Buildings account for approximately 40% of energy use in cities today. Often buildings are designed, built, and located without consideration of environmental and social factors.

Why green design matters to Local Governments

By encouraging or requiring green design to be incorporated in the municipality, local governments can improve energy efficiency and prepare for increased future use of renewable energy.  

Green Buildings and Renewable Energy

It is important to increase the energy efficiency of buildings and their compatibility with renewable sources of energy. Otherwise, inefficient buildings will in the future subject occupants and owners to high energy bills and a continued contribution to climate change. When energy efficient buildings are constructed, less power will be needed to meet energy demand. Efficient homes can be entirely powered with small on-site power generation, or with a minimal withdrawal from the grid and district heating systems. This would make the transition to a renewable energy system much easier and more affordable.

Centralized vs. Decentralized Power

Once buildings are properly fitted with smart meters and can produce their own electricity—in addition to major improvements in efficiency and urban planning—renewable energy will become more affordable. Currently, renewable energy is forced through a centralized grid that was planned for large generating units, and is uncomplimentary to small-scale production and distribution, causing renewables to appear expensive.

What Local Governments Can Do

Given buildings' high energy demand and their future role in the renewable-fed grid of the future, there are a number of actions that local governments can take to improve the efficiency of new and standing building stock, including:

• Strengthen and expand building codes and regulations, which should become increasingly stringent over time. The payback period for efficiency improvements will decrease over time due to rising fuel prices, and improvements in energy efficiency will lesson the shock when the prices of conventional sources of energy rise.
• Require new buildings and renovations to be solar ready.   
• Require new buildings and renovations to acquire or produce a certain amount of self generation with a renewable energy ordinance. Such power could also be obtained with district heating or a community renewable energy project. Ordinances for self generation could be obtained through various renewable energy technologies, from solar energy installations, micro wind turbines, to geothermal heating and cooling.   
• Launch smart meter programs to enable citizens to monitor energy use in the household and offer Local Distribution Companies (LDCs) to cycle down use in times of grid peak. Smart metering is one part of a smarter energy system where demand side management plays a crucial role in ensuring grid stability and pairing supply with demand.