Net Zero Homes & New Energy Homes – The Benefits And Differences

Today, many homeowners are concerned about the environment, wanting to do their part to recycle, be energy efficient, and reduce carbon emissions.

If you're building a new house, now is the best time to think about energy efficiency!

At K Graber Construction we want to help you build a new home that gives you complete control over the energy components, integrates efficient building materials, and helps you contribute to creating a greener world.

In this article, we look at the benefits and differences between a New Energy Home and a Net Zero Home. We also look at some of the challenges in reaching a home that is truly energy-independent.

Alright, let’s dig in!

Table Of Contents

  • 1. New Energy Homes
  • 2. New Energy Home Benefits
  • 3. Designing A New Energy Home
  • 4. Net Zero Homes
  • 5. Net Zero Home Benefits
  • 6. Designing A Net Zero Home
  • 7. Net Zero Home Challenges
  • 8. How K. Graber Can Help

What Is A New Energy Home?

A New Energy Home is a home designed to use 50% or less energy than a typical American home.

In 2018, the average American home used 10,972 kWh in the year (this doesn’t include heating gas or oil). In the past 20 years, it is calculated that American homes were responsible for over 20% of U.S. carbon emissions.

What do these numbers tell us?

They show that the average American home has a long way to go to be cleaner and more sustainable. It also shows that homes play a large role in the energy usage and carbon emissions of the United States.

Imagine if all American homes were New Energy Homes by next year - that would reduce the overall United States energy consumption by over 10%!

Benefits Of A New Energy Home

Having a New Energy Home is the first step in creating a home that is truly energy efficient. Let’s take a look at some of the benefits of having an energy-efficient home.


There is no questioning or doubting it - New Energy Home’s commitment to reducing energy by 50% makes them eco-friendly.

Reducing carbon emissions is important, no matter the form it takes—electricity, heating oil, propane, natural gas, or some other energy form.

new energy homes reduce carbon emissions


Not only are New Energy Homes eco-friendly, but they are also more sustainable than traditionally-constructed homes.

Because of the focus on energy savings and efficient designs, building materials used in New Energy Homes are typically greener and made with more sustainable methods than normal home building supplies.

Low Carbon Footprint

New Energy Homes do their part in reducing the carbon footprint of the United States residential sector. It really is pretty simple - the less energy you need for your home, the lower your carbon emissions and footprint will be!

Grid Efficiency

One of the things not often discussed with energy efficiency is the rise of grid efficiency and stability. The less energy that homes or businesses need on any given power grid or circuit, the more stable and efficient the circuit becomes.

If your home needs less energy to function, especially during peak hours of the day (usually late afternoon and early evening), then your home is helping the stability of your local power grid.

Energy Savings

New Energy Homes focuses on making homes eco-friendly, but this comes with a financial benefit too: Lower utility and energy bills.

And while it is true that a New Energy Home may cost more to build initially, over time you will see that value being returned in your monthly budget as you save on your heating, cooling, and electric bills.

Also, depending on your state and the materials you use, you may also be eligible for government rebates or tax credits for using energy-efficient building materials.

(Want to find small ways to save on energy costs? Consider installing a stone coated metal roof.)

new energy homes save money on monthly energy bills

Increased Home Value

Along with the energy savings, you will see a financial return in your increased home value. Buyers are quicker to purchase a home or pay a higher price if they know the home is energy-efficient, eco-friendly, and has lower energy bills.

benefits of new energy home

Ways To Design A New Evergy Home

To achieve this 50% or more drop in energy usage, designers and contractors have to be very specific in the way they design and build the home.

The main goal of a New Energy Home is to control the temperature and heat transfer. The more a home transfers heat, either into or out of the home, the less efficient it is.

The goal in the summer is to keep the warm outside air from coming into the home. In the winter, the opposite is true—the cold air needs to stay outside the home.

How do builders eliminate this heat transfer and build a New Energy Home?

Hybrid Insulation

Insulation is one of the most critical elements in maintaining a consistent home temperature. New Energy Homes use a hybrid insulation package to maximize energy efficiency while minimizing heat loss.

hybrid insulation packages maximize energy efficiency

Building Materials

Choosing the right materials is an essential part of reducing the energy usage of any building, including a home. The windows, doors, siding, and other construction materials and methods need to all be chosen with peak efficiency in mind.

Structural Design

Although materials play a large part in saving energy, structural design also plays a critical role. New Energy Homes focus on creating an efficiently-designed foundation, basement, wall cavities, and other elements.

Energy Star Appliances

Choosing appliances that use little energy also plays an important part of your home saving energy. While it is not as critical as the heat transfer or controlling the temperature, appliances still play a role in a home’s energy savings.

No matter how you go about building a new energy home, you'll need an expert to help you get there. That's why hiring a good contractor is so important!

At K. Graber Construction, we build New Energy Homes in many parts of Indiana, and we would love to talk with you about taking this step in your next home!

What Is A Net-Zero Home?

Now that we have discussed New Energy Homes, let’s take a look at Net Zero Homes. Net Zero Homes take the New Energy Home concept to the next level!

So, what is a Net Zero home?

A Net Zero Home has the goal of reaching a net energy usage of zero. Through extreme energy efficiency, reducing heat transfer, and energy creation on the home, a Net Zero Home is able to eliminate its carbon footprint!

By using solar power or wind power, Net Zero Homes even have the potential to inject power into the grid. This power injection means that a Net Zero Home is not only carbon neutral - the home is actually becoming carbon negative.

through extreme energy efficiency

Benefits Of A Net Zero Home

The largest benefit by far of a Net Zero Home is the fact that it is carbon neutral or possibly carbon negative. Even though it might be a single home in a neighborhood, it still has a tremendous impact on the environment and local utility grid!

Many of the benefits are similar to a New Energy Home, but they come with greater benefits.

Let’s take a look.

Zero Carbon Footprint

Forget about contributing to global warming. You can have full peace of mind knowing your home is not contributing to the world’s carbon footprint.

Instead, there is a good possibility that you are helping to reduce the overall carbon footprint!

net zero homes reduce carbon footprint


As already mentioned, nothing is more eco-friendly than a building that has a carbon footprint of net-zero. And if they are adding energy to the grid and becoming carbon negative, then the environmental impact is truly amazing.


Net Zero Homes take sustainability to the next level. Not only is the home energy independent, but many of the construction materials are often LCCA (Life Cycle Cost Analysis) efficient as well.

LCCA efficient means the building products themselves are also sustainable and produced in eco-friendly and efficient ways. So not only is your home efficient, but the building materials were manufactured efficiently as well!

Grid Efficiency

With either solar or wind generation, there will probably be times that you will actually be putting energy back onto the grid. This further helps with grid stability and efficiency, especially with modern electronics in the solar and wind equipment.

Energy Savings

Yes, a Net Zero Home will have a higher initial cost. However, the energy savings over a home’s lifetime is also a large number, and many homeowners find they pay off the difference sooner than they thought.

Depending on your area’s energy prices, especially with utility costs continuing to rise, you will see an even greater payback.

Plus, solar and wind generation currently has tax incentives from the federal government, and many states also provide financial incentives for installing solar or wind.

Also, if you produce more power than you use, some states require the utility company to write you a check for your kWh production!

Increased Home Value

There is no doubt about it - having a home with no utility bill is a big seller!

Not only are you selling a home with no carbon footprint, but it also comes with no utility bill.

Net zero homes can make you money

Ways To Design A Net-Zero Home

Achieving a Net Zero Home begins the same way as a New Energy Home: the designer and contractor need to take special care in the building materials, methods, and appliances used on your home.

However, the materials and construction methods only get you partway there - basically the 50% energy savings.

To eliminate the other 50%, you need to install something that actually generates power, and we are not talking a diesel or propane home generator.

eliminate energy usage with solar or wind power

Challenges In Reaching A Net-Zero Home

The Net Zero Home concept is well on its way to achieving great things, and the idea of homes being either carbon neutral or carbon negative is becoming more attainable with new energy equipment.

However, Net Zero Homes do have some challenges.

They Cost More Than A Traditional Home

We’ve already discussed the fact that most homeowners see the financial difference paid off with the energy savings, but it is still a real fact: Net Zero Homes will usually cost more money upfront.

They Still Need To Be Connected To A Utility Grid

While it is tempting to think that Net Zero means not being connected to a utility grid, this is not usually true.

Because solar and wind power fluctuate based on the sun and wind, you still want your home to be connected to the utility grid. If you want to be truly off-grid, then a battery pack or AC generator will need to be installed, but most homeowners will save money long-term by remaining on the grid.

However, as solar, wind, and battery technology continues increasing and getting better, this could easily begin to change in the near future!

Solar technology makes net zero homes cheaper to construct

K. Graber Construction Can Help You With New Energy And Net Zero Homes

At K. Graber Construction, we work hard to help homeowners be green, sustainable, and energy-conscious in North-central Indiana.

We also offer:

To help with this mission, we build custom New Energy and Net Zero Homes for our valued clients.

If you are interested in the peace of mind and efficiency of a custom New Energy or Net Zero Home in Indiana, then contact the K. Graber team today!

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