Interest In Passive Houses Is Building Nationally

September 1st, 2010

For a tiny, little-publicized, relatively new ultra energy efficient building movement, passive houses have quite a reach. Buildings built and in various stages of planning and construction can be found coast to coast in the U.S. and Canada.

As of this spring, there were over 50 educational, single family and multi-family buildings in the planning, pre-certified and certified stage in 23 states from Maine to California and Canada, according to the Passive House Institute in Urbana, Illinois.

A passive house in Maine with solar panels

To be sure, it’s not a groundswell. Indeed, compared to Germany, where the movement first was launched in 1996, and Austria it’s a barren landscape. Germany has over 15,000 passive houses and 17% of single-family housing starts in Austria are Passive Houses.

Still, it’s a start. The first Passive House was built in the U.S. in 2002 and 2003 by Katrin Klingenberg, a University of Illinois architecture professor, and her late husband Nick Smith. She lives in it today and is responsible for the design of the other three passive houses built in Illinois, half the national total of homes.




Though the numbers are few, they count for a lot. Passive houses are performance based and start proving their worth from the beginning. Through the development of simple shapes and using super insulation and few windows passive houses are able to achieve remarkable energy savings of some 90%.

Whether they can catch on the way they have in Germany and Austria is another matter. In practical terms, the design of the homes has little curb appeal. They’re little more than boxes with broad expanses of windows on the south side to catch the sun and a few small, generally fixed windows on the other three sides.

The first passive house built in the U.S.

The eight single-family home built so far were all custom built and it’s hard to imagine a developer stepping in to lay out a line-up of cubes on spec. The emphasis, at least in the much more successful European model, is to keep size down to well under 2,000 square feet, something Americans don’t particularly warm-up to either.

In fact, of the 8 homes built so far, the ones in Utah, Louisiana, Massachusetts and the one private home Klingerberg designed in Urbana are all bigger than average. Klingenberg’s home and the one in Maine are closer to the ideal. (The two other Illinois houses were special low-income constructions.)

Probably the big promise Passive Houses have in influencing home development is in showing the way on super insulation. They all have zero energy levels of averaging around 15 inches thick or over R-50. Triple pane windows, a staple of passive houses, may also gain widespread popularlity.

Neither the insulation or the triple pane windows are exciting to look at. Homebuilders will be adding something that costs more money too. Still, they wouldn’t make a house any uglier no matter how it’s designed, but they would reduce energy consumption and carbon emissions dramatically.

Paying more money for future savings is not what many homebuyers and builders want to hear now in this incredible housing slump, but the passive homes are reminder that it can be done for when the good times return.

Green Monday: PowerSecure Making Smart Moves

August 30th, 2010

PowerSecure is showing surprising strength in two super green fields. In April, it scored with the addition of an LED acquisition and earlier this month the Wake Forest, North Carolina company reported big increases in its smart grid technology sales and earnings from a year ago.

The sales and earnings growth came from an increase in business. Revenues for the second quarter ending June 30 were up 37% to $34 million from $25 million in the same period a year ago.

Earnings are more complicated, but also may be more impressive – depending how you look at it. Net income was up 27% to $1.3 million from $1.0 million or up nearly 100% to $1.3 million from $.7 million when “net income attributable to noncontrolling interest” is subtracted. On a per share basis, it was up 75% to $.07 from $.04.

The acquisition in April of Innovative Electronic Solutions Lighting, an LED producer, is looking very synergistic. It’ll add business to PowerSecure’s EfficientLights division which currently serves the grocery-store market with LEDs for refrigerator cases. The company says expansion is underway. Customers have come seeking lights for drug and convenience store chains.

Innovative Electronic Solutions Lighting (IESL) will complement the business. The Morrisville, North Carolina company presently sells commercial and industrial LED lighting – including street and security lights. PowerSecure (POWR) sees opportunities for amusement park lighting and fluorescent tube retrofits in offices, products under development.

The LED business is known internally as PowerSecure’s Energy Efficiency division. Along with its “smart grid” technology business it makes up about 85% of sales and is called together PowerSecure’s Energy and Smart Grid Solutions. The remaining 15% is its Energy Service business which provides services to natural gas companies.

Revenues for 12-months ending 09/09

Most of the sales and earnings growth – in absolute figures and in percent – comes from the bigger division. It also provides the lion share of the company’s $127 million in backlog.

The good news has helped the stock. It closed Friday at $8.74, up 21% for the year. Still, it may not be the best of time to jump in. The P/E stands at 30, at a time when the S&P is at 12, making these fairly pricy shares.

The stock is also incredibly volatile. The shares were as low as $.11 in 2002 and as high as $41 in 1993. I think their future is up, but in this market it may be better to wait for them to settle down.

Fiber Cement Becoming More Popular Siding Pick

August 25th, 2010

While far fewer homes are being built, more of what is going up is covered with fiber cement. Too insignificant to even count just six years ago, it is growing steadily, if slowly to where it accounted for 13 percent of the new homes built in 2009.

That’s good news for fans of zero energy because of the five materials tracked today by the U.S. Census fiber cement offers among the most environmentally-friendly and economical choices in the bunch.

Fiber cement wears well and is very green

In fact, only one other material showed a gain last year, according the figures the Census released in June. Vinyl was up 3 percentage points to 34%, while stucco dropped two to 19%, brick fell one to 23% and wood remained at 9%.

The cost of covering the house is also going down if only because the size shrunk a bit last year and buyers were paying for less material, of any kind. The median sized house dropped to 2,135 square feet last year.

It’s the second year in row the square footage has dropped. It’s also the second year in a row in which the housing market was in a deep recession and buyers couldn’t afford to buy bigger homes.

It just may be that if the housing market rebounds homes will resume their decades long expansion and more expensive exteriors, like brick, will take market share away from fiber cement. However, since the concensus is that a rebound won’t happen any time soon, fiber cement could very likely gain an increasingly larger share of the market.

Fiber cement’s price advantage over stucco and wood, as well as brick, could make it even more appealing over time, as might its environmental advantages over vinyl. After all, vinyl is a toxic substance containing polyvinyl chloride (PVC), while fiber cement is a natural product. It’s made of Portland cement (45%), sand (45%) and wood fiber (10%).

Fiber cement also has number of other advantages over vinyl. It’s more durable, lasting 50 years. It requires less energy to produce, offers better protection against fires and would be easier to dispose of when its useful life is over. It takes paint well too – where with vinyl you’re stuck with whatever color you chose for the siding when you bought it.

There are a number increasingly well-known brands to choose from too. They include HardiePlank, NichiBoard and WeatherBoards.

Fiber cement (4th from right) is also among the most inexpensive sidings

The combat zone is over price and fiber cement loses the battle though perhaps not by much. It depends on who your contractor is. One company that does both vinyl and fiber cement siding work, shows a difference of between five and ten percent. (However, no mention is made of the cost of painting the fiber cement.)

Others may be considerably higher. In a survey by R.S. Means, the difference is more than 50%. (See the chart above, which may be seen better down at the bottom of the reference site).

That brings us back to house size. If you build smaller, your total cost for siding – among many, many other things – will go down.