Solving the Energy Equation for Net-Zero Buildings
Our lives unfold in buildings. Whether at home, at school or in an office, Americans spend nearly 90 percent of their time indoors. As we emerge from a global pandemic and confront the threat of climate change, we need to do better at making our buildings healthier, more people-centric, more resilient and more efficient.
One way or another, the U.S. must get to net-zero emissions by 2050. But it’s hard to imagine reaching that goal without transforming how buildings use energy. After all, according to the U.S. Green Building Council, buildings account for almost 40 percent of total global carbon emissions.
Meanwhile, the EPA estimates nearly a third of energy in buildings is wasted, and the IEA finds 80 percent of their energy potential remains untapped. It’s also about human potential: a study by global real estate leader JLL suggests that improving ventilation and thermal comfort in buildings can boost worker productivity by 5 percent. The challenges and opportunities in this sector are plain to see.
The simple formula for a net-zero energy building is to add together all the energy a building consumes and subtract the energy it generates onsite. If the building generates more energy than it consumes, it’s net-zero.
Today, the equation for many buildings doesn’t add up. There’s too little onsite generation, and there’s not enough energy management. It doesn’t have to be this way as the technology exists to make the net-zero math work.
For instance, microgrids make it possible for all kinds of buildings to generate enough clean electricity to power not just one, but dozens of buildings. That alone can bring many buildings to net-zero energy.
Solutions like high-efficiency lighting and HVAC systems also improve the math. Recent data from the U.S. Energy Information Administration estimates that 89% of the 2.7 million commercial buildings built before 1980 have not yet upgraded to LED lighting. But to really tackle the 30 percent of energy use the EPA says is wasted in buildings, we must deploy what are known as active energy management systems. These innovative, digital-enabled technologies can detect and eliminate previously invisible energy waste like leaky valves, lights left on all night, and heating and cooling systems fighting each other. Avoiding all this waste puts net-zero buildings even more within reach, while minimizing energy costs.
Fortunately, the recently-signed bipartisan infrastructure bill makes a major down payment on America’s net-zero building future by providing robust incentives to both electrify buildings and make them more energy efficient. This new law invests over $5 billion in these areas with funding set aside for schools, municipalities, tribal communities, low-income housing and federal buildings.
However, implementation faces strong headwinds. The benefits of these historic investments depend on American manufacturers being able to deliver smart building products to market. However, unfavorable trade policies over the last five years and more recent supply chain disruptions -- particularly in semiconductors -- threaten our ability to bring buildings to net zero as quickly as possible.
The auto industry has dominated headlines about semiconductor shortages, but commercial buildings and products for smart homes are also cause for concern. Disruptions in the marketplace for semiconductors are creating production problems for makers of everything from home appliances and heating systems, to fuse boxes and LED light bulbs.
Thankfully, there are steps our elected leaders can take today to address the problem. In the near term, Congress could help mitigate some critical supply chain challenges by passing the United States Innovation and Competition Act (USICA), which provides funding to boost domestic manufacturing and gives the Administration more tools to counter unfair trade practices by bad actors. The Biden Administration could also help by removing tariffs on certain imports. Long term, investments to electrify our ports will speed up processing while reducing carbon emissions.
Swift action on these fronts will help us solve the energy equation for net-zero buildings even faster.
Once our buildings are fully electrified and infused with digital intelligence, they can better anticipate our needs. Smarter buildings empower us to control our building environments, while keeping us informed of things like indoor air quality and occupancy status in real time. Ultimately, they meet more of our needs — for our health and safety, our desire for connection and connectivity, and our comfort. And they do so while also meeting the needs of our planet.
Annette Clayton is the CEO and President of North America Operations for Schneider Electric and Board Chair of the National Electrical Manufacturers Association (NEMA).
