by Brianna Crandall — December 24, 2014—As global warming and fossil fuel depletion highlight the need to save energy and reduce our carbon footprint, the net zero-energy building (NZEB) concept is gaining prominence, according to new analysis from global growth consulting firm Frost & Sullivan. As NZEB is still at a nascent stage of adoption, funding plays an important role in developing its enabling technologies and ensuring wide-scale implementation, notes F&S.
The analysis found that Europe leads in terms of funding available for NZEB technologies, followed by North America and Asia-Pacific. Currently, due to the lack of awareness on the benefits of NZEB technologies among end users and investors, current funding sources are limited mainly to governments. However, funding is more readily accessible for energy-efficiency initiatives than for NZEB projects. Pre-commercialized NZEB technologies are especially underfunded.
“While governmental or regional funding are the main drivers of NZEB technologies, public-private funding is the most effective in sustaining the application of the NZEB concept and advancing its development globally,” notes Technical Insights industry analyst Jennifer Tan. “To attract public-private funding, governments need to educate end users on the advantages of NZEB technologies and implement relevant policies and building codes.”
To further lure end users, market participants need to ensure that NZEB technologies can offer an attractive return on investment, advises the report. As far as the potential for robust return on investment (ROI) goes, NZEB technologies for lighting rank first. Windows, heating/ventilation/air-conditioning (HVAC), and application of renewable energy technologies share the next rank in strategic attractiveness, followed by building envelope technologies. Controls and energy management technologies scored comparatively lower in most of the strategic evaluation parameters and thus are ranked the fourth.
Within the current market situation, commercial partnerships are the most effective means to penetrate the NZEB market globally, concludes the report. It is seen as the most suitable strategy among the other options such as technology licensing, spin-off/technology incubator, commercialization funding, and mergers and acquisitions.
“Besides choosing the entry mode strategically, NZEB technology providers should introduce solutions that align well with investors’ plans and expectations for the future,” advised Tan. “Essentially, investors are expecting to have renewable energy fulfilling the remaining energy needs, to make buildings NZEB-ready as well as seeing more cost-effective and investment-worthy technologies being developed. Existing investors are also hoping for more investors to avail more funding and support to small businesses in the forthcoming years.”
Enabling Technologies for Net Zero-Energy Buildings—Funding Analysis (Technical Insights), a part of the F&S Technical Insights subscription, provides a sectoral analysis of the current trends and roadmap for NZEB technologies, availability of government grants and stimulus funding, and the gap analysis for funding needs, as well as other investment insights.
