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

2. Outline 1.Where are we now? 2.Where are we going? 3.Where do we want to go? 4.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? 1.Commodity 2.Strategic resource 3.Basic human need 4.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. BC Provincial Targets SECTORTARGET 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%

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 Mid Efficient High Efficient New80%20% Retrofit40%60%

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