The Net-Zero Energy Home Powering Canadian Homes Through Conservation, Supply & Innovation

1. The Net-Zero Energy Home Powering Canadian Homes Through Conservation, Supply & Innovation January, 2005

2. Net-Zero Energy Home Coalition Membership Canadian Energy Efficiency Alliance Milton Hydro Spheral Solar Power (a division ATS Automation Tooling Systems Inc.) Climate Change Central Alberta Research Council Xantrex Technology Inc. DuPont Canada Inc. Thomasfield Homes Earth Energy Society of Canada Canadian Solar Industries Association EnerQuality Corporation Advisors Pollution Probe Concordia University--Dr. Andreas Athienitis Howell-Mayhew Engineering Inc.

3. Net-Zero Energy Home Definition A net-zero energy home at a minimum supplies to the grid an annual output of electricity that is equal to the amount of plug load power purchased from the grid. In many cases the entire energy consumption (heating, cooling and electrical) of a net-zero energy home can be provided by renewable energy sources.

4. Net-Zero Energy Home • Objectives • Linking energy efficiency/conservation with renewable energy development • Expanding the market for localized/onsite green power generation • Help resolve the issues of cost effectiveness

5. May 1,2002 to Nov1,2003. Blue = Milton Hydro's total load curve Grey = aggregate load profile of all customers-- commercial /industrial--with average monthly peak demands > 50 kW Red = all consumers (65 to 70% residential) with demands < 50 kW. Blue = Red + Grey (adjusted for distribution losses).

6. Net-Zero Energy Home Reinventing the wheel? No! Unites States—ZEH program Japan---50% buydown—influenced NZEHs A natural progression in response to concerns over energy price security, reliability and sustainability

7. Net-Zero Energy Home – Feasibility • The technology exists today—much of it in the province • Builds on the work of existing programs such as R-2000, EnviroHome, Energuide for Houses • Requires a partnership of governments, industry, and communities

8. Net-Zero Energy Home --Technologies • Net-Zero Technology MENU: • R2000 + building efficiency standards • Energy Star Appliances • Photovoltaic Roof • Solar Thermal • Earth Energy Systems • Heat recovery technologies • Solar Hot Water • and others Menu of options allow the consumer flexibility in designing their Net-Zero Energy Home • Excess energy capacity and storage through the grid • Net-metering allowing customer to reduce monthly costs in half • Time of use metering allows consumers to balance energy load.

9. Net-Zero Energy Home – Economics The Technology Learning/Volume Cost Curve • Average yearly cost decline of 5% per year with increased market size, accelerates competitiveness and removes need for government support • Declining installed costs for new homes in Canada • PV $8.00--$5.50--$2.50/watt • Solar Thermal $4K--$2K • Earth Energy $20K--15K • Typically a 10-15 year cycle before costs and market begin reaching maturity

10. Net-Zero Energy Home –German PV Experience

11. Net-Zero Energy Home – German Strategy A similar strategy for NZE technologies can lead to significant results and benefits in Ontario

12. Net-Zero Home Energy Plan—Benefits to Ontario Environmental Total GHG reductions 144 Megatons (through to 2050) New power generation 6100 MW (through to 2050) Conserved energy 178 billion kWhrs (through to 2050) Sustainable urban development Green communities Public education/awareness Empowering consumers Displacing fossil generation Cleaner air, reduced smog Economic Development New manufacturing base Upwards of 25 new PV factories Direct PV and solar thermal related jobs 4100 New Jobs from all related sectors 88,000 Reliable and secure energy supply De-centralized power

13. Net-Zero Home Energy Plan—Next Step What is Required of Ontario in the Short-Term • Support a minimum 300 Demonstration Homes • Size will help with exposure to markets, learning curve, the platform for larger scale grid-tied and localized green power systems • Provincial commitment required---$6.0 Million over 3 years • Potential for co-funding with the federal government • Possible DSM funds with support of power companies • Research and market analysis of projects

14. Net-Zero Home Energy Home—Government • Federal • CMHC, Industry Canada, NRCan, leading supporters • Interest in supporting pilots • Provincial • Ontario Ministry of energy is supportive and poised to assist • Other provinces expressing interest: BC, Alberta, Quebec and PEI • Municipality • Looking for first demonstration location • Exploring how municipalities can lend support • Utilities—Milton Hydro

15. Net-Zero Energy Home – Defining Success • Addressing the incremental cost of 12%--15% • Investment by consumer with a reasonable payback • Government assistance with phase out schedule so that technologies stand on their own • tax abatement incentives, green mortgaging • Provide flexibility so that no one technology or solution is singled out. A diversified plan that promotes the integration of varied technologies. • Expanding awareness and understanding