Take a look inside this $1.1 million “zero-emissions” home

Real estate is a key part of meeting U.S. climate goals, federal officials say.

According to the Environmental Protection Agency, residential and commercial buildings account for 31 percent of global greenhouse gas emissions, after accounting for “indirect” emissions such as electricity use. That’s more than other economic sectors such as transportation and agriculture.

The Biden administration has adopted various policies to reduce residential emissions.

The Inflation Reduction Act, passed in 2022, offers financial benefits including tax credits and rebates to homeowners who make their homes more energy efficient, for example. The White House also recently issued guidelines for buildings to be considered “zero-emission,” meaning they are “energy efficient, have zero on-site emissions from energy use and are powered only by clean energy,” according to the Department of Energy.

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Morgan Wojciechowski, 33, is among the first homeowners to earn the federal “zero emissions” label. (The rating is awarded by an outside company called Pearl Certification.)

Wojciechowski, her husband, Casey, and their three dogs — Dixie, Bo, and Charlie — moved into the newly built Williamsburg, Virginia, home in August 2023.

Wojciechowski, who is also president of Healthy Communities, a local real estate development company focused on sustainable building, spoke with CNBC about her new home, its financial benefits and how consumers can best upgrade their homes to be more efficient.

The conversation has been edited and condensed for clarity.

Greg Iacorsi: What does it mean for your home to be considered net zero emissions?

Morgan Wojciechowski: It's a very efficient, all-electric home. Those are the first two points of the definition of a White House.

The third part is that we are part of a green energy program with (our power provider) Dominion. Not only do I produce solar energy and any excess goes back into the grid, but the energy from the grid that comes to my home is clean and sustainable. It costs me about $10 extra a month to get that clean energy.

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

MW: Like $1.1 million.

GI: How big is the house?

Area: 5400 sq. ft.

It's a big house. But my house isn't what everyone does. My house was my personal project because I believe in sustainability and I wanted to do that in a house that would be my forever home. But a more replicable house would be something like what Healthy Communities is building at Walnut Farm, which is about 1,500 square feet. We're selling it for $433,000.

GI: Can you detail the estimated savings for your home?

MW: Our utility bills are expected to be about $917 per year with the (solar) panels, or about $80 per month.

The annual savings are $7,226 (compared to the average cost of a home in the U.S., according to TopBuild Home Services). And that's just due to the efficiency of the home with solar.

If I eliminate solar production, I will save $5,431 per year. Solar makes up for that.

GI: What do you mean solar makes up for that?

MW: You generate energy. Your home uses that energy and sends excess energy to Dominion. Those credits are stored in an account, and then those credits are offset against your bill. That's called net metering.

GI: So the electric company pays you this money?

MW: These credits are applied to the next billing cycle. They offset your utility bill, which is where the savings come in.

It makes no sense to use solar panels unless you build an energy efficient home that runs entirely on electricity.

GI: Why is that?

MW: You have to have a home built or renovated that is energy efficient enough—by replacing windows with higher quality ones, adding insulation—so that you need fewer panels on your roof, and thus get a faster return on your investment. Solar only makes sense if you are going to get a return on your investment in a few years.

A: Does this make solar energy 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're going to have to add more panels to make up for the lack of energy efficiency. And if that number gets too high, it's going to turn people upside down.

Solar has to be right for the house you're putting it in, or don't do it. Maybe you can just upgrade your windows, add insulation, air condition your cramped space, and upgrade your mechanical systems.

There are a lot of things consumers can do. You don’t have to do everything at once. You don’t have to have a solar home to be net zero; you have to have an all-electric, energy efficient home, and you have to buy renewable energy from your utility company.

This is very easy. Many people can do this. Everyone can participate according to their level of sustainability.

GI: How do you advise people to get started?

MW: I would say to the consumer: Why don't you start with the windows and doors? It's very easy. Do that and see what changes (in efficiency).

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

I'll hit the insulation next.

Many older homes have heating, air conditioning, ventilation, and duct systems inside the attic. Insulate it so that it is a conditioned space, so that these building systems do not have to work at full speed to keep up with extremely high or low temperatures. This makes it more energy efficient.

There are tax credits (available) for energy efficient upgrades to your home. Consumers can take them and write them off, which is attractive to people as well.

GI: If you're a renter, there are some things you can't control. I think you could ask your landlord.

MW: It depends on your situation with the rent. I feel like it's a little bit harder to change someone else's mind. Once you get home, ultimately, you have more of a say in what you can do.

Until then, you can be mindful about the energy you use. Turn off the lights. I mean, it's a real thing. People don't turn off the lights. I mean, even though my house is very efficient, I use timers on things because I don't want to waste energy. This is an easy thing that anyone can do.

Correction: The house is 5,400 square feet. The previous version misstated the number.