What Zero Net Energy Really Means for Architects and Design in California

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Thanks to the Zero Net Energy standards passed by the state of California last year, we are well on our way to becoming a world leader in zero net homes. However, many of us remain skeptical about the feasibility of these objectives. Can the single biggest change in the history of home building and energy efficiency be achieved in 755 business days?

A lot of the apprehension surrounding ZNE 2020 is due to the lack or information some architects and builders have about it. Not knowing what ZNE means or how to actually implement it creates a lot of worry for architects and builders who have done it a certain way for so long.

Our goal with this post is to lay out, in simple terms, exactly what Zero Net Energy means in California, discuss the feasibility of zero net energy homes, as well as what we consider to be the best strategies to get there. 

So, what exactly does zero net energy mean?

Originally the California Energy Commission defined Zero Net Energy Code Building as follows: “A Zero Net Energy (ZNE) Code Building is one where the net amount of energy produced by on-site renewable energy sources is equal to the value of the energy consumed annually by the building……. using the California Energy Commission’s Time Dependent Valuation (TDV) metric.”

This definition left a lot of room for interpretation, and it was difficult for the professionals in the industry to understand exactly what was required. Because of the lack of clarity and difficulty of each definition, the California Energy Commission (CEC) decided to revise the definition.

The revised definition reads, “The societal value of energy consumed by the building over the course of a typical year is less than or equal to the societal value of the on-site renewable energy generated.” (California Energy Commission 2011). The biggest change to the definition is the “societal value of energy”, that is, “the long-term projected cost of energy including cost of peak demand and other costs including projected costs for carbon emissions, e.g., the time dependent valuation (TDV) of energy.”

TDV approximates the market-value of energy, taking into account the hour of day, day of week, and time of year when energy is used. Essentially, California is putting a higher value on a kWh of energy during peak loads, than on a kWh of energy during other times. Simply put, the cost of a kWh of energy at 2am is significantly less than at 2pm.

Zero net energy: Technical vs economic feasibility

Zero net energy buildings provide a technically feasible approach to reducing energy consumption in buildings. These buildings are designed and constructed to generate all of the energy they require through a combination of energy efficiency and renewable energy generation technologies.

Although this is technically feasible, under standard conditions zero net energy buildings are not economically practical. One issue that is generating criticism for net zero initiatives in California is cost. Generally, there is about a 10-15% increase in cost for net zero homebuilding projects. To put that into perspective, it costs about [$50-100] per square foot to take an existing building to ZNE, and between [$50-100K] to make an existing home ZNE.

There is a learning curve that has to be surpassed, one that impacts a lot of people. For a builder who constructs one or two houses a year, how many houses can he lose money on, and still stay in business before he overcomes his learning curve?

Only time will tell how these regulations will perform in California.

The impact on the architectural field

The changes we see on the horizon are daunting for architects, for their role and responsibilities need to be redefined.

Net zero policies mean that designing residential houses and commercial buildings is going to become professionally more demanding. In the past, architects just sat down with a pencil and paper and designed a structure. They had to keep some building codes in mind, but now, for the first time, they will have to have take energy efficiency compliance into full consideration right from the design stage.

Furthermore, architects will find aesthetic sensibilities falling in importance as a balanced energy budget rises in importance. Different designs might be welcoming or whimsical, but the outcomes of the creative process can only be entertained if the final design draws less energy than it produces. With limited time and resources, builders will pay less attention to aesthetic concerns in proportion to their level of commitment to zero net.

Advancing to Zero Net 2020

The best advice we give our clients is: Take it slow, but start now!

Start by implementing small energy efficient features into each project, and incorporate as much of this code cycle as you can in existing projects. And finally, get as knowledgeable as possible on this! Ask questions, read, get assistance from an experienced energy consultant.

But no matter how you approach it, when designing a zero net building, finding the sweet spot among trade-offs like cost, comfort, and performance isn’t easy for most architects.

We can help you understand the different scenarios in terms of energy efficiency and help reduce cost, optimize budget and develop best practices to ensure your building projects are compliant with ZNE 2020.


 

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Villa Garcia Apartments

Villa Garcia Apartments is an affordable housing complex in Thousand Oaks, CA that completed a sustainability and energy efficiency renovation in 2017.

E3 California was contracted to complete the CTCAC Sustainable Building Methods (workbook) for the Application and Placed In Service phases, to coordinate with the SoCalREN incentive program, and to field verify the installation of all required energy efficiency measures for CTCAC and SoCalREN.

Originally built in 1964, Villa Garcia completed its first renovation in 2000. Renovations in 2017 include new energy efficient windows, new HVAC heating and cooling units, and lighting within tenant units upgraded to LED.

Project Name: Villa Garcia Apartments
Location: Thousand Oaks, CA
Client: Many Mansions
Green Building Program(s):  CTCAC, SoCalREN Program
Buildings/Units/Stories: Twenty (20) 2-story buildings with 80 tenant units

Villa Del Comanche

E3 California was contracted to complete the CTCAC Sustainable Building Methods (workbook) for the Application and Placed In Service phases, to coordinate with the PG&E MUP incentive program administratively, perform the test-in site assessment, and to field verify the installation of all required energy efficiency measures for the program and CTCAC.

Built in 1979-80, the upgraded energy measures at the property included new HVAC systems rated at 95% AFUE, 14 SEER/11 EER; new vinyl windows with an average U-factor 0.28/ SHGC 0.24; new Shingle Cool Roofing; and Energy Star refrigerators. The calculated percent improvement from existing conditions as determined by the PG&E Multifamily Upgrade program (MUP) was 24%.

Project Name: Villa Del Comanche
Location: Arvin, CA
Client: Highland Property Development, Inc.
Green Building Program(s): CTCAC, PG&E Multifamily Upgrade Program
Buildings/Units/Stories: 7 Buildings; 57 units; 2 stories

Fun Facts: This community development has created quality, affordable housing for hundreds of families in Paso Robles. It received the 2019 Beautification of the Year Award by the Paso Robles Chamber of Commerce.

The HIVE

The Hive is a mixed-use community in uptown Oakland combining existing buildings, historical renovations, and newly constructed buildings. It is a combination of commercial spaces and residential units.

Energy building measures at the property include field verified Quality Insulation Installation (QII), high performance windows and patio doors, a solar water heating system and CRRC cool roofing products. Green building measures include 100% ENERGY STAR appliances in the residential units, 60% drought tolerant landscape, high levels of access to several local amenities and local transportation within ½ mile of the community, promoting community connectivity.

Project Name: The HIVE – 24th Street Flats
Location: Oakland, CA
Client: Stok
Green Building Program(s):  LEED for Homes
Certification Level:  Silver
Buildings/Units/Stories: 3 stories, 33 new residential apartments over a parking structure

Fun Facts: This three story residential building achieved LEED Silver Certification in the Summer of 2016 which contributed to the overall project achieving the LEED for Neighborhood Development certification.

Sierra Vista

E3 administered the completion of the low-income housing tax credit program requirements, California energy code compliance (Title 24 Part 6), California Utility Allowance Calculator (CUAC) for monthly tenant utility estimates, eligibility criteria for incentives and rating standards to qualify for solar incentives, and third-party verification to meet trusted environmental standards for a sustainable, efficient, and healthier home.

Project Name: Sierra Vista I & II
Location: Stockton, CA
Client: Affordable Housing Development Corporation 
Green Building Program(s):  Title 24, HERS, CTCAC/CDLAC, CUAC, and NSHP
Buildings/Units/Stories: 22 Buildings, 215 Units; 2 Stories

Fun Facts: There were 400 original units that were demolished allowing 215 new efficient units to be built.

Schillo Garden Apartments

E3 California was contracted to coordinate with the SoCalREN incentive program, complete the CTCAC Sustainable Building Methods (workbook) for the Application and Placed In Service phases, and to field verify the installation of all required energy efficiency measures for CTCAC and SoCalREN.

Originally built in 1988, the renovations in 2017 include new energy efficient windows, new HVAC heating and cooling units, and lighting within tenant units upgraded to LED.

Project Name: Schillo Gardens Apartments
Location: Thousand Oaks, CA
Client: Many Mansions
Green Building Program(s):  CTCAC, Southern California Regional Energy Network (SoCalREN) incentive program
Buildings/Units/Stories: Four (4) buildings, 29 tenant units, 2-stories

Oak Park Apartments

E3 administered the completion of the low-income housing tax credit program requirements, California energy code compliance (Title 24 Part 6), California Utility Allowance Calculator (CUAC) for monthly tenant utility estimates, eligibility criteria for incentives and rating standards to qualify for solar incentives, and third-party verification to meet trusted environmental standards for a sustainable, efficient, and healthier home.

Project Name: Oak Park 3 & 4 
Location: Paso Robles, CA
Client: Affordable Housing Development Corporation 
Green Building Program(s):  Title 24, HERS, CTCAC/CDLAC, CUAC, and NSHP
Buildings/Units/Stories: 18 Buildings; 151 Units; 2-3 Stories

Fun Facts: This community development has created quality, affordable housing for hundreds of families in Paso Robles. It received the 2019 Beautification of the Year Award by the Paso Robles Chamber of Commerce.

Lavender Courtyard

Lavender Courtyard Apartments is a new construction affordable housing complex in Sacramento, CA that completed in May 2022. E3 administered the completion of the low-income housing tax credit program requirements, California Utility Allowance Calculator (CUAC) for monthly tenant utility estimates, above-code benchmarks while meeting GreenPoint Rated Platinum certification, and third-party verification to meet trusted environmental standards for a sustainable, efficient, and healthier home.

Project Name: Lavender Courtyard
Location: Sacramento, CA
Client: Mutual Housing California
Green Building Program(s): CTCAC/CDLAC, CUAC, GreenPoint Rated, and HERS Third-Party Testing
Buildings/Units/Stories: 1 Building; 53 Units; 4 Stories

Fun Facts: This property offers affordable apartments serving seniors age 62 and over. Mutual Housing California partnered with Sacramento LGBTQ community leaders to offer an affirming community for a diversity of people including Sacramento’s LGBTQ seniors.

Our Services

CTCAC/CDLAC Application and Placed in Service

E3 California has Certified Energy Analysts who provide energy efficiency and renewable energy components of the application and final placed-in-service phase for tax credit programs. Lavender CourtyardOak Park 3 & 4Schillo Gardens ApartmentsSierra Vista I & II, Villa Del ComancheVilla Garcia Apartments

Title 24

Develop compliance calculations and reports that establishes that the building meets or exceeds the energy requirements of the California Building Code. E3 California has Certified Energy Analysts who provide expert and cost-efficient Title 24 solutions. Oak Park 3 & 4Sierra Vista I & II,

HERS Verification (Home Energy Rating System)

HERS Verification (also known as Field Verification and Diagnostic Testing) is a way to ensure that the various features of a home meet the California Building Energy Efficiency Standards. If work requires HERS testing, E3 California has certified HERS Raters who perform field verification and diagnostic testing on the appropriate features to receive the Certificate of Occupancy. Lavender CourtyardOak Park 3 & 4

California Utility Allowance Calculator (CUAC)

The California Utility Allowance Calculator (CUAC) is a California energy use model for calculating utility estimates. The tool provides an estimate of what tenants will pay for utilities and is typically more accurate than a public housing authority utility allowance schedule. E3 California offers a team of certified experts who can provide efficient and accurate utility allowance calculator results. Lavender Courtyard, Oak Park 3 & 4Sierra Vista I & II

HUD Utility Schedule Model (HUSM)

Public Housing Authorities are required to maintain a utility allowance schedule for tenant-paid utilities, tenant supplied refrigerators and ranges, and other tenant-paid housing services. The allowance is used in determining family’s share and the housing authority subsidy. E3 California offers an expert team who can provide utility allowance results.

GreenPoint Rated

GreenPoint Rated is an approved third-party rating system for compliance with California tax incentive programs and is required by several California cities to comply with their green building ordinances. E3 has GreenPoint Raters who are experienced building professionals with specialized backgrounds and training. Our team offers top-level GreenPoint Rater services for all building types.  Lavender Courtyard

LEED for Homes

LEED (Leadership in Energy and Environmental Design) is the most widely used green building rating system in the world. LEED certification allows developers to attract tenants and investors to meet Energy, Sustainability and Governance (ESG) goals. E3 California offers a team of certified experts to get your project through the LEED certification process. The HIVE

45L

45L is a federal tax credit program to offset the costs associated with building energy efficient single family or multifamily properties. The credit provides a dollar for dollar offset against taxes owed or paid in the tax year in which the property is sold or leased.  Our team provides valuable support to maneuver program requirements and to help generate 45L certificate documentation to meet your project tax credit goals.

Energy Consulting

E3 California can provide guidance on implementing strategies or tactics to achieve greater energy efficiency in order to comply with building codes or funding requirements. These strategies and tactics can also lead to improved building operations and healthier environments for tenants. Our goal is to provide high quality analysis to meet your project goals and cost-effective solutions.

Utility Incentive Programs

E3 California provides services for utility incentive programs that require a Certified Energy Analyst (CEA). We work collaboratively with each program with responsiveness and efficiency to achieve project completion. Our team offers support to navigate program requirements and meet project incentive goals. Oak Park 3 & 4Schillo Gardens ApartmentsSierra Vista I & IIVilla Del CamancheVilla Garcia Apartments