Report finds zero energy buildings within reach for many in Mass

BOSTON – SEPTEMBER 10, 2019 – A new report released today by the U.S. Green Building Council Massachusetts Chapter (USGBC MA) dispels the myth that zero energy buildings are too expensive. The report, Zero Energy Buildings in MA: Saving Money from the Start, assesses zero energy (ZE) upfront building costs, model performance, and life-cycle costs in Massachusetts. With buildings being a major source of greenhouse gas emissions, scientists, advocates, and local leaders are working to curb emissions and reduce energy use in the built environment by both retrofitting existing buildings and constructing new buildings to achieve Zero Energy Standards. While stakeholders and decision makers frequently cite high costs as the primary barrier to ZE buildings, USGBC MA and report lead Integral Group found that many types of ZE buildings can be built with no added upfront cost and some commercial buildings can see return on investment in as little as one year.

“Many people already know the environmental benefits green buildings bring to our communities and our world, but few understand the economic benefits of this investment,” said Meredith Elbaum, Executive Director of USGBC MA. “Zero energy buildings can be constructed or retrofitted for minimal upfront costs, if any, and owners can start making money off of their investment sooner than they expect. Our hope is that this report demonstrates that owning, operating, and living in a zero energy building is within reach for many of us here in Massachusetts.”

The team found that ZE buildings are already being constructed every day utilizing readily available products, practices, technologies, and energy efficiency rebates. From the E+ Marcella Street multifamily residential project in Roxbury to Bristol Community College’s Sbrega Health and Science Building in Fall River, Massachusetts is home to cutting-edge ZE projects. Yet, many developers, homeowners, and municipalities throughout the Commonwealth are still deterred by the perceived upfront costs and struggle to take into account the cost benefits over the building’s life cycle.

“I often say that every fiscal conservative ought to be an environmentalist, and there is a real economic case for zero energy buildings proven in the findings of this report,” said Boston City Councilor Matt O’Malley, Chairman of the Environment, Sustainability and Parks Committee. “We must address buildings with urgency, as they are the biggest contributors to carbon emissions in the City of Boston and demystify the notion that a future of resilient and sustainable buildings is unattainable.”

“In Boston, approximately two thirds of our carbon emissions come from buildings. The latest report from USGBC MA highlights the cost-effectiveness of pursuing zero net carbon strategies in buildings as we work to be a carbon neutral city by the year 2050,” said Chris Cook, the City of Boston’s Chief of Environment, Energy, and Open Space. “The report bolsters the existing evidence that the strategies we plan on accelerating through the 2019 Climate Action Plan update are beneficial for the climate, our residents, and businesses.”

"Many of the communities across Massachusetts that the Massachusetts Climate Action Network (MCAN) works with really want to go net zero and provide leadership, but we often get asked about how much improving the building sector will cost," said Carol Oldham, the Executive Director of MCAN. "This report will be invaluable to communities, legislators, and decision makers at all levels".

According to the UN’s 2018 Global Status Report, buildings were responsible for 40% of energy-related carbon dioxide (CO2) emissions in 2017, while in major cities like Boston buildings are accountable for 66% of GHG emissions. This same report also notes that the global building stock is expected to double by 2060, with two-thirds of the building stock that exists today still in existence. While this could be an immense footprint, reduction of building sector GHG emissions can be achieved through the creation and maintenance of zero energy buildings (ZE), which generate as much renewable energy on and/or off-site as they use in a year.

Six building types were analyzed in the report including Existing Office, New Office, K-12 Schools, Mixed Use, Single Family, and Small Residential.

The report revealed the following five key findings:

• ZE buildings are being built in Massachusetts today with virtually no up-front costs
• Return on investment for ZE in Existing and New Office Buildings can begin in as little as one year for ZE ready buildings
• Of the six building types studied, all can be Zero Energy Ready (ZER) for upfront costs of 0-7 percent, and all types breakeven in eight years or less when there are no additional upfront costs
• Existing office buildings retrofitted to zero energy, with renewables, can produce a return on their investment in as little as five to six years.
• Building energy demand can be reduced 44 – 54 percent across all building types with technology that’s readily available today.

Throughout this study, USGBC MA sought to understand how practices, regulations, and legislation could change to further support ZE building construction. When considering local construction practices, costs, building codes, climate conditions, and energy efficiency incentives currently available, the report presents a set of recommendations on how to further advance zero energy building policy in Massachusetts, including:

• Create a zero energy code as a compliance path to the state energy code and establish date-specific targets for mandatory zero energy code adoption in Massachusetts.
• Require annual benchmarking and disclosure of energy performance for all commercial and multi-family buildings.
• Establish Building Energy Performance Standards for large existing commercial and multi-family buildings.
• Work with residential loan providers to bundle solar installation and deep energy retrofit costs into mortgage at time of sale; investigate mortgage buy-down programs for current homeowners.
• Commonwealth and municipal governments should develop point-based incentive programs/performance-based procurement protocols for public projects to incentivize ZE projects.

“The value of a report like this is it fills a critical gap that exists in the current policy debate,” said Rebecca Hatchadorian, Associate at Arup and member of USGBC’s Board. “By providing an impartial set of facts, we can have the discussion on net zero and how to move us there with an understanding of what’s feasible and the cost implications.”

The full range of policy recommendations can be found here.

The Commonwealth’s building industry professionals, researchers, advocates, businesses, and local governments are committed to adopting greener building standards. USGBC MA is working towards educating the broader community on the critical need and economic benefits of green building and providing the tools and resources to take action. Dispelling the notion that zero energy buildings cost more upfront and over the long term, the Zero Energy Buildings in MA: Saving Money from the Start report reflects that creating a zero energy building, from an existing structure or as new construction, is a smart investment for many building and homeowners across Massachusetts. This research was partially funded through a grant through the Barr Foundation.

About USGBC MA

The USGBC Massachusetts Chapter (USGBC MA) is a member-based community advocating for green buildings at the state and local level. We provide green building education, build community, engage in advocacy, research and develop tools, celebrate success, and foster leadership opportunities for sustainable building practitioners. We drive sustainable and regenerative design, construction, and operation of the built environment. We envision a thriving and diverse community, creating a built environment of net positive systems of water and energy, of financial and social equity, and of ecological and human health.