Department of Energy Net Zero
Cities on the Path to Zero
Living Building Challenge
Reading List
Most estimates indicate the real estate industry is the single most significant emitter of C02 relative to other sectors, consuming 40 percent of the world's energy and emitting 20 percent of global greenhouse gases (New Buildings Institute). Net Zero construction tries to move the built environment toward a more sustainable future. A zero energy building produces enough renewable energy to meet its own annual energy consumption requirements, thereby reducing the use of nonrenewable energy in the building sector (US Department of Energy (DOE).
The buildings sector accounts for about 76% of electricity use and 40% of all U.S. primary energy use and associated greenhouse gas (GHG) emissions. As the world faces a climate crisis, buildings and tenants must adapt to reduce unproductive and excess use of energy-- inefficiencies. "Opportunities for improved efficiency are enormous. By 2030 building energy use could be cut more than 20% using technologies known to be cost effective today and by more than 35% if research goals are met. Much higher savings are technically possible." Energy.gov
currently exist across 44 states in the U.S.
use 60% less energy than comparable buildings
are incorporated in the sustainability goals of 135 local governments across US and Canada
will grow to a $1.3 trillion market by 2025
The majority of U.S. households run on fossil fuels, producing an average of 7.5 tons of C02 per year. While electrification is more common in new home construction, retrofitting existing homes to be more sustainable can be costly. Currently, federal and state governments offer grants, tax credits, and low-interest loans to incentivize efficient and renewable energy usage and construction. Disrupting energy usage as usual, technological advances in structural insulation, energy-efficient appliances, new government incentives and reductions in the price of solar have caused Net Zero Energy construction to increase 700 percent in the last 6 years. As of 2019, there are an estimated 12,000 Net Zero residential units existing across 44 states in the U.S.. Set at the state-level, regulations help incentivize net zero construction. California is the first state to include stringent energy requirements in its building codes, mandating homes and multi-family residential buildings (up to 3 stories) include solar panels, as of December 2020. The state's ultimate goal is to produce only net-zero energy homes. Cities like Tucson, AZ and Miami, FL, as well the state of Massachusetts, are following California’s lead.
Located in downtown Silver Springs, Maryland, Unisphere proves that Net Zero can exist in the middle of a city. Overcoming restrictions like rooftop solar panels blocked by nearby skyscrapers, density, and no on-site wind turbines, Unisphere relies on a mix of advanced technology to reach net zero status.
For example, geo-thermal wells located 500 feet under ground function as heat pumps, pulling heat from the earth to serve the building. Unisphere opened in 2018 and comprises 135,000 sqft.
Located in Sunnyvale, California, 435 Indio Way was originally built in 1973 as a research and development laboratory and office space. When new building owners acquired the then-vacant space, they pursued renovations to achieve Net Zero status.
This project proved to developers that Net Zero investments could be more financially desirable by traditional real estate standards than typical, code-minimum buildings. 435 Indio Way is 31,759 square feet and cost $5.1 million to update to Net Zero Energy. While the hard costs were larger than the code-minimum alternative, a Net Zero 435 Indio Way recovered costs from negligible utilities, low operating expenses, and competitive rents due to the high demand for net zero spaces.
Underwriting
Speculating
Discussion Questions
References