Energy Efficiency in Housing and Small Buildings Cost & Benefit Analysis

1. Energy Efficiency in Housing and Small BuildingsCost & Benefit Analysis November 2011

2. CCBFC Policy Advice • Cost implications for proposed changes • incremental capital cost of construction ($) and • incremental annual energy savings ($/year or kWh/year) • The focus and rationale for the development of changes should be the energy target rather than costing data. • CCBFC Policy Advice • Use Current Construction Practice as Baseline • Not the 1997 MNECH

3. Baseline – Survey • Development of Current Construction Baseline • Builder Survey Study by Marshall Leslie • Also considered other sources • CHBA Pulse Survey • HVAC Industry Sales figures • Results from Survey • 253 builders responded • representing over 5600 houses built in 2009 • 75 questions

4. Baseline – Data Analysis • CCC Analysis of Survey Data • organized by climate zones • weighted for population and housing starts • normalized for more realistic split of EE program builders • Single baseline across Canada • choose average (mode) or existing code requirement or realistic value (sales figures) • unless special situation requires multiple baselines

5. Baseline – Specifications • Exterior Wall Insulation R20 Nominal • Wall framing (CHBA) 2x6 framing, 16” on center • Attic Insulation R40 Nominal • Airtightness (NRCan) 3.18 ac/h (average, nationally weighted) • Basement Walls Inside at full height with R12 • Floor Slabs Not insulated • Window glazing option Double glazed, low-e argon • Window Frame Vinyl • FDWR (CHBA/CMHI) 17- 18% • Gas furnace efficiency 90% efficiency furnaces • HRVs no HRV, no A/C, no heat pump • Thermostats programmable

6. Cost Studies • Assumptions in establishing the cost • Based on 2011, no taxes. no escalation, no shipping • No builder markup or warehouse discount (= retail cost) • Specific Items for costing studies • are established through proposed changes • not all line items apply in each climate zone • 8 locations in Canada • Ottawa – Toronto – Halifax – Montreal – Winnipeg – Edmonton – Yellowknife – Vancouver • Ottawa base price x Factor for each location • Locations are not the same as climate zone representatives • 2 reports (BE & HVAC)

7. Cost Studies Location Factor Baseline Cost Line-by-line items Incremental Cost

8. Energy Savings Studies • Method of establishing savings • HOT2000 runs of House #4 (of 11 Archetypes) • For each of the 80 line items (BE & HVAC), model: • the base case and upgrade case (x2) • in each climate zone (x6) • with HRV and without HRV (x2) • blended energy rate of 6¢ per kWh or 1.6¢ per MJ • Same Items as costing studies • 18 reports (6 BE/HRV, 6 BE/noHRV, 6 HVAC) • Climate zones are represented by • Vancouver – Toronto – Montreal – Winnipeg – Fort McMurray – Yellowknife

9. Energy Savings Studies Baseline Energy Consumption of House 4 Energy Savings in MJ per year Energy Savings in $ per year @ 1.6¢ per MJ Line-by-line items Energy Consumption of House 4 - After change

10. Overall Cost-Benefit • Whole House Method • House #4 (of 11 Archetypes) • Combine incremental cost ($) and energy savings (kWhe and $) • for each line item – where required in that climate zone • for House 4: actual area / number – as present • base case vs proposed change (x2) • in each climate zone (x6) • with HRV and without HRV (x2) • Describeimplications • Cost of all req’d measures • Energy reduction of all req’d measures • Value Index ($/kWhe) • Overall reduction in energy (%)

11. Cost – Benefit – Summary

12. Cost – Benefit – Summary