Energy Trends and Opportunities in

Residential Construction

Innes HoodThe Sheltair Group

May 25

Outline

1. Where are we now?

2. Where are we going?

3. Where do we want to go?

4. How do we get there?

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?

Why Should We Care?

1. Commodity

2. Strategic resource

3. Basic human need

4. Ecological resource

Where are we now?

Energy Consumption by End Use

Energy Consumption by end Use

0.020.040.060.080.0

100.0120.0140.0160.0180.0

En

eg

y C

on

su

mp

tio

n [

PJ

]

Space Cooling

Lighting

Appliances

Water Heating

Space Heating

Heating Fuel and Source

Apartment Heating Systems

0

100

200

300

400

500

600Heat Pump

Electric Baseboard

Natural Gas – HighEfficiency

Natural Gas – MediumEfficiency

Natural Gas – NormalEfficiency

Heating Oil – NormalEfficiency

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

Where are we going?

Energy Prices

What the Policy Makers Say

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

Nat

ura

l Gas

Pri

ce F

ore

cast

[$/

GJ]

Low

Medium

High

And then there is reality…

Housing Construction Trends

• New homes are getting more energy efficient

BUT• They are also getting larger, and we

are filling them with more gadgets

01020304050607080

1840 1860 1880 1900 1920 1940 1960 1980 2000 2020

Year of Construction

EGH

Ratin

g

y = -0.0676x + 140.2

R2 = 0.187

0

5

10

15

20

25

30

1880 1900 1920 1940 1960 1980 2000 2020

Vintage

Air

Ch

ang

es

@ 5

0Pa

What about Apartments?

• Ref Enersys Analytics

Building Energy PerformanceBuilding Energy Performance

0.00

0.50

1.00

1.50

2.00

2.50

BE

PI [

GJ

/Sq

m]

Residential Sector

Commercial Sector

Summary

• Energy prices are likely to continue to increase.

• Improvements in energy performance are limited.

Where do we want to get to?

Human Wood/Hay Coal Oil Methane Renewables

BC Provincial Targets

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 the MNECB by 2010, reducing average energy consumption by 37%

Savings Potential

11,000

13,000

15,000

17,000

19,000

21,000

2000/01 2005/06 2010/11 2015/16

Base Year Reference Case

Economic Potential

Achievable "Most Likely"

Achievable "Upper"

Summary

• Significant technical and economic potential exists.

• Limited successes and performance improvements

How do we get there?

Introduction

Source: Nadel, Steven and Linda Latham. 1998. “The Role of Market Transformation Strategies in Achieving a More Sustainable Energy Future.” Washington, DC: American Council for an Energy-Efficient Economy.

Market Share

Time

Market Maturity

Commercialization / Penetration

Market Expansion / Common Practice

RD&D, Education e.g. VSMs

Incentives, Bulk Procurement, Education

e.g. CFL.

Utility Rebates, Labeling, Education, Financing e.g. Furnaces

Codes & Standards e.g. insulation

Opportunities

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

• Furnace Example

Mid Efficient

High Efficient

New 80% 20%

Retrofit 40% 60%

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?

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

The Land Use Connection

• Densification (integration) is having more impact on energy use than conservation

05000

1000015000200002500030000350004000045000

Single Family Row Low Rise High Rise

Annu

al E

nerg

y Us

e [K

Wh/

yr]

Other

DHW

Space Ht

Neighborhood Scale

• Growing trend to district heating– Athletes Villages

SEFC– City of North

Vancouver– RMOW

Summary

• Significant energy and cost savings exist

• Progress is limited

• Need to work more effectively as an industry to achieve these results

Thank you!

Innes Hood

The Sheltair Groupihood@sheltair.com