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Zero energy homes – Are they economically viable?

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  • Berry, Stephen
  • Davidson, Kathryn

Abstract

Whilst net zero energy homes are espoused in many policy circles, and many bespoke examples have been constructed to demonstrate their technical feasibility, there is a scarcity of evidence demonstrating such a standard would be economically rational, particularly for large scale housing development where orientation and aspect may not always be optimal. Drawing on energy monitoring evidence and construction economics associated with a nearly zero energy housing estate in Adelaide, Australia, this paper explores the economic feasibility of the net zero energy home policy in warm temperate climates. The results demonstrate that using economic tools and assumptions typically applied for building energy regulatory policy changes, net societal economic benefits significantly outweigh costs. The clear economic outcomes, combined with expected health and productivity benefits from improved levels of thermal comfort, should provide security to policy makers to progress home energy standards towards net zero energy performance.

Suggested Citation

  • Berry, Stephen & Davidson, Kathryn, 2015. "Zero energy homes – Are they economically viable?," Energy Policy, Elsevier, vol. 85(C), pages 12-21.
    • Handle: RePEc:eee:enepol:v:85:y:2015:i:c:p:12-21
    DOI: 10.1016/j.enpol.2015.05.009
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    Cited by:

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    3. Jaroslav Košičan & Miguel Ángel Pardo & Silvia Vilčeková, 2020. "A Multicriteria Methodology to Select the Best Installation of Solar Thermal Power in a Family House," Energies, MDPI, vol. 13(5), pages 1-17, February.
    4. Olsthoorn, Mark & Schleich, Joachim & Faure, Corinne, 2019. "Exploring the diffusion of low-energy houses: An empirical study in the European Union," Energy Policy, Elsevier, vol. 129(C), pages 1382-1393.
    5. Moore, Trivess & Berry, Stephen & Ambrose, Michael, 2019. "Aiming for mediocrity: The case of australian housing thermal performance," Energy Policy, Elsevier, vol. 132(C), pages 602-610.
    6. Berry, Stephen & Davidson, Kathryn, 2016. "Improving the economics of building energy code change: A review of the inputs and assumptions of economic models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 157-166.
    7. Andreas Welling, 2017. "Green Finance: Recent developments, characteristics and important actors," FEMM Working Papers 170002, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    8. Miguel Ángel Pardo & Ricardo Cobacho & Luis Bañón, 2020. "Standalone Photovoltaic Direct Pumping in Urban Water Pressurized Networks with Energy Storage in Tanks or Batteries," Sustainability, MDPI, vol. 12(2), pages 1-20, January.
    9. Berry, Stephen & Moore, Trivess & Ambrose, Michael, 2019. "Flexibility versus certainty: The experience of mandating a building sustainability index to deliver thermally comfortable homes," Energy Policy, Elsevier, vol. 133(C).
    10. Asaee, S. Rasoul & Sharafian, Amir & Herrera, Omar E. & Blomerus, Paul & Mérida, Walter, 2018. "Housing stock in cold-climate countries: Conversion challenges for net zero emission buildings," Applied Energy, Elsevier, vol. 217(C), pages 88-100.
    11. Jisoo Shim & Doosam Song & Joowook Kim, 2018. "The Economic Feasibility of Passive Houses in Korea," Sustainability, MDPI, vol. 10(10), pages 1-16, October.

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