High Performance Homes in the Southwest: Savings Potential, Cost Effectiveness and Policy Options

Stephen Dunn and Will Geller, Southwest Energy Efficiency Project

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Abstract

The Southwestern United States (specifically Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming) is a fast-growing region that is experiencing rapid growth in population and new housing construction. Nearly 2 million homes are projected to be built in the Southwest between 2008 and 2020, equivalent to about 150,000 new homes per year. Increasing the energy efficiency of new homes offers a cost-effective way to help homeowners save money and lower their energy use, while reducing the energy and environmental impacts of new homes. A growing number of utilities, states and local governments in the Southwest are implementing programs and policies to accelerate adoption of highly efficient homes in the marketplace.

The Southwest Energy Efficiency Project (SWEEP) recently completed a study analyzing the energy, economic and environmental benefits of improving the efficiency of new homes in the Southwest region. The study found that new homes in the Southwest region can be built costeffectively while achieving energy savings of 50% or more through energy efficiency measures, and up to 65% savings by incorporating on-site renewable energy systems. These homes save homeowners an average of $1,600 annually on their energy bills, with positive monthly cash flow immediately. Peak electricity demand is also significantly reduced, particularly when energy efficiency and renewable energy measures are combined.

This paper summarizes the results of the study findings, identifies barriers to high performance homes, and recommends programs and policies that utilities, states and local governments can implement to support increased market adoption of highly efficient homes.