University of Denver
IN-3: Innovation 3

Net Zero House – Planned and Executed by Real Estate and Construction Management Students, Daniels College of Business, University of Denver The Franklin L. Burns School of Real Estate and Construction Management is located within the Daniels College of Business. For 16 years, the School has delivered a year-long residential sector practicum in which students plan, oversee construction (including obtaining permits, working with officials and managing work crews), handle the finances, and develop marketing plans for a house. This project is undertaken with a sponsoring homebuilding company which supplies the lot, the architectural design, the materials, the crews and consultation with the students. Oakwood Homes sponsored the most recent practicum, a role it has undertaken since the beginning of the practicum. Mr. Pat Hamill, the CEO of Oakwood, who is also a Daniels/DU alumnus and current member of the Board of Trustees and Daniels Executive Advisory Board, asked the students to consider building an energy-efficient house. After deliberations with the builder and research of alternatives, the students decided on construction of a net-zero, LEED platinum house in the Green Valley Ranch subdivision of Denver, south of Denver International Airport. By the end of the academic school year, the students successfully delivered on the challenge. The house was completed in June 2011 and received a certificate of occupancy. It has 2,100 square feet and four bedrooms, with a 2-car garage. It is being marketed at $318,000 by the developer. It is also LEEDS certified and guaranteed by the solar and geo-thermal contractors to continue to meet the standards. The incremental cost of including energy-efficient features was $25,000. The purchase price is $30-35,000 over similar non-LEEDS houses in the area. This difference in purchase price adds about $150 per month to the mortgage payment, using current interest rates and agreements. However, here’s the good news. The average utility bill in a “typical” house runs about $210 per month. Because the utility bill in a net-zero house is “zero” (and can even return electricity to the “grid”), the additional mortgage payment is offset immediately by the lack of a utility bill. The main features that make the house net zero are: • There is additional insulation in the walls, ceilings and floors. The exterior walls are 12 inches thick, using a double-walled construction. The ceilings are R60 and the walls are R50. The basement slab is R13 (normally no insulation is provided here). • Heating and cooling are provided by a geo-thermal loop system and pump. • The electrical needs are met by photo voltaic panels. The students negotiated a 20-year lease on the panels, with the $6,000 cost front-loaded into the selling price (this cost is included in the $25,000 additional cost to build). At the end of the lease, the homeowner can buy the system, or return it and install something new and better. However, the system should last as long as the house and chances are the company will not bother with reclaiming it at that point. • The house has energy star appliances. There are some other special features. For example, the drier does not vent to the outside. The system is designed so that the steam generated can be reused. • Windows are triple-glazed and energy star qualified. • Due to legal restrictions, the water and sewer are obtained from the City and County of Denver. However, in order to meet LEEDS, the site was landscaped with special, low water materials.