The Business of Green Housing People want it, so why aren’t they willing to pay for it? Matthew Sachs General Manager Urbandale Construction Carleton University.

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Presentation transcript:

The Business of Green Housing People want it, so why aren’t they willing to pay for it? Matthew Sachs General Manager Urbandale Construction Carleton University Lecture Series Nov. 18, 2014

Green Home Considerations Indoor Air Quality Water Use Building Materials Energy Use

Green Home Spectrum Ontario Building Code is baseline. Energy Star criteria is a 20% improvement over Code. R2000 criteria is a 50% improvement over Code. Net Zero Energy Homes produce as much energy as they use.

Hierarchy of Considerations Orientation for passive solar Building Envelope Mechanical Systems Renewable Energy Generation

Incremental Costs Energy Star - $8,000 - $10,000 R $30,000 - $40,000 Net Zero - $100,000 - $150,000

EnerQuality Survey 88% of respondents value energy efficiency when making a home purchase decision Respondents are on average willing to pay up to $12,000 more for an energy efficient home

Purchaser Concerns Cost Risk and Usability (hassle factor) Aesthetics Reduction in livable area of home (if thicker walls are used)

Payback Assume cost of household energy use between $2,000 - $4,000 per year. Energy Star – 10 to 20 year payback R2000 – 15 to 30 year payback Net Zero – 25 to 50 year payback

Mortgage Calculations Scenario 1 – House built to code House cost - $450,000 Annual cost of energy - $4,000 Annual mortgage payments - $31,404 Annual energy and mortgage payments - $35,404 Scenario 2 – House built to Energy Star House cost - $458,000 Annual cost of energy - $3,200 Annual mortgage payments - $31,968 Annual energy and mortgage payments - $35,168 Annual Savings of $236

Marketing Message Improved energy efficiency in a home is the result of superior construction techniques, attention to detail, and using better equipment and materials. An energy efficient home is a better built home.

Technologies to watch (short term) Improved air sealing Heat Recovery Ventilators (HRVs) Triple pane windows Underslab insulation Drain water heat recovery (DWHR) LED lighting Exterior foundation insulation

Technologies to watch (long term) Vacuum insulation panels (VIPs) Cold climate air source heat pumps Building integrated photovoltaics (solar shingles) Distributed energy heating systems All electric homes

Thank you! Any questions?