New research has validated Net Zero Energy Homes in Melbourne, Townsville, Canberra and Perth housing developments as achievable and affordable, but highlighted a market slow to pick up on easy opportunities for improved energy efficiency and thermal comfort.
Even though average costs for the Net Zero Energy Homes researched were between 6‐11% higher than the standard, and offered approximately 88% annual energy cost savings, market interest was stuck with current consumer desire fixated on lowest price, “benchtops” or “new shiny things”.
The research also emphasised that while industry currently demands building code changes to improve regulation, quality and safety, sustainable design must be included to meet the sector’s net zero emissions target by 2050.
Funded by the CRC for Low Carbon Living, led by Curtin University’s, Dr Josh Byrne and in partnership with industry and government, this extensive research project provided a Net Zero Energy Home for potential buyers to view.
Each home was designed to mitigate local climate, save energy, remove reliance on gas and use rooftop solar to meet the same, or more, of the average annual energy demand.
Most major efficiency gains came from the additional insulation, glazing upgrades and energy efficient appliances, such as induction cook tops and air source heat pumps, with only a small 3‐4 KW photovoltaic (PV) system required.
“Whilst most potential buyers were positive about the homes, the research indicated that the mindset and situation of buyers was a barrier, despite the estimated future energy cost savings averaging 88% per year – which is around $1,750,” Byrne said.
“First home buyer budget limitations and the fact banks don’t lend on future savings, were flagged as market uptake issues by builders in the study.
“Plus, investment buyers were more concerned about what type of homes they put their renters in, so they would be the last to come on board.”
This is despite the Net Zero Energy Home costing only about $20,000 (6‐11%) more than a standard comparable home, with better insulation, high performance glass, increased shading, efficient appliances and solar energy systems where the annual energy savings would payback this cost in a decade.
“Some of the builders in our study aired their frustration with industry and market apathy as they see upgrades from current home builds to Net Zero Energy as simple, easy and affordable. Some believe regulation is the only way,” Byrne said.
Another well‐known obstacle for high performance housing in Australia is the perception that there is limited demand and it is a niche market.
“Although our research shows Net Zero Energy housing can be a reality for all, we’re clearly still stuck on a roundabout trying to convince home buyers, industry and governments that they should be standard across the board. This needs to change,” he said.
The research has clearly demonstrated the financial feasibility for Net Zero Energy Housing because it removes the bottom‐line argument, which should make it an attractive proposition for stakeholders.
At the same time the federal government has taken steps to improve the energy efficiency of new homes following agreement by the Building Ministers Forum (BMF) to strengthen regulations.
The nation’s building ministers agreed to strengthen provisions in the National Construction Code (NCC) for residential buildings.
Green Building Council of Australia (GBCA) CEO Davina Rooney said the agreement is a major milestone in the journey towards a low emissions future.
Rooney said the GBCA was continuing to champion the transformation of the residential sector through its work on homes.
“As the source of more than 57 per cent of built environment emissions in Australia, it is crucial that we leverage the residential sector’s potential to help reach our emissions targets under the Paris Agreement,” Rooney said.
“We will continue advocating for the establishment of targets that align with the transition to net zero emissions, along with a forward trajectory for NCC energy requirements to achieve these goals.
“We look forward to working with the Australian Building Codes Board as it begins consultation on options to implement the new provisions in the NCC.”