ed connelly, new ecology, inc
TRANSCRIPT
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Partners In Innovation-Case Studies
Edward F. Connelly President,
New Ecology, Inc.Founder,
WegoWise, Inc.Boston, MA
The Cost Barrier in Achieving Deep Energy Retrofits:
58th 7th St. Cambridge, MA
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Gauging the Cost of Greening
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost Benefit at 1460 House
Median Cost of Gas Multifamily Affordable Housing Built after 1995: $.85/SF
1460 House: $.463/SF
Savings/SF (45% reduction) $.387
Savings over 31,122 SF/YR $12,037
Simple payback on cost of $70,629 5.87 YRS
Gas Savings over 15 years $180,547
NPV 15 YEARS $142,806
Annual Cash Flow (assuming $70,629 borrowed at 5% for 15 years) $ 5,334Cumulative Cash Flow 180,547-100,535= $80,012Could have borrowed $127,000 and cash flowed ~$3/SF
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
58 7th Street Cambridge, MADeep Energy Retrofit Case Study
Award-winning Community Development Corporation
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Project Description
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Background
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Background
March 2007 Fire
All Tenants Displaced from 6 unit building
Owner explores goal of Net Zero Energy
Design Charrette
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Design
Multiple versions of REM modeling
New Goal: Deep Energy Retrofit
Funding for PV
Self-fund Solar Thermal
Annual Energy Use (kBtu)2004 IECC Energy Code (Left), Modeled (Middle),
and With Solar (Right)
0 0 062,341 62,031
31,997
126,96171,171
71,171
154,150
83,010
16,491
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Cooling (none) Lights/Appliances Heating Hot Water
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Final Strategies:
• Tight envelope, foam, tyvek and airtight drywall
• Enhanced insulation
• Good windows
• 95% eff. Boiler
Model:
• Consumption modeled 216,211 kBTU v. 343,452 code = 44% reduction
• w/ solar, off site energy use reduced to 119,658 --65% reduction from baseline (HERS 32)
7th Street Deep Energy Retrofit-Design
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep Energy Retrofit-Design
Annual Energy Cost2004 IECC Energy Code (Left), Modeled (Middle),
and With Solar (Right)
$2,393$1,486 $1,486
$3,664$3,648
$2,161
$2,396
$1,383
$1,383
$2,815
$1,516
$321
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Water/Sewer Lights/Appliances Heating Hot Water
Savings Modeled:
$1,299 saved in hot water heating$907 saved in water bills$1,487 saved in electricity$1,195 saved in hot water heating$1,013 saved in heating energy$16 saved in electricity
Total saved= $5917/yrBase modeled cost $11,26852% Savings
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Cambridge CaseConstruction Challenges
Framing
Adding Insulation
Multiple Insul Types
Window Costs
Contractor and Subs
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
7th Street Deep EnergyRetrofit-Costs
58 7th Street
6030 gross sq ft
With PV w/o PV & Thermal w/PV, After
Rebates
Total Construction costs $928,848.00 $815,547.00 $880,548.00
Cost/SF $154.04 $135.25 $146.03
Incremental Greening Costs $183,019.00 $69,718.00 $137,519.00
Green Premium/SF $30.35 $11.56 $22.81
Green Premium as % of TCC 20% 9% 16%
Simple Payback: $137,519/5733=24 years ($5914 modeled-23 yrs)
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
median gas use btu/ all energy star 49725
7TH (35.7% of Energy Star median) 17,767
difference = 7th savings/sf 31,958
change btu to therms 0.320
Savings per SF @ 1.60/therm 0.511328
SF at 7th 7,620
savings per year 3,896.32
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
projected DHW therms/sf using median of 25000 btu/br 11811
7TH 5,905
difference = 7th savings/sf 5,906
change btu to therms 0.059
savings per SF @ 1.60/therm 0.094496
SF at 7th 7,620
savings per year 720.06
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
add electric savings
cost/yr first year from WEGO 650
expected cost per year
1kwh/ft 7620
historic 8785kWh used before fire
at 0.2 1757
savings 1107
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
water
cost/g cost/yr
previous 60gbd 219000 0.01 2190
now 40gbd 146000 0.01 1460
savings 20gbd 73000 0.01 730
#br 10
200g/d
73000gpy
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis w/PV and Solar Thermal
Savings over 7,620 SF/YR $ 5,733
Simple payback on cost of $ 137,517 23.99 YRS
Gas+Common Elect+Water Savings over 15 years $ 86,000NPV of Utility savings $101,644
NPV 15 YEARS $(35,855)NPV 20 YEARS $ 8,879
Annual Cash Flow (assuming $137,517 borrowed at 5% for 15 years)(13,050-5,733) $ (7,317)Cumulative Cash Flow (no utility inflation) $(109,750)With Energy Inflation at 5% $( 72,040)Could only borrow $61,000 and cash flowed (10.6 yr simple payback)
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis w/oPV and Solar Thermal
Savings over 7,620 SF/YR $ 3906
Simple payback on cost of $ 137,517 17.85
Gas+Common Elect+Water Savings over 15 years $ 58,594NPV of Utility savings $ 69,265
NPV 15 YEARS $( 453)NPV 20 YEARS $ 30,025
Annual Cash Flow (assuming $69,718 borrowed at 5% for 15 years)(6,616-3,906) $ (2,710)Cumulative Cash Flow (no utility inflation) $ (48,649)With Energy Inflation at 5% $ (14,954)Could only borrow $41,000 and cash flowed (10.5 yr simple payback)
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Cost/Benefit Analysis
how could we pay for this?
annual loan cost 24 yrs 0% 5,730
total annual savings 5,733.32
cash flow 3.32
15 year cash flow 50
annual loan cost 30 yrs 1.5% 5,695
total annual savings 5,733.32
cash flow 38.32
15 year cash flow 575
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Beyond Energy Star
How Much is Left to Save?
GAS (HEAT and DHW) 49,725 btu/sf.49 therms/sf@ $1.60/therms$.79 /sf/year
WATER 50 g/br/d@$.01 per gallon$.50 /br/d$183/br/year
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Paying for Performance
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
Beyond Energy Star
Compare to German Standards:
Measured at 7th Street 5.29 kWh/SFConvert to meters 56.92 kWh/SMAdd tenant electric (guess) 30.50 kWh/SM
Total 87.42 kWh/SM
German Standard 70.00 kWh/SM6395 HDD vs. 5343
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New Ecology, Preserving Affordable Rental Housing Through Energy Efficiency April 14, 2010
So, What Does It All Mean?
• Need to Lower the Cost of Achieving Deep Energy Savings
• Bundle Savings From a Base of Code?
• Finance Over Long Term/Subsidize Financing
• Not Expect Project Savings to Pay For Upgrades• More reasons than cost savings to do this
• Risk, Climate, Volatility• German Model-Regulatory
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Partners In Innovation-Case Studies
Addressing The Cost Barrier in Achieving Deep Energy Savings in
Housing – 58th Street, Cambridge, MA