delivering on our promise sustainable solutions to achieve our climate and economic goals

Delivering On Our PromiseSustainable Solutions to Achieve Our

Climate and Economic Goals

http://www.efficiencyfirst.org/

Efficiency First Sustainable Spaces

• Efficiency First, Washington DC• Representing America’s Home Performance Workforce

– Non-Profit Trade Association – 400 Member Companies– Active at National and State Level– Supporting a performance based market for residential

energy efficiency retrofitting.

For More Information: www.efficiencyfirst.org


http://www.sustainablespaces.com/


http://creativecommons.org/licenses/by-nc/3.0/


Carbon Saved: The Metric that Matters

• CARBON is the metric.

• Focus on PERFORMANCE and measurable results.

• The MARKET will innovate and deliver.





43%

32%

25%

What is America’s Largest Source ofCarbon Emissions?

43%

32%

25%

Industrial

Buildings

Transportation

ResidentialBuildings

21%Passenger

Cars11.5%

Carbon Dioxide Emissions From Fossil Fuel Combustion

http://www.pewcenteronthestates.org/uploadedFiles/Climate%20Change%20101,%20Technological%20Solutions.pdfhttp://www.pewclimate.org/docUploads/ustransp.pdf



http://www.pewcenteronthestates.org/uploadedFiles/Climate%20Change%20101,%20Technological%20Solutions.pdf

http://www.pewclimate.org/docUploads/ustransp.pdf



2030 Goal:25% Reduction in Residential Energy

• CLIMATE: – Equivalent to taking ½ of all passenger cars off the road

• JOBS: – 1.25 million direct contracting jobs

• ENERGY: – Save as much energy as US imports yearly from Saudi Arabia

• COMMUNITY:– Keep energy dollars local and create an annuity





State of the Contracting Industry

• 146,600 jobs have been lost in the residential building construction industry between April 2008 and 2009.

• Housing starts were down 12.8 percent last month from March [2009], to an annual pace of 458,000.

“New home construction fell to its lowest pace on record in April”

- New York Times, May 2009

http://www.nytimes.com/2009/05/20/business/economy/20econ.html?_r=1&scp=2&sq=housing%20starts&st=cse http://www.businessexaminer.com/blog/8232nonresidential-construction-job-loss-slows/



http://www.nytimes.com/2009/05/20/business/economy/20econ.html?_r=1&scp=2&sq=housing%20starts&st=cse

http://www.businessexaminer.com/blog/8232nonresidential-construction-job-loss-slows/



What Is Home Performance?

• Audit

• Solution

• Retrofit

• Commissioning

• Quality Assurance





Home Performance Contracting

• Sustainable: Jobs in Home Performance do not require endless subsidies.

• Leveraged: Government subsidies stimulate private sector investment.

• Market-Based: Leverage business as the engine to achieve rapid growth.

A market-based* whole-house approach to retrofit existing homes for energy, health and comfort.

*WAP or Low Income Weatherization serves the market up to 200% of poverty.





Retrofitting Loading Order

• Insulation• Air Sealing• Duct Sealing• Lighting• Appliances• Water Conservation• Plug Loads• Behavior

• Heating• Air Conditioning• Ventilation• Water Heating

Fundamentals Major Systems Renewables

• Solar PV• Solar Thermal• Wind• Water Catchment




Section 1Rethinking Our Approach


Products

Automobile Performance

?1

Miles PerGallon 60Performance

2




http://www.google.com/imgres?imgurl=http://lexingtontoyota.com/Images/Sites/Site17769/Picture/2009/March/lg_Prius.jpg&imgrefurl=http://www.lexingtontoyota.com/Specials-New.aspx&h=292&w=400&sz=17&tbnid=TpGTe2YQ1bNvSM::&tbnh=91&tbnw=124&prev=/images?q=prius+picture&hl=en&usg=__BXybHyiSSTk8pBMQCbPtkYZcE98=&ei=3Cr_SYLnAZbOtAPBrb3oAQ&sa=X&oi=image_result&resnum=2&ct=image


Home Performance

Products ?1

Home EnergyRating System

85Performance

2





System Performance: Heating

Building Load - Stop Energy Leaks - Improvement:

20% - 40%

Delivery- Fix Leaky Ducts- Improvement:

30% - 50%

Behavior - Set Your Stat - Improvement:

5% - 10%

Equipment - Efficiency / Size - Improvement:

10% - 15%

Whole House vs. Products Savings Whole House Solution: 30% - 50% (Ducts, Insulation, Behavior, 40K BTU 90% Furnace)

High Efficiency Furnace: 10% - 15% (100K BTU 96% Furnace)

Performance - Efficiency - Health - Comfort





1990 Clean Air Act

• Pre 1990, EPA required emission scrubbers on smoke stacks.

• Clean Air Act (1990) sets emission performance standards and trading system.

1990

SO2

Results:

• Emissions reduction• Market innovation





“What is all the fuss about retrofitting, why can’t we just

put on solar panels?”

Reduce Then Produce





“The Firepower of the Lowly Caulk Gun” Wall Street Journal

http://online.wsj.com/article/SB123629700922046051.html

Cost Per Ton of Carbon Abatement





Cost Effective Hybrid Model

Lighting Retrofit 40% Better Lighting Quality Reduced Lighting Maintenance Costs Improved Energy Management

Solar Electric

• 675kW Solar System

The Moscone Center - San Francisco, CA Hybrid EE + RE Project

New Efficient T-5 Old Incandescent





Moscone Center: Retrofit Summary

Savings / Yr Energy Reduction Payback PeriodCost

Energy Efficiency

$540,0004,500,000 kWh 6 Years$3.2 MM

Solar $99,000 825,000 kWh 42 Years$4.2 MM

$639,000 Annual utility bill savings$429,000 Annual debt service costs (20 year bond at 5.5%)$210,000 ANNUAL NET SAVINGS

http://www.votesolar.org/moscone.html

5,325,000 kWh $639,000 12 Years$7.4 MMHybrid



http://www.votesolar.org/moscone.html



Reduce Then Produce

http://globalghgcostcurve.bymckinsey.com/



http://globalghgcostcurve.bymckinsey.com/



“Level the playing field and unleash the market.”

Technology Neutrality





Meet Our Homeowners

City: Lafayette, CA

Concerns: • High energy bills• Daughter has asthma• Drafty/cold in the winter

Savings Health ClimateComfort





Meet Their Home

• Age: 1958• Size: 2,200 ft2

• Annual Electric: $1,115• Annual Gas: $1,013• Carbon Emissions: 8.6 Tons/Year

168• Infiltration: 3405 CFM50 (.68 ACHnat)• Attic Insulation: R 6.4 Fiberglass Batt (low quality)

• Wall Insulation: No Insulation• Floor Insulation: No Insulation • Duct Leakage: 25%





Option 1: Efficiency Retrofit

• Energy Efficiency Retrofit– 25% Reduction in Electricity– 54% Reduction in Natural Gas– Improved Health and Comfort

Work Scope

Duct Sealing Air Sealing Attic Insulation Wall Insulation Lighting Retrofit Energy Star

Refrigerator

40% Reduction in Energy Bills





Option 2: Solar Electric

• Solar Electric System– 73% Reduction in Electricity– 0% Reduction in Natural Gas– No Health or Comfort Improvement– Peak Load Reduction

Work Scope

3.5 kW Solar PV






Annual Savings: $825 $825

CO2 Reduction: 2.7 tons 3.6 tons

Total Cost: $28,000 $10,800

Simple Payback: 33.9 yrs 13.6 yrs

What is the Real Cost?

60% Less

33% More

3.5 kW Solar Electric

Energy Efficiency Retrofit

60% Faster

* Based on carbon abatement achieved over 20 years.





A Ton of Carbon is a Ton of Carbon

Total Cost: $28,000 $10,800Cost to Client: $13,300 $10,168Rebates / Incentives: $14,700 $632

Annual Savings: $825 $825CO2 Reduction: 2.7 tons 3.4 tons

*Rebate / Ton of C0 2 $246 $9

Solar Retrofit

http://www.spur.org/publications/library/report/critical_cooling



http://www.spur.org/publications/library/report/critical_cooling



Why Do We Value Carbon Abatement fromRenewables More than Efficiency?

It’s the METER

that MATTERS!




Section 2Strategies for Carbon Reduction


California Energy Commission (CEC):Loading Order

http://www.energy.ca.gov/2005publications/CEC-400-2005-043/CEC-400-2005-043.PDF

Energy Efficiency

Demand Response

Renewable Resources

Distributed Generation

High

Low

Priority Priority for use of Public Good Charges





California AB32: Global Warming Solutions Act

• Establish a statewide GHG emissions cap for 2020, based on 1990 emission levels.

• Local governments: – 15% reductions in GHG

by 2020.

http://www.arb.ca.gov/cc/factsheets/ab32factsheet.pdf



http://www.arb.ca.gov/cc/factsheets/ab32factsheet.pdf



California Air Resource Board (CARB): AB32 Implementation Plan

Increased Building Efficiency and Appliance Standard

26.4 Million Metric Tons

California Solar Initiative

2.1 Million Metric Tons

12X

http://www.arb.ca.gov/cc/cc.htm





California Solar Initiative

“By January 1, 2008, the commission… shall require reasonable and cost effective energy ‐efficiency improvements in existing buildings as a condition of providing incentives for eligible solar energy systems”

- CEC Guidelines for CA Solar Incentive Programs

http://www.cleanenergystates.org/library/Reports/CEC-300-2007-012-CMF_Guidelines_CA_Solar_Incentive_Programs_Dec2007.pdf



http://www.cleanenergystates.org/library/Reports/CEC-300-2007-012-CMF_Guidelines_CA_Solar_Incentive_Programs_Dec2007.pdf


Section 3Disconnect Between Strategy and Policy


Plans vs. Reality

• Strategies get it right:– Set the end goal– Focus on performance not product

• Policies get it wrong:– Focus on product incentives– Misaligned incentives when compared to results





Insulation 96% Furnace System 3.5 kW Solar Electric$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$270

$1,500

$8,925

Stimulus Tax Credit

30% Capped @ $1500(No Labor Included)

30% Capped @ $1500(Labor Included)

30% Uncapped(Labor Included)

Aver

age

Cred

it (D

olla

rs)


http://www.sustainablespaces.com/stimulus.pdf



http://www.sustainablespaces.com/stimulus.pdf



California State Rebates

Insulation High Efficiency Furnace 3.5kW Solar Electric0

2000

4000

6000

8000

10000

12000

$165 $300

$4,900

$0.15 / sqft $300 / unit $1.40 / W

Aver

age

Reba

te (D

olla

rs)

http://dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=CA




http://dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=CA



Cost-EffectivenessAn

nual

Rat

e of

Ret

urn

(%)

Insulation High Efficiency Furnace Solar Electric0%

1%

2%

3%

4%

5%

6%

7%

8%

9%8%

4%

3%







Local JobsLa

bor a

s %

of P

roje

ct C

ost

Insulation High Efficiency Furnace Solar Electric0%

10%

20%

30%

40%

50%

60%

70% 65%

37%

15%





Insulation High Efficiency Furnace Solar ElectricInsulation High Efficiency Furnace Solar Electric

Misaligned Priorities?IncentivesEffectiveness





One Market

”Incentives favoring renewables disincentivizes

energy efficiency.”




Section 4Delivering Market Transformation


What it Takes to Scale Home Performance

• Increase Consumer Demand– Financing – Incentives

• Catalyze Market Transformation– Performance– Standards





A Foundation for Home Performance

• Level the playing field

• Make it easy to say yes

• Drain the swampIncentives

FinancingStandards





Incentives• Performance based on before and after Home Energy

Rating Score (HERS).

• 20% minimum improvement in energy performance grants rebate of $3,000.

• 5% in performance improvement adds $1,000.

Incentives StandardsFinancing

Currently in US House Climate Bill(Retrofit For Energy and Environmental Performance)

http://energycommerce.house.gov/Press_111/20090331/acesa_discussiondraft.pdf



http://energycommerce.house.gov/Press_111/20090331/acesa_discussiondraft.pdf



Home Performance Standards• Contractor Accreditation - Building Performance Institute (BPI)

– All Building Analysts (auditors) Certified– Construction Team Lead Trade Certification– Yearly review of customer data– 5% Field Quality Assurance

StandardsIncentives Financing

• Certified Energy Auditor – RESNET Certified Rater– BPI Certified Building Analyst




Section 5From Theory to Practice


Let’s Apply the Future Model

How does a level playing field for energy efficiency influence adoption?





Energy Efficiency Retrofit

• HERS Before: 168• HERS Post: 121• Improvement: 28%

Retrofit

168

121





Retrofit with Performance Incentives

Total Cost: $10,800Rebates / Incentives: $4,832Cost to Client: $5,968

Annual Savings (Gas/Elec.): $825CO2 Reduction: 3.4 tons

*Rebate / Ton of C0 2 $71

Retrofit

* Based on carbon abatement achieved over 20 years.

45% Incentive





Hybrid Whole-House Solution

• Energy Efficiency Retrofit– 25% Reduction in Electricity– 54% Reduction in Natural Gas– Improved Health and Comfort

• 2.1 kW Solar Electric System– Reduced from 3.5 kW to 2.1 kW– 40% Reduction in Electricity– Peak Load Reduction

Work Scope

Duct Sealing Air Sealing Attic Insulation Wall Insulation Lighting Retrofit Energy Star

Refrigerator+

2.1 kW Solar PV






Value Engineered Hybrid Solution

Total Cost: $10,800 $17,000 $27,800Rebates / Incentives: $4,832* $7,300 $12,132Cost to Client: $5,968 $9,700 $15,668

Annual Savings: $825 $550 $1,375CO2 Reduction: 3.4 tons 1.8 tons 5.2 tons

Rebate / Ton of C0 2 $71 $280 $121

SolarRetrofit

*Includes potential rebates from REEP incentive plus existing State rebates.

Hybrid





Finance for Immediate Savings

$15,688 financed at 6% over 20 years

Year: 1 10 20

Monthly Payment: $112 $112 $112 Monthly Savings: $117 $159 $230

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 $-

$500 $1,000 $1,500 $2,000 $2,500 $3,000

Energy Saving

Loan Payment

* Based on Electric Rate increase of 4% per year, and Gas rate increase of 6%.

$12,970

Total utility bill savings: $39,850 Total cost of loan (20 years at 6%): $26,880 NET SAVINGS: $12,970




Section 6Pathways to Success


The Time To Act Is Now!

• Change the way we talk about efficiency from products to systems.

• Start incentivizing our success in terms of results and measure performance.

• Fix the imbalances in the market.

• Set in place the foundation for a the American Home Performance Retrofitting Industry.





Delivering On Our Promise

• Sustainable Local JOBS• Cost Effective CARBON Abatement• Significant Homeowner SAVINGS• Effective Use of STIMULUS

Seize this opportunity to achieve our climate and economic goals




Delivering On Our PromiseSustainable Solutions to Achieve Our

Climate and Economic Goals

For More Information: www.efficiencyfirst.org



delivering on our promise sustainable solutions to achieve our climate and economic goals

Documents

sustainable spaces carbon

sustainable spaces state

sustainable spaces section

performance based market

promise sustainable

new home construction

residential energy climate

direct contracting jobs