Take a peek inside a $1.1 million zero-emissions home

Real estate is a key puzzle piece in meeting US climate goals, according to federal officials.

Residential and commercial buildings account for 31% of the nation’s greenhouse gas emissions, since they represent “indirect” emissions such as electricity use, according to the Environmental Protection Agency. This is more than other economic sectors such as transport and agriculture.

The Biden administration has adopted several policies to reduce domestic emissions.

The Inflation Reduction Act, enacted in 2022, offers economic benefits, including tax breaks and rebates to homeowners who make their homes more energy efficient, for example. The White House also recently issued instructions for the buildings to be considered “zero emissions,” meaning they are “energy efficient, with no on-site emissions from energy use and powered exclusively by clean energy,” according to the Department of Energy.

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Morgan Wojciechowski, 33, is among the first homeowners to get that federal “zero emissions” label. (This rating was provided by the third party Pearl Certification.)

Wojciechowski, her husband Casey and their three dogs – Dixie, Bo and Charlie – moved to newly built residence in Williamsburg, Virginia, in August 2023.

Wojciechowski, who is also president of Healthy Communities, a local real estate developer focused on sustainable construction, spoke to CNBC about her new home, the financial benefits and how consumers can best upgrade their homes to be more effectively.

The conversation has been edited and condensed for clarity.

Greg Iacurci: What does it mean for your home to be considered “zero emissions”?

Morgan Wojciechowski: It’s a very, very, very efficient house that’s all electric. These are the first two points of the White House definition.

The third part is that we are part of the green energy program with [our power provider] Sovereignty. Not only do I generate solar energy [energy] and any excess goes back to the grid, but the power from the grid coming into my house is clean and sustainable. It’s about $10 extra a month for me to get this clean energy.

GI: How much did it cost to build your house?

MW: About $1.1 million.

GI: And how big is the house?

MW: 5,400 square feet.

It’s a big house. But mine isn’t what everyone else does. My house was my personal project because I believe in sustainability and I wanted to do it in a house that would be my home forever. But one that is more reproducible would be like this [Healthy Communities] builds on Walnut farmwhich is like 1,500 square feet. We are selling it for $433,000.

GI: Can you break down your estimated home economics?

MW: Our utility bills are projected to be about $917 per year [solar] panel, or about $80 per month.

The annual savings is $7,226 [relative to an average U.S. home, according to rater TopBuild Home Services]. This is just from the performance of the house with solar.

If you subtracted the solar generation, I would save $5,431 per year. Solar compensates for that.

GI: What do you mean solar offsets it?

MW: You create energy. Your house uses this energy and sends the excess energy back to the Dominion. These credits are stored in an account and then these credits offset your account. It is called net metering.

GI: So the power company pays you that money?

MW: These credits are applied to your next billing cycle. They offset your total utility bill and that’s where your savings come in.

Solar panels only make sense if you build an energy efficient home that is truly all electric.

GI: Why is that?

MW: You need to have a home built enough that it’s energy efficient or retrofitted — replacing your windows with higher-quality windows, adding insulation — so you need fewer panels on your roof, so you get a faster return on your investment. Solar energy only makes sense if you are going to get a return on your investment within a few years.

GI: Does that make solar more attractive?

MW: If you don’t make energy efficient upgrades to an existing home, or if you don’t build a home that is energy efficient enough, you need to add more panels to compensate for the lack of energy efficiency. And if that number gets too big, it turns people off.

Solar has to make sense with the house you put it in, otherwise don’t do it. Maybe just upgrade your windows, add insulation, adjust your crawl space, upgrade your mechanical systems.

There are many things consumers can do. You don’t have to do it all at once. You don’t have to have a solar home to have zero emissions. you must have an energy efficient home that is all electric and you must buy renewable energy from your utility company.

This is extremely affordable. Many people can do this. Everyone can participate at their level of sustainability.

GI: How do you recommend people get started?

MW: I would say to a consumer, why don’t you start with windows and doors. This is very easy. Do it and see how you notice some [efficiency] changes.

In many old houses the windows are very old and leaky. Air goes in and out. If you think about it, a house is like an envelope. You want to seal the inside of your home as best you can.

Then I would hit insulation.

Many older homes have HVAC systems running ducts inside their attics. Insulate it so it’s an air-conditioned space so those building systems don’t have to work too hard to keep up with very high temperatures or very cold temperatures. This keeps it more energy efficient.

And tax incentives exist [available] for energy efficient upgrades to your home. Consumers can take them and delete them, so it’s attractive to people too.

GI: If you’re a renter, there are certain things that are out of your control. I guess you can ask your landlord.

MW: Depending on your rental status. I feel like it’s a little scarier, to change someone else’s mind. Once you get home, after all, then you have more of a say in what you can do.

Until then, you might as well watch the energy you use. Turn off the lights. I mean, this is a real thing. People don’t turn off the lights. I mean, even though I have a really efficient house, I have timers on things because I don’t want to waste energy. This is easy that anyone could do.

Correction: The house is 5,400 square feet. An earlier version provided the number incorrectly.