Michael Kanellos: September 21, 2009, 12:29 PM

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Modular Home Builder Zeta Opens Its First Factory

Zeta Communities, which wants to build affordable, net-zero energy homes, opened its first factory in Sacramento today, a 91,000 square foot facility that could eventually employ 200.

The factory will be capable of churning out about 300 to 400 homes annually. Ultimately, Zeta would like to open 15 factories, geographically dispersed across the country, over the next five to seven years.

The company has already erected a model home in Oakland – see video here. Some of the features of the home include wraparound foam insulation for keeping heat in, a device that sucks heat out of water going down the drain and returns the heat to the water heater, solar panels, a screen that tells you how much energy you're consuming, and a computer-controlled skylight that can cool the house by circulating outside air. Plus, it looks pretty cool.

Unlike regular homes, modular homes are assembled in factories and then trucked out to the foundation where they will sit. Building in the factory allows carpenters to get a tighter seal on corners, thus preventing moisture and mold. Although modular homes haven't been huge hits in the U.S. yet, modular is a popular construction technique in Japan and Europe. It is expected to grow here. Zeta's goal is to eliminate any cost premium on modular homes while drastically reducing a homeowner's energy costs.

Still, it's not an easy business. Earlier this year, Michelle Kaufmann Designs, one of the early modular companies, called it quits.

Zeta is one of the green building companies incubated by Marc Porat. (Zeta's CEO is his sister.) Other companies include Serious Materials and CalStar Products, which makes green cement and bricks.