FIVE MINUTE GUIDE

Zero Net Energy

and Carbon
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Definitions of zero net energy

A zero net energy (ZNE) building is an energy-efficient building that

produces as much energy as it consumes over the course of a year, usually by
incorporating solar PV on-site.1 There are many different definitions of ZNE.
In general, any nomenclature such as ZNE or net zero energy (NZE) refers to
the same concept. The definition refers to operational energy use only.

DEFINITIONS BY DEFINITIONS DEFINITIONS

C L A S S I F I C AT I O N BY SCALE BY BOUNDARY

Ultra-low Energy / Nearly ZNE / ZNE Building ZNE Site ZNE Source
ZNE Capable An energy-efficient building A building that produces as much energy as A building that produces as much energy as
A building that has demonstrated significant where the actual annual it consumes over the course of a year, when it consumes over the course of a year, when
technical progress towards goals of energy use delivered energy is less than or accounted for within the building site boundary3 accounted for at the energy generation source3
reduction, even though it may not have pursued equal to the on-site renewable
a ZNE energy path by investing in on-site exported energy2
renewables1
ONSITE EXPORTED
Emerging projects ZNE Campus RENEWABLE Renewables in excess of building
An energy-efficient campus energy use offset grid power mix
A building that has a publicly stated goal of
ZNE but has not yet demonstrated achievement where the actual annual
of that goal through 12 consecutive months of delivered energy is less than or
measured energy1 equal to the on-site renewable
exported energy2 ary
nd
Verified projects Bo
u
ENERGY USE e
A building that has 12 months of metered data Sit
• Heating
that show zero net or positive energy production ZNE Portfolio
• Cooling ry
over a given consecutive 12 months1 An energy-efficient portfolio • Ventilation da
oun
where the actual annual • Hot Water eB
• Lighting urc
Net Positive delivered energy is less than or So IMPORTED
• Plug Loads Grid power mix of renewable
A building that produces more energy than it equal to the on-site renewable • Process and non-renewable sources
consumes over 12 consecutive months1 exported energy2 • Other

Site Boundary of Energy Transfer for Zero Energy Accounting2

FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Additional definitions

DEFINITIONS BY ZERO NET CARBON

The core distinction between ZNE and zero net carbon (ZNC) buildings is that
ZNC buildings consume only carbon-free renewable energy, either produced
on-site or procured. For example, a ZNE building can consume natural gas and
offset that consumption through renewable exports. A ZNC building would not
consume natural gas as it is a carbon-emitting source. The definition for ZNC
refers to operational energy use only.

Zero Net Carbon (ZNC) International Living Future Institue

A highly energy-efficient building that produces
on-site, or procures, enough carbon-free renewable
energy to meet building operations energy
consumption annually.4
Embodied Carbon
The carbon emitted when materials are mined,
manufactured, and transported5
51%
O P E R AT I O N A L
CARBON
Total Carbon Emissions of Global New Construction
from 2020 to 2050 (Business as Usual Projection).7
Zero Carbon Standard
One hundred percent of the operational
energy use associated with the project must
be offset by new on- or off-site renewable
energy. Also, one hundred percent of the
carbon emissions impacts associated with
the construction and materials of the project
49%
EMBODIED
CARBON7
I N T E R N AT I O N A L D E F I N I T I O N S O F Z N E + C
Both ZNE and ZNC are concepts employed around the globe, with different definitions in
each country. Below are excerpts from the European Union, Japan and Canada. Interestingly,
the policies adopted in the European Union do not include plug loads in the calculation of
energy use, while Canada is specifying carbon-free emissions in its green building code.
European Union
A nearly zero-energy building means a building With the introduction of on-site renewable
that has a very high energy performance. The energies, the on-site energy generated will
nearly zero or very low amount of energy required be equal to or greater than the actual energy
should be covered to a very significant extent by consumed within the building in the course
energy from renewable sources, including energy of a year.9
from renewable sources produced on-site or nearby.
Energy performance includes heating, cooling, Canada
A zero carbon building is defined as one that is
ventilation, hot water, and lighting.8 This definition
excludes plug loads. highly energy efficient and produces on-site, or
procures, carbon-free renewable energy in an
Japan amount sufficient to offset the annual carbon
A net zero energy building has high energy saving emissions associated with operations.10
through load reduction, natural energy use and
high efficient systems and appliances without
decreasing the environmental quality both indoors
and outdoors.
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Why ZNE+C?

RUNNING OUT OF FOSSIL FUELS

2018 reserve-to-production ratios11 suggest if reserves AIR POLLUTION
are used at the rate they are now, they would last until... IC Buildings impact air quality, killing half a million

S
M
people globally each year by polluting the air from

O
Oil: 2067 - Gas: 2070 - Coal: 2151

NO

CI
the energy they consume.13

AL
ECO
RISING ENERGY COSTS
As supply decreases, energy costs will rise. The U.S. N E E D F O R H E A LT H I E R B U I L D I N G S
Energy Information Administration predicts the nominal S U S TA I N A B L E
Inherent to ZNE+C building design is healthier
dollar spot price will quadruple, triple and double by INFRASTRUCTURE building design. Daylighting, natural ventilation, and
2050 for oil, natural gas and coal, respectively.12 improved envelopes for more uniform temperature
distributions are a few examples of how ZNE+C
C L I M AT E F I N A N C E
buildings improve occupant comfort.
Emerging form of green finance available for projects in
developing countries that help reduce emissions or adapt
to climate change.
EN L
VIR TA
ONMEN

G L O B A L C L I M AT E G O A L W H AT R O L E D O B U I L D I N G S P L AY ? WHY ARE ZNE+C BUILDINGS

The Paris Agreement is an international treaty that The building sector is the largest emitter, accounting NEEDED NOW?
aims to keep global temperature rise below 2°C, and for 39% of global emissions.14 We cannot meet climate goals without eliminating
1.5°C where possible. The 1.5°C pathway calls for zero building operations emissions and embodied carbon
net anthropogenic greenhouse gas emissions by 2050. 6% 39% emissions by 2050.
Achieving the aims of the Paris Agreement requires OTHER 28% T O TA L Two-thirds of today’s buildings will still be standing
immediate, drastic reductions in all energy sectors, BUILDING
O P E R AT I O N S
BUILDING
by the 2050 deadline.15 Intermediary steps to building
including buildings. EMISSIONS
reduction will not suffice; a 100% reduction of
emissions in the building sector means ZNE+C
11%
EMBODIED
buildings are a must.
CARBON

32%
INDUSTRY 23%
T R A N S P O R TAT I O N

Global CO2 Emission by Sector14

FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Benefits of ZNE+C

DEVELOPERS
Why build a ZNE+C building?
Increased consumer- and policy-
driven demand for highly efficient and
sustainable homes.
E S TA B L I S H E X P E R T I S E
F O R I N N O VAT I V E D E S I G N
Improve your company’s brand by
delivering buildings that achieve both
comfortable living and exceptional
architectural, mechanical and
environmental performance.
GROWING MARKET
Public interest and demand for ZNE+C is
growing globally and will continue to rise as more
mandated ZNE+C policies are adopted. Increase
profits by getting ahead of the buying movement I N E V I TA B L E P O L I C Y P U S H
As ZNE+C policies are rapidly evolving,
and securing a position in the market now.
developers should grow the skills and
operational capacity needed to supply
ZNE+C buildings now. This will allow them to
avoid the costs of rushed training to comply
with future codes, while gaining recognition
as early innovators.

C O M M E R C I A L R E A L - E S TAT E
OWNERS
ENERGY
Why own a ZNE+C building?
RESILIENCE
Improved bottom line from lower operational As ZNE+C buildings typically
have on-site renewables,
expense and higher employee retention and
property owners can be
productivity. protected from rising energy
costs and grid vulnerabilities
through low to zero utility
bills.
EMPLOYEE
RETENTION AND
LOWER PRODUCTIVITY MEDIA
O P E R AT I O N A L Strategies used in ZNE+C AT T E N T I O N
COST AND HIGHER buildings make them healthier Capitalize on brand
AV O I D
and more liveable, reducing promotion now while
RENT/RESALE L E G I S L AT I V E
employee turnover and public interest continues
ZNE+C buildings tend to
increasing work productivity. RESTRICTIONS
have lower operational costs, to grows. Reap the benefits of current
adding to higher rent and tax incentives while avoiding
resale value. future carbon penalties.
Staying ahead of codes may
also avoid expensive retrofits
down the line.

B U I L D I N G O C C U PA N T S
Why occupy a ZNE+C building?
Increased comfort from exceptional indoor
environment quality, all the while reducing
your building’s carbon footprint to zero.
consumption that is offset by
N AT U R A L IMPROVED CONTROLS,
D AY L I G H T I N G A N D IMPROVED COMFORT
V E N T I L AT I O N ZNE+C buildings often use smart
Designed and built using passive HVAC and lighting controls to minimize
EXEMPLIFY EXEMPLAR
solar and ventilation design unnecessary consumption. These controls
S U S TA I N A B L E TECHNOLOGY
principles where possible, ZNE+C have direct benefits for occupant comfort
LIVING buildings make the most of natural (eg, energy-saving LED lights can vary Live or work on the cutting
Combat climate change daylight and fresh air breezes. brightness to best suit occupant needs). edge of building design
through lower energy with the newest technology
integrated into your building.
clean renewable energy.
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Growth trends

The adaptation of stricter policies has driven the exponential growth of 600
ZNE+C buildings across the world since the early 2000s. Areas where
policies have been passed see a higher number of ZNE+C buildings 500

compared to areas with no policy. For example, in the US, California

BUILDING COUNT
has one of the strictest building codes, and almost half of all ZNE+C 400

buildings in the US are located there. As policies expand, ZNE+C

buildings are encompassing a wider range of building types and sizes. 300

200

100

2
0

0
ZNE Emerging

1
0

9
ZNE Verified COMPLETION YEAR

ZNE Building Growth in the US16

140
E D U C AT I O N 35%
120
BUILDING TYPE BREAKDOWN

OFFICE 22%

BUILDING COUNT
100
M U LT I F A M I LY 17%

OTHER 12% 80

P U B L I C A S S E M B LY 9% 60

PUBLIC ORDER & SAFETY 2% 40

H E A LT H C A R E 1%
20
MERCANTILE 1%
0
WAREHOUSE & STORAGE 1%

0 0-5

4 5K

9 0
9 0

2 25

4 0
-4 K

6 -

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2 0
2 K

3 K

6 K
(

(1
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9 K
9 -

2 -

4 -

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20

40

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80

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120

140

160

180

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M

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2

2
2)
BUILDING COUNT BUILDING SIZE

ZNE building type breakdown 16 ZNE Buildings by size 16

FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Pioneering policies around the world

A combination of prescriptive and performance codes, initiatives and plans

to reach goals set by countries, states and cities has been driving the
development of ZNE buildings across the globe. Each region has pilot policies
that are the first to take aggressive steps towards ZNE. Most countries have
made pledges to take these types of steps towards sustainable development.
There are also many non-mandatory programs available to certify buildings. 

BRITISH
COLUMBIA,
CANADA 2005 KYOTO
2 0 1 6 PA R I S
2007 The PROTOCOL
AGREEMENT
BC Energy Plan Reduce greenhouse gas
Below 1.5ºC climate
emissions, 192 parties
change, 185 parties
EUROPEAN
UNION
2010 Energy HONG KONG
Performance of 2012 Energy
Buildings Directive Audit Code

CALIFORNIA, RESILIENT
CITIES J A PA N
USA
C40 Cities Climate 2008 Passive Energy
2007 Long Term
Leadership Group, Houses and Zero Energy
Energy Efficiency
Rockefeller 100 building Policy
Strategic Plan
Resilient Cities

BUILDING
CHALLENGES
UN C E R T I F I C AT I O N
International Living
S U S TA I N B L E PROGRAMS
Future Institute’s Living
DEVELOPMENT LEED, Breeam, Green
Building Challenge,
GOALS Start WELL, ILFI
Architecture 2030
17 global goals AUSTRALIA
2010 National Carbon
Current Legislation Offset Standard
Program Initiatives
Global Pledges
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Today’s landmark policies and initiatives

Individual countries and cities are implementing policy that provides a

roadmap towards ZNE in the near future. Below are some of the original Carbon Reduction

pioneering policies around the world that are still in effect today, with
revisions every few years. Other countries and cities are gradually following Energy Efficiency

suit. Non-mandatory drivers like program initiatives and global pledges are
Renewable Energy
also becoming more prominent in the industry and public spheres.

2007 CALIFORNIA LONG TERM ENERGY
E F F I C I E N C Y S T R AT E G I C P L A N
• New residential construction ZNE by 2020
• New commercial construction ZNE by 2030
• 50% commercial buildings retrofitted to ZNE by 2030
• 50% new major renovations of state buildings ZNE by 2025
2010 EUROPEAN UNION’S ENERGY
PERFORMANCE OF BUILDINGS DIRECTIVE
• New public buildings nearly ZNE by 2018
• New construction nearly ZNE by 2020
• Include energy performance certificates in sales
• Set minimum energy performance requirements for new
and renovated buildings
2007 THE BC ENERGY PLAN, CANADA
• Electricity self-sufficiency by 2016
• Reduce greenhouse gas emissions by 33% from 2007 levels
• New government buildings meet LEED Gold standards
• Funding to help with retrofits
• Support 100,000 solar roofs

2 0 1 4 J A PA N ’ S B A S I C E N E R G Y P L A N LEED (LEADERSHIP IN ENERGY AND 2 0 1 6 PA R I S A G R E E M E N T

• New public building construction ZNE by 2020
• Average net zero emissions in new construction by 2030
E N V I R O N M E N TA L D E S I G N )
• Developed in 1993 by the US Green Building Council
• 83,000+ LEED registered and certified buildings globally
• Many US federal agencies, states, and local government
require LEED certification
• Each new version released is more stringent
• Keep global average temperature to well below
2°C above pre-industrial levels
• Nationally determined contributions (NDC) for
each individual country
• 185 parties
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Approach to ZNE+C

A ZNE+C building requires integrated whole-building design from planning through

to occupancy. At each stage of the project from early conceptual design to operation,
ZNE+C minimises loads, maximises efficiencies and optimises renewable generation.

ZNE+C WORKFLOW

Stakeholder Team Integrated Early Design Active Iterative Energy Measurement Occupant Offsets
Awareness Selection Design Energy Strategies Modeling + Verification Education
Charette Modeling

PLANNING PRE-DESIGN DESIGN CONSTRUCTION O C C U PA N C Y

Set Energy Finance + Massing Orientation Passive Envelope + Systems Facilities Building Performance
Target Incentives + Envelope Strategies Renewables Commissioning Staff Training Tracking

ZNE+C APPROACH
To maximise the return on investment of building measures,
follow this six-step approach to cost-effective ZNE+C design.

1. Load reduction 4. Energy recovery 6.OFFSETS

1.LOAD
Reduce building energy demands through passive strategies. Supply energy by recovering energy from existing energy losses. REDUCTION

Example measure: improved insulation Example measure: wastewater heat recovery system
2. Passive strategies 5. Renewables 2 . PA S S I V E
5.RENEWABLES
Implement passive design measures that harness Supply demands of energy consumption with renewable S T R AT E G I E S

environmental conditions to meet building loads. energy generation.

Example measure: natural ventilation Example measure: solar thermal panels
4.ENERGY 3.EFFICIENT
3. Efficient systems 6. Offsets
RECOVERY SYSTEMS
Reduce energy losses by increasing energy efficiency Offset remainder of the energy budget if necessary.
of active systems (ie, systems that use energy). Example measure: energy efficiency project investment
Example measure: heat pump with a high coefficient of performance
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

ZNE+C must-haves

E N E R G Y TA R G E T PLUG & PROCESS LOAD O C C U PA N T E N G A G E M E N T

An energy target is an annual, whole-building energy-use limit that
guides design and operation. It should be specific, measurable on-site
with minimal data manipulation, inclusive of all loads and aggressive.
Research the energy consumption of a comparative average building.
Then, establish an ambitious but feasible budget.
Try to break down the energy target by system. This will help when
there are discrepancies in design versus actual energy consumption,
as systems that are not behaving as predicted can be identified and
adjusted.
E N E R G Y I N F O R M AT I O N S Y S T E M
An energy information system allows operators to analyse current and
historical energy performance, and to view normalized energy demand
and consumption (from utility meter to sub-system).
Through normalizing data by external variables like weather and
occupancy, an energy information system has an advantage over a
building automation system by more accurately detecting anomalies
and measuring the impact of energy conservation measures. However,
Plug and process loads (PPL) account for 33% of US commercial
building energy consumption.17 They are crucial in reducing the
energy consumption of a ZNE+C building. There are several tips to
successful PPL management:
• Eliminate unnecessary PPLs, and meet those that
are essential efficiently.
• Automatically turn PPLs off when not needed.
• Restrict or standardize procurement to ensure only
high-efficiency appliances are purchased.
• Educate occupants of PPL’s impact.
11%
V E N T I L AT I O N
A ZNE+C building must have a focus on occupant engagement to
prevent unexpected behaviour. Occupants need to have an awareness
of how much energy they use and its impact on building operations.
They should also be well-informed of what controls are available to
them that improve comfort in addition to energy performance.Some
integral steps of occupant engagement are:
• Evaluate occupant patterns.
• Prompt occupants with reminders of what are ideal behaviours.
• Create a communication system between facility operators
and occupants.
• Develop move-in and ongoing trainings.
TY
PI
C
EN AL 33%
ER

C
PLUG & PROCESS

O
G
it is not a substitute for a building automation system.

M
Y

M NSU
C
16%

ER
EN

O
E

CI
BUILDING PERFORMANCE TRACKING S PA C E H E AT I N G

AL
R
G
While ZNE+C buildings are designed to be most efficient buildings,

MP
Y

BUIL
TA
most buildings fail at operating efficiently. Achieving the ZNE+C

TION
R
goal requires regular check-ins and troubleshooting to stay on track.

GE T

DING
Typically buildings’ performance deteriorate up to 30% in the first
four years of operation and commissioning or retro-commissioning
can reduce that performance decay.

13%
S PA C E C O O L I N G

7% 20%
W AT E R H E AT I N G LIGHTING

Typical Commercial Building Energy Consumption17

FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Example ZNE+C strategies

LOAD REDUCTION
RENEWABLES Orient building for
Solar thermal or Optimal solar gains
photovoltaic panels
Cool roof
Utilise geothermal
energy
High r-value insulation
Battery storage
in walls and roof
Fuel cell and
hydrogen storage

Dual to triple pane

low-e windows

Airtight envelope

Insulated interior wall

Energystar appliances
ENERGY RECOVERY
Active or passive
chilled beams

PASSIVE STRATEGIES
Building energy Daylighting
monitoring dashboard Natural ventilation
Utilise sewer heat

Wastewater heat
recovery system

Led lighting with Thermal storage basement

occupancy sensors to store heat and provide
Automated control and
nighttime cooling
monitoring for hvac

High-efficiency heat pump,

boiler, cogeneration and chiller
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Performance metrics

Several metrics and rating systems contextualize energy

performance for ZNE+C buildings.

TIME DEPENDENT ENERGY USE

C O M PA R AT I V E N AT I O N A L
VA L U AT I O N ( T D V ) INTENSITY (EUI)
SCORES MILESTONES
Time dependent valuation is a metric used in EUI is a common expression of a building’s 80

California for the Title 24 code. It is ultimately energy use as a function of its size. It is

100
E U I ( K B T U / F T 2/ Y R )
1 0 0 CBECS - 2003
an economic metric and is expressed in dollars. expressed as energy use in kBtu per square 60 Average
performance of the
The concept behind TDV is that energy- foot per year. Buildings that have been verified US Building Stock in
efficiency measure savings should be valued as ZNE have either a zero net building EUI or 40
the year 2000

differently depending on which hours of the
day and year the savings occur, to better reflect
the actual costs of energy. The TDV method
encourages building designers to design
buildings that perform better during periods
of high energy cost and is relatively easier to
achieve compared to other ZNE metrics.
a negative net building EUI as the renewable
production exceeds the energy use. This EUI can 20
be source or site, depending on the definition of
7 5 ASHRAE 90.1 - 2004
zero net energy by boundary used. The median 0 7 2 ASHRAE 90.1 - 2007
EUI of a ZNE building is 22.6 and should be the
target energy performance for most buildings.18 -20

2003
CBECS

2012
CBECS

CODE BLDG
AV G . N E W

VERIFIED
U LT R A L O W -

VERIFIED
ZNE

VERIFIED(NET)
ZNE
EMBODIED CARBON 5 8 ASHRAE 90.1 - 2010
2015 IgCC (modelling) 5 2
ZERO ENERGY PERFORMANCE EMISSIONS/FT2 5 4 ASHRAE 90.1 - 2013
2015 IgCC (outcomes) 5 1
INDEX (zEPI) Embodied carbon is a key metric to quantify

50
Title 24-2013 5 0
zEPI provides a common and fixed scale zero-carbon buildings. Embodied carbon
for measuring commercial building energy calculations require an understanding of all of the
performance. zEPI normalizes scores by building materials, or ingredients, within your products,
type, square footage and climate, and sets a and all activities related to those materials, such Average Site EUI Comparison19
fixed, universal baseline. The zEPI scale marks as processing and transport. It is expressed in 3 0 Architecture 2030
Challenge Goal (2015)
key energy measurement milestones as well emissions per square feet of the building.
as the performance of individual projects or
2 0 Architecture 2030
policies. It permits direct comparisons in order Challenge Goal (2020)
to understand the relative performance of each
of these elements in the measurement of energy 0 5 10 15 20 25 30 0 2 4 6 8 10 12 1 0 Architecture 2030
Challenge Goal (2025)
performance.
S I N G L E - F A M I LY

0
RESIDENTIAL
ZERO 0 Architecture 2030
EUI RANGE
HOUSE
6.991 Challenge Goal (2030)

NET
COMMERCIAL ZERO
STRUCTURES S TA N D A R D
EUI RANGE H O U S E B U I LT 12.52
TO CODE
*Commerical Building Energy Consumption
Survey - U.S. Department of Energy

Typical Site EUI for ZNE Building (kBtu/ft2)1 Embodied Carbon Footprint (kg CO2-e emissions/ft2)20 zEPI Scale to ZNE21
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON

Reference projects

SAMSUNG ZERO ENERGY HOUSE/ ZERO CARBON BUILDING,

GREEN TOMORROW AND ZERO ENERGY HONG KONG
D E M O N S T R AT I O N B U I L D I N G Zero carbon building
Zero energy building This building incorporates 90 environmental strategies and is a
This project is East Asia’s first USGBC LEED-Platinum smart building monitored by 2,500 sensing points. The building’s
certified building which also achieves zero emissions. The low-carbon design and construction was completed in 14 months.
423m2 (4553 ft2) building has 68 green design features, This BEAM Plus Platinum-rated building also won the Grand Award
including a high-performance façade and ground source for New Buildings in the Green Buildings Awards 2012. Design
heat pump with cooling tubes. features include wind catchers, earth cooling tube, green walls and a
Building Environmental Performance Assessment Dashboard.

PG&E Technical Potential to Achieve Zero Net Energy,

California, USA

PG&E TECHNICAL POTENTIAL DISTRICT OFFICE AND APPLIED

T O A C H I E V E Z E R O N E T E N E R G Y, TECHNOLOGY TRAINING CENTER
CALIFORNIA, USA AT S A N B E R N A R D I N O C O M M U N I T Y
Technical advisor to pacific gas and electricity COLLEGE, CALIFORNIA, USA
company (PG&E) Zero energy retrofit
This study used building simulation to quickly and This building retrofit is set to meet a target site
easily investigate multiple designs and determine the EUI of 23 kBtu/ft2-yr through installation of a
optimum path for zero net energy for 12 commercial 174 kW solar carport canopy, 17 light pipes and
and residential prototypes in representative California upgrades of lighting and HVAC systems.
climate zones. ZNE has left the building: a zero net energy policy framework
© Arup

ZNE HAS LEFT THE BUILDING:
A ZERO NET ENERGY POLICY
FRAMEWORK
State policy and design collaboration
Client
Pacific Gas and Electric Company,
with co-funding from Southern Arup’s unique approach resulted in a tool that enabled the
California Edison, SoCal Gas and
San Diego Gas & Electric client to interactively explore in real-time the zero net
energy options for buildings across the state of California
Key collaborators
Davis Energy Group
New Buildings Institute (NBI)
Sun, Light & Power PG&E engaged Arup to identify the optimum path towards zero
California Public Utilities net energy for all new buildings in the state of California. Our
Commission approach was to use building energy simulation to determine
Key facts theoretically optimum design concepts for a range of building
Enables building simulation to types and climate zones, taking into consideration the design of
quickly and easily investigate
multiple designs and determine the the building envelope, the efficiency of building services and the
optimum path for zero net energy potential output from on-site renewable energy.
12 Commercial & Residential
Prototypes A brute-force approach to solving the problem would have
BEDDINGTON ZERO ENERGY
Representative California Climate
Zones
required an estimated 3 billion building energy simulations to
explore all possible combinations of building performance and D E V E L O P M E N T, L O N D O N , U K
Technology Projections for 2020 climatic conditions. An alternative, ground-breaking approach
EnergyPlus Modelling
Key services provided
was developed, which avoided the requirement for large amounts
of simulation while still enabling accurate prediction of building
ZNE community
Energy strategy, Building physics,
Sustainability consulting, Research,
energy demand for any design scenario.
This project is a prototype sustainable mixed-use
development with 82 dwellings plus workspaces, shops,
Software products

This policy framework was designed to facilitate www.arup.com

California State policy implementation and adoption sports facilities and an exhibition centre.
of ZNE at the state level. It uses 100% renewable energy sources and an on-site
wood-fueled combined heat and power plant to provide
© Arup

Region electricity and heat.

Americas
Status A new approach to policy framework enables Zero Net
Completed 2016 Energy objectives to be compatible with high-density,
transit-oriented, smart city development.
Key collaborators
Slate Policy and Design
Key facts
Governments around the world are Current ZNE targets often conflict with smart growth principles
pursuing Zero Net Energy (ZNE) of transit oriented, dense and walkable communities, that have
standards for new buildings. vibrant and economically strong downtown cores. Current policy
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON
Future of ZNE+C
H I G H I N T E N S I T Y, H I G H D E N S I T Y
There are a few scenarios where ZNE+C through
on-site renewable energy generation is limited in
its potential.22
• Buildings with high energy intensity
• Buildings with multi-stories, small roof
footprints or small lot sizes
• Buildings in high-density areas where site area
CHALLENGE is shaded by surrounding environment
• Certain climates or geographical regions that
have lower solar potential
COMMUNITY FRAMEWORK
Buildings with limited potential for on-site
generation may consider the procurement
of off-site renewables.22 Financial models
include:
• Power purchase agreements (PPA)
• Green power utility contracts
SOLUTION
• Renewable energy certificates (RECs)
O V E R S U P P LY A N D R A M P I N G
On-site renewables interconnect with the
utility grid for most ZNE+C projects. Upon
the widespread adoption of distributed energy
resources, the export of renewables onto the grid
can create a strain on the system, from ramp rate
issues to voltage fluctuation.23
G R I D H A R M O N I Z AT I O N
There are several grid harmonization strategies that
the ZNE+C project could consider:23
• Share excess generation through agreements
with other buildings nearby
• Install energy storage for load shifting
• Charge electric vehicle service equipment with
excess energy
GRID MIX
ZNE+C definitions account for energy
produced and energy consumed as an annual
total. When investigating design strategies,
the hourly profile has unique carbon
implications specific to the project’s location.
For every project, it is highly recommended
to research the following from the local
utility:
• Grid mix (power content label)
• Rate structure
• Future developments
E L E C T R I F I C AT I O N
Building electrification eliminates the use
of natural gas, which is a carbon-emitting
resource. If the utility grid increases its
share of renewable sources, the carbon
intensity of the building’s electricity supply
improves. The distinction with this approach
is that the individual building is tied to the
local, state and regional developments for
decarbonization.
FIVE MINUTE GUIDE : ZE RO NET E NE RGY AND CARBON
Further resources and references
FURTHER RESOURCES
Architecture 2030, https://architecture2030.org/
Current Situation and Actions for ZEB in Japan,
REHVA Journal, 2018, https://www.rehva.eu/
fileadmin/REHVA_Journal/REHVA_Journal_2018/
RJ1/RJ.32-37/32-37_RJ1801.pdf
Environmental performance of Buildings Directive
(Directive 2010/31/EU), 2010, https://eur-lex.
europa.eu/eli/dir/2010/31/oj
International Living Future Institute, https://living-
future.org/
The Future of Energy: 2035, Arup, https://www.
arup.com/perspectives/publications/research/
section/the-future-of-energy-2035
New Buildings Institute, https://newbuildings.org/
Zero Carbon Building Standard, Canada Green
Building Council, 2017, https://www.cagbc.org/
cagbcdocs/zerocarbon/CaGBC_Zero_Carbon_
Building_Standard_EN.pdf
Zero Energy Buildings Definitions and Policy
Activity: An International Review, IPEEC, 2018,
https://ipeec.org/upload/publication_related_
language/pdf/766.pdf
ZNE Has Left the Building, Arup, 2015, https://
efiling.energy.ca.gov/getdocument.aspx?tn=204803
Zero Net Energy Message Platform, NBI, 2019,
https://newbuildings.org/sites/default/files/ZNE_
MessagePlatform.pdf
REFERENCES
1. ZNE Communications Toolkit, New Buildings 12. Annual Energy Outlook 2019, U.S. Energy
Institute, July 2015 Information Administration, 2019
2. A Common Definition for Zero Energy 13. The Net Zero Carbon Buildings Declaration,
Buildings, U.S. Department of Energy, C40 Cities, 2019
September 2015
14. 2018 Global Status Report, Global Alliance for
3. Definition of Zero Net Energy (ZNE) For Buildings and Construction, 2018
California State Agency Compliance with
15. Why the Building Sector, Architecture 2030,
Executive Order B-18-12, May 2016
2018
4. Zero Net Carbon: A New Definition,
16. NBI Zero Energy Project Tracker, New
Architecture 2030, July 2016
Buildings Institute, May 2019
5. The New Carbon Architecture, Bruce King,
17. Realizing High-Performance Buildings,
Nov 2017
NREL, March 2015
6. Zero Carbon Certification, International Living
18. Building Market Titans Team up to Create a
Future Institute, April 2018
New Energy Future, New Buildings Institute,
7. New Buildings: Embodied Carbon, May 2019
Architecture 2030, 2018
19. Getting to Zero Net Energy Buildings, New
8. Directive 2010/31/EU of the European Buildings Institute, 2016
Parliament and of the Council on Energy
20. Zero House Goals - Carbon Sequestration in
Performance of Buildings, Official Journal of
Building Materials, Endeavour Centre, 2017
the European Union, May 2010
21. ZEPI, New Buildings Institute, 2019
9. Guideline for ZEB (Net-Zero-Energy-
Building) definition and evaluation method, 22. ZNE Has Left the Building Policy Framework,
Society of Heating, Air-Conditioning and Arup, 2015
Sanitary Engineers of Japan, August 2015
23. Proposed 2019 Building Energy Efficiency
10. Zero Carbon Building Standard, Canada Green Standards ZNE Strategy, California Energy
Building Council, May 2017 Commission, 2017
11. BP Statistical Review of World Energy, BP,
June 2018
For more information please contact:

energy@arup.com
www.arup.com

November 2019