Lifetime Affordable Housing Centre for Design, RMIT University

1. DesignBUILD Seminar Series Catalyst for change Friday 25th June 2010 12.30-13.30 hrs Lifetime Affordable HousingCentre for Design, RMIT University

2. Acknowledgements • Acknowledge the Traditional Custodians of the Land, of Elders past and present, on which this meeting takes place. RMIT University

3. Acknowledgements • Project is funded by the Australian Research Council Linkage Scheme • Project partners and other contributors. RMIT University

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5. Lifetime Affordable Housing • Australian Research Council (ARC) funded linkage project, of 3 years duration – Nov 2007 start. • 3 PhD scholars & 1 full time researcher • Key research themes: • 1.Costs, 2.Location, 3.Affordability, 4.Policy implications Project partners • RMIT University • UniSA • Building Commission • VicUrban • Land Management Corporations (LMC) SA RMIT University

6. Background • To limit global warming to 2C IEA proposes a 450ppm scenario (IEA) – this means a reduction of emissions to 25% below 2000 levels by 2020 • Australia’s emissions • 2000 - 553 Mt CO2 • 2020 target - 470 Mt CO2 • BAU trend Australia’s domestic emissions would be expected to be 692 Mt CO2 - gap of 222 Mts RMIT University

7. Residential energy use • Energy consumption by households is an important contributor to greenhouse gas emissions. 14 tonnes of CO2 per household per annum. • Population increase, larger dwelling sizes and more appliances and IT equipment per household have contributed to an increase residential energy consumption of nearly 20% 1996 -2006. RMIT University

8. Home energy use 2008 Space heating and cooling represent single largest component of residential energy use in Australia. RMIT University

9. Addressing space heating / cooling Four critical factors • Energy source • Efficiency of equipment used • Size of space being heated • Efficiency of building shell RMIT University

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18. To reduce this energy use and its effects on the climate, several strategies are necessary, • heat demand reduction (building size / envelope efficiency) • increased energy efficiency (heating / cooling equipment) • conversion from fossil fuels (Renewable Energy Technologies) • Energy efficiency is the most cost effective means to reduce CO2 emissions (WWF) • Ceiling / wall insulation • Infiltration control • Shading • Improved glazing RMIT University

19. Addressing space heating / cooling Four critical factors • Energy source • Efficiency of equipment used • Size of space being heated • Efficiency of building shell RMIT University

20. National House Energy Rating Scheme • Zero stars means the building shell does practically nothing to reduce the discomfort of hot or cold weather. • A 5 star rating current mandatory standard. • 6 star rating typical international standard. • Occupants of a 10 star home are unlikely to need any artificial cooling or heating. • Move to 6 stars reduces space heating by 22% RMIT University

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23. What’s the problem? Why not a higher performing standard • Increasing housing affordability problem • Costs of operation of housing set to increase • Debate over energy efficiency – affordability vs. sustainability • Lack of consensus on theory, practice and policy • LACK OF CLEAR EVIDENCE - DATA RMIT University

24. Housing life cycle costs & benefits - Research questions • What are the through-life costs & benefits of predominant housing forms in Australia's major cities? • What are the through-life costs & benefits of improved building envelope thermal performance & higher energy efficiency for these forms? • How might infrastructural investments affect the ongoing costs associated with housing? RMIT University

25. Lifecycle costing of energy efficiency upgrades • 80 house plans • Modelled in NatHERS software Accurate • Energy efficiency upgrade scenarios (insulation, glazing, shading) • 5 stars • 6 stars • 7 stars • 8 stars RMIT University

26. Criteria for energy efficiency upgrades RMIT University

27. Best orientation Identify thermal zones Additions according to priority list RMIT University

28. Best orientation Identify thermal zones Additions according to priority list RMIT University

29. Best orientation Identify thermal zones Additions according to priority list RMIT University

30. Lifecycle costing • LCC of energy savings 2009-2050 • Low and high energy price scenarios • Net Present Value in $AUS of energy bill savings from upgrades RMIT University

31. Results The NPV of energy efficiency upgrade depends on five critical parameters, for all upgrade scenarios • Orientation of design • House size (Net conditioned floor area in sqm) • Time-horizon of analysis • Energy price • Discount rate applied RMIT University

32. 1. Orientation RMIT University

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35. Capital cost upgrade from 5 stars to 6 stars performance: • Upgrade to 6 stars across all possible orientations, average of $3050.31 • Upgrade to 6 stars to best performing orientation only, average of $1049.94 • Mean percentage savings by optimal orientation = 97.48% RMIT University

36. Capital cost upgrade from 5 stars to 7 stars performance: • Upgrade to 7 stars across all possible orientations, average of $6481.16 • Upgrade to 7 stars to best performing orientation only, average of $4061.49 • Mean percentage saving by optimal orientation = 28.25% RMIT University

37. Capital cost upgrade from 5 stars to 8 & 9 stars performance: • Upgrade to 8 stars across all possible orientations, average of $28835.22 • Upgrade to 8 stars to best performing orientation only, average of $9203.69 • Upgrade to 9 stars to best performing orientation only, average of $26171.51 • Mean percentage saving by optimal orientation (8 stars) = 65.74% RMIT University

38. 2. House Size RMIT University

39. Floor area of new homes (Commsec / ABS) RMIT University

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42. 3. Discount Rate RMIT University

43. Net Present Value of Energy Savings Over a 40 year period, the Net Present Value of savings determined by Price of Energy assumed and more importantly Discount rate Discount scenario 1 = 1.65%. Discount scenario 2 = 3.5% Discount scenario 3 = 8% RMIT University

44. Summary of findings to date: RMIT University

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47. Implications: • Housing - a long life infrastructure that is far more expensive to upgrade to improve energy efficiency than to construct to minimum standards. • Significant energy and emissions savings can be made through better energy efficiency RMIT University

48. Implications continued….reduce emissions • Three key components to reduce emissions from heating / cooling : • heat demand reduction (building envelope efficiency, orientation, house size) • increased energy efficiency (heating / cooling equipment efficiency) • conversion from fossil fuels (renewable technologies). • These can’t be addressed in isolation – eg. focus on star ratings alone RMIT University

49. Some examples of best practice: • Kronsberg, Hannover Germany: • Passive house design 15kwh/m2 (equal to approximately 8.5 stars Melbourne) • Quality assurance modelling • Electricity saving campaign • Solar installations • Co-generation heating network RMIT University

50. BedZED, London UK • Urban infill on site of old sewage works • CHP systems, PV panels • Reused – recycled material • South facing living spaces to maximise solar heat gain in winter • North facing workspaces to provide in-direct light and cool temperatures RMIT University