The Home Energy Challenge, Pt. 1

Sustainable Space’s founder Matt Golden presents a sustainable approach to reducing residential carbon emissions while creating jobs for American workers.

The Home Energy Challenge, Pt. 1

Part 1: What's Wrong With This Picture?

Ask an average American consumer about cutting greenhouse gas emissions and the first thing that comes to mind is likely to be the family car. Everyone knows that tailpipes spew noxious fumes into the air, so all we have to do is switch to fuel-efficient hybrid or electric vehicles, right?

The truth is that buildings have a much larger impact on global warming than cars. According to the Pew Center on Global Climate Change, home energy use alone accounts for 21 percent of the overall U.S. carbon footprint – roughly twice the carbon emissions produced by passenger cars. And given that most of America's 128 million homes were built before the adoption of energy-efficient building codes, retrofitting homes to reduce energy waste should be a top priority in our fight against climate change.

Unfortunately, our nation's current approach to residential energy conservation is seriously off course.

To see why, let's look at a typical middle-class home in Sacramento, Calif. The 2,200-square-foot wood-frame house was built in 1958, with no wall or floor insulation, substandard attic insulation, inadequate exterior sealing and leaky heat ducts. Even with force-air gas heating, the home tends to be drafty and cold in winter, and the family of four who live here spend over $2,100 a year on gas and electric bills, producing about 8.6 tons of carbon annually from household energy consumption.

This is a fairly typical energy profile for an older home in the San Francisco Bay Area, but there's plenty of room for improvement – both in terms of energy consumption and household comfort. What are the options?

If this family were to install a 3.5-kilowatt solar electric system priced at $23,380 (before deductions for state and federal rebates), they could save 40 percent on their combined gas and electric bills and reduce their annual household carbon output by 2.8 tons. That's a definite improvement, but adding solar power would do nothing to curb energy waste or make the house warmer in winter.

Now, let's compare the photovoltaic installation with a more affordable energy efficiency retrofit. With a pre-rebate investment of only $10,800 in low-tech efficiency measures – better insulation, duct sealing, low-consumption lighting and a new Energy Star refrigerator – the family could save just as much on their monthly energy bills, improve the health and comfort of their home, and divert about 25 percent more carbon from the atmosphere (3.5 tons) for less than half the cost of rooftop solar panels.

Either way, the homeowners would save about $825 per year on their energy bills. Without factoring in available rebates and incentives, it would take about 28 years for the cumulative savings to offset the cost of the photovoltaic system, while the efficiency retrofit would pay for itself in less than half the time – only 13 years.

Now let's look at the numbers again taking into account the tax credits and other government incentives the family would receive for upgrading their home. This is where current energy policy throws a wicked curveball into the mix.

The photovoltaic system would net a total of $12,439 in government incentives, reducing the homeowners' upfront investment from $23,380 to $10,941. For the more cost-effective efficiency retrofit, they would receive only $624 in incentives, so their out-of-pocket expenses would total $10,176 – only $765 less than the solar panels.

Crunch the numbers to calculate actual performance – measured in tons of carbon abated over the lifespan of these measures – and the results are shocking. We find that the current incentives available to our Sacramento homeowners value a ton of carbon abated through efficiency measures at less than $9, while the same ton of carbon abated by solar generation is worth a whopping $225 of public funding.

Clearly there's something wrong with this picture. If carbon abatement from efficiency retrofits is more effective and more affordable, why should we place such an artificially high value – 25 times higher, in fact – on carbon abatement from solar power generation? Wouldn't it make more sense to reward consumers for reducing wasteful fossil fuel consumption even as we make long-term investments in renewable energy?

The answer, of course, has everything to do with politics, business interests and public perception – and it is only by addressing these three factors that we can level the playing field for residential carbon reduction and achieve our national clean-energy goals.

In the course of this eight-part series, I will show how proven building science methods that are ready for deployment now can achieve a 25 percent reduction in America's residential energy use by 2030, and how a performance-based, market-driven approach to home energy retrofitting will facilitate rapid deployment of these methods nationwide. The bottom line: Retrofitting our older housing stock will reduce energy bills for consumers, ease our dependence on foreign oil, and help us build a sustainable 21st century economy based on clean energy and good jobs for American workers.

To Be Continued in Part 2: It's the Meter That Matters.

Matt Golden is President, Founder and Chief Building Scientist of Sustainable Spaces

Image via Flickr/Creative Commons.

15 Comments

  • dan 09/16/09 1:05 PM

    Matt,
    Nice points.  Hit the nail on the head.  Curious, you talked about retrofitting existing buildings.  How about new constructions, in rest of the world if limited in US?  How to incentivize buildings to design efficiently when payback to energy savings is to the tenants or bld. managers?  Thanks

    Reply
  • StevePluvia 09/16/09 1:39 PM

    Dan, if you fudge the numbers to fit your argument you’ll always win the argument (with yourself at least) .  Nobody should install solar with an pre-rebate installed cost of more than $3.50/watt.  Your example uses an installed cost of 6.68/watt—stupid high. 

    As far as your argument that an uninsulated house should insulate.  Umm yea obviously.  Teach us something that’s not obvious please….

    Reply
  • Thierry 09/16/09 4:44 PM

    $10.8k for an energy retrofit that includes insulating the walls of a 2,200 sqft home? Yeah right!

    Reply
  • jak 09/16/09 11:12 PM

    25% in 20 years is minor in the end. After that 25% is achieved, what then? We need to achieve 80% by 2050, and those buildings that have been upgraded by only 25% aren’t going to go away. If you work through the numbers and consider growth in energy consumption due to population growth, the amount of natural gas used (because that is mostly what is saved by and large by the kind of efficiency improvements described in this article) in 2050 with an 80% reduction from today in California works out to about the amount of natural gas that is projected to be needed just for cooking. In other words, there is no budget for building heating *at all*.

    The other problem with the example given in this article is that the numbers are based on the absolute most pessimistic scenario, a house with no insulation. This is fruit hanging so low that it is on the ground. What percent of the current built housing stock is in this category? There were probably more houses built in California in the 70’s and 80’s when insulation standards were in place but building science wasn’t as far along as today. These houses can’t be upgraded on the cheap, like this article suggests, because the walls basically need to be ripped open, the substandard or sagging fiberglass batting ripped out or supplemented, and then the walls need to be either re-sheet-rocked from inside or re-sided from outside. You can’t blow in cellulose if there is something already in the wall cavity. This results in approximately 10x the cost mentioned here, even more if you want really up to date technology like closed cell foam in the ceiling cavity.  I know this because my house is in this category and I’ve twisted the numbers on it for 3 or 4 years, and they always come up more than I have so far been willing to invest. On top of which,  your living space is disrupted for a month and a half, adding to the cost if you decide to move out.

    These hard facts are the basic problem with the cost-effectiveness calculations from articles like this and the McKinsey report on efficiency. They do not consider the expense and cost of getting the kinds of real reductions that are going to actually achieve remediation of global warming. They are like the Waxman-Markey bill, lots of talk, some near term feel-good results that save money, but nothing that will actually stop it.

    I challenge Sustainable Spaces and these other guys touting half-measures to come up with technology that will allow houses having substandard or sagging fiberglass batting to be upgraded in place without having to rip out the walls. Why doesn’t somebody offer a prize or something for this instead of for electric cars that get 100 mpg? In the IT industry, we regularly get substantial cost reductions and performance upgrades year over year every year, where is Moore’s Law for energy efficiency?

    Reply
  • Douglas Hvistendahl 09/17/09 8:02 AM

    I added insulation with a false wall. Some is inside, where convenient, some outside where there are a lot of closets, etc.  Also, we have a basement - I put in some fans to blow summer air through the basement into the house. Cheap cooling pays for it, and there is a small but noticeable reduction in heating costs also. Forced air furnaces often have a button that turns on the fan without heat. Open the suction part to the basement, add a filter box, and push the button. There are many inexpensive options, especially for a do-it-yourself project.

    Reply
  • Rich Hessler Solar 09/17/09 3:35 PM

    You bring up a very important point: the future of a renewable world involves installing renewable energy sources and reducing consumption. Although adding fiberglass to every wall is expensive, other changes can be made: installing energy efficient appliances, sealing cracks around windows and doors, installing energy-efficient windows, and adding insulation wherever possible (blowing insulation in the walls from the attic and insulating the attic).

    Reply
  • Jay Turner 09/17/09 4:40 PM

    We do need to be doing both:  installing solar PV and retrofitting for efficiency.  I do wish that I had known more about retrofitting before I installed solar PV and hot water, but it worked out okay for me, since my PV system was sized just right to satisfy my household’s electrical usage after the retrofits were done. I spent about $2K on LED lighting, $3K on energy star appliances, $4K on insulation (1180 sq ft home), way too much ($11K) on solar hot water backed up by an on-demand gas water heater, and $20K on PV.  And, yes, if you really are looking for the best bang for the buck, CFLs beat out LEDs and doing the insulation and appliance upgrades is cheaper than doing PV (at least it WAS then—2 years ago—but with PV coming down every year, it might not always be so).  We still need distributed renewable energy generation, and PV is a great way to do that.  The main thing is that not enough folks have the foresight to realize that it isn’t just all about cost—it’s about preserving a liveable world.  We need much more public awareness of the need to conserve, and retrofitting is a great place to start.

    Reply
  • michaelb1 09/18/09 10:42 AM

    this has been a great discussion.  I live in a townhouse outside of DC.  It was built in 1974.
    I’ve been considering solar and retrofitting but now I am leaning toward retrofitting.
    The previous owner put in good windows.  i want to upgrade as much stuff as possible without punching any holes in the walls. I’d like to get a tankless water heater, one of those super efficient hybrid heat pumps, and replace all my toilets with low flow models.

    My only problem is my wife insists on only replacing things when they break.  makes sense economically I guess but doesn’t satisfy my need for efficiency.
    If you seal your house up to tighly don’t you need an air exchanger to get fresh air blown in occassionally.

    Reply
      • StevePluvia 09/18/09 11:52 AM

        International building codes require whole house fresh air exchanges regularly, thus you should try to design a way to accomplish this in your home using a heat recovery ventilator (HRV) or energy recovery Unit (ERV), combined with a filtering system.

  • Jay Turner 09/18/09 5:51 PM

    MichaelB1: I’ve had no trouble finding takers for everything I’ve replaced. Talk to your wife about the value of passing on good used items to people who want them but night not otherwise be able to afford them.  Reusing materials and equipment keeps them out of the landfill.

    Reply
  • Sarah Bailey 09/21/09 11:44 PM

    Another very important thing that home owners need to be doing is tracking their energy usage. You can make all kinds of household improvements, but, after those improvements have been made, how do you know how much money, energy, and greenhouse gases you are saving each month?

    GreenQuest is a free, web-based, energy management software that is extremely user-friendly, easy to use, and well designed. Simply enter your utility bill’s data (cost and usage), and as much historical data as you’re able to access. GreenQuest tracks your energy use each month, energy savings, greenhouse gas tracking, how weather affects your energy bill, where you stand against your peer group, and more. It’s a great tool to use for your home, apartment, condo, church building, business, or any other building that you’re in charge of paying the utilities.

    Find out more about GreenQuest at http://www.MyGreenQuest.com or feel free to email me at (JavaScript must be enabled to view this email address) to ask questions or learn more.

    Reply
  • Ken Field 10/26/09 8:49 PM

    Don’t be too concerned with making your house too tight. It is extremely difficult to tighten a house up too much post-construction. I find it to be more of an excuse for people trying not to tackle a job than a real possibility. After all if you start with the massive leaks first and check with the blower door periodically during the retrofit, you will know when to quit if it gets close to being too tight. I would quit airsealing before needing to spend a couple thousand dollars on an HRV.

    Reply
  • kurtwal 10/26/09 8:59 PM

    JAK,
    Regarding your comments about having to tear apart walls in order to re-insulate walls with existing fiberglass, while it might be true in some instances.  Our company was able to re-insulate 3.5 inch stud cavities that had inadequate levels of fiberglass batt without tearing apart walls.  We did not stop with the above grade walls, this $10.5K project ( energy retrofit for a 1970’s home in western WA state also included significant improvements to ceiling, floor, & duct insulation plus new continuous ventilation system that will significantly improve air quality.

    Reply
  • Matt Berges 11/2/09 11:47 PM

    Anyone interested in this subject of major energy reductions (above and beyond the norm), should have a look at the “1000 Home Challenge” put on by the ACI.  I have been learning a great deal from the various case studies of “deep energy reductions” that ACI has presented. 

    The key to making the numbers work for some people and some houses, is to not miss major opportunities in the life cycle upgrades of our houses and buildings.  For example, when it is time to re side, install a few inches of a well done thermal barrier, but don’t just stop at one inch, or you have missed the opportunity to do better. 

    Short sited payback calculations and industry resistance to change is difficult to overcome, but as demonstration house are popping up all over the world (not that this is a new thing), return on shell improvements is certainly showing to be worth the money. 

    Consider the cost of burrowing money in your payback calculations (if you can manage to burrow money).  If burrowing an extra 30-40k reduces your monthly living expense (mortgage, plus utility bills), then it is a positive payback right away.  But then there is so much more to add to the equation.  Shell improvements, if done right, can last 100 + years (so I am told), where as your best mechanical equipment will need to be changed out multiple times in that 100 years.  Not to mention all of the service calls. 

    Thanks.

    Reply
      • All Tex Exteriors the Windows and Doors Houston 08/26/10 1:14 PM

        Always great to see those who are actually concerned with being efficient in such a wasteful society. Some people just evolve slower i guess…


        Windows and Doors Houston

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