NET ZERO ENERGY BUILDER INNOVATIONS PART 3: AVALON S NET ZERO PAST & FUTURE - A PULL STRATEGY TO ALL HOMES NET-ZERO ENERGY

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1 NET ZERO ENERGY BUILDER INNOVATIONS PART 3: AVALON S NET ZERO PAST & FUTURE - A PULL STRATEGY TO ALL HOMES NET-ZERO ENERGY Chris Williams, General Manager Avalon Master Builder 2011

2 Thanks to our sponsor This webinar has been made possible with the generous support of The speaker(s) and their commentary are not affiliated with PG&E

3 Panes can be expanded or collapsed: Click the +/- on the left side of each pane Expand/Collapse Side Panel Full Screen Mode Hand Icon Click to raise/lower hand Control Panel Questions Pane Attendees can submit questions, review answers - Type your question and click Send to submit If you CAN T hear me, please Raise Your Hand now 2011

4 BEFORE WE BEGIN: If you are experiencing an ECHO and are using VoIP (audio through your computer) You may want to try calling in using a landline telephone (not a cell phone). 2011

5 ABOUT BUILD IT GREEN Who is Build It Green? Non-profit organization Diverse membership California focus Advocate for healthy & resource efficient buildings Trusted resource for professionals & public 2011

6 UPCOMING EVENTS 10/14 Webinar: Marketing & Selling Green Building (2:30pm- 4:00pm PST) 10/24 Workshop: Healthy Net Zero: Focus on Materials (9:00am-12:00pm PST) Oakland, CA 10/30 Webinar: Net Zero Energy Builder Innovations Part 4 West Village at UC Davis (10:30am-11:30am PST) 11/06 Conference: Water Wise Homes (8:00am-2:30pm) Berkeley, CA 11/20-21 Training: Certified Green Building Professional (8:00am-5:00pm) San Diego, CA

7 Continuing Education Units Today s webinar: 1 Build It Green CEU Attend the whole webinar to receive credit See for more info recertification@builditgreen.org

8 Net-Zero Coalition

9 THANK YOU FOR ATTENDING TODAY! QUESTIONS? FEEDBACK? Alyssa Baker-Blanc, Build It Green Shilpa Sankaran 2011

10 Avalon Master Builder We Can Build Net-Zero, So Now What? Avalon's Net Zero Past and Future A Pull Strategy to all Homes Net-Zero Energy

11 Avalon Master Builder Pull Strategy Excitement + Perceived Value = Demand (Customers Come to You) Smart Phones Push Strategy With no Demand (you have to go to the customer) Point of Sale Door to Door Sales Pull vs Push Chris Definition

12 Avalon Master Builder Pull Strategy Excitement about EE + Perceived Value about monthly output of cash = People Expect It Pull vs Push Chris Definition Example of Success: people want to know what the MPG of a car is, so it was mandated for the Auto Industry

13 Avalon Master Builder Agenda We Can Build Net-Zero, So Now What? Avalon s Discovery Series Net-Zero Energy Homes Introduction Learning s from Avalon Discovery Series Net-Zero integration into production building Avalon s approach to Production Net-Zero

14 Avalon Master Builder Avalon s BHAG Build all Homes Net-Zero at No Additional Cost to the Home Owner

15 Avalon Master Builder Net-Zero in Alberta Net-Zero in Alberta -35 o C in the winter, +35 o C in the summer (-31 to 95 o F) No Government Incentives for EE Alberta Building Code Late Adopters Energy Prices are low (and subsidized by government) Very Little Awareness Very Transient Homebuyer Group (move every 5 years) EE not Recognized in Resale and Appraisals

16 Discovery Series Avalon History of Net-Zero Goal: NetZero Electricity Goal: NetZero Energy Goal: NetZero Energy

17 Discovery House (2003) Avalon History of Net-Zero

18 Discovery House (2003) Avalon History of Net-Zero Air Tightness Increased Insulation Ventilation

19 Discovery House (2003) Avalon History of Net-Zero

20 Discovery House (2003) Avalon History of Net-Zero Air Changes per Hour Expon. (Air Changes per Hour) Jan May Oct Feb Jul Nov Apr Aug-13

21 Discovery House (2003) Avalon History of Net-Zero

22 Discovery 2 (2006) Avalon History of Net-Zero

23 Discovery 2 (2006) Avalon History of Net-Zero Additional Insulation Solar Wall Photovoltaic and Solar Thermal

24 Discovery 2 (2006) Avalon History of Net-Zero 1.5 polystyrene to 2 polystyrene Increased R- Value Nailing challenges Siding Challenges

25 Discovery 2 (2006) Avalon History of Net-Zero

26 Discovery 2 (2006) Avalon History of Net-Zero Photovoltaic Panels Flat Plate Solar Thermal Collectors

27 Discovery 3 (2008) Avalon History of Net-Zero

28 Discovery 3 (2008) Additional Insulation Avalon History of Net-Zero Solar area Simplicity

29 Discovery 3 (2008) Avalon History of Net-Zero SIPS Panels (R-7 per inch)

30 Discovery 4 (2010) Avalon History of Net-Zero

31 Discovery 4 (2010) Avalon History of Net-Zero SIPS Off Site Home Construction Architecturally Integrated Renewables

32 Discovery 4 (2010) Avalon History of Net-Zero

33 Discovery 4 (2010) Avalon History of Net-Zero

34 Discovery 4 (2010) Avalon History of Net-Zero

35

36 Discovery 5 PV Production per Installed Watt

37 Discovery 5 PV Production per Installed Watt

38 Discovery 5 PV Production per Installed Watt

39 Discovery 5 PV Production per Installed Watt

40 Discovery Series Active and Passive Ventilation and Heating

41 Discovery Series Active and Passive Ventilation and Heating

42 Discovery Series Rainwater Catchment and Reuse

43 Discovery Series Living Wall Rainwater Filtration

44 Discovery Series Green Roof Rainwater Filtration

45

46 Discovery Series Integration Integration into Production Building

47 Discovery Series Integration Integration into Production Building

48 Demonstration Home Cost Benefit Avalon Net-Zero Past, Created a Future Opportunity No Sales Model -- Built For R&D Sold for Cost or Under Cost Gained Immense Knowledge in How To Do It, Applied to Day to Day Product Line Became Nationally Known to the Industry as Leaders in Net Zero

49 Learnings What have we learned Increase of Knowledge and Exposure for Avalon Discovery House Discovery II Discovery III Discovery IV Discovery V

50 Learnings What have we learned Net-Zero Demonstration Homes are Expensive and it is hard to make a business case to build more of them Helped with reputation, but our reputation only creates sales opportunities, not Net-Zero sales

51 Learnings What have we learned We can build a home Energuide (86) and sell at market value**. Consistency can be a challenge and important details often need to be insourced (particularly for production builds). In Calgary we typically use sub-trades for all tasks. **Control home Built to Same Ext/Int Finishing Spec

52 Learnings What have we learned Unlimited permutations/combinations makes it hard to build Net-Zero in a Production Model Need a standardized Net- Zero Spec We are not convinced customers buy Avalon homes just for the Energy Efficiency features (location, interior finishes, and perceived cost are still more important)

53 Demand - Affordability To Create Demand for our Pull Strategy we need : Affordability All Homes Net-Zero Energy, How Do We Get There We need Net-Zero to be available to the every day buyer. For customers that want the latest and greatest go for it, but have a simple and more affordable approach to Net-Zero for everyone else (the other 99%). Net-Zero Technology is becoming less expensive; this of course helps

54 Demand - Affordability All Homes Net-Zero Energy, How Do We Get There $250, $200, $150,000 $100,000 $50, Avalon Standard Discovery Home Cost Avalon Standard EGNH Discovery EGNH $- Discovery 1 Discovery 2 Discovery 3 Discovery 4 Discovery 5 60

55 Demand - Affordability All Homes Net-Zero Energy, How Do We Get There To Create Demand for our Pull Strategy we need : Affordability We need to be able to show the utility costs saved in energy efficiency pays the mortgage, and can pay for other upgrades Marketing material that focuses on monthly costs vs upfront purchase price can be powerful

56 Demand - Education and Awareness All Homes Net-Zero Energy, How Do We Get There To Create Demand for our Pull Strategy we need : Education and Awareness Like the auto industry, we need to educate on EE Consumers don t always see the cost benefit, we need to always be thinking What is in it For the Consumer in our Value statements

57 Learnings All Homes Net-Zero Energy, How Do We Get There In the mean time, help Level the Playing Field Regulators will listen to consumers, but we need to keep pushing for Mandatory Labeling and/or Increased Building Code Rebate programs to help bridge the cost gap

58 Learnings All Homes Net-Zero Energy, How Do We Get There Create Awareness Create Demand Government Mandated Show it can be Done Keep it Understandable Focus on Value Statements Narrow the Cost Gap Focus on MORE Value Statements WHAT IS IN IT FOR ME? Industry Advocacy Helps Consumers Need to Lead

59 Avalon - Future All Homes Net-Zero Energy, How Do We Get There Avalon s Plan for Now (for Affordable Near-Zero and Net-Zero): If we are going to build Net-Zero in a production manner, we will work with Customers that Want A Solution (not customers that have a solution) Standardize Net-Zero Spec Focusing on Affordability Focus on Cost-Benefit Features, or just add more solar Net-Zero Energy Use - Not overall footprint, Not carbon neutral

60 Avalon Master Builder Build all Homes Net-Zero at No Additional Cost to the Home Owner Questions? Please submit through your GoToWebinar Panel Chris Williams Avalon Master Builder x107