PREMIER HOMES – SMUD’s program combines renewable technologies, such as a photovoltaic roof, with energy-efficient products, such as compact fluorescent lighting.

How do we merge energy efficiency and renewables?

Should consumers and businesses have to go to different organizations (or different branches of a single organization) for credible information about incentives and potential savings?

Or is there a way to integrate these energy-saving options into one program offering? How might this differ nationally and locally?

Two sessions at the Market Transformation Symposium began to address these questions.

Program planners at Sacramento Municipal Utility District (SMUD) expressed concerns that the traditional approach – running separate programs for renewable energy technologies and energy-efficiency measures – can be counterproductive.

“Individual program goals can create competition between measures and programs,” said SMUD’s Bruce Ceniceros during a presentation at the Market Transformation Symposium.

“Marketing, evaluation and administrative costs can increase, which may reduce the cost-effectiveness for the utility.”

It can also create confusion and possibly result in the customer installing renewables without first addressing all cost-effective energy-efficiency enhance- ments. SMUD’s answer to this dilemma is a program called “Premier Homes,” which combines energy-efficiency measures and renewable energy in new construction.

The goal is to make use of photovoltaic technology and energy efficiency in producing new homes that use 50 percent less energy by the year 2010 and 90 percent less energy by 2020.

These “net zero-energy homes” (ZEH) feature photovoltaic panels on the roof, maximum insulation levels, high-performance windows, properly sized high-efficiency HVAC equipment, tight ducts and building envelope, tankless water heaters and ENERGY STAR^® lighting.

Buildings are tested by a neutral third-party contractor. In addition to saving the homeowner money, these zero-energy homes can reduce annual demand by 50 percent.

SMUD has provided incentives for 95 “Premier Homes” and Ceniceros is anticipating that these projects will create a snowball effect in transforming the market. The lure for homeowners is an immediate 50 percent reduction in energy costs, a hedge against future energy cost spikes and a big contribution to carbon reduction.

DOE’s Building America Program is designed to help homebuilders create a strong demand for highly-efficient homes, with a goal of “cost-neutral, zero-energy homes.”

Ed Pollock presented DOE’s “National Builders Challenge,” which utilizes a two-pronged approach for promoting highly efficient homes that incorporate renewables: 1) convincing builders that this is a sound business proposition and 2) creating demand by educating homebuyers about the benefits.

“Technologies exist today that enable builders to make cost-competitive homes that are 30 percent or more above code,” he said. “Builders can make use of whole-building system design, demand response systems, ENERGY STAR products and equipment, and renewables.”

But there are significant marketplace barriers, Pollock said, such as the lack of an objective means for consumers to differentiate – in terms of payback period and annual energy costs – between standard-efficient (meeting code), energy-efficient and super-efficient homes.

The “Challenge” proposes several strategies for moving the market, including an easy-to-understand scale for energy costs, marketing and outreach, builder education and design competitions and awards.

Sam Rashkin from EPA’s ENERGY STAR Homes Program detailed ENERGY STAR’s general approach for promoting efficient new homes and explained how ENERGY STAR might eventually include renewables. One possibility, he said, would be to strive for “carbon-neutral homes” which could be attained through on-site renewable technology or by purchasing electricity generated with renewable technologies.

For information about Building America, the “Builders Challenge” or the ENERGY STAR Homes Program, contact George James, Ed Pollock and Sam Rashkin.

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