Home Performance, Simplified ? n a e M t I s e o D t a h W
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2011 Š 2010
Saving The Planet One House At A Time
Why
Energy-Wise House Flipping Investors
Do What We Do (In Home Performance) “If the “WHY?” is strong enough, The “WHAT & HOW?” will become self evident. 2 things are needed: 1. A Mindset to be part of the Solution -- not just maximize ROI 2. Understand the Basics and how they work together. G r e e n E a r t h E q u i t i e s . C o m
© 2009
Saving The Planet One House At A Time
If We Just Want To Fix Houses ... (& Do Our Part To Save The Planet)
It Doesn’t Have To Be That Complicated Entrepreneurs & Contractors didn’t step up to fill the need for Home Performance ... So Bureaucracy Stepped In ... & Bureaucracy Requires Complexity to justify its existence (see the IRS Code) So We Have Complex & Inefficient Programs G r e e n E a r t h E q u i t i e s . C o m
2011 © 2010
Saving The Planet One House At A Time
In Addition To Program Complexity, What Else Kills Home Performance? There is not a “secret bureaucracy police force” that is forcing us to be complex and inefficient.* Rather, It is the following “Mindsets” & Paradigms that have invaded our thinking over many decades. Following are 8 of the deadliest to Home Performance & Efficiency
*Like the Seattle program failure on the news last week
G r e e n E a r t h E q u i t i e s . C o m
2011 © 2010
Saving The Planet One House At A Time
Home Performance Killers 1. What’s The Code Requirement? Let’s make sure that we build “up to code” 2. Get a lot of bids, take the cheapest one 3. We’ve always done it that way. 4. That’s Good Enough. 5. Just follow the Program Guidelines. Just get the Rating and get the Rebate. 6. Just Follow the advice of the Sales Reps 7. I just work by the hour and they dont pay me enough to think about systems. 8. I’m just here to make money. Let someone else save the planet G r e e n E a r t h E q u i t i e s . C o m
= Build The Crummiest House Allowed By Law & Prove That You Get What You Pay For! That’s Why Things Dont Get Better! Not Anymore! They Have Nothing To Do With Excellence Do You Think They Have An Agenda? See Next Slide For Source Of This Thinking Saving #1 Response From The Planet Investors One House 2011 © 2010
At A Time
Where Did Those Ideas Come From? (They Were Not The Way Thomas Jefferson & His Friends Thought) A full discussion of this question is beyond the scope of this webinar but the trail of breadcrumbs traces the roots of these Mind Numbing Mindsets to the Industrial Revolution when Industry needed the backs and hands of workers (not so much their minds). Public Education partnered with Industry & Government to provide the “worker bees” that were needed. Unfortunately, now that people’s minds, not just their backs are required, the education system is proving inadequate at producing the thinking & creativity that is needed. And Government’s standard solution of creating bureaucracies and throwing money at the problem isn’t working either. (more on this another time) G r e e n E a r t h E q u i t i e s . C o m
2011 © 2010
Saving The Planet One House At A Time
2 s # s y e Ke ucc S To
Get & Stay Clear On The Basics & Avoid Train Wrecks
(In case you hadn’t noticed, There are “Train Wrecks” happening in the Home Performance Industry right now ... It’s messy, like politics ...) 1. Evaluate Sales Pitches (based on the basics) 2. Deliver Value (based on the basics) 3. Evaluate The Real Cost Of “Gifts, Programs, & Free Money” (based on the basics) G r e e n E a r t h E q u i t i e s . C o m
© 2009
Saving The Planet One House At A Time
The Four Pillars, Like The Legs Of The Eiffel Tower, All Are Necessary 1. Envelope 2. Comfort System 3. Health & Safety 4. Water ! y n a M t a Saving
(Can you think of anything that’s important h T t o that doesn’t fit into this list? Is N G r e e n E a r t h E q u i t i e s . C o m
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© 2009
The Planet One House At A Time
#1. Build A Tight, Well Insulated Envelope & Prove It. 1. All Six Sides 2. Especially The Joints 3. Includes Windows & Doors 4. Minimize Thermal Bridges & Bypasses Proof is Blower Door & Infra-Red Camera Final Proof is Utility Bill G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
#2. Build An Efficient Comfort System & Prove It. 1. Properly Designed Ducts Tight & Well Insulated 2. Properly selected & installed & commissioned equipment. Proof is Manual J, Manual D, Duct Blaster, Delivered BTU’s & even room temperatures = comfort & efficiency Final Proof is Utility Bill G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
#3. Ensure Health And Safety & Prove It 1. CO testing (minimum) 2. Filtration (more than Rock Stopper Standard Filters) 3 Ventilate On Purpose Build It Tight - Vent It Right Proof Is CO & other IAQ tests & existence of Mechanical Ventilation System Final Proof is Health & Safety (less illness etc) G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
#4 Heat & Use Water Efficiently & Prove It
1. Heat Water Efficiently 2. Minimize Waste of Water Inside, (Showers, Dish & Clothes Washing etc) Outside, (Landscaping) Proof is Utility Bills & Water Bill
(Water Is The Next Crisis) Energy Wise Investors Can Be Way Ahead Of Contractors Who seem to have to wait for Government Programs. Just Decide & Start Doing It! G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
The Four Pillars, Like The Legs Of The Eiffel Tower, All Are Necessary 1. Envelope 2. Comfort System 3. Health & Safety 4. Water Dont Take Short Cuts And Skip One Of The 4 Basics. G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
Q. How Much BS (building science) Do I Need To Be Successful? A. There is a ton of Science and a Lifetime of Learning behind each of these 4 Basics of Home Performance. The Good News For Energy Wise House Flipping Investors-You Only Need to Understand These Basics & How They Interact. There are scientists, technicians and subcontractors for the details. G r e e n E a r t h E q u i t i e s . C o m
Š 2009
Saving The Planet One House At A Time
“There’s Still So Much That We Dont Know” This is an often repeated mantra of some of our Industry Leaders.
Generates More Research Grants Pilot Programs & Bureaucracy To Monitor & Regulate Those Doing The Work
It’s true ... ... But it’s also true that:
“There’s So Much That We DO KNOW” Is The Glass Half Full? Or Half Empty? G r e e n E a r t h E q u i t i e s . C o m
More Houses Get Fixed. More Work Gets Done. Less Overhead. Less Waste Of Time, Money & Resources Let’s Get Busy With Saving The Planet What We Do Know & One House Fix Some Houses! At A Time 2011 © 2010
What Are The Metrics Of Excellent Home Performance? The following Metrics are suggested for the Free Market. That is what will sell and people will buy. With an unlimited budget, Higher Targets could be set & achieved.
G r e e n E a r t h E q u i t i e s . C o m
2011 Š 2010
Saving The Planet One House At A Time
Tight Envelope 1. Blower Door Target 1/2 CFM50 per square foot of floor space (this is easier to understand & communicate than ACH) Simpler & more likely to get used. 2. “30-30” Windows (U value = 30, SHGC = 30) (good in Central CA, Other climates will vary) G r e e n E a r t h E q u i t i e s . C o m
2011 © 2010
Saving The Planet One House At A Time
HVAC System 1. Use Manual J & Manual D to properly size equipment & ducts. (Equipment will still be over sized due to safety factors) 2. Duct Blaster Target 3% or less 3. Minimize ducts in non conditioned space
Dampers
Transitions
Freon Lines
Condensate Drain
4. Commissioning: Even temperatures throughout G r e e n E a r t h E q u i t i e s . C o m
2011 Š 2010
Saving The Planet One House At A Time
Health & Safety 1. CO Testing _______ parts per million 2. Ventilation On Purpose Meet ASHRAE 62.2 (iPhone app is easy) 3. At least one step better than “rock stopper” filters.
G r e e n E a r t h E q u i t i e s . C o m
2011 © 2010
Saving The Planet One House At A Time
Water (Heating & Conservation) 1. Design & Insulate Heating Equipment &Distribution Systems. 2. Use Water Saver Showers, Toilets, & Appliances. 3. Drip Irrigation, Xeriscape and Drought Resistant Landscape. Minimize Turf. 4. Reclaim Rainwater (some climates) & grey water.
G r e e n E a r t h E q u i t i e s . C o m
2011 Š 2010
Saving The Planet One House At A Time
Questions 1. If a project met or exceeded these simple metrics, Would it be efficient? 2. Would a rating help it be more efficient? How about testing in and modeling? 3rd party approval? If not, Are they necessary? (They are very expensive & frustrating) If yes, GreenEarthEquities had better get with the program. G r e e n E a r t h E q u i t i e s . C o m
2011 Š 2010
Saving The Planet One House At A Time
Some Would Rather Just Fix Housees The following two slides are an example of meeting the suggested metrics and the results shown in 12 months of utility bills. (This is in PG&E, some of the highest rates in the country) Sold for a lot more than the neighborhood comps. No Rating, No Modeling, No 3rd party Would those have helped? G r e e n E a r t h E q u i t i e s . C o m
2011 Š 2010
Saving The Planet One House At A Time
Details On Test Home #1 1200 sq ft 3 bed, 2 bath Attic R-55 Leakage .5 cfm / sq ft floor Vent Panasonic ERV 40 cfm Walls R-16 with 1” rigid Windows U 30 SHGC 30 < 10 sq ft Western exposure Fujitsu 2 ton MiniSplit on roof 1 12,000 btu wall mount 1 12,000 Btu concealed unit Hard pipe in lowered hall H2O & stove - Natural Gas Occupants = Couple + Newborn (First Home)
One House At A Time
G r e e n E a r t h E q u i t i e s . C o m
© 2010
Saving The Planet One House At A Time
Results: 13 Months Later Bill Date Feb 4, 2011 Jan 5, 2011 Dec 7, 2010 Nov 4, 2010 Oct 6, 2010 Sep 5, 2010 Aug 5, 2010 Jul 7, 2010 Jun 6, 2010 May 6, 2010 Apr 7, 2010 Mar 7, 2010 Feb 4, 2010
Elec Use 590 583 563 328 481 480 458 375 284 297 347 388 283
Elec $ $72.34 $69.66 $66.99 $39.03 $57.24 $57.12 $54.50 $44.63 $33.79 $24.76 $28.93 $32.34 $23.59
Gas Therm 23.0 18.0 23.0 14.0 12.0 10.0 Hot 9.0 Fresno 10.0 Summer14.0 16.0 21.0 20.0 18.0
Gas $ $24.91 $19.14 $23.45 $15.79 $13.82 $11.67 $9.90 $10.65 $14.48 $14.08 $17.41 $17.41 $15.31
Total $ $97.25 $88.80 $90.44 $54.82 $71.06 $68.79 $64.40 $55.28 $48.27 $38.84 $46.34 $49.75 $38.90
Note: This wont work without a good envelope G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time
Summary Recommendations Choose some simple Metrics Let the Contractors & Home Sellers shoot at those real targets, not ratings. Educate Buyers about the Metrics. (like Mileage, a real number) Base Incentives on Performance only (bills 12 months later) (unemployed Raters and Program Operators could go to work really fixing houses) G r e e n E a r t h E q u i t i e s . C o m
Š 2010
Saving The Planet One House At A Time