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BTO Program Peer ReviewDOE Challenge Home:Leveraging Our Nation’s Investment inHigh-Performance Home InnovationsDOE Challenge Home1 Program Name or Ancillary TextSam RashkinBuilding Technologies Officesamuel.rashkin@ee.doe.gov/202-2897-1994April 3, 2013eere.energy.gov

Purpose & ObjectivesProblem Statement:The U.S. Housing industry is extremely slowto adopt proven innovationsfrom DOE’s Building America program thatprovide compelling benefits tohomeowners, builders, and our nation.2 Building Technologies Officeeere.energy.gov

Proven Innovations Advanced Technologies & Practices– Building Science Solutions– Energy Efficient Components– Assured Health and Safety House-as-a-System Performance– Whole-House Technical Solutions– Whole-House Business Solutions that result inZero Net-Energy Ready Homes (ZNERHs)3 Building Technologies Officeeere.energy.gov

ZNERH Benefits to Homeowners Investment– Energy Savings– Lower Maintenance– Future Value Performance––––––ComfortHealth and SafetyDurabilitySolar ReadinessWater ConservationDisaster Resistance/Resilience4 Building Technologies Officeeere.energy.gov

ZNERH Benefits to Builders Risk Reduction– Call-Backs– Homebuyer Satisfaction– Litigation Differentiation– Minimum Code Homes– Existing Homes5 Building Technologies Officeeere.energy.gov

ZNERH Benefits to Our Nation* 250 Billion utility bill savings 2.3 Million job years created 2,000 MMTOE carbon savings 80 Million barrels imported oil saved/yr.* Internal DOE study of Challenge Home Market Transformation over 30 years6 Building Technologies Office6eere.energy.gov

Purpose & ObjectivesImpact of Project:Housing industry transformationto zero net-energy ready homes withsubstantial spill-over impacts onexisting homes that aspire to achievethe same affordability, comfort,health, and durability.7 Building Technologies Officeeere.energy.gov

Housing Industry TransformationBuildingAmerica:Develops NewInnovationsand ldersApplyingProvenInnovations &Best PracticesENERGYSTAR:RecognizesBuilders WhoDeliverSignificantlyAbove CodePerformanceIECCCode:MandatesTechnologiesand PracticesProvenReliable andCost-effectiveExisting Housing Stock RetrofitsExisting Homeowners Look to New Housingfor Performance Goals8 Building Technologies Officeeere.energy.gov

Purpose & ObjectivesProject Focus:DOE Challenge Home will maximizeDOE’s investmentin high-performance new home innovationsby delivering market solutions achievingBuilding America’s Goal for 50% savings.9 Building Technologies Officeeere.energy.gov

High EfficiencyIIILow EfficiencyBuilding America GoalIDOE BA Goal:ZNERHigh-PerformanceZero Net-Energy Ready New/Exist.HomeNew & Existing HomesMinimumCodeNew HomeTypicalExistingHomeLow Performance10 Building Technologies OfficeEnergy StarCertifiedNew HomeIVIIHigh Performanceeere.energy.gov

Supply Chain StrategyCH Product:Core Customers:Leading Edge BuildersGoalsExperts Promoting CHLabel Directly to Builders.Unique AspectsSales Force:ApproachOrganizations PromotingUltra-High-Perf. HomesKey IssuesDistrib. Network:AccomplishmentVoluntary Label for ZeroNet-Energy Ready HomesEnd Customers:All Homebuyers11 Building Technologies Officeeere.energy.gov

Challenge Home Supply Chain StrategyProductApproachBuild strong‘Brand’ andmessageKey IssuesUniqueAspectsAccomplishmentsOriginal programnot aligned withEnergy Star forHomesAlign CH specformat with ESfHv3 for coordinatedfederal labelsCH Home specfully aligned withESfH v3 andmaintainedw/monthly mtgs.Energy Star forHomes v4 Spec issubstantiallybased on CHNew CH logo is notrecognized inmarketDevelop CH logothat conveys clearvalue propositionNew CH logodeveloped thatfeatures strongvalue propositionsEnsure every DOEChallenge Home islabeled with newlogo starting 4/13Original BuildersChallenge labelhad no brandarchitectureSimple ‘Brand’identity guidelinesleveraged fromEnergy StarCH ‘Brand’identity guidelinescompletedFull conformancewith CH ‘Brand’identify guidelinesby all partnersZero Net-EnergyReady is a heavylift for housingindustryDevelopclear/compellingvalue propositionsfor ZNERHStrong value prop.integrated inpresentations,brochure, & labelMin 50% ofpartners use mktg.material ; 1,000Builder Partnersby 12/1312 Building Technologies OfficeGoalseere.energy.gov

Challenge Home Supply Chain StrategyDistribution NetworkApproachKey IssuesUniqueAspectsAccomplishmentsGoalsLeverage utilitysupportUtilities M&E limitincentives forperformanceTarget progressiveutilities todemonstratebusiness-caseArizona PublicService, CL&P, andNYSERDA HostingCH Training10 More utilitiesin 2013 becomeCH TrainingPartnersLeverage highperf. productmanufacturerssupportMany programsalready solicitingsponsorships frommanufacturersEarn confidence ofby not asking formoney, but tohost ZNERHtraining10 manufacturershave joined asChallenge HomeTraining Partners20 Moremanufacturersjoin as ChallengeHome TrainingPartnersAlign ChallengeHome withRelatedProgramsThere was nocoordination withultra-high –perf.home programsPartner withPassive House andNet-Zero EnergyHome Coalition(NZEHC)MOU with PassiveHouse signed;MOU with NZEHCbeing finalizedPassive House andNZEHC promoteCH by 4/13Establish strongpresence at keyconferencevenuesChallenge Homenot recognized bycriticalstakeholdersSecure ChallengeHome ‘tracks’ atRESNET and EEBAStrong ChallengeHome Presence at2012 EEBA and2013 RESNETConferencesCH Tracks at 2013EEBA and 2014RESNET Confs. andsessions at 4 otherconferences13 Building Technologies Officeeere.energy.gov

Challenge Home Supply Chain StrategySales ForceApproachKey ldingAmerica teamsto sell DOE CHBuilding AmericaTeams not familiarwith CH businesscaseInvite BA Teams toall DOE CHTraining sessionsWebinar and 2013BA Tech UpdateConf. have securedBA team SupportBA Teams Deliver50 ChallengeHome BuilderPartners by 12/13Leverage HERSindustry to sellDOE CHHERS ratersresistant to upsellfrom ENERGYSTAR for Home v3Engage HERS raterparticipation at allCH trainingsessions10 Leading HERSProvidersrecruited directlyto upsell CHHERS raters: 50promoting CH; 200attend CH Trainingby 12/13Implement aNational DOECH TrainingProgramVery little DOEresourcesavailable fornational trainingLeveragemanufacturers,utilities to hosttraining12 ChallengeHome trainingclasses scheduled;3 delivered100 CH trainingclasses reach5,000 Buildersand 200 HERSRaters by 3/14AutomateChallenge HomeHERS ratingsManual rating ofCH will discourageHERS ratersupportLeverage softwarecompanies basedon Energy Star forHomes experienceTop HERS softwarenow automatedfor ChallengeHome2nd leading HERSsoftwareautomates CHHERS ratings by4/1314 Building Technologies Officeeere.energy.gov

Challenge Home Supply Chain StrategyCore Customers: BuildersApproachKey IssuesUniqueAspectsAccomplishmentsEngage builderslooking fordifferentiationfrom ESfH v3Many buildersneed time toassimilate CH bestpracticesPromote ‘testdrive’ forproductionbuilders300 ChallengeHome BuilderPartners with1,000 Homes inthe pipeline1,000 CH BuilderPartners with5,000 homes inpipeline by 12/13Ensure strongvaluepropositionmessage atpoint-of-saleMost homebuilder salesagents are notskilled at sellinghigh-performanceUnique ZNERHvalue propositionson both label andbrochureCH Home labeland brochurecompleted withvery positivefeedback70% of CH BuilderPartners use logoand brochure atpoint-of-saleProvide builderscustomizablemessagingoptionBuilders arereluctant to usegeneric materialnot about themDevelopcustomizablebrochure based onconsistent valuemessageConcept forcustomizableChallenge HomebrochureCustomizablebrochure by 7/13used by 50% ofBuilder Partnersby 12/13ZNERH buildersare widelydispersedLeverage HERSraters to find andrecruit leadingbuildersInitial outreachhas securedinterest by 25%of leading ZNERHbuilders70% of existingZNERH builders inU.S. partner withCH by 12/13Enlist existingZNERH buildersunder CHumbrella15 Building Technologies OfficeGoalseere.energy.gov

Challenge Home Supply Chain StrategyEnd Customers: HomebuyersApproachKey IssuesUniqueAspectsAccomplishmentsMake it easy forhomebuyers tofind CH BuildersHomebuyers areexposed to a widearray of ZNEHclaimsDOE CH Locator isa unique tool toidentify trulyZNERH buildersChallenge HomeLocator Tool upand running on CHweb site20,000 visitors toCH Locator Tool by12/13Facilitate ucatingconsumersindependentlyWork directly withEEBA Exec. Dir. &NZEH CoalitionMOU’s with NZEHCoalition andPassive House;Board of Dir. Rolewith NZEHCConsensusdefinition, terms,and messageestablished forZNERH by 12/13Leverage CHmedia contentto educatehomebuyersLimited DOEresources forcommunicationGenerate mediacontent withbuilder awards,case studies, andarticlesCH featured atkey conferences,web site, andjournalsDOE widelyrecognized forhigh value ZNERHlabel and contentby 12/13Train builderpartners how tosell ZNERH tobuyersVirtually no salesinfrastructureskills for sellingZNERHsDevelop anddisseminate CHsales training tobuilder partnersInitial content forCH sales trainingdeveloped2 Webinars and 6classes for CHSales TrainingProvided by 12/1316 Building Technologies OfficeGoalseere.energy.gov

Consistent Definition of NZERH:Efficiency and Performance Before ncouraged)17 Building Technologies OfficeProvenInnovations/Best t(encouraged)CompleteIndoorAir QualitySolar Ready[whereapplicable]RenewablePower(Purchase .gov

Translating Value Proposition18 Building Technologies Officeeere.energy.gov

Translating Value Proposition19 Building Technologies Officeeere.energy.gov

DOE Challenge Home TrainingZero Net-Energy Ready Homes: Why Now Home of the Future Builders in Action Made Simple Business Case Value Proposition Specifications Recognition Local Solution20 Building Technologies Office16 Month Goals:40 Training Partners4 Classes/Partner 40 Builders/Class 3 Raters/Class 5,000 Builders 200 Raterseere.energy.gov

Project Plan & Schedule2012201320142015Develop New SpecLaunch CHBranding SolutionsCustom BrochureTraining Content‘Vital Few’ OutreachRecruit Training Ptnrs.Training ‘Blitz’Sales TrainingKey ConferencesHsg. Innov. Awards21 Building Technologies Officeeere.energy.gov

Project BudgetVariances: Reduced From Prior YearsCost to Date: 4 Million since inception in 2006Additional Funding: Leveraged In-Kind Support fromStakeholders/Partners (Training, Outreach)Summary: Very low cost for national labeling programBudget HistoryFY2010DOE 690KCost-share22 Building Technologies OfficenoneFY2011DOE 475KCost-sharenoneFY2012DOE 522KCost-sharenoneeere.energy.gov

Project Integration, Collaboration &Market ImpactPartners, Subcontractors, and Collaborators: Home BuildersHome Energy Rating System (HERS) RatersHigh-Performance Product ManufacturersUtilitiesBuilding America TeamsNational LaboratoriesSolar Decathlon [leveraged for promoting Challenge Home Awards]Passive House [Change Home mandatory prerequisite]Net-Zero Energy Home Coalition [participant on Board of Directors]Technology Transfer, Deployment, Market Impact: HERS Industry Leveraged to Promote BA InnovationsHigh-Performance Product Manufacturers Leveraged to Train BuildersBuilders Leveraged to Educate Consumers on Benefits of ZNERHsExisting Homeowners Inspired to Seek Deep-Energy Retrofits23 Building Technologies Officeeere.energy.gov

Project Integration, Collaboration &Market ImpactDOE Challenge Home Communications:Conference Presentations and Keynote Addresses: RESNET 2013 Annual Conference [Track w/5 Sessions] 2/13Keynote/Session 1st Res. Design & Construction Conf. 2/13NAHB International Builder Show w/DOW [3 Sessions] 1/13EEBA 2012 Annual Conference [2 Sessions] 10/12Keynote on Challenge Home at NIBS E3 Conference 10/12Keynote at Passive House Annual Conference 10/11Affordable Comfort Inc. 2012 Annual Conference 5/12Keynote BEST3 Conference Keynote 4/12 3 DOE CH Webinars [700 attendees] 10-12/123 CH Orientation webinars [400 attendees] 11-12/12RESNET Webinar [350 attendees] 8/12Net-Zero Energy Home Coalition webinar [200 attendees] 7/12Webinars:Publications: Energy Design Update feature article Fall 2012 Green Builder Vision 2020 article 11/201224 Building Technologies Officeeere.energy.gov

Next Steps and Future PlansFutureActivitiesImpactsTasksCustomizableCH BrochureIncrease builder partner dissemination Develop web-basedof messagetoolDevelop CHSales TrainingImprove effectiveness of builderpartner messaging to homebuyersDevelop course andwork with TrainingPartnersShift CHTracking toRESNETRegistryCritical opportunity to reduce cost ofCH program implementation byleveraging new RESNET data base totrack CH Home certificationsCoordinate withRESNETHousingInnovationAwardsCreate media articles and publicinterest regarding DOE ChallengeHome and Home Perf. w/Energy StarCoordinate withSolar DecathlonFeature CH inNational HomeDesign Comp.Engage nation’s upcoming architectsand designers to integrate DOEBuilding America innovationsBA Project andParticipate inSteering Committee25 Building Technologies Officeeere.energy.gov

House signed; MOU with NZEHC being finalized Strong Challenge Home Presence at 2012 EEBA and 2013 RESNET Conferences . 10 More utilities in 2013 become CH Training Partners . 20 More manufacturers join as Challenge Home Training Partners . CH Tracks at 2013 EEBA and 2014 RESNET Confs. and sessions at 4 other conferences . Passive House and

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