Lifetime Affordable Housing Centre for Design, RMIT University DesignBUILD Seminar Series Catalyst for change Friday 25 th June hrs

RMIT University2 Acknowledgements  Acknowledge the Traditional Custodians of the Land, of Elders past and present, on which this meeting takes place.

RMIT University3 Acknowledgements  Project is funded by the Australian Research Council Linkage Scheme  Project partners and other contributors.

1. Lifetime Affordable Housing 2. Emissions abatement 3. Residential energy efficiency/ Star ratings 4. Lifecycle costing – energy efficiency options 5. Conclusions / Commentary RMIT University4

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 University6 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 Mt CO target Mt CO2  BAU trend Australia’s domestic emissions would be expected to be 692 Mt CO2 - gap of 222 Mts

RMIT University7 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%

RMIT University8 Home energy use 2008 Space heating and cooling represent single largest component of residential energy use in Australia.

RMIT University9 Addressing space heating / cooling Four critical factors 1. Energy source 2. Efficiency of equipment used 3. Size of space being heated 4. Efficiency of building shell

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RMIT University18 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 University19 Addressing space heating / cooling Four critical factors 1. Energy source 2. Efficiency of equipment used 3. Size of space being heated 4. Efficiency of building shell

RMIT University20 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%

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RMIT University23 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 University24 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 University25 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 University26 Criteria for energy efficiency upgrades Parameters addressed in order of priority  STAR RATING 1. CEILING2. INFILTRATION CONTROL 3. SHADING4. EXTERNAL WALL 5. GLAZING6. INTERNAL WALLS 5 star 6 star 7 star 8 star

RMIT University27 1.Best orientation 2.Identify thermal zones 3.Additions according to priority list

RMIT University28 1.Best orientation 2.Identify thermal zones 3.Additions according to priority list

RMIT University29 1.Best orientation 2.Identify thermal zones 3.Additions according to priority list

RMIT University30 Lifecycle costing  LCC of energy savings  Low and high energy price scenarios  Net Present Value in $AUS of energy bill savings from upgrades

RMIT University31 Results The NPV of energy efficiency upgrade depends on five critical parameters, for all upgrade scenarios 1. Orientation of design 2. House size (Net conditioned floor area in sqm) 3. Time-horizon of analysis 4. Energy price 5. Discount rate applied

RMIT University32 1. Orientation

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RMIT University35 Capital cost upgrade from 5 stars to 6 stars performance:  Upgrade to 6 stars across all possible orientations, average of $  Upgrade to 6 stars to best performing orientation only, average of $  Mean percentage savings by optimal orientation = 97.48%

RMIT University36 Capital cost upgrade from 5 stars to 7 stars performance:  Upgrade to 7 stars across all possible orientations, average of $  Upgrade to 7 stars to best performing orientation only, average of $  Mean percentage saving by optimal orientation = 28.25%

RMIT University37 Capital cost upgrade from 5 stars to 8 & 9 stars performance:  Upgrade to 8 stars across all possible orientations, average of $  Upgrade to 8 stars to best performing orientation only, average of $  Upgrade to 9 stars to best performing orientation only, average of $  Mean percentage saving by optimal orientation (8 stars) = 65.74%

RMIT University38 2. House Size

RMIT University39 Floor area of new homes (Commsec / ABS)

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RMIT University42 3. Discount Rate

RMIT University43 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 University44 Summary of findings to date:

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RMIT University47 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 University48 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

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 University49

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 University50

RMIT University51 Includes upfront costs, costs of yearly energy, system replacement costs Costs higher for BAU the longer time goes Benefits from options with RE greater as time goes on and benefits from ZEH greater after 25 years

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RMIT University53 Conclusions:  Energy efficiency can contribute significant ‘easy gains’ for emissions reduction  Reduced energy demand equates to a reduction of risk for households  Higher energy efficiency ‘adds up’ for environmental and social criteria

RMIT University54  Issues of equity, intra-generational & inter- generational  Sensitivity of at-risk households to policy changes & energy price changes (AHURI, 2007).  Reduced energy demand equates to a reduction of risk for households Conclusions continued…. Issues of equity

RMIT University55  Challenge for industry / government - identifying effective strategies for producing an affordable / energy efficiency housing when land and building costs are highly priced  Approach – pursue low cost means of achieving higher energy efficiency / thermal performance from housing. Conclusions continued….

RMIT University56  Broad strategies for industry– Passive solar design Master planning of developments for optimum orientation Innovation – modular housing? Regulation & market efficiencies – eg. double glazing in Europe  Government – mechanisms to achieve higher energy efficiency without disadvantaging those in vulnerable socio-economic groups Conclusions continued…. Strategies

RMIT University57 Comments / Questions? Dr. John Morrissey Research Fellow Centre for Design Design & Social Context Portfolio RMIT University GPO Box 2476V Melbourne, Victoria 3001 Tel +61 (3)