Energy Trends and Opportunities in Residential Construction

1. Energy Trends and Opportunities in Residential Construction Innes Hood The Sheltair Group May 25

2. Outline • Where are we now? • Where are we going? • Where do we want to go? • How do we get there?

3. In a Nutshell • Technical innovation has improved energy efficiency of new construction. BUT • There is huge potential to increase profits and save energy. • Why isn’t the construction industry doing more?

4. Why Should We Care? • Commodity • Strategic resource • Basic human need • Ecological resource

5. Where are we now?

6. Energy Consumption by End Use

7. Heating Fuel and Source

8. Summary • The industry is dominated by minimizing capital cost • Little attention paid to lifecycle costing • The industry is dominated by a large number of small operators • We are still a cottage industry • Innovation is difficult

9. Where are we going?

10. Energy Prices What the Policy Makers Say

11. And then there is reality…

12. Housing Construction Trends • New homes are getting more energy efficient BUT • They are also getting larger, and we are filling them with more gadgets

13. What about Apartments? • Ref Enersys Analytics

14. Building Energy Performance

15. Summary • Energy prices are likely to continue to increase. • Improvements in energy performance are limited.

16. Where do we want to get to? Human Wood/Hay Coal Oil Methane Renewables

17. SECTOR TARGET New single family and row houses EnerGuide 80 by 2010, ( 32% savings in energy use) New multi-unit residential and commercial buildings 25% better than theMNECB by 2010, reducing average energy consumption by 37% BC Provincial Targets

18. Savings Potential

19. Summary • Significant technical and economic potential exists. • Limited successes and performance improvements

20. How do we get there?

21. Opportunities • Given the choice, consumers will invest in efficient equipment – why aren't we doing more? • Furnace Example

22. Opportunities (Detached) • HE Furnace example: • Incremental cost $600 • Incremental Mortgage payment @ 6%=$47/yr • Annual operating cost savings (Gas @$12/GJ) =$113/yr • Other Significant Opportunities • Advanced Framing with increased wall insulation • Full Height basement insulation • Integrated space and water heating • Window Upgrades • HRV • Dare I mention the Built America Program?

23. Opportunities (MURBs) • Wood Frame Example • 23% energy savings translated into 36,000 investment with 6.4 yr payback • Getting consumers to pay is challenging – but not impossible

24. The Land Use Connection • Densification (integration) is having more impact on energy use than conservation

25. Neighborhood Scale • Growing trend to district heating • Athletes Villages SEFC • City of North Vancouver • RMOW

26. Summary • Significant energy and cost savings exist • Progress is limited • Need to work more effectively as an industry to achieve these results

27. Thank you! Innes Hood The Sheltair Group ihood@sheltair.com