With our North American headquarters just outside of Philadelphia and as a sustainable manufacturer, we fully embrace the city’s push to become “America’s Greenest City”. We have invested time and resources into a game-changing, smart-grid project that can move the needle on Net Zero Energy in construction.

Led by a collaboration of researchers, manufacturers and economic development officials, the GridSTAR Center will roll out in three phases — the GridSTAR Net Zero Energy Demonstration Structure, a solar training center and an electric vehicle (EV) charging station. These buildings are powered by an energy storage system that captures the power and disperses it as needed.

For more than a year, I have been involved in the planning and construction of the Net Zero Energy Demonstration Structure, which will be a hub for CertainTeed Building Science testing and research on energy efficiency and indoor environmental quality. The structure also offers a valuable platform to further understand and optimize how our products work together — including photovoltaic roofing, solar reflective roofing, fiberglass and spray foam insulation, foundation drainage and waterproofing systems, insulated vinyl siding, water resistive barrier and gypsum board.

From a broader perspective, the GridSTAR project is a testament to the power of public-private partnerships. In this case, the project includes a consortium of representatives from Penn State, the U.S. Department of Energy, Commonwealth of Pennsylvania, Philadelphia Industrial Development Corporation, DTE Energy and five leading building product manufacturers.

This truly is a landmark project that will influence how we build and power our homes in the future. If you plan to attend GreenBuild 2013 in Philadelphia, I recommend that you take the tour of the Navy Yard which includes this project. It is truly changing the sustainability game in Philadelphia.

Watch for future blogs on this project as we begin performance testing of the systems.

This second blog addresses the Report’s findings regarding financing energy efficiency and the challenges that face consumers when seeking additional dollars to make energy upgrades in their homes.

According to the Report, the U.S housing stock is valued at about $14.5 trillion. To even devote 2% to energy efficiency improvements would require an investment of nearly $300 billion.  While there are federal, state and local energy efficiency loan funds and other mechanisms in place to provide assistance, they can’t possible cover what is required.

The most widely used mechanism is direct borrowing in the form of consumer loans, home equity loans and traditional or specialized mortgages.  Most of these financing options require consumers to have either substantial equity in their existing home, the personal reserves to pay any added costs out-of-pocket or larger down payments for a home purchase. Many homeowners have seen the equity in their homes diminish over the last few years due to the struggling economy. 

For many first-time homebuyers or moderate-income borrowers who do not have these financial resources there are energy-efficient mortgages (EEM) which offer lenders flexibility in the debt-to-income and other underwriting considerations so borrowers can qualify for larger loans or lower interest rates. However, few lenders currently offer these.

If we are going to see significant improvement in the retrofitting of existing buildings for energy efficiency, owners need to be incentivized. This usually manifests itself as access to affordable capital.  While it is a good start, it is not enough to offer tax incentives especially for homeowners who do not have cash resources to make some of the more pricey upgrades to older homes.

This debate is going to Capitol Hill and groups like the Residential Energy Services Network (RESNET) are lobbying to encourage underwriting flexibility on energy efficient homes and to promote energy efficiency to consumers – particularly for moderate- and middle- income borrowers seeking financing for energy efficient upgrades.

It’s apparent that business as usual will not get us where we need to go.  This Report is a reminder of a prevailing situation that continues to be raised but not resolved.  Is there money available that we don’t see?  Are there resources somewhere that could be re-allocated to move the green needle and help moderate- and middle- income borrows obtain the financing needed to make necessary energy upgrades?

We, as consumers, cannot strive to be sustainable nor can cities strive to be the ‘greenest’ cities without resources to make this happen.  Are the gloves off?  Can we really move the needle this time?

The study includes:

• National sample of 71,000 home loans from 38 states and the District of Columbia
• Variables examined for the homes included age of the house, square footage, FICO (credit) scores, ZIP code average incomes and unemployment rates, typical time to default, sale price, heating/cooling degree days and electricity prices 
• Average home price in sample was $220,000

The study finds that default risks are on average 32 percent lower in energy-efficient homes.  There is, perhaps, a mixed message in this premise.  We have seen over the last decade that the early adopters of energy efficiency are more educated, probably make more money and most likely live in more urban locations. People in more rural parts of the country may not have local resources for information or education about energy upgrades and may not have access to capital from lenders to make these upgrades.

The study says that the amount of money homeowners spend on energy annually equates to 15 percent of the cost of home ownership. While these costs vary around the country, rural households pay $400 more on average than urban household. There could be many reasons for this. Is it the nature of construction?  Is it utility costs?  

Are the resources to make energy improvements to these homes available?  We have blogged before about the fact that if you have a home built prior to 1980 you should consider energy upgrades and if you are refinancing include them as part of your lending conversation.

The heart of the problem lies in the valuation of homes and the lack of information regarding mortgage lending options.

Think about it. Is your home worth more or less than it was five years ago? Slim chance of any “magical” home equity showing up to be cashed in and spent on upgrades.

The only way we can move the needle to upgrade existing homes and buildings so they are more efficient is to rationalize the underwriting process and include energy upgrades as part of the mortgage.

Stay tuned. There is more to come on this study.  If you have any thoughts on this subject, I would love to hear them.

Websites such as Pinterest or Houzz might make home remodeling projects look like a breeze, but there’s something to be said for bringing in a professional remodeler to get the best results. After all, how many of you remodelers have been called to bail out a homeowner with a botched DIY remodeling project? These sites can also be a good way to showcase you work.

Add this with compelling signs that homeowner demand for remodeling projects is on the rise and it couldn’t be a better time to proactively educate homeowners on the value of a professional remodeler.

An article from BuildingOnline reports strong growth indicators for remodeling in the first quarter of 2013. It’s reported a main contributor to this is that many homeowners now need to address projects that they had postponed for a lengthy amount of time. A recent study by the NAHB shows kitchen and bathroom projects remain the most popular remodeling jobs—both projects were up 17 percent from just a few years ago.

Whether it is the experience a professional can provide or the accurate costs and timeline, homeowners should recognize when it’s necessary to call in the experts and get the job done right the first time.

The NAHB also provides a recap of tools available to help advance your remodeling business. The materials can easily be adapted for use on an ongoing basis.  Remodelers should also research manufacturers for special programs that can help reduce costs on projects.

May might be National Home Remodeling month, but the opportunity to promote the benefits of a professional remodeler is a message that resonates 365 days a year.

Eric Nilsson is Vice President, Corporate Marketing for CertainTeed Corporation

Brandywine Realty property outside Philadelphia

You’ve probably seen this stat before —buildings account for 40 percent of total U.S. energy consumption in the U.S.  We all know that reducing energy consumption is imperative for the future sustainability of our country, but when it comes to putting words into actions, we sometimes get stuck.

 Case in point: the potential for gridlock in traditional lease agreements— where the benefits of reduced energy usage or building upgrades do not “flow” to the person who pays for the transaction. For example, if a tenant is not responsible for monthly utility bills, then there is no financial incentive to reduce energy use.

 The good news? Companies such as Brandywine Realty Trust are bringing a fresh perspective to energy efficiency through green leases, which help align the financial and energy incentives of building owners and tenants.

 Specifically, property owners can charge tenants for measures that result in operational savings, such as energy-efficient lighting or chiller retrofits, as long as the savings are greater than the cost of the measure. The tenant benefits from reduced monthly utility costs and the building owner is able to increase the value of the building. Most importantly, the lease agreement instills a spirit of collaboration and mutually beneficial financial incentives to reduce energy consumption.

 Best of all, green releases are generating formidable results. Brandywine Realty Trust and its tenants have reduced energy costs by roughly 46 percent in a 93,000 square foot, 1980s era, building in suburban Philadelphia. And, the building’s energy cost per square footage is approximately 38 percent lower than the area average. With such a great return on investment, it truly begs the question — why aren’t more real estate companies getting on board with green leases?

Through my work at CertainTeed, I have the opportunity to connect with hundreds of remodelers and contractors on an on-going basis and have witnessed some stellar selling techniques. As peak construction season approaches, here are some useful tips and reminders.

Never underestimate first impressions. From the moment you enter the driveway, your appearance and actions are being judged. Arriving in a clean truck and wearing company-branded clothing will help set the stage for a successful meeting.

Make a proper introduction. Begin the discussion by providing background on your company’s history, including your location and years in business. This is also an ideal time to share information on relevant licenses, credentials and insurance documentation.

Let your presentation do the talking. Most manufacturers, including CertainTeed, will equip you with the necessary tools to create an easy-to-understand presentation. A good product sales presentation will speak for itself, eliminating the need for over-the-top sales talk that might turn off a potential customer.

Keep it simple. Too many options might confuse or overwhelm a homeowner. Consider organizing their options in good, better, best categories to simply the decision-making process.

Leverage resources from manufacturers. If you are looking for ways to spruce up your selling technique, get in touch with manufacturer representatives. These product experts can help ensure that you are up to speed on the latest product information, messaging and marketing tools.

Include a step-by-step description of the project. Paint a picture that describes the process from start to finish, and when possible, bring product samples that homeowners can see and touch. Also, by explaining the process from start to finish, you’ll provide homeowners with the added assurance to move forward, while also reinforcing your credibility and expertise.

Keep an eye on the clock. While arriving to an appointment on time is a given, it’s also important to refrain from overstaying your welcome. If possible, confirm the length of the meeting upfront and keep an eye out for restless activity.

Offer references up front. Streamline the selling process and save homeowner time by providing a list of references at your initial meeting. Doing so eliminates extra legwork for the homeowner, while also instilling confidence in your work.

Don’t leave in limbo. Before leaving the appointment, make sure you and the homeowner are in agreement on next steps. Whether you’ll be providing an estimate the next day, placing a follow up phone call next week or beginning the project immediately, establishing a clear set of actions will keep the project running smoothly.

Is there a tried and true selling technique that has worked well for you? If so, we encourage you to share your success stories.

This article talks about Microsoft building the first zero carbon data center powered by a fuel cell burning 100 percent renewable biogas from a wastewater treatment plant. The new, small prototype 300 kW “Data Plant” is being built outside of Cheyenne, Wyo. at the city’s Dry Creek Water Reclamation Facility and will run on methane produced by the facility.

Microsoft reported the $8 million modular data center pilot, which will begin operating next spring, is just a fraction of the size of its other data centers and does not contain any production computing applications. However, if successful, it could be implemented on a megawatt scale at larger data centers in the future.

Buckminster Fuller in Spaceship Earth noted that trash and pollution were just the little bits and pieces we haven’t figured out how to use yet.  Well, looks like someone figured out how to use methane. The U.S. Environmental Protection Agency (EPA) estimates that methane is the second most prevalent greenhouse gas emitted in the United States from human activity. This is exciting news since we have so many landfills in addition to water treatment plants that produce methane. This could be a first step is using a gas that is virtually going to waste.

Fuel cells – non-carbon based fuel cells – a perfect solution.  In fact, Saint-Gobain is working on this technology so we do have some skin in the game on this technology.

This is a great example of a company that is using emerging technology to utilize an otherwise squandered resource.  Hats off to Microsoft!

When a potential homeowners speaks to a builder they are usually more focused on considering upgrades that are visible to the eye than considering what’s underneath the walls of the home. What they don’t consider is how upgrading the R-value in their walls will save them money on heating and cooling over the life of the home or if they plan on selling the home in the future, how this improved performance may help them compete against homes that will be built between now and then.

The challenge that is faced by a builder as well as a solution provider is to create ways to have that very conversation with the consumer in a clear and relatively quick manner. The reality is that a builder only has so much time with a prospective buyer of a new construction and they do have a great deal of ground to cover.  It is usually easier to focus on what is visible than what is not.

During our chat, we discussed creating scenarios of building a house three different ways to maximize the efficiency of the home and how to show that to a prospective buyer.  You could have partially finished walls in the garage of a model home which show building and insulating a wall to code vs. improved materials and techniques.  You could then show various types of wallboard – yes there are varieties of wallboard that address noise reduction, mold and moisture control and volatile organic compound removal.  This could be a chance for people to actually see and understand what is usually hidden behind the finishes they have been focused on.

Truth is, potential homeowners seem more interested in talking about the aesthetics of countertop materials than increasing the efficiency of their wall systems. Why are we so comfortable being ignorant about one the most important investments of our life? I would bet that more people have researched the features and benefits of their next car in terms of gas mileage, horsepower, etc.  than researching the type of insulation and wallboard to use in their home for optimum comfort and health.

Does anybody have any ideas of how we can engage homeowners in the conversation about the energy efficiency options in homes that will lower their operating costs over the life of a home? If you are a realtor, what do you do?

There were two key components of that action. Congress extended a tax credit for energy efficient retrofits through Dec. 31, 2013 and retroactively to Jan. 1, 2012. The credit allows homeowners to claim 10 percent of the cost of qualified energy-efficient building materials, such as insulation, up to $500. They also revived a business tax credit of up to $2,000.00 for builders that construct or significantly renovate “dwelling units” (e.g. apartments, condos or single-family homes) that meet certain energy efficiency standards.

I strongly recommend that to make the best decisions for improving the energy efficiency of an existing home that you conduct a home energy audit. This is an important first step in identifying where updates are most needed and how to get the greatest return from a renovation budget. ResNet is a great resource that helps connect homeowners with trained auditors in their community. For more information, visit www.resnet.us.

That being said, it is fairly easy to identify one of the greatest sources of energy loss even if you are not handy with energy modeling programs – the attic. Take a look up there. If the tops of the ceiling  joists are visible then you will definitely need to add more insulation to reach the current recommended R-value. This is typical of homes built more than 30 years ago.

According to the U.S. Department of Energy, the average homeowner can save as much as 30 percent on energy bills related to comfort simply by having the right amount of insulation throughout the home. For attics, applying a premium fiberglass blowing insulation is the best solution for adding thermal performance in an attic and in keeping a home warmer in the winter and cooler during the summer (without concern for compressing what insulation already exists  – a real issue with some other types of loose-fill insulations available). And the best part: it is easy to access and an inexpensive way to achieve great results year round.

There are tools available for homeowners that help recommend R-values for different areas of the home, provide estimates of potential savings, and identifies incentives for completing insulation projects from this federal tax credit down to local utility programs.

The most important thing is that you act now and don’t miss the opportunity to take advantage of the Tax Credits while you can.  This might really be your last chance for a bite of the apple. The reality is older homes will need to be upgraded to remain competitive is the marketplace as newer construction comes online.  It is only a matter of time before energy efficiency labels will be placed on buildings.  Don’t let your single most valuable investment fall behind!

But the colleges who teach future designers, architects, engineers and construction managers continue to lag behind the curve when it comes to the development and promotion of sustainable curricula. Sure, you’ll find a plethora of courses that feature “green” additions to an otherwise traditional course or new “Sustainability” programs that are cobbled together from existing courses under the mantle of collaboration and interdisciplinary work. Part of the disconnect lies in the fine line that can be drawn between “casual greening” and “authentic sustainability.”

The Razor’s edge, shown below, demarcates a chasm between “Greening”, which can be categorized as the mitigation of damage that results from the construction habitation and demolition of built structures; and “regenerative”, which seeks to reverse the long centuries of damage caused by the design and construction industries. In this model, “greening” is an important step towards more ambitious and more effective sustainable design. 

As we move further into the 21^st century, the signals of pronounced climate change become more apparent; rising temperatures, wild weather, finite fossil fuels, and catastrophic oil spills form the context of a new era in the history of humanity. The question then remains, can the universities ramp up their offerings to authentically address the challenges that lie ahead? The answer is yes, but. Yes, educators are generally open to new ideas and are interested in change, albeit at a slow pace. But university structures as they are currently configured do not encourage teaching and learning pedagogies that are increasingly inclusive, collaborative, and interdisciplinary.

Collaboration is inhibited by antiquated credit structures. More ambitious holistic sustainability courses are blocked by outdated divisions between disciplines and the connection between what is taught in school and what happens in the real world continues to remain as wide as ever. So, what to do?

A major change can come from industry itself by building deeper and more meaningful relationships with university programs. By offering expertise, small amounts of funding, and some face time, industries can entice collaboration across disciplines at levels not seen before, engage with students and faculty in thoughtful discussions on the future of sustainability and ultimately help to build the kind of work-force that will play a pivotal role in leading companies to increased profit while building a more resilient and sustainable future.

This is a guest blog post and does not necessarily reflect the opinions of CertainTeed Corporation