Proposing: Zero Energy New Homes (ZENH)

September 12, 2004 – Vol.9 No.25

PROPOSING: ZERO ENERGY NEW HOMES (ZENH).

Here’s the challenge. Build a large development of homes (more than 75 housing units) where each unit needs one kilowatt (1000 watts) of electricity or less to operate. Annual electricity bills must be reduced by 70 percent. The homes are built in a hot climate and an installed solar system is connected to the grid. Power can be sold back to it.

You can take advantage of any government incentives, utility company power purchases, or changes in local laws that might become available. In the end, however, each housing unit, in terms of additional cost to the home buyer, can be only $5000 above a conventional house. Further, if you come up with a plan to do this, and implement it as a demonstration project successfully, it will become a business model for others to follow

Quite a challenge, when a whole house solar system can cost $20,000 or more and homes generally need multiple-kilowatts of power to operate in the blazing heat of late afternoon.

But that’s, roughly, the challenge the California Energy Commission has put forth in a Request for Proposals (RFP) through its Renewable Energy and Public Interest Energy Research (PIER) programs. The Commission expects to award up to a total of $10 million for contractors that will direct ZENH research development and demonstration projects (RD and D).

At a workshop in August regarding the all-important solar energy aspect of the RFP, industry representatives discussed elements that might be included in proposals received by the Commission. A few of them are:

--- Reduce the liability or risk to the home buyer for the solar system by letting third parties, such as power companies, own the systems and lease them back to the home owner.

--- Create new laws at the local level that require building Zero Energy New Homes while creating incentives to help build them.

--- Reduce up-front costs by having utility companies provide rebates for the solar systems.

--- Reduce costs by using standardized solar systems, using standardized building integrated solar roofing products and/or seeking bulk purchases of solar products.

These ideas and others were discussed, but bidders are encouraged to develop their own to put forth in their proposals. One manufacturer admitted that economies of scale will not lower solar costs; only technological changes and simplified installations will do that.

The energy-efficiency, energy-reduction aspect of the ZENH project seems possible. The best use of green building design and technologies might be able to do that. Strict adherence to energy efficient appliances and lighting are necessary. A smaller solar system - only one kilowatt - is certainly less expensive than a five kilowatt.

Yet $5000 doesn’t buy much these days. It’s not much money, especially when high-efficiency products are more expensive than low-efficiency ones. So, put your thinking cap on. Somewhere out there is a solution that can meet the goals of the RFP, without having to wait for new solar technology to come along.

Though the RFP is geared towards California, successful results could be copied elsewhere. Proposals must be submitted by November 8, 2004 by 5:00 PM. Prior to that other deadlines include an Intent to Bid, and a Pre-Bid conference. For all the RFP documents click

http://www.energy.ca.gov/contracts/index.html#pier_zenh