Net Zero Energy Housing Workshop

April 5, 2012

Carter Scott, PresidentCarter Scott, President

Transformations, Inc. Townsend, MATransformations, Inc. Townsend, MA

(978) 597-0542(978) 597-0542

www.transformations-inc.comwww.transformations-inc.com

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© 2012 Transformations, Inc.

• HERS Index of -4

HERS Index Results…

The Farmhouse(Built in Townsend, MA in 2008)

Applying what we learned in the “Zero Energy Challenge” to production home building.

Cost Effective Insulation

• Cellulose in the attic floor, R 3.5 per inch (18” for an R-63)

• Low Density Foam in the walls, R 3.9 per inch (12” for a cavity insulation of R-46.8).

• Note, We now mainly use ThermoSeal 500, R 3.8 per inch. It is a water based foam, reducing blowing agent off-gassing concerns.

The GrotonBuilt in Townsend, MA in 2010

(a home with 12 months of utility statements showing positive energy)

HERS Index and Energy Usage

• The Groton HERS Index came in at a 2• The actual energy usage came in at -1574 kWh

per year.• At @.20 cents per kWh, the yearly credit built

up was $315 or about $26 per month

$551.01 Credit Balance!

Only three months with net electric energy usage

-1,574 net electric energy usage for the year

Enough electric energy to run a plug in Prius or Nissan Leaf a majority of the year!

Zero Energy Attainable Development Easthampton, MA

Production building for a Developer

• 33 units total • Savings of about 60% in the base houses• Optional PV as a lease, a purchase or a hybrid

purchase.

“The Farmhouse II” Model Home

Easthampton, MA

• 1818 square feet of living space • 3 Bedrooms• $120.46 psf including overhead and margin

($102.26 psf hard costs to build)• HERS Index of 2

Farmhouse Parametric Modeling

Mitsubishi inside unit

Model #MSZ-FE12NA (One 12,000 BTU head downstairs and one 12,000 BTU head upstairs)

Mitsubishi Outside Units

Two Model #MUZ-FE12NA condensersSet up off the ground

Master Bathroom

Price PointInnovations in bringing Zero Energy Homes to the marketplace contribute to this price point:

Utilizing the Federal PV cash incentives and the new S-RECS

Lease PV systemsCost effective HVAC systems

Solar Electric Installations

R. Carter ScottTransformations, Inc.

www.transformations-inc.com

Solar Electric SystemFarmhouse II Model

• 36 panels• 210 watts per panel• 3 strings of panels• Racking• Inverter

Solar Electric Installation Options

• Short on capital?– Lease with no money down– Receive a 10% discount on the power produced.

• Have the capital?– Buy the system– Enjoy the incentives– Become cash flow positive in about 6-7 years

Solar Electric Installations7.56 kW Case Study---Costs

• The typical cost per watt is $5.50• For the 7.56 kW system, the cost is $41,580• Micro-inverters add about 50 cents per watt.• High efficiency panels (SunPower ~18%

efficiency) add about $1 per watt.

Solar Electric Installations7.56 kW Case Study---Incentives

• The Federal tax credit is 30%: $12,474 for a $41,580 system.

• Massachusetts has a $1,000 tax credit per system

• The Massachusetts Clean Energy Center (CEC) has a $2,000 incentive (with MA component adder).

• Plus S-RECS (see next slides)

Renewable Portfolio Standards

• Massachusetts has a Renewable Portfolio Standard (RPS). It requires a growing percentage of the electricity to be renewable (RPS Class 1).

• For 2011, the RPS is 6% of the electricity sold.

• The RPS is expected to go up 1% per year for several years.

Solar Carve Out

• There is a carve out for solar electricity (RPS Class 1 Solar Carve Out).

• The solar carve out percentage of 5% of the Renewable Energy Portfolio (RPS) standard.

• For 2011, the solar carve out is 5% of the 6% Renewable Portfolio Standard requirement (.05 times .06 or .003).

Alternative Compliance Payment Rates

• If the utility does not have the solar carve out percentage it either needs to pay the ACP rate for 2012 of $550 or…

• Purchase Solar Renewable Energy Credits.

S-RECs Cash Flow YR 1• An S-REC is 1,000 kilowatt hours or a megawatt• This 7.56 kW system will generate about 9,072 kilowatt

hours in the first year (9 SRECs).• The utilities are currently paying about $20 less than the

penalty for the S-RECS and there is an aggregator fee of about 7% ($530 *.93 = $493)

• 9 S-RECs times $493 = $4,437 in year 1.

Solar Electric InstallationsS-REC Cash Flow YR 2-10

• The system will likely lose about 1% efficiency per year in overall production.

• The ACP rate will decrease in value over the course of the rest of the S-REC life (years 2-10).

• With a averaged efficiency loss of about 5% and an averaged S-REC value reduction of about 20% (the chart DOER chart has an average reduction of 16%) year 2-10 should average about $3,328 per year or $29,952 in years 2-10.

• Total S-REC income of about $34,389 over 10 years!!!

Year ACP Rate per MWh

2012 $550

2013 $550

2014 $523

2015 $496

2016 $472

2017 $448

2018 $426

2019 $404

2020 $384

2021 $365

2022 $347

   

Solar Electric InstallationsElectrical output of the system

• The 7.56 kW system will generate about 9,072 kilowatt hours in the first year, and average about 8,618 per year for the first 10 years

• At $.17 per kilowatt hour, that is $1465 per year or 14,650 over a ten year period.

Solar Electric InstallationsTotal Revenue over 10 years

• The Federal tax credit: $12,474• Massachusetts tax credit: $1,000• The Massachusetts CEC: $2,000• S-RECs: $34,389• Electricity: $14,650• Total Revenue: $64,513

Solar Electric InstallationsTotal Revenue over 10 years

• Total Revenue: $64,513• Total Cost: $41,580 ($5.50 per watt)• 10 year return: $22,933• 20 more years of electricity and regular

RECs free and clear!

Beyond Zero Energy Homes…Net Positive Homes

Carbon ReductionTransportation Sector

• With a Positive Energy Home, we can reduce our share of the 40% of the carbon that is associated in the United States with the transportation sector.

Option 1:Produce more renewable energy

• With higher efficiency panels (18% instead of 14%), more power can be generated on the roof.

• Our 7.56 kW example can yield 10.08 kW with SunPower panels.

• This is 33% additional power• 2.52 kW for our home

A Custom Home in Princeton, MA with a 14.4 kW PV system

HERS Index of -9

Princeton home

• Energy Positive performance…

Sep'11Oct'11

Nov'11Dec'11

Jan'12

PV Generation

Total Usage 0

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Option 2:Conserve more energy

• Higher efficiency windows• Thicker walls• Passive House techniques

A Custom Home is Stow MA

15 ½ thick walls, Air infiltration of.50 ACH @50 pascals

A Custom Home is Maynard, MA

Large overhangs protect the home from summer solar heat gain.

Framing The colored Insulated slab is protected during construction.

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HERS Index of -8

PV Powered Automobile

Charging stations on the Street

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Some of the vehicles in the pipeline for 2010-12

Chevrolet

Smart

Ford

Nissan

Tesla

Mitsubishi

Creating A Greener Energy Future For the Commonwealth

Plug-In Vehicles Enter Markets in Late 2010 - What is the Near-Term Achievable Market Penetration?

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•Market penetration grows as vehicle production numbers increase, new models are introduced, and economies of scale drive down prices. (source: Southern California Edison) & Obama goal of 1 million Ev’s by 2020

Creating A Greener Energy Future For the Commonwealth

Electric vehicles and the environment

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• The Massachusetts Clean Energy Center (CEC) website: www.masscec.com

• The Massachusetts Department of Energy Resources website: www.mass.gov/doer

• The DSIRE website has lists of utility sponsored financial incentive programs, Mass CEC rebates, and all state and federal energy efficiency tax credits: http:/dsire.org/

• The Transformations, Inc. website: www.transformations-inc.com

Resources…

Net Zero Energy Housing Workshop

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Questions?

Carter Scott, President, Transformations, Inc.

carter@transformations-inc.com

Zero Energy HomesSolar Electric Installations