Government Funding Drives Uptake of Net Zero-Energy Building Technologies Globally, Finds Frost & Sullivan
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. 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.
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,” noted 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. As far as the potential for robust ROI goes, NZEB technologies for lighting rank first. Windows, heating, ventilation and air conditioning, 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 is ranked the fourth.
Within the current market situation, commercial partnerships are the most effective means to penetrate the NZEB market globally. It is 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.
For more information on this study, please email Donna Jeremiah, Corporate Communications, at [email protected]
Photo credit: http://science.nasa.gov/media/medialibrary/2004/03/01/05mar_arctic_resources/currents1.jpg