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Time Dependent Valuation of Energy Efficiency



California’s Title 24 Energy Efficiency Standards for Residential and Nonresidential Buildings regulate the energy performance of building envelopes, lighting, water heating and HVAC systems. Under the Warren-Alquist Act, the legislature charged the California Energy Commission (CEC) with developing energy efficiency building standards that were "cost effective, when taken in their entirety, and when amortized over the economic life of the structure when compared with historic practice." These Standards provide powerful signals to the new construction market, and they have the power to influence the long-term energy efficiency of the state’s energy delivery system.

Past development and revisions of the Title 24 energy standards were based on electricity and natural gas costs that did not account for seasonal or time-of-use patterns. Pacific Gas & Electric Company (PG&E) sponsored a study that investigated the feasibility of using a more accurate energy costing analysis which accounts for variations in cost related to time of day, seasons, geography and fuel type.

The study culminated in a proposal to revise the performance method programs to account for these variations. An economic model was developed and utilized to guide these revisions. The proposed Title 24 standards for 2005 embrace this methodology. The standards now place more value on the installation of features that affect peak demand. In the hotter climates in California, this demand is quite significant.

To learn more, download and read the reports.


Copyright: Heschong Mahone Group, Inc. 2012