The Case for Regulating Building Energy Efficiency and Systems
Why does Energy Efficiency Matter in Buildings?
PA DEP 2023 GHG Emissions Inventory
One of the largest contributors to GHG emissions in the nation and in Pennsylvania are buildings and the energy they use (often referred to as stationary energy). According to the U.S. Green Building Council, buildings account for 39% of the nation's carbon dioxide emissions. In Pennsylvania, 43% of 2020 GHG emissions came from buildings; buildings in the residential sector alone accounted for 8% of GHG emissions. Stationary energy accounted for 62% of Chester County-wide greenhouse gas emissions, and 65% of Montgomery County's greenhouse gas emissions. Addressing the energy consumption and GHG emissions from buildings is crucial if we are to tackle climate change.
Progress has been made to improve building energy efficiency and reduce their GHG emissions. Incremental changes in building and energy codes have steadily increased efficiency over time, and many state and federal incentives exist for implementing energy efficiency improvements and transitioning to low-carbon energy sources.
Additionally, public awareness of the importance of reducing greenhouse gas emissions has risen in recent years, as has the demand for sustainable alternatives to the status quo — including in real estate. According to 2015 data from the Institute for Market Transformation, Energy efficient properties have occupancy levels up to 10% higher than less efficient properties, rental premiums over 10% higher than less efficient properties, and sale prices up to 25% higher than less efficient properties.
While this price premium can justify builders including these features in new construction, some argue that building "greener" contributes to housing unaffordability challenges afflicting our region. While this is a consideration, energy efficiency and renewable energy design features can significantly reduce energy costs borne by the tenant/owner and contribute to significant long-term savings. Additionally, a number of tax credits, utility rebates, and green financing solutions can reduce upfront costs of construction for these features, further reducing their "payback" time.
A critical strategy for reducing GHG emissions is the electrification of building systems
Electrification is the process of converting systems and devices that consume fossil fuel-based energy to those that run off electricity. As more and more of the power generated on the grid comes from cleaner sources, and as households and commercial buildings adopt renewable energy systems, transitioning from fossil fuel-based systems to electric systems for our heating, cooling, and other appliances is the most effective pathway to decarbonize our buildings. Electrification should be optimally coupled with energy efficiency improvements like improved insulation, high efficiency windows and doors, and using energy efficient appliances and fixtures to reduce electricity demands. Electrified buildings that are powered by renewable energy systems, whether on or off-site, can be considered "net zero energy" buildings and strongly support a transition toward clean and sustainable energy sources.
