The Home Energy Challenge, Pt. 2

A sustainable approach to reducing residential carbon emissions while creating jobs for American workers.

Part 2: It's the Meter That Matters

Every gas-powered car has a fuel gauge, and it doesn't take a degree in automotive engineering to understand that the faster the needle drops, the sooner you'll have to refill the tank.

Unfortunately, many of us are much less mindful of the energy we're consuming at home. And while the government has offered cash incentives for consumers to trade in their old gas-guzzlers, most Americans still live in houses that are real "clunkers" in terms of household energy efficiency.

As I stated in the introduction to this series, residential energy use in the United States accounts for roughly twice the greenhouse gas emissions produced by passenger cars, and more than one-fifth of our nation's overall carbon footprint. If we can cut household fuel consumption by 25 percent, we'll reduce our national carbon output by about 5 percent. That's equivalent to taking half of all existing passenger cars off of American roads, and saving as much energy as we now import annually from Saudi Arabian oil wells.

It sounds good on paper, but can we really achieve this goal?

The good news is that there are plenty of effective products and technologies readily available to curb household energy waste, and American consumers have already been taking advantage of government incentives to install wall and attic insulation, double-pane windows, solar electric panels and high-efficiency HVAC equipment.

Unfortunately, the adoption rate for these measures has been much too slow to take a serious bite out of home energy use in America, and requiring all homeowners to invest in such costly renovations would be politically challenging and prohibitively expensive. So before we get out our collective checkbook to pay for a massive investment in state-of-the-art solar power systems or geothermal heat pumps, let's take a hard look at what really makes older homes burn through so much fuel.

The most obvious culprits are the devices that actually consume energy – like furnaces, air conditioners, water heaters and household appliances. But in any home, net energy consumption is actually determined by a whole range of factors, and by the way various energy-related systems work together.

Let's say the furnace in your basement was made when F.D.R. was president and your winter heating bills are bleeding you dry. So you call in an HVAC specialist who recommends a slick new furnace that promises super efficiency through high technology. Hook that baby up to your leaky old ductwork in a home with poor insulation and air leaks, then run it at 72 degrees day and night all winter long, and I'm afraid you won't even be in the running for the "Greenest House on the Block" award.

The problem is, there's much more to your heating system than the furnace alone. The cost of heating your home is also profoundly impacted by three other crucial factors:

  • The heat delivery system (air ducts or radiator pipes that distribute heat throughout the home)
  • The building envelope (exterior walls, doors, windows, and those pesky drafts)
  • How the occupants manage inside temperatures (a one-degree change at the thermostat can lead to as much as a 3 percent difference in how much energy the system uses)

What our hypothetical HVAC installer failed to mention is that these three factors tend to have a much greater effect on heating system performance than the efficiency rating of the furnace itself. In a typical American home, installing a high-efficiency furnace might cut energy use by 10 percent to 15 percent, while a reasonably affordable whole-house retrofit – including a well-sealed building envelope, improved ductwork and a smart thermostat to manage the system more effectively – can cut energy use by 30 percent to 50 percent, even if your old furnace isn't exactly dipping daintily into the power grid.

So as we look at ways to boost the efficiency of American homes, we must stop paying so much attention to high-tech gadgets and home improvement products and stay focused on the real task at hand – lowering our energy bills and reducing carbon emissions from home energy use.

In other words, it's the meter that matters.

Oddly enough, the rebates, tax credits and other incentives provided by governments and utility companies overwhelmingly favor high-cost solutions like solar electric panels, replacement windows and expensive heating and cooling products – instead of rewarding homeowners simply for drawing less energy through their gas and electric meters.

In my view, we as a nation urgently need to switch gears and move to performance-based home energy incentives that reward measurable reductions in household fossil fuel consumption, no matter how the homeowner achieves it. 

If you want to see a great example of performance-based incentives at work, look no further than your neighborhood automobile showroom, where new cars are labeled with a federally mandated sticker showing estimated fuel efficiency in terms of miles per gallon. As fuel prices have risen, automakers have responded to consumer demand by developing hybrid power trains and other innovative ways to bring down their MPG ratings -- without any government agency telling them exactly how to make their vehicles more efficient. Measure and reward performance, and the market will innovate.

That's the kind of forward-thinking energy policy that will facilitate market-based transformation of the home energy retrofitting industry, and spur widespread adoption of cost-effective measures to make our household fuel gauges drop more slowly from "F" to "E."

To Be Continued in Part 3: A Road Paved With Good Intentions.

Matt Golden is President, Founder and Chief Building Scientist of Sustainable Spaces

Image via Flickr/Creative Commons.

Comments [22]

  • jak 10/19/09 8:16 PM

    Unfortunately, my experience is that the high tech, renewable energy gadgets really do make a big difference. My electric bill went to below zero with solar PV and I’m getting about 20% reduction in my gas bill with solar hot water. In a reasonably well insulated house, the energy saving from putting in something like double pane windows is really in the noise. Of course, a more tightly sealed house could make a difference but then one could run into problems with air quality.

    But you make a good point. It’s possible to take a LEED Platinum building and run it so that it doesn’t even qualify for LEED, just as it is possible to drive a Prius so it gets 36 mpg. My blog (http://netzerolife.blogspot.com) talks about my family’s efforts to achieve a carbon-free lifestyle.

    Reply
  • Matt Golden 10/20/09 8:46 AM

    My assertion is not that Solar and other high tech solutions don’t work, but instead, they are simply very costly compared to insulation and other measures that should be done first.  There is a basic order that should be respected and that has the best outcomes.  Reduce, then Produce.  Start with the basics of load reduction before moving on to more expensive production, whether that is solar or a fancy furnace.

    It makes no sense to pay top dollar for kWh from an expensive PV system, only to have that energy wasted out of leaky ducts, or old appliances.

    Reply
      • Steve Pluvia 10/20/09 9:58 AM

        Matt, I’ll give you credit, after the beat-down you took for your first article, I figured you’d “no-mas” http://en.wikipedia.org/wiki/Leonard-Duran_II 

        Ding-Ding—Round Two.  So what did you learn from the 1st round beeeat’n?  Obviously, not much.  You start with an example of remodel that **REQUIRES** the HVAC contractor to be either corrupt or have an iq of creamed spinach, which earns you the Henderson kathwack http://www.youtube.com/watch?v=Ox_iL3e4YMA

        Pity, as you finally had a reasonable idea—paying for performance.  Unfortunately I’m not sure you have enough credibility left for anyone to notice.

  • jak 10/20/09 7:41 PM

    OK, fair enough.  I agree that it makes sense to start with the simple things. We were able to reduce the natural gas consumption in our house by about half just by turning the thermostat to 68 degrees instead of what the previous owners kept it at. That cost exactly nothing.

    I guess my problem with efficiency improvements is that the most cost effective improvements are typically for the worst cases, like houses with no insulation in their walls at all. Somehow, I’m wanting to see a kind of “Moore’s Law of Energy Efficiency”, where the technology starts getting better and cheaper exponentially just like it does for computers. Houses like mine, which were build in the 70’s when the building codes were already calling for insulation are just OK. I’d like to get them up to LEED Silver at least without laying out a couple hundred grand.

    Reply
  • russ 10/23/09 12:49 PM

    I agree with Matt - First things first and the first is reducing energy requirements as much as practical through practices (thermostat setting etc), sealing the home, adding insulation as is practical and then on to more exotic items.

    Solar hot water is far easier, more efficient and more cost effective than PV power. For example I turned off the electric to my hot water tank on 1 April and it has been on 4 days since then. I expect to go another month or so before turning it on.

    Lastly comes PV power or in a few locations, wind.

    Reply
  • rooferguy 10/24/09 5:27 PM

    Interesting article, Matt.  As we strive to develop good future policy, it’s critical to consider future costs.

    The biggest inconsistency in your analysis is the assumption that energy efficiency retrofit and PV system pricing will stay the same.  The reality is that because energy retrofits are so labor intensive (and the materials are unlikely to get cheaper), the COSTS for these efforts will increase.  PV, on the other hand, is on a very rapid price decline.  Not only are the solar panels getting cheaper but with plug & play AC panels the labor costs are almost in the DIY range.

    In 2008 I buy your analysis.  But in 2010 and beyond it is clear to me that in many locations generating your own power (PV or perhaps solar DHW) will be preferable to energy efficiency.  Add in the 30% ITC and state incentives and it’s no surprise that people are putting in PV before replacing all their windows and tearing down their walls to re-insulate.

    Dogma says efficiency first, PV second — but that is very likely to change as soon as 2010.

    Reply
      • Will 10/26/09 11:03 AM

        Why would labor costs be heading for the “DIY range” and not for Davis-Bacon prevailing wage for licensed electricians\plumbers\solar installers?

  • Matt Golden 10/25/09 11:22 PM

    When one considers good policy, then you have to realize that the government paying 30% of the cost of a solar installation is part of the cost.  It must be evaluated on a level playing field.  When you look at the absolute costs of solar vs. insulation, lighting, or other basic measures, efficiency is simply cheaper. 

    In this day and age, the fact that EE is mostly jobs is actually a massive positive.  Rather then have 60% of our investment going to solar panels that are almost entirely made in China, dollars invested in efficiency stay in local communities and create jobs in America.

    I am actually not arguing against any single technology.  I am advocating for a performance based system of incentives that is technology neutral… meaning we reward results and those technologies that work best rise to the top.  No need for anyone to pick winners, the market will do that based on what works.  When we create an incentive that rewards one technology in particular, we stifle innovation, and make the market less efficient.

    I simply am an advocate for a level playing field.

    Reply
  • JoeJoe 10/26/09 12:04 PM

    Matt… It’s ironic that you didn’t mention dynamic pricing in a piece called “It’s the Meter that Matters”. Your performance based philosophy is without fault but if you want a level playing field that fairly rates performance you need accurate price signals. With bated breath I wait for thee… To cover pricing in part three…

    Reply
      • Matt Golden 10/26/09 12:22 PM

        I completely agree.  Dynamic pricing is part of a truly efficient performance based market.

  • StevePluvia 10/26/09 2:04 PM

    @Russ: Solar Thermal Domestic Hot Water (DHW) is not cost effective because it is unreliable.  It requires installation of two hot water systems—the expensive ST and a backup for days with insufficient sun.  From a cost perspective, ST DHW requires you to design, buy, install, maintain, control, plumb & wire for 2 DHW systems.  The ROI on that system is forever, or never. 

    Efficiency of solar DHW (domestic hot water) calculated properly requires the costs of all systems, not just an observation that solar heats water efficiently.  Evidence what I say is true can be found in the results of the Solar Decathlon. You will find ALL contenders in the “hot water” and “comfort” (ability to control indoor temp) contests at the recently completed Solar Decathlon came to the same conclusion:  a heat pump for hot water and indoor heating, powered by PV.  ST was used by a few to boost heat pump performance (e.g. pre-heating a ground loop or DHW).  As a boosting system the ST system costs (size, storage, design complexity, etc) are substantially lower.  It also allows the system to be mufti tasked (pool & spa heating, winter ice melt etc).

    You can find very detailed engineering and cost analysis in the manuals and drawings for each solar decathlon participant at:

    http://www.solardecathlon.org/2009/team_germany.cfm

    Pay particular attention to performance and systems used by the winners vs systems that utilized solar thermal as a primary system (HINT: the ST guys got POUNDED).

    Reply
  • JoeJoe 11/4/09 9:17 AM

    Hmmm. During the heating season a heat pump water heater is effectively a load on space heating eh? Why not add a glazed or transpired air collector to feed the heat pump water heater? In the cooling season you could valve out the solar collector and switch over to feeding the heat pump internally. Perhaps I’m missing something.

    Reply
  • stevepluvia 11/4/09 3:50 PM

    JoeJoe, good observation, and an interesting idea, but generally the added heating load is irrelevant and the added expense for the system you’ve suggested is unnecessary. 

    In most U.S. climates, the heating season consumes less energy than the cooling season.  As you know, the DHW heat pump produces a cool air *waste* stream year round, thus it provides bonus cooling during the highest energy demand season—the summer.  In short, waste heat to boost the heat pump’s performance is cheaper to find in the winter than waste cooling in the summer. 

    A properly designed structure and mechanical system easily solve your concern.  The mechanical system (including domestic hot water DHW), we use includes a solar thermal system that simply heats a large insulated tank.  This heat source is used to pre-heat DHW and (in winter) pre-heat the ground loop of a ground source heat pump.  This essentially turbo-charges mechanical systems that are already ridiculously efficient and produces waste heat that can also be used for ice melt or winter heating the DHW mechanical room…

    http://www.rheem.com/Products/tank_water_heaters/hpwh/hpwhhomeowner/

    Reply
  • JoeJoe 11/4/09 7:19 PM

    hmmm… as he twiddled his imaginary chin-stache. Solarwall has installed a few systems but I haven’t found any specific cost data.

    http://solarwall.com/modules/download_gallery/dlc.php?file=33
    http://solarwall.com/modules/download_gallery/dlc.php?file=65

    I don’t see many harvestable sources of waste heat at the residential level. Maybe the shower/sink drains and a few kitchen loads but I haven’t the slightest clue what the $/BTU harvesting costs would be. Ground source works but I’m not familiar with the $/BTU costs there either. Meh… Where’s Hal 9000 when you need him? COMPUTER… Yes Dave… What are the comparative $/BTU costs of ground source, transpired air collector, and drain heat recovery in Mumbai, Moscow, and Milan for both air and water?

    Reply
  • JoeJoe 11/4/09 8:54 PM

    Look at the Energy Efficiency Zone map in your link Steve. I believe solar air collectors have the opposite profile so the technologies fit together well.

    On second thought it seems like the cooling effect a HPWH has during the summer comes with an efficiency penalty on the water heating side during various conditions. It seems like you’d want a separate external supply loop during both winter and summer.

    According to SolarWall literature you can get away with a 100 square foot system for residential space heating depending on the size of your home - The water preheating requirement would be a fraction of this. Aesthetically the SolarWall is a no-go at the residential level but that’s not their target market. A roof mounted glazed version would probably be more palatable to homeowners. Just my thoughts.

    Reply
      • stevepluvia 11/4/09 9:35 PM

        JoeJoe, I’m familiar with SolarWall.  I’ve designed homes with similar systems only to remove it later in the design when we ran mechanical with TRNSYS aka Hal9900. 

        You’ll note several of the Solar Decathlon entrants used similar systems with relatively little success compared to the design I’ve suggested.  As far as waste heat, consider a chimney or attic—all filled with waste heat that boost DHWHP performance…

  • JoeJoe 11/4/09 10:56 PM

    I’m not suggesting a SolarWall system - it was the quickest google search I could think of for comparison. We agree HPWHs are the way to go. You also seem to agree that efficiency can be improved (however marginally) with a dedicated air supply loop. For me the question is whether the extra costs of a dedicated air supply loop saves money at the energy end. If it does then I’d have to ask what sort of pre-heating system is, on balance, the cheapest? I’m sure your system works like a charm but I’d question the costs.

    Attics, when available, would be a great source. Have you modeled adding an insulated sky light to the attic to get some solar gain?

    Reply
      • stevepluvia 11/4/09 11:37 PM

        JoeJoe, use a liquid system, not air.  Easier to transport, it includes storage and has more end uses.

      • JoeJoe 11/4/09 11:47 PM

        Normally I’d agree with your point about storage but the air’s heat is stored by the liquid in the water heater so it’s a moot point. I’d think air is easier to transport than water. No makeup water requirements, chemical additions or freezing issues are all pluses for air vs. water. These are just my thoughts Steve… I don’t build homes, my expertise is power plant operations.

  • jak 11/5/09 12:13 AM

    I must agree about the cost effectiveness of solar hot water. I had a Schuco system installed with a Superstor Ultra stainless steel tank. My backup system was simply my already installed gas hot water heater, cost me nothing. The system ran about $14,000. I also needed to have some work done to build an insulated closet for the tank in the cold air return plenium for the former forced air heating system which we replaced with gas-fired hydronic a few years back. It was a very expensive system and probably won’t payback in my lifetime. The fundamental problem is that gas is too cheap. It’s much cheaper to heat with gas and enroll in a carbon credit program (my utility has one). Carbon credits for hot water are not more than a few cents a month. It would have been a different story if I had been heating with electricity.

    I also had a lot of problems with the contractor who installed the system. He had hired a guy who didn’t know what he was doing, and the hot line coming down from the roof was leaking glycol both at the pump station union and the tank union. It took me three months to get it resolved. To his credit,  the contractor resolved the problem and acknowledged that it was the inexperience of the installation person. This points up another problem with Matt’s argument about labor intensive technologies being better: if the people who do the work don’t understand what they are doing, the results aren’t as effective as they could be and the homeowner loses. My experience is that many people in the construction industry have an aversion to learning about new technologies and doing things better. In many cases, they are in the industry because they can’t find any other kind of job (no offense to anybody on this thread who does construction and doesn’t have that attitude). Also, there is a real lack of training programs and funding to help them get trained. In contrast, PV installers tend to be well trained (working with high voltage DC is something you just have to understand how to do)  and, as was pointed out, the technology is getting much simpler to install.

    The comments about alternate configurations for hot water systems are interesting. My conclusion also is that the current technology, while now much more reliable and well built than in the 70’s, is just too expensive because it requires lots of complicated plumbing which runs up the installation cost.  The cost for the equipment also tends to be too high. I looked into heat pump hot water and rejected it due to the noise. Air source heat pumps tend to be noisy. I may someday replace my gas fired hydronic system with a ground source heat pump (if I thought solar hot water was expensive…) and then the backup for my solar hot water would be heat pump. I think there are probably lots of other configurations of solar hot water heaters that could work though. I’ve been thinking of something like a sun tunnel with a concentrating collector that tracks the sun on the top. This could be installed in a fraction of the space required for a flat plate system with no plumbing. And it could be installed directly over an existing tank heater if there is a clear shot to the roof, like a sun tunnel. The concentrated light would then be directed to a heat exchanger on the tank, like the burner on a gas heater.

    Reply
  • stevepluvia 11/5/09 10:47 AM

    JoeJoe: 

    1.  You need more btu storage (than your standard hot water heater tank) otherwise your system will have very little utility.  If you spend the money to capture the energy, you should design a system that can use it, otherwise your money will have been wasted.

    2.  Liquid systems allow higher temp = more btu storage.  Air systems = lower temps, less btu storage.  Take home:  Use your budget to get the most btu’s for the buck (liquid system, large well insulated storage [or multiple storage tanks depending on btu needs], where stratification of water in tank can be utilized.)

    IF you use solar thermal—use it properly (NOT AS PRIMARY).  Design a VERY simple loop system from solar collector to tank that starts/stops at specified temps.  Solar heated fluid is backup, NOTprimary.  Use heat exchangers in tank for:

    1.  Direct DHW & preheat DHW,
    2.  Direct radiant floor heating, pre-heating final leg of a ground source heat pump;
    3.  Ice melt
    3.  Pool spa hot water

    If you cannot utilize ice melt, pool or spa heating, you will likely be better off eliminating the solar thermal system, using instead a ground source heat pump + air-air heat pump hot water heater driven by PV power.  The money you save on solar thermal goes a long way towards you PV budget given today’s PV prices.

    Reply
  • JoeJoe 11/5/09 7:16 PM

    Riddle me this… Have you modeled a solar air collector fed heat pump water heater? 

    RETScreen can model solar air collectors but it doesn’t have a HPWH module (that I can find) so I’ve gone as far as I can go with free software. I’ve sent them a note expressing my displeasure. I’ve read that TRNSYS does have a HPWH module so it should be possible to compare a solar air fed HPWH against an ambient fed HPWH. Can you do that?

    Reply
.