Zero Energy Buildings

What Zero Energy Buildings Actually Mean for Commercial Property

by

With “zero energy building” being a popularized term among property professionals today, it’s clear many people still don’t understand its implications. It’s not a building that has solar panels on the rooftop. It’s not even a building that uses less energy than a typical structure – although it does.

A zero energy building generates as much energy on-site as it uses over the course of one year. Sure, the building taps into the grid for the dark, cloudy weeks and freezing, polar vortex snap but gives back to the grid when sunny and temperate weeks come along. After twelve months, calculations show a net result of zero. Or at least, that’s the intention.

Where This Is Important for Commercial Property

To put this into perspective – the majority of operational costs accrued by a commercial building come from energy and utilities. Whether it’s an office tower, shopping complex or industrial facility, utility expenses can reach exorbitant amounts, where one million square feet can cost up to hundreds of thousands of dollars annually in energy usage alone for lights, HVAC, refrigeration, etc., in addition to water.

So a zero energy building is the opposite approach. It assumes higher costs up front but lower operational costs going forward. Eventually, some buildings achieve such efficiency (in partnership with generation systems) that they only need to pay for operation maintenance and connection fees to the grid.

This makes sense more and more each day, especially with energy prices on the rise. What seemed like a risky investment ten years ago now seems like it’s hedging against future utility rate hikes.

What Goes Into One

Creating a building to net-zero energy specifications isn’t an afterthought; it’s a conscious decision from step one.

Building envelopes come first. Insulation needs to vastly exceed ordinary building codes, windows need to be triple pane with coatings and rigorous air sealing needs to avoid thermal leaking. It doesn’t matter how many solar panels are positioned on the roof if a poorly insulated building lets all the heat escape. Therefore, demand needs to be minimized in order to have it generated on-site.

Next comes mechanical systems. Energy-intensive commercial buildings will depend on high-efficiency HVAC systems with heat recovery ventilators and weather-appropriate adjustments. Additionally, more energy efficient materials (LED lights throughout with daylight sensors) use much less energy than standard equipment (plain lights with no sensors), even if they cost more initially. Water heating through heat pumps or solar thermal systems adds even more net-zero potential.

Finally, generation measures come into play. Most zero energy buildings rely heavily on rooftops outfitted with solar panel capabilities, although some use wind turbines or geothermal materials as well. Regardless of the source, it’s common that a zero energy building’s expectations from solar depend upon the length of the building’s roof, orientation and anticipated demand; therefore, calculations need to happen early on so that the solar panels are sized appropriately for whatever energy load is anticipated.

Energy storage is coming into play in many more advanced projects as battery systems allow excess production to be store until after sun sets, diminishing reliance on the grid or allowing power to reside on-site during a grid power outage.

The Cost

Typically creating a project to be zero energy adds 5-10% construction costs relative to conventionally constructed buildings. For example, at a $10 million project, a developer might expect an additional $500,000-$1 million up front.

At this point, most people stop and note that’s too expensive. But those calculations miss out on the bigger picture.

The operational cost savings start immediately upon occupancy. Utility costs are significantly diminished, without extensive maintenance that high-maintenance systems would subsequently require. Energy price fluctuations and mitigated costs are no longer burdens; instead, affordable utility prices are essential.

While paybacks range depending upon local energy costs and available incentives (ranging from 7-15 years at average), costs become balanced quickly over the life of the building – regardless of how long the building remains standing (much longer than 15 years).

There’s also a valuable valuation component. When a building achieves superior efficiency benchmarks, it garners higher rents and sale prices than other comparable structures. Tenants increasingly want space that uses less energy – especially as larger corporates set sustainability goals; therefore, zero energy buildings have top-quality tenants and maintain higher-than-average occupancy levels even if they’re not operating at their best potential.

Incentives across numerous markets also sweeten these deals. Tax credits pre-construction and accelerated depreciation post-occupancy determine part of the added expense comes off easily as direct rebates offset significant portions.

The Difficulties

Zero energy construction isn’t feasible for all sites. For urban buildings that become very vertical without much square footage, there may not be enough roof area for effective solar charge – it does not make sense to provide excessive interior space without enough capability nearby as waste.

Climate plays a significant role, as well; zero energy buildings work far better in moderate climates than excessive temperature swings – warehouses in San Diego fare far better than office towers in Minneapolis, for example.

There’s also an added complexity to the design and construction process; architects and engineers need to collaborate on integrated systems guidance that not all design teams possess (yet). Construction crews require training – for details that might not matter in conventional buildings but have critical roles in achieving zero energy performance.

The commissioning also takes more time with verification compliance – because new system owners cannot just assume their designers did everything correctly but instead need testing facilities along the way.

The Future

Building codes tightened everywhere relative to new constructions and major renovations – and a vast majority of locations require all commercial property zero energy ready by 2030 (California, European Union).

Where zero energy was once niche for modernized appeal or demonstration buildings or university campuses – as additional pressure mounts from regulations – this will become increasingly mainstream; those who get ahead of the learning curve will feel much more comfortable than those with forced compliance out of nowhere.

Technology keeps evolving to assist this greater cause as well. Solar panels became cheaper and more efficient five years ago than previously; battery capacities drop along with construction management systems that facilitate what’s complicated today but streamlined tomorrow.

Making the Decision

For property developers considering new construction or major renovation projects – this option makes sense if there’s doubt about zero energy and it’s discounted entirely – this is no longer an exotic option reserved for public eye or academia – it makes sense when other economics promote it.

Not every building is appropriate for zero energy (one’s where roof space versus area is not favorable at all; extremes where climate zones aren’t appropriate – but those with moderate areas and certain predictions make sense for zero energy conditions).

Projects with owners who will keep them long term to capture savings instead of flipping immediately makes sense as well; when owner profits from expected high efficiency due to anticipated additional savings makes sense to quantify upfront considerations like incentives available and tenant demand metrics.

Zero energy buildings are not science fiction; they’re around us today thriving in different building types and climates. While intensive operations require additional planning and financial feasibility at construction inception – at operating expectation during a project’s life-of-service – benefits abound that look past initial investment up front to save costs moving forward with fewer challenges along the way.

You May Also Like: Gramhir.pro AI: The Honest Guide for Creators and Marketers

Discover more from Try Hard Guides

Subscribe to get the latest posts sent to your email.