ed connelly, new ecology, inc
TRANSCRIPT
Partners In Innovation-Case Studies
Edward F. Connelly President,
New Ecology, Inc.Founder,
WegoWise, Inc.Boston, MA
The Cost Barrier in Achieving Deep Energy Retrofits:
58th 7th St. Cambridge, MA
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Gauging the Cost of Greening
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost Benefit at 1460 House
Median Cost of Gas Multifamily Affordable Housing Built after 1995: $.85/SF
1460 House: $.463/SF
Savings/SF (45% reduction) $.387
Savings over 31,122 SF/YR $12,037
Simple payback on cost of $70,629 5.87 YRS
Gas Savings over 15 years $180,547
NPV 15 YEARS $142,806
Annual Cash Flow (assuming $70,629 borrowed at 5% for 15 years) $ 5,334Cumulative Cash Flow 180,547-100,535= $80,012Could have borrowed $127,000 and cash flowed ~$3/SF
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
58 7th Street Cambridge, MADeep Energy Retrofit Case Study
Award-winning Community Development Corporation
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Project Description
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Background
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Background
March 2007 Fire
All Tenants Displaced from 6 unit building
Owner explores goal of Net Zero Energy
Design Charrette
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Design
Multiple versions of REM modeling
New Goal: Deep Energy Retrofit
Funding for PV
Self-fund Solar Thermal
Annual Energy Use (kBtu)2004 IECC Energy Code (Left), Modeled (Middle),
and With Solar (Right)
0 0 062,341 62,031
31,997
126,96171,171
71,171
154,150
83,010
16,491
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Cooling (none) Lights/Appliances Heating Hot Water
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Final Strategies:
• Tight envelope, foam, tyvek and airtight drywall
• Enhanced insulation
• Good windows
• 95% eff. Boiler
Model:
• Consumption modeled 216,211 kBTU v. 343,452 code = 44% reduction
• w/ solar, off site energy use reduced to 119,658 --65% reduction from baseline (HERS 32)
7th Street Deep Energy Retrofit-Design
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Design
Annual Energy Cost2004 IECC Energy Code (Left), Modeled (Middle),
and With Solar (Right)
$2,393$1,486 $1,486
$3,664$3,648
$2,161
$2,396
$1,383
$1,383
$2,815
$1,516
$321
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Water/Sewer Lights/Appliances Heating Hot Water
Savings Modeled:
$1,299 saved in hot water heating$907 saved in water bills$1,487 saved in electricity$1,195 saved in hot water heating$1,013 saved in heating energy$16 saved in electricity
Total saved= $5917/yrBase modeled cost $11,26852% Savings
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Cambridge CaseConstruction Challenges
Framing
Adding Insulation
Multiple Insul Types
Window Costs
Contractor and Subs
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep EnergyRetrofit-Costs
58 7th Street
6030 gross sq ft
With PV w/o PV & Thermal w/PV, After
Rebates
Total Construction costs $928,848.00 $815,547.00 $880,548.00
Cost/SF $154.04 $135.25 $146.03
Incremental Greening Costs $183,019.00 $69,718.00 $137,519.00
Green Premium/SF $30.35 $11.56 $22.81
Green Premium as % of TCC 20% 9% 16%
Simple Payback: $137,519/5733=24 years ($5914 modeled-23 yrs)
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
median gas use btu/ all energy star 49725
7TH (35.7% of Energy Star median) 17,767
difference = 7th savings/sf 31,958
change btu to therms 0.320
Savings per SF @ 1.60/therm 0.511328
SF at 7th 7,620
savings per year 3,896.32
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
projected DHW therms/sf using median of 25000 btu/br 11811
7TH 5,905
difference = 7th savings/sf 5,906
change btu to therms 0.059
savings per SF @ 1.60/therm 0.094496
SF at 7th 7,620
savings per year 720.06
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
add electric savings
cost/yr first year from WEGO 650
expected cost per year
1kwh/ft 7620
historic 8785kWh used before fire
at 0.2 1757
savings 1107
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
water
cost/g cost/yr
previous 60gbd 219000 0.01 2190
now 40gbd 146000 0.01 1460
savings 20gbd 73000 0.01 730
#br 10
200g/d
73000gpy
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis w/PV and Solar Thermal
Savings over 7,620 SF/YR $ 5,733
Simple payback on cost of $ 137,517 23.99 YRS
Gas+Common Elect+Water Savings over 15 years $ 86,000NPV of Utility savings $101,644
NPV 15 YEARS $(35,855)NPV 20 YEARS $ 8,879
Annual Cash Flow (assuming $137,517 borrowed at 5% for 15 years)(13,050-5,733) $ (7,317)Cumulative Cash Flow (no utility inflation) $(109,750)With Energy Inflation at 5% $( 72,040)Could only borrow $61,000 and cash flowed (10.6 yr simple payback)
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis w/oPV and Solar Thermal
Savings over 7,620 SF/YR $ 3906
Simple payback on cost of $ 137,517 17.85
Gas+Common Elect+Water Savings over 15 years $ 58,594NPV of Utility savings $ 69,265
NPV 15 YEARS $( 453)NPV 20 YEARS $ 30,025
Annual Cash Flow (assuming $69,718 borrowed at 5% for 15 years)(6,616-3,906) $ (2,710)Cumulative Cash Flow (no utility inflation) $ (48,649)With Energy Inflation at 5% $ (14,954)Could only borrow $41,000 and cash flowed (10.5 yr simple payback)
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
how could we pay for this?
annual loan cost 24 yrs 0% 5,730
total annual savings 5,733.32
cash flow 3.32
15 year cash flow 50
annual loan cost 30 yrs 1.5% 5,695
total annual savings 5,733.32
cash flow 38.32
15 year cash flow 575
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Beyond Energy Star
How Much is Left to Save?
GAS (HEAT and DHW) 49,725 btu/sf.49 therms/sf@ $1.60/therms$.79 /sf/year
WATER 50 g/br/d@$.01 per gallon$.50 /br/d$183/br/year
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Paying for Performance
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Beyond Energy Star
Compare to German Standards:
Measured at 7th Street 5.29 kWh/SFConvert to meters 56.92 kWh/SMAdd tenant electric (guess) 30.50 kWh/SM
Total 87.42 kWh/SM
German Standard 70.00 kWh/SM6395 HDD vs. 5343
New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
So, What Does It All Mean?
• Need to Lower the Cost of Achieving Deep Energy Savings
• Bundle Savings From a Base of Code?
• Finance Over Long Term/Subsidize Financing
• Not Expect Project Savings to Pay For Upgrades• More reasons than cost savings to do this
• Risk, Climate, Volatility• German Model-Regulatory
Partners In Innovation-Case Studies
Addressing The Cost Barrier in Achieving Deep Energy Savings in
Housing – 58th Street, Cambridge, MA