Energy efficiency plays an important role in the global energy transition. To ensure a better and greener energy supply and use, innovative technologies are crucial – and buildings are an important factor in this. The building sector contributes 30% to total global energy consumption. Global building emissions (28%) are caused by the continuous use of coal, oil, and gas for heating and cooking. The most serious, however, is the use of electricity in the building sector, which accounts for almost 55% of global electricity consumption.
To reduce emissions, climate-friendly alternatives such as energy-efficient construction and living must be used more. In our target market analysis on building efficiency in California and Washington State, we looked at the most important building technologies and these were our key learnings:
#1 Installing insulation materials is one of the simplest and most effective ways to improve energy efficiency in buildings
The U.S. Environmental Protection Agency (EPA) estimates that homeowners can save an average of 11% on overall energy bills by making their homes airtight. Insulation includes building insulation, industrial insulation, and facility and equipment insulation. Filling materials made of glass fibers are particularly popular. Plastic foam is also used quite frequently, typically for of its low price.
#2 When choosing energy-friendly windows, make sure they are NFRC accredited
According to the Department of Energy (DOE), leaky windows can increase heating costs by 10 – 25%. The National Fenestration Rating Council (NFRC) in the US operates a program that tests, certifies, and labels windows, doors, and skylights based on their energy efficiency ratings.
#3 Transition to zero-carbon/electric heat pumps
In Washington State, starting in 2023, only heat pumps will be allowed to be used for space heating in new commercial buildings. With some exceptions, it will ban HVAC systems that use fossil fuels such as natural gas, including most standard, wall-mounted, and electric stoves. According to a recent decision by the Washington Building Code Council, 50% of the water must also be heated by a heat pump system in the future.
#4 LED lighting is now an established option for energy-efficient home lighting
The Biden administration announced new efficiency standards for light bulbs in late April where energy-consuming light bulbs are phased out. The project aims to ensure that commonly used lightbulbs, including the iconic pear-shaped one, meet a standard of efficiency that can easily be matched by today’s LEDs. According to the DOE, the new standards will save consumers nearly $3 billion annually and reduce CO2 emissions by 222 million tons in the next 30 years.
#5 To build as energy-efficiently as possible, a combination of renewable energy and battery storage can be installed on-site
Energy self-sufficiency can be achieved through photovoltaics, wind turbines, or hydropower, with rooftop solar panels being by far the most common. This is particularly interesting for buildings in California. With an installed solar capacity of 34,950 MW, California ranks first nationwide and thus has the largest solar market in the USA.
#6 Smart home systems are highly efficient as they automatically adapt to changing energy needs, minimizing waste of electricity, water, and gas
According to Statista, around 43% of US residents used a smart home system in 2021. This corresponds to an increase of 10% compared to the previous year. This trend is expected to continue as many emerging home appliances can be connected to the internet for easy monitoring and control of electricity, water, and gas.
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