The intent of this solicitation is to develop, test and demonstrate zero-carbon or near-zero-carbon (collectively “ZC”), cost-effective, modular and manufactured homes (collectively “prefabricated homes”) that can be readily deployed, particularly in under-resourced communities including California Native American Tribes.
The prefabricated housing industry generally has minimal research and product innovation, except in meeting code requirements. By involving key prefabricated and manufactured home industry stakeholders in the development process, they share ownership of the results, and increase the opportunity to gain widespread and immediate market acceptance. Economically integrating energy efficiency solutions at the factory with advancements in manufacturing processes can reduce production costs and make the homes affordable. The results of projects funded by this solicitation can increase cost-effectiveness of energy efficient prefabricated homes in under-resourced communities, including in fire-prone areas.
The purpose of this solicitation is to fund the demonstration of prefabricated homes that integrate advanced energy efficiency and renewable energy features that meet all the following objectives:
are all electric, using no fossil fuel;
include solar photovoltaic (PV) system with energy storage;
have the capability to provide backup power to the home during power outages;
be affordable from a first cost and operation perspective, such as, have a 10-year cost of ownership that is less than or equal to a home built to Housing and Urban Development (HUD) standards for manufactured homes or the 2022 Title 24 Building Energy Efficiency Standards for modular construction.
This solicitation is based on the EPIC interim Investment plan and allocates $15M for ZC prefabricated homes. The motivation for this initiative was to address home affordability and create and demonstrate resilient, ZC energy efficient prefabricated homes. This research initiative focuses on the following two types of prefabricated homes:
- Manufactured homes: These homes are built on steel chassis and transported to the site. The destination of these homes are mobile home parks and private lots. These homes are built quickly and more affordably in a factory setting compared to standard construction. However, these manufactured homes only need to meet the U.S. Housing and Urban Development’s (HUD) efficiency standards, which are less energy efficient than the California 2019 Title 24 Building Energy Efficiency Standards. As a result, ratepayers in this sector, who are often low-income, pay twice as much in energy costs (per square foot) than those who live in homes that are built to current Title 24 Building Energy Efficiency Standards. These homes are financed using chattel loans because the underlying land is generally rented or leased and not part of the loan financing. Chattel loans are secured by the manufactured home and not the land. As a result, interest rates are higher than for conventional site built/modular homes which include the building and the land.
- Modular homes: These homes are created in sections and then transported to the home site for construction and installation. These are typically installed and treated like a standard house for financing, appraisal, and construction purposes. Although the sections of the house are prefabricated, the sections or modules, are put together at the construction site. These homes must meet California’s Title 24 Building Energy Efficiency Standards. Modular construction enables home customization to include standardized energy-efficiency measures and can serve as a path to increasing all electric, ZC-home penetration. Modular construction can create a tight, well-insulated and air-sealed building envelopes, resulting in downsizing heating, ventilation, and air-conditioning (HVAC) systems and reducing building energy consumption and can reduce construction costs compared to standard construction.
here is up to $7,500,000 per group available for grants awarded under this solicitation. The total, minimum, and maximum funding amounts for each project group are listed below.Project Group | Available funding | Minimum award amount | Maximum award amount | Minimum match funding (% of EPIC Funds Requested) |
Group 1: Develop, Test and Demonstrate Innovative Manufactured Homes | $7,500,000 | $2,000,000 | $7,500,000 | 0% |
Group 2: Develop, Test and Demonstrate Innovative Modular Homes. | $7,500,000 | $2,000,000 | $7,500,000 | 0% |
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