A report entitled “Unlocking Energy Efficiency in the U.S. Economy” published by McKinsey & Company in June 2009 highlights the potential energy savings available from the American residential sector. Correct incentives for energy conservation measures in existing homes, planned new homes and in lighting and appliances used in homes, could supply a low cost energy resource of up to 3,3 quadrillion BTUs by the year 2020 combined with annual financial energy savings of $41 billion and a reduction in carbon dioxide emissions of 360 megatons by 2020.
Greater Energy Efficiency in the Residential Sector
By 2020 the U.S. residential sector will account for 11.4 quadrillion BTUs of end use energy, which due to energy transmission and fuel conversion losses, equates to 22.5 quadrillion BTUs of primary energy consumption. The report outlines how both energy savings and financial rewards can be achieved under three broad headings.
- Potential Energy Savings in Existing Homes
- Whole-Building Design Approach to New Homes
- Electrical Appliances Energy Conservation
This section of the report relies heavily on figures from the U.S Census Bureau and the Annual Energy Outlook 2008, published by the Energy Information Administration.
Potential Energy Savings in Existing Homes
Cooling or heating the 79 million single family, 28 million multifamily and 8 million manufactured (trailer) homes in the United States will consume nearly 5 quadrillion BTUs of end use energy by 2020. By 2020, judicially applied conservation efforts could save 2 quadrillion BTUs of end use energy, cutting emissions of CO2 by over 160 megatons and annual savings of $21 billion. According to figures from the U.S. Census Bureau the average size of an American home has gone from 1,500 square feet in 1970 to over 2,400 in 2007 while occupancy fell from 3.0 to 2.6 persons. This has been accompanied by a parallel increase in energy used for heating, ventilating and air condition (HVAC). The bulk of the savings from energy conservation in existing homes can be achieved by retrofitting, insulation and smart usage of HVAC systems.
Whole-Building Design Approach to New Homes
Although new homes (built after 2009) are expected to offer less energy conservation potential by 2020 than existing homes, a whole-building design approach to new homes could still deliver 0.3 quadrillion BTUs of end use energy with annual financial savings of $4 billion while reducing carbon emissions by 30 megatons provided that:
- Energy consumption is minimized by modifying the building size, layout and shape. It should ensure that passive means are used for space conditioning, such as heating, cooling and water heating.
- Building design should be optimized for the local environmental conditions. Structure-to-volume area of the home, awning use, window area, roof and wall color could save from 10% to 30% of energy use in some cases.
- Isolated design of separate mechanical systems in new homes should be phased out. A holistic approach to the totality of the energy needs of the home should be adopted, such as recovering waste furnace heat to enable energy free water heating.
- Improved HVAC installation practices could conserve up to 30% of the energy they use.
Lighting, water heaters, dishwashers and stoves combined with small electrical devices such as TVs, DVD players and PCs are predicted to consume nearly 40% of the total residential end use energy by 2020. With newer technology, greater public awareness of plug load consumption, increased use of both voluntary and mandated energy efficiency standards and the upcoming statutory changeover from incandescent lighting to CFLs as required by the Energy Independence and Security Act of 2007, the potential conservation savings in this area of the residential market could amount to nearly 1 quadrillion BTUs, with financial gains of $17 billion and annual cuts of over 170 megatons of carbon dioxide.
Although the report also deals with commercial and industrial energy conservation, it recognizes that the potential energy savings in the residential sector will be more difficult to realize since that sector is so diffuse and less amenable to mandatory standards as other sectors of the economy. Nonetheless, it should be realized that energy conservation provides an emissions free source of energy while limiting the depletion of the earth’s resources.
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