Starting in 2014, California is implementing a tsunami of building code revisions called Title 24. These revised building codes will move California’s residential and commercial buildings toward Zero Net Energy (ZNE). In a ZNE building, the annual energy consumption is equal to its annual production of renewable energy. Under Title 24, all new residential construction is to be ZNE by 2020 with all new commercial buildings achieving this ZNE goal by 2030.
Title 24 moves building design toward “comprehensive building solutions.” This building design approach first focuses upon reducing energy consumption through the integration of smart and energy efficient technologies. The final design step after reducing the building’s energy consumption is to install onsite renewable energy generation like solar panels.
Another significant Title 24 lighting change is the requirement that non-residential buildings over 10,000 sq. ft. have automated demand response lighting systems. These demand response lighting systems will receive signals from utility smart meters or similar communication sources when the electricity grid is reaching a critical peak supply period. Under Title 24, when the automated demand response lighting system receives a critical peak signal, it will initiate pre-programmed reductions of at least 15 percent.
Click here for a summary of key links to government agencies and more information on Title 24.
For trade professionals, this is a valuable link to itemized details on code revisions, related building lighting, building envelop, mechanical, process loads and solar.
For example, California’s A Million Solar Roofs program that offered financial incentives for the installation of rooftop solar systems has accelerated economies of scale that have driven solar panel prices below $1 per watt. The result is solar power prices that are increasingly competitive with grid-supplied electricity and, in most cases, will lower electric bills for consumers that install rooftop solar systems. California used this same strategy to generate sales for hybrid cars like the Prius and is using this strategy to drive the sales growth of electric-hybrid and electric cars including the Tesla manufactured in Fremont California.
Title 24 is California’s strategy for growing the economies of scale for energy efficiency technologies to drive down their price to consumers. If Title 24 does create economies of scale for smart and energy efficiency technologies, then California will have sparked a building technology revolution on the same scale as the revolutions now taking place in information technologies, solar power and hybrid/electric cars. The benefits to California will be lower electric bills for consumers and sales growth for the California companies that were on the cutting edge of Title 24's mass market adoption of ZNE-enabling technologies.
Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017
This summary draws from Bill Roth’s coaching program for trade professionals entitled “How To Grow Sales From Title 24 Code Revisions” that was conducted on November 5, 2013 at the San Diego Gas & Electric Energy Innovation Center.
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