The Business Case for Passive House Phase 1 Residential Small - PowerPoint PPT Presentation

The Business Case for Passive House Phase 1 Residential Small Buildings and Stakeholder Engagement

Objectives Issues, Barriers and Opportunities from Stakeholder Perspective • Compare Passive House and conventional energy use • Compare Passive House and conventional development costs • Evaluate Business Case • Recommendations: Identify future communication and research needs •

Presentation Outline Case Studies Introduction • Pre-Building – Stakeholder Interviews • Building – Development Costing • Living – Energy Use and Costs • Buying and Selling – Business Case • Conclusions • Limitations • Future Research • Acknowledgments • Discussion •

Three Case Study Buildings Bernhardt Pa Passi ssive Ho House se: PH PH Certified Single Family Home with Suite, Garage – 3384 sq ft Wood frame, double-wall construction – R41 • Cellulose and Roxul insulation • Wall – R-41, Roof – R-55 • 16”EPS Geofoam under foundation/ slab • HRV units with heating coil, • No bathroom fans, exterior vented range hoods • 1 radiant heat wall panel • Gas hot-water • Triple-pane windows, high solar heat gain - Euroline • Solar shading with trees, overhang design + brise soleils • One unit without dryer • Medium quality finishes • Solar ready •

Three Case Study Buildings No North Pa Park k Pa Pass ssive Ho House se: Targe geting Cert. 6-Plex, 3 storeys, 2 bedroom units – 5051 sq ft Wood frame, double-wall construction • Cellulose and Roxul insulation • Wall – R-38, Roof – R-53 • EPS foam under foundation (4”) / slab (8”) • HRVs - silent, balanced, cascade ventilation system • No bathroom fans, exterior vented kitchen range hoods • Electric hot water • 1 electric radiant heat panel per unit • Triple-pane windows, high solar heat gain - Euroline • Solar shading balconies and exterior blinds (two sides) • Laundry in each units - option for no dryer • Medium quality finishes • Solar photovoltaics •

Three Case Study Buildings Yukon on Affor orda dable Hou ousing 6-Plex, 3 storeys, 3 bedroom units – 4575 sq ft Would frame standard construction • Fibreglass insulation • Wall – R-13, Roof – R-30 • 2 ft of 2” SM foam under slab • Electric hot water • Baseboard heat • Shared laundry • Double pane windows – Starline • Make-up air vents • Programmable bathroom fan • 4 solar hot water assist panels •

Pre-Building Qualitative Survey of 60 Industry members and 20 Stakeholder interviews • Both REAL and PERCEIVED barriers to PH adoption • Barriers Include: • Lack of education (“how to build”) • Lack of understanding of the business case • Lack of policies and incentives to encourage builders • Willingness to pay for upfront design costs • Lack of confidence that the market will pay more •

Building What is the cost difference between Passive House and code-compliant conventional construction? Bernhardt Passive House  Actual Costs North Park Passive House  Budgeted Yukon Affordable Housing  Actual Costs Bernhardt Conventional  Estimated Costs North Park Conventional  Estimated Costs

Building Passive House  Code-Compliant Conventional Wher here C e Costs are D e Differ erent ent Architecture  - 20% No Certification fees Double Wall  Standard Single Wall Reduced Insulation volumes No Foundation insulation, less slab insulation, reduced materials Less labour, lower quality air sealing materials Electrical and Plumbing  depends Standard model HRVs Single wall mounted radiant heat panel  in-floor radiant heat system Triple pane windows  double pane windows Less costly doors Same solar shading

Building Bernhardt North Park Architecture - 12,500 - 10,000 Certification - 2,500 - 5,000 Foundation & Slab - 15,000 - 10,900 Walls & Insulation - 7,500 - 14,000 Air Sealing & -10,000 Acoustics Ventilation -16,000 +18,500 Heating +30,000 Electrical + 2000 Windows & Door -10,000 -17,900

Building Bernhardt North Park PH Con. Diff. PH Con. Diff. Construction $160.2 ft 2 155.7 ft 2 $181.7 ft 2 175.5 ft 2 2.88% 3.50% Construction + $191.6 ft 2 183.2 ft 2 4.64% $233.8 ft 2 224.5 ft 2 4.16% Soft Costs Construction + Soft Costs + $1.28 mil $1.25 mil 2.66% $1.58 mil $1.53 mil 3.13% Land

Building Passive House  Code-Compliant Conventional Wher here C e Costs are D e Differ erent ent Architecture  - 20% No Certification fees Double Wall  Standard Single Wall Reduced Insulation volumes No Foundation insulation, less slab insulation, reduced materials Less labour, lower quality air sealing materials Electrical and Plumbing  depends Standard model HRVs Single wall mounted radiant heat panel  in-floor radiant heat system Triple pane windows  double pane windows Less costly doors Same solar shading

Building Passive House  Code-Compliant Conventional Wher here e Ar Are e Ther here e Costs Saving ngs? Mechanical / Heating systems Simpler building form – fewer materials, easier to build Less corners – material wastage High quality with simplicity – no fireplaces, air conditioning

Building 18% 17.0% 16.0% 16% 14% 12.0% 12.0% 12% 10% 8% 6% 5.0% 5.0% 4.6% 4.2% 4% 2% 0% Audenaert et al Treberspurg et al DIN A4 Ingham 2014 Feist 2015 Bernhardt North Park Yukon Affordable 2007 (Belgium) 2010 (Austria) Architektur 2010 (United (Germany) Passive House Passive House Housing (Austria) Kingdom)

Building 18% 17.0% 16.0% 16% 14% 12.0% 12.0% 12% ? 10% 8% 6% 5.0% 5.0% 4.6% 4.2% 4% 2% 0% Audenaert et al Treberspurg et al DIN A4 Ingham 2014 Feist 2015 Bernhardt North Park Yukon Affordable 2007 (Belgium) 2010 (Austria) Architektur 2010 (United (Germany) Passive House Passive House Housing (Austria) Kingdom)

Living What is the energy use and cost difference between Passive House and code- compliant conventional construction? Missing – Thermal comfort, Air Quality, Noise Bernhardt Bernhardt 1 Year Actual Normalised Actual  PHPP Model Adjusted PHPP Model North Park North Park  PHPP Model PHPP Model Yukon Yukon  1 Year Actual Normalised Actual

Living 80.0 74.1 70.0 39% 60.0 53.0 46.5 50.0 kWh / m2 / yr Total Energy Use 39% 40.0 34.9 Electricity 30.0 24.9 Gas 17.9 20.0 33% 10.0 0.0 PHPP Modelled Actual - Electricty + Gas

Living 180.0 164.0 160.0 140.0 115.0 120.0 104.0 98.3 kWh / m2 / yr 100.0 Total Energy Use 74.1 80.0 68.0 63.0 Heating Demand 53.0 60.0 43.0 43.0 40.0 17.0 12.1 20.0 10.1 0.0 North Park Bernhardt PH Bernhardt PH Bernhardt PH NP Bernhardt Yukon PH Model Model Actual Adj. Model Conventional Conventional Affordable Model Model Actual

Living $4,500.00 $3,933 $4,000.00 $3,500.00 $3,287 $3,000.00 $2,740 $2,500.00 $1,951 Total Building Energy Costs $2,000.00 Per Unit Energy Costs $1,370 $1,500.00 $1,000.00 $500.00 $- North Park PH Bernhardt PH NP Bernhardt Yukon Model Model Conventional Conventional Affordable Model Model Actual

Living

Buying and Selling What is the business case? Developer Perspective  Can the extra costs be justified? = Price Premium Buyer Perspective  Can the extra costs be justified? = Costs Savings

Buying and Selling What is the business case? Developer Perspective  Can the extra costs be justified? = = Price ce Prem emium um Buyer Perspective  Can the extra costs be justified? Cost Savings = = Costs Saving ngs  Comfort Air Quality Noise Risk Mitigation Values

Buying and Selling Developer Perspective - ROI Study Findings Sensitivity Analysis Cost Increase – Soft 4.64% ($8.5 ft 2 ) 4.16% ($9.3 ft 2 ) 8.19% ($15 ft 2 ) 8.02% ($18 ft 2 ) & Construction Bernhardt North Park Bernhardt North Park Price Premium Passive House Passive House Passive House Passive House 2% -25% -21% -57% -59% 5% 87% 96% 6% 2% 8% 190% 205% 64% 58%

Buying and Selling Break even ROI Developer Perspective Study Findings Sensitivity Analysis 4.64% ($8.5 ft 2 ) 4.16% ($9.3 ft 2 ) 8.19% ($15 ft 2 ) 8.02% ($18 ft 2 ) Cost Increase Bernhardt North Park Bernhardt North Park Price Premium Passive House Passive House Passive House Passive House 2% -25% -21% -57% -59% 2.62% 2.49% 5% 87% 96% 6% 2% 8% 190% 205% 64% 58%

Buying and Selling Buyer Perspective Bernhardt Passive House North Park Passive House Price NPV Payback Period NPV Payback Period Premium 2% 2% $12,804 2 $2,168 5 3% % $10,511 4 $28 18 5% % -$1,710 22 -$2,343 >30 yrs 8% 8% -$15,419 >30 yrs -$6,603 >30 yrs

Buying and Selling Break even ROI Buyer Perspective Bernhardt Passive House North Park Passive House Price NPV Payback Period NPV Payback Period Premium 2% 2% $12,804 2 $2,168 5 2.62% 2.49% 3% % $9,754 5 $635 14 5% % -$1,710 22 -$2,343 >30 yrs 8% 8% -$15,419 >30 yrs -$6,603 >30 yrs

Buying and Selling Buyer Perspective Bernhardt Passive House North Park Passive House Price NPV Payback Period NPV Payback Period Premium 2% $13,062 2 $2,501 4 2.62% 2.49% 5% -$1,066 21 -$1,922 >30 yrs 8% -$14,417 >30 yrs -$6,100 >30 yrs