliances $167 Lights-Fans $336 Water Service Charge $359 Plug Loads $492 Water / Sewer $448 Cooling $147 Hot Water $476 Heating $714 5

Know Your Potential Savings Conditioning Costs of Non-Optimized New Home 2,432 sq. ft. NG Infiltration $261 Slab Floors $16 Ventilation $70 Framed Floors $18 Above Grade Walls $233 Foundation Walls $67 Ceiling/Roof $49 Windows/Doors $154 6

Busting Myths! 7

Fuel Source Myth Energy costs don t vary much and geo always lowers utility bills Because utilities are regulated, energy costs are about the same across the state Geothermal systems or mini-splits will lower your monthly utility bill Insulation levels should be driven by climate zone (outside temp) Fact $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Cost / Million BTU Costs from 2015 bills inflated to expected 2017/18 rates $49.51 $48.86 $39.31 $23.88 $15.28 Energy costs vary a lot, and electricity is expensive! If natural gas is available, it s nearly always a better choice An electric appliance has to be 6-8 times more efficient than gas Some small cooperatives have lower electrical rates Insulation levels should be optimized using climate and energy costs! $6.26 WE Elect Alliant Elect WPS Elect Med Elect Propane Nat Gas 8

Fuel Source Myth You should build about the same house no matter your fuel source We always blow R49 in the attic because it is optimal for our climate We always put a power vent tanked water heater in every house $700 Conditioning Costs by Component $500 $300 Propane Nat Gas $100 -$100 -$300 Fact Fuel source significantly changes where you invest! Energy savings is 2-3 times more when propane is used instead of gas Invest more in the building shell when you have propane or geo and less when you have gas Propane or electric only homes should consider more insulation and different mechanicals like tankless or heat pump water heaters 9

Myth Insulation The more R-value per inch, the better the insulation Spray foam is the best insulation because it has the highest R-value per inch Fiberglass has a lower effective R-value per inch in cold weather Fact HD Batt R21 Batt R19 Spray Cellulose R21 BIBs R23 2" EPS R7.84 2" Neopor R9 1" XPS Foam R5 1" Spray Foam R6.4 Cost / sq. ft. / R value Installed (includes framing factor) $0.043 $0.043 $0.064 $0.063 $0.087 $0.085 Foam is an expensive way to insulate 2-5 times more expensive than fiberglass batts $0.127 $0.158 $0.00 $0.04 $0.08 $0.12 $0.16 $0.20 Source: efree Advisors Wall Analysis 2017 Very low infiltration rates can be achieved with any type of insulation Air movement through fiberglass can lower its effectiveness Good installation is required with any insulation SPECIFY and INSPECT 10

Myth Air Sealing Building a tight house is expensive and risky To build a tight house you need lots of spray foam, SIPs, special windows, etc. Building too tight causes comfort and indoor air issues Infiltration $261 Fact Infiltration reduction is one of the biggest opportunity areas More energy is lost through infiltration than any other area Costs the least to capture savings Controlling infiltration is always better Can control vapor transmission Can control humidity levels Windows/Doors $154 Can more effectively manage indoor air quality Above Grade Walls $233 11

Home Size: Shell SqFt Myth Fact Air Sealing To build a tight house you need to use exotic materials and processes To build a tight house you need SIPs, ICFs, ZIP, or rigid foam Building conventional stick won t be as tight as other methods We have built extremely tight houses no matter the size or construction type 14,000 12,000 10,000 8,000 6,000 4,000 TF: 2x6/BIB/Sh/1" TF: 2x6/Batt/Sh/1" AF: 2x6/Batt/Sh AF: 2x8/Batt/Sh AF: 2x6/Cell/ZIP SIP 2,000 -.00.05.10.15.20.25.30.35.40.45.50.55 Air Leakage: CFM50/SqFt ICF Passive House Focus on Energy Code 12

Building used 2,423 sq. ft. 2-story Located in Oshkosh, WI WPS electric and natural gas City water/sewer Myth Buster Whole House Optimization Software used and base comparison REM/Design and SmartSpend software Code-built as defined by prescriptive path of Wisconsin UDC Code Financial assumptions Mortgage = 4% fixed, 30 year term Energy inflation = 4% elect, 6% gas WPS Energy Rates Electric costs = $.116/kWh, Gas costs = $0.62/therm, Annual fixed costs $453 13

Cost of Ownership Defined SmartSpend Report compares monthly costs Use building code minimum as Low-cost Build Subtract energy savings from added mortgage cost Positive first year is YES Negative first year, but positive 20 year is Maybe Negative first year and negative 20 year is NO! Windows example Performance Code of U.35 vs. U.30 and U.28 Vinyl 2 Pane Low Vinyl 2 Pane Basic Vinyl 2 Pane Prem Upgrade Description Performance 0.35 0.30 0.28 Installation Cost Change $100 $500 Energy Change / yr. -$15 -$20 Mortgage Change / yr. $6 $29 First Year Savings vs Low Build Cost $9 -$9 20 Year Savings vs Low Build Cost $437 $163 Install cost difference vs low cost build (code) $100-$500 more Energy change vs code - $15-$20 less/yr. Mortgage change/yr. of $6-$29 based on added build cost First year net (energy savings less mortgage increase) 20 Year Total assumes energy inflation and fixed interest rate 14

Changes since 2015 Energy prices mixed Myth Busters Natural gas down almost 50% from a few of years ago Fixed monthly utility charges increased (2-3 times) Electric rate variation by utility increased Building materials and labor prices up Solar costs down What it means Less furnace upgrades and lower levels of insulation More electricity-based upgrades Solar electric is a good investment 15

Myth Busters Whole House Optimization Review Basements Above Grade Walls/Attics Windows HVAC Dehumidification Domestic Hot Water Lighting Solar Water Savings 16

Basement Floors Myth Insulating under basement slab saves money Fact Adding another inch or two of foam is cheap Once poured, you can t insulate the floor later Adding insulation under the basement floor costs money Mortgage costs always greater than energy savings We recommend 1-2 for comfort, but don t sell it as energy savings Never add more than 2 of foam, consider EPS Upgrade Description 1.5" XPS Foam 1" XPS Foam 1.5" XPS Foam 2" XPS Foam 3" XPS Foam 4" XPS Foam 2" EPS Foam 3" EPS Foam Performance 10 8 10 13 18 23 11 15 Installation Cost Change $900 $600 $900 $1,200 $1,800 $2,400 $700 $1,000 Energy Change / yr. -$3 -$2 -$3 -$5 -$7 -$10 -$4 -$6 Mortgage Change / yr. $52 $34 $52 $69 $103 $137 $40 $57 First Year Savings vs Low Build Cost -$49 -$32 -$49 -$64 -$96 -$127 -$36 -$51 20 Year Savings vs Low Build Cost -$921 -$614 -$921 -$1,191 -$1,805 -$2,382 -$655 -$925 17

Foundation Walls Myth Fact Using 3 of foam as code suggests is the best option The prescriptive code is R15 in Wisconsin They would not have implemented the code if it was not worth the money With natural gas pricing, less foundation insulation is better Cost of ownership increases as insulation levels decrease We use 2 foam to provide basement comfort and moisture protection For finished basements we use 1 outside and 1 inside, advanced framed with R11 batts Never cavity insulation without air sealing and interior sheet foam Code Unfin: 3"X / 8"C Unfin: 2"E / 8"C Unfin: 3"E / 8"C Upgrade Description Unfin: 2"X / 8"C Unfin: 1"X / 8"C Unfin: 1.5"X / 8"C Unfin: 2"X / 8"C Performance 10 5 8 10 15 8 12 Installation Cost Change -$500 -$1,000 -$700 -$500 $0 -$800 -$500 Energy Change / yr. $7 $15 $11 $7 $0 $10 $4 Mortgage Change / yr. -$29 -$57 -$40 -$29 $0 -$46 -$29 First Year Savings vs Low Build Cost $22 $42 $29 $22 $0 $36 $25 20 Year Savings vs Low Build Cost $315 $594 $397 $315 $0 $549 $426 18

Myth Fact Box Sill/Rim Joist Areas Box sills don t have much effect on energy bills The box sills are a small part of the wall area They are in the basement or between floors, so they don t matter The box sill area is a significant contributor to lost energy and cold floors (first and second floors) We find this area as one of the leakiest in a home Leaks cause cold floors and condensation can form on the sheathing with low outside temps and higher indoor humidity Upgrade Description 2"Spray Batt 19 Batt 21 2"Spray 3"Spray 4"Spray 5"Spray Performance 13 15 17 13 17 22 26 Installation Cost Change $400 $0 $0 $400 $700 $900 $1,200 Insulation Energy Change / yr. $3 $1 $0 $3 $0 -$4 -$8 Infiltration Energy Change / yr. -$28 $0 $0 -$28 -$37 -$37 -$37 Total Energy Change / yr. -$25 $1 $0 -$25 -$37 -$41 -$45 Mortgage Change / yr. $23 $0 $0 $23 $40 $52 $69 First Year Savings vs Low Build Cost $2 -$1 $0 $2 -$3 -$11 -$24 20 Year Savings vs Low Build Cost $461 -$37 $0 $461 $559 $477 $280 19

Myth Fact Sub-Slab Ventilation Sub-slab ventilation is only helpful when radon is a problem Most homes don t have a radon issue, so sub-slab ventilation is a waste Sub-slab ventilation systems cost a lot to run Sub-slab active ventilation helps dry basements Provides continuous ventilation of foundation and removes earthen gases for homeowner peace of mind Differing electrical draws for fans changes savings No Dehumid Low Watt Fan No Dehumid Standard Fan No Dehumid Low Watt Fan Upgrade Description Performance 19 82 19 Installation Cost Change $300 $200 $300 Total Energy Change / yr. -$81 -$16 -$81 Initial Mortgage Change / yr. $17 $11 $17 First Year Savings vs Low Build Cost $64 $5 $64 20 Year Savings vs Low Build Cost $2,068 $247 $2,068 20

Myth Fact Above Grade Walls Advanced framing doesn t really save anything and you should always do more than just an R19 batt Advanced framing is harder to build and takes more labor Adding foam to the exterior is a no-brainer Advanced framed walls save money, added foam does not pay Advanced framed walls saved $700 on this home and increased R value 7% Adding sheet foam, ZIP or installing SIP or ICF has a negative return Upgrade Description 8': Sh / 2x6AF / 21Batt 8': Sh / 2x6AF / 19Batt 8': Sh / 2x6AF / 21Batt 8': Sh / 2x6AF / 23BIB 8': 1"X / Sh / 2x6AF / 19Batt 8': 1"Zip / 2x6AF / 21Batt 8" SIP 4" ICF Real Performance 18 15 18 19 21 22 32 30 Installation Cost Change -$200 -$700 -$200 $1,000 $1,800 $2,700 $13,100 $15,600 Energy Change / yr. -$23 -$5 -$23 -$27 -$41 -$47 -$113 -$95 Mortgage Change / yr. -$11 -$40 -$11 $57 $103 $155 $750 $894 First Year Savings vs Low Build Cost $34 $45 $34 -$30 -$62 -$108 -$637 -$799 20 Year Savings vs Low Build Cost $1,075 $986 $1,075 -$153 -$554 -$1,365 -$10,853 -$14,380 21

Attic Insulation Myth R49 blown attic insulation is always the best and its easy We have been doing this for years and never had an issue Fact R49 blown attic insulation is great for gas homes, but not enough for propane/geo homes Installation details are just as important as depth (in-attic walls, cavity ends, etc.) Propane and Geo homes justify more than R50 Upgrade Description Blown 50 Blown 38 Blown 50 Blown 60 Blown 75 Blown 100 Performance 50 38 50 63 77 100 Installation Cost Change $100 $0 $100 $300 $600 $900 Energy Change / yr. -$5 $0 -$5 -$11 -$18 -$28 Mortgage Change / yr. $6 $0 $6 $17 $34 $52 First Year Savings vs Low Build Cost -$1 $0 -$1 -$6 -$16 -$24 20 Year Savings vs Low Build Cost $69 $0 $69 $61 -$25 -$1 22

Myth Infiltration Making a house air tight is expensive and can cause problems You need special wall details, windows, doors, etc. If you get a house too tight it can t breath and it gets moldy Fact The tighter the better, if it s built right We target.08 cfm 50/ft 2 of shell area (near Passive House levels) We use plastic, tape, caulk and canned spray foam Key is to keep moisture in the home and allow drying to the outside in WI Upgrade Description efree Ultra Minimal efree Bas ic efree Ultra Extreme Performance 0.08 0.20 0.13 0.08 0.06 Installation Cost Change $1,350 $600 $1,350 $1,350 $8,050 Energy Change excl Box Sills / yr. -$158 -$105 -$136 -$158 -$170 Mortgage Change / yr. $77 $34 $77 $77 $461 First Year Savings vs Low Build Cost $81 $71 $59 $81 -$291 20 Year Savings vs Low Build Cost $4,276 $3,175 $3,456 $4,276 -$2,964 23

Above Grade Walls Summary Traditional 16 on center walls are not optimal Change to advanced framing and stop wasting material dollars and conditioning cost Add cavity insulation before rigid foam, ZIP, insulated wrap or spray foam Batt, BIB, and spray cellulose are all less expensive than rigid or spray foam Don t be afraid of batt, but specify, inspect and test! Only consider higher R value walls when natural gas is not available Best options are usually 2x8 wall with R30 cavity insulation, or 2x6 wall with sheet foam Air sealing, Air sealing, Air sealing Air sealing is more critical than wall thickness or insulation type Most air leaks are in and around openings or at top or bottom of walls 24

Myth Fact Windows Triple pane windows can save as much as 50% They are 2x more efficient than double pane, and will save you in the long run Better windows won t save much on natural gas Windows consume about $150/year on this house Whole window performance is more important than just U value Most brands have great windows and poor windows for Wisconsin Vinyl 2 Pane Basic Vinyl 2 Pane Basic Vinyl 2 Pane Prem Vinyl 3 Pane Basic Vinyl 3 Pane Extreme Upgrade Description Performance 0.30 0.30 0.28 0.21 0.14 Installation Cost Change $100 $100 $500 $2,500 $8,200 Energy Change / yr. -$15 -$15 -$20 -$41 -$74 Mortgage Change / yr. $6 $6 $29 $143 $470 First Year Savings vs Low Build Cost $9 $9 -$9 -$102 -$396 20 Year Savings vs Low Build Cost $437 $437 $163 -$1,356 -$6,673 25

Window Performance NFRC rating make performance comparisons easy Sweet spot right now U-factor 0.27-0.30 (lower the better) SHGC 0.21-0.30 (lower the better, except for passive solar) Visible Transmission 0.35-0.50 (higher the better) Air Leakage 0.12-0.20 (lower the better) Condensation Resistance 55+ (higher the better) New inside Low E coated double pane have low condensation resistance 26

HVAC Myth Fact Traditional HVAC The super-efficient systems provide better comfort and save money Variable furnaces with 98% efficiency and 18 SEER A/C units provide more even temperatures and save $100 s on your utility bills Comfort issues are usually due to shell failures or supply balancing Build the shell right, balance the supplies and comfort is just as good ECM blower motor saves more than increased fuel efficiency (95%) 2 Stage Air Heat (13) A/C Non-ECM (93%) Air Heat (13) A/C (95%) 2 Stage Air Heat (13) A/C (95%) 2 Stage Air Heat (16) A/C (98%) Variable Air Heat (13) A/C (98%) Variable Air Heat (18) A/C Hybrid (95%) 2 Stage Air Heat (15) A/C (96%) InFloor Heat (13) A/C Upgrade Description Furnace Performance 95% 93% 95% 95% 98% 98% 95% 96% Heat Pump Performance - 0.0 0.0 0.0 0.0 0.0 9.0 0.0 Cooling Performance 13 13 13 16 13 18 15 13 Installation Cost Change $1,200 $300 $1,200 $1,900 $1,700 $3,200 $2,700 $16,400 Fuel Energy Change / yr. -$19 -$12 -$19 -$31 -$29 -$54 $96 -$22 Blower/Pump Energy Change / yr. -$78 $0 -$78 -$78 -$87 -$87 -$78 -$52 Total Energy Change / yr. -$97 -$12 -$97 -$109 -$116 -$141 $18 -$74 Mortgage Change / yr. $69 $17 $69 $109 $97 $183 $155 $940 First Year Savings vs Low Build Cost $28 -$5 $28 $0 $19 -$42 -$173 -$866 20 Year Savings vs Low Build Cost $1,647 $98 $1,647 $1,202 $1,710 $735 -$2,711 -$16,433 27

Geothermal Geothermal Myth Fact Geothermal saves you 30%-50% on heating bills It uses the earth s constant temperature to heat your house It may cost a little more, but will save you in the long run Geothermal can save 30%-50%, but only against propane or electric Utility bills will be higher with geothermal or mini-splits than with natural gas Installation costs will be higher with geothermal than natural gas Mini-split installation costs can be lower, providing an opportunity to investigate Upgrade Description None Good Geo Air Heat Air Cool Premium Geo Air Heat Air Cool Good Geo Infloor Heat Air Cool Premium Geo Infloor Heat Air Cool Heating Performance 0.00 4.10 5.10 4.10 5.10 Cooling Performance 0.00 4.10 5.10 4.10 5.10 Net Installation Cost Change $0 $7,700 $9,100 $12,600 $14,000 Total Energy Change / yr. $0 $7 -$104 $12 -$99 Mortgage Change / yr. $0 $441 $521 $722 $802 First Year Savings vs Low Build Cost $0 -$448 -$417 -$734 -$703 20 Year Savings vs Low Build Cost $0 -$7,523 -$5,808 -$13,138 -$11,423 28

HVAC Myth #3 Fact HRVs and ERVs save money Panasonic 110 with efree Ventilation Exchange air, while keeping the heat They are inexpensive and work right out of the box Any ventilation costs more, but we require it! Indoor air quality is critical and ventilation is the way to manage it We use existing exhaust fans and a damper fresh air inlet to the furnace ERVs can be justified when propane or electricity is used for conditioning We avoid uncontrolled fresh air intakes and HRVs that require balancing 110 with efree 150 with efree Honeywell VNT5150 Honeywell VNT5200 RenewAir EV200 Venmar AVS E15 ECM Venmar X24ERV Upgrade Description Performance 15% 15% 15% 65% 72% 78% 67% 84% Installation Cost Change $350 $350 $380 $1,600 $1,900 $1,900 $2,200 $2,700 Total Energy Change / yr. -$29 -$29 -$29 -$53 -$61 -$41 -$68 -$83 Mortgage Change / yr. $20 $20 $22 $92 $109 $109 $126 $155 First Year Savings vs Low Build Cost $9 $9 $7 -$38 -$48 -$68 -$58 -$72 20 Year Savings vs Low Build Cost $657 $657 $631 $134 $63 -$656 -$23 -$34 29

Myth Hot Water Heaters Water heaters aren t really important The plumber puts in whatever he usually does Fact Water heaters must have sealed combustion / consider tankless Never install electric tanked or B vent Consider higher efficiency models including tankless and even heat pump when using propane or electricity only Power Vent Gas Tank Power Vent Gas Tank Power Vent+ Gas Tank Vertex Gas Tank Takagi Gas Tankless AO Smith Gas Tankless Electric Heat Pump Tank Upgrade Description Gas or Electric Gas Gas Gas Gas Gas Gas Electric Performance 0.67 0.67 0.70 0.78 0.82 0.95 2.75 Installation Cost Change $500 $500 $630 $1,830 $600 $1,530 $1,500 20 Year Installation Cost Change $1,000 $1,000 $1,250 $1,150 -$75 $850 $3,000 Total Energy Change / yr -$281 -$281 -$286 -$295 -$299 -$310 -$250 Initial Mortgage Change / yr. $29 $29 $36 $105 $34 $88 $86 20 Year Mortgage Change / yr. $57 $57 $72 $66 -$4 $49 $172 First Year Savings vs Low Build Cost $252 $252 $250 $190 $205 $163 $164 10 Year Savings vs Low Build Cost $2,856 $2,856 $2,844 $2,283 $3,041 $2,656 $2,137 20 Year Savings vs Low Build Cost $5,848 $5,848 $5,738 $6,206 $7,757 $7,109 $3,995 30

Myth Lights LED lights are still expensive and not worth the investment There is no code requirement for lights, so I just install incandescent Fact LED generally pay for themselves quickly in high use areas Code requires 50% high efficacy bulbs (CFL/LED) We target 95% of usage for LEDs Usually about 2/3 of bulbs 5% Std/ 0% CFL/ 95% LED 5% Std/ 70% CFL/ 25% LED 5% Std/ 25% CFL/ 70% LED 5% Std/ 0% CFL/ 95% LED Upgrade Description Performance 67% 60% 65% 67% Installation Cost Change $600 $300 $500 $600 Total Energy Change / yr. -$222 -$200 -$214 -$222 Initial Mortgage Change / yr. $34 $17 $29 $34 First Year Savings vs Low Build Cost $188 $183 $185 $188 20 Year Savings vs Low Build Cost $5,923 $5,612 $5,800 $5,923 31

Myth Fact Solar Wisconsin utilities killed solar with the rates in 2015 They eliminated the ability to earn a credit on your bill They penalized homes that added solar with added fixed costs Solar electric is far from dead Utility policies hurt justifications (WPS lowered rates, WE added fixed charges) Installation prices continue to fall, while production per panel increases Overall, small systems still make some sense in certain cases 4.5kW Roof Mount 6kW Roof Mount 8.6kW Roof Mount 12kW Roof Mount Upgrade Description None Total System Production - 4,917 6,600 9,460 13,200 Net Installation Cost Change $0 $9,856 $12,810 $16,856 $23,520 Total Energy Change / yr. $0 -$571 -$737 -$916 -$1,064 Initial Mortgage Change / yr. $0 $565 $734 $966 $1,347 First Year Savings vs Low Build Cost $0 $6 $3 -$49 -$283 20 Year Savings vs Low Build Cost $0 $5,707 $7,273 $7,975 $4,745 32

Water Savings Myth Fact Nobody cares about water savings because you can t save much Water is nearly free and to save it means you lose performance Water and sewer costs are becoming important in many areas Water/sewer rates vary by community, but can be significant Costs are not significant when on a well/septic WaterSense is a good way to specify water savings with good performance Upgrade Description Water Sense Shower, Faucets & Toilets Water Sense Faucets Water Sense Shower Heads Water Sense Toilets Hot Water Recirc Line Water Sense Shower Heads & Faucets Water Sense Shower, Faucets & Toilets Water Sense Shower, Faucets Toilets & Recirc Line Installation Cost Change $400 $100 $100 $300 $1,000 $100 $400 $1,400 Water Change / yr. -$49 -$4 -$18 -$27 -$15 -$22 -$49 -$63 Initial Mortgage Change / yr. $23 $6 $6 $17 $57 $6 $23 $80 First Year Savings vs Low Build Cost $26 -$2 $12 $10 -$42 $16 $26 -$17 20 Year Savings vs Low Build Cost $1,344 $33 $548 $649 -$594 $695 $1,344 $713 33

Optimization 34

Optimization - Gas Saving $47 first month Saving $22,851 over 20 years Build cost increase just $8,150 over code Includes all advising and performance testing fees Monthly Mortgage vs Low Build Cost Monthly Energy vs Low Build Cost Monthly Payments vs Low Build Cost 20 Year Energy Savings vs Low Build Cost 20 Year Optimized Net Savings vs Build Costs Low Build Cost vs Low Build Cost Upgrade Description Comfort $6 -$3 $3 $1,154 -$6 $1,250 efree Consulting Fees $12 $0 $12 $0 -$2,864 $2,500 Shell $6 -$18 -$12 $6,590 $6,708 $1,250 Heating and Cooling $7 -$15 -$8 $5,300 $3,715 $1,500 Plumbing $5 -$25 -$20 $9,106 $6,653 $600 Lights $3 -$19 -$16 $6,611 $5,923 $600 Water Savings $2 -$4 -$2 $1,459 $1,344 $400 Major Appliances $0 -$3 -$3 $1,161 $1,377 $50 Solar $0 $0 $0 $0 $0 $0 Total $41 -$88 -$47 $31,382 $22,851 $8,150 35

Final Recipe - Gas Build Cost vs. Annual Energy vs. Low Component Description Specified Level Low Cost Build Cost Build Building Shell Basement Floor 1.5" XPS Foam $900 -$3 Framed Floors Blown 38 $0 -$7 Foundation Walls Unfin: 2"X / 8"C -$500 $7 Above Grade Walls 8': Sh / 2x6AF / 21Batt -$200 -$23 Box Sills 2"Spray $400 -$25 Windows Vinyl 2 Pane Basic $100 -$15 Exterior Doors Std Door $0 -$2 Attic Insulation Blown 50 $100 -$5 Air Infiltration efree Ultra $1,350 -$158 Heating/Ventilation/Air Conditioning Ventilation Panasonic 110 with efree $350 -$29 Heating and Cooling (95%) 2 Stage Air Heat (13) A/C $1,200 -$97 Geothermal None $0 $0 Dehumidification No Dehumid Low Watt Fan $300 -$81 Plumbing Domestic Hot Water Power Vent Gas Tank $500 -$281 Hot Water Conservation Water Sense Shower Heads $100 -$25 Water Saving Fixtures Water Sense Shower, Faucets & Toilets $400 -$49 Water Saving Appliances None $0 $0 Lights and Appliances Lights (% Std/CFL/LED) 5% Std/ 0% CFL/ 95% LED $600 -$222 Dryer Gas $50 -$39 Solar Solar PV (Electric) None $0 $0 Solar Thermal (Hot Water) None $0 $0 TOTAL EFFECT ON BUILD COST & UTILITY BILL VERSUS LOWEST BUILD COST $5,650 -$1,057 36

Optimization - Propane Saving $47 $61 first month Saving $22,881 $24,340 over 20 years Build cost increase just $8,150 $12,150 over code Includes all advising and performance testing fees Monthly Mortgage vs Low Build Cost Monthly Energy vs Low Build Cost Monthly Payments vs Low Build Cost 20 Year Energy Savings vs Low Build Cost 20 Year Net Savings vs Low Build Cost Optimized Build Costs vs Low Build Cost Upgrade Description Comfort $6 -$6 $0 $2,082 $152 $1,350 efree Consulting Fees $12 $0 $12 $0 -$2,864 $2,500 Shell $12 -$44 -$32 $15,777 $9,952 $2,550 Heating and Cooling $15 -$22 -$7 $7,860 $4,906 $3,100 Plumbing $15 -$29 -$14 $10,496 $4,787 $1,600 Lights $3 -$19 -$16 $6,611 $5,923 $600 Water Savings $2 -$4 -$2 $1,459 $1,344 $400 Major Appliances $0 -$2 -$2 $655 $140 $50 Solar $0 $0 $0 $0 $0 $0 Total $65 -$126 -$61 $44,939 $24,340 $12,150 37

Final Recipe - Propane Build Cost vs. Annual Energy vs. Component Description Specified Level Low Cost Build Low Cost Build Building Shell Basement Floor 1.5" XPS Foam $900 -$8 Framed Floors Blown 38 $0 -$15 Foundation Walls Unfin: 2"X / 8"C -$500 $16 Above Grade Walls 8': Sh / 2x6AF / 21Batt -$200 -$47 Box Sills 4"Spray $900 -$92 Windows Vinyl 2 Pane Basic $100 -$31 Exterior Doors Std Door $0 -$4 Attic Insulation Blown 60 $300 -$21 Air Infiltration efree Ultra $1,350 -$317 Heating/Ventilation/Air Conditioning Ventilation Panasonic 110 with efree $350 -$41 Heating and Cooling Hybrid Non-ECM (93%) Air Heat (18) A/C $2,800 -$253 Geothermal None $0 $0 Dehumidification No Dehumid Low Watt Fan $300 -$81 Plumbing Domestic Hot Water Voltex Electric Heat Pump Tank $1,500 -$250 Hot Water Conservation Water Sense Shower Heads $100 -$33 Water Saving Fixtures Water Sense Shower, Faucets & Toilets $400 -$49 Water Saving Appliances None $0 $0 Lights and Appliances Lights (% Std/CFL/LED) 5% Std/ 0% CFL/ 95% LED $600 -$222 Dryer Propane $50 -$22 Solar Solar PV (Electric) None $0 $0 Solar Thermal (Hot Water) None $0 $0 TOTAL EFFECT ON BUILD COST & UTILITY BILL VERSUS LOWEST BUILD COST $8,950 -$1,472 38

Busting Myths You can t guess your way to the best investment Don t waste your customer s money Optimize, Specify, Verify, Guarantee Homes must be modeled and optimized to have the best return Always use an independent resource for facts and analysis Specify, inspect, test and then guarantee results Every house is different and should be optimized Because utility rates, building plans and building costs vary, each house should be optimized As costs and technology change, solutions change Optimal build next year will be different 39

How to Get Started Start optimizing home plans prior to bidding Provides firm specification for sub-contractors Avoids the high costs of option pricing Provides reliable building costs and home ownership costs Assure homeowners of getting the most for their money Specify, inspect and performance test every home We do this for builders, then guarantee energy bills for 5 years Find the right resource efree Advisors provides this service Other software programs exist to optimize, but they have some limitations BEOpt from DOE 40

Questions? Steve Romme www.efreeadvisors.com 41