Landing Page

What Is a Net Zero Home? 8 Ways Builders Are Creating Homes That Can Produce as Much Energy as They Use

Imagine living in a new home capable of producing as much energy as it uses – a house designed with a focus on energy efficiency, health and comfort, major savings on your bills, and sustainability front-of-mind.

Enter the net zero home, defined by government officials as a home that’s so energy efficient, it’s renewable energy systems can offset most – or all – of the home’s annual energy use.

And you don’t have to go fully net zero right away. Many builders – and the states and cities they’re developing homes in – are now offering “net zero-ready” homes, built to be easily upgraded to net zero in the future. The cause is being spearheaded by organizations such as the U.S. Department of Energy, the Zero Energy Project, the Building Science Institute – even the California Building Industry Association.

Here’s a closer look at how builders and homebuyers are designing these sustainable homes, why they’re gaining momentum, and what to look for in a net zero-ready home.

What Makes a Home Net Zero?

A net zero home is not just a traditional house with solar panels and LED lights slapped on top. It’s an all-encompassing integrated system of high-performance materials, smart design strategies, and the latest technology.

According to the U.S. Department of Energy, these homes typically have these key components:

1. Super-insulated walls, roofs, and floors to create an airtight building envelope, preventing drafts and reducing loss of heating and cooling through the seasons

2. High performance windows to further cut energy loss and provide natural light and ambiance

3. A solar-ready foundation, either with solar panels already installed or well-equipped to add solar powered infrastructure to the rooftop

4. Fresh air ventilation that refreshes indoor air over three times a day, eliminating harmful pollutants and moisture

5. Energy-efficient HVAC systems like geothermal heat pumps that provide self-sustainable heating and cooling

6. Preparations for an all-electric future, including EV charging, laying the groundwork for next-gen energy technology upfront instead of retrofitting later on. Expect all-electric appliances, like induction stoves and water heating too

7. Safe and sustainable building materials, made with non-toxic, low-emission products across paints, tiling, carpeting, and wood

8. Energy efficient appliances; as a baseline, these net zero homes are outfitted with ENERGY STAR specified major appliances and LED lighting, which is up to 75% more efficient than fluorescent or incandescent lights

Many net zero homes also include smart home technology that monitors, manages, and adjusts energy usage in real time, too.

The full result? A home that’s functioning without any waste of resources – lowering utility bills, reducing carbon emissions, and creating a more comfortable living space.

Why Net Zero Homes Are Gaining Momentum

A perfect storm of rising energy costs, evolving regulations, and changing buyer preferences is fueling the momentum behind net zero homes.

1. Rising Utility Costs

Industry estimates suggest average monthly electric bills increased by $22 per month or $264 annually between 2021 and 2024. Gas prices have been volatile for years, too. And only midway through 2025, nearly 60 utility companies have either already increased electricity and gas prices or preparing price hikes.

Net zero homes help buffer homeowners from unpredictable spikes by drastically reducing their reliance on the grid. You’re essentially self-sufficient, creating your solar power and geothermal heating and cooling, stabilizing your monthly energy expenses in the process.

2. Stricter Energy Codes and Net Zero Targets Across U.S. States

California, Massachusetts, New York, Colorado, Maryland, Washington – several states are leading the way on net-zero ready homes via building code updates, voluntary stretch codes, and net zero targets and standards for residential property.

Some are even managed by local jurisdictions that are requiring homes to include solar power, solar-ready roofs, and stronger energy efficiency standards.

Take, for example, a coalition of states led by the American Council for an Energy-Efficient Economy – or ACEEE – which is developing stronger building codes that will “significantly” lower utility bills for homeowners while achieving zero emissions for new homes.

3. Demand from Younger Buyers

Younger homebuyers are driving the interest in net zero homes out of concern for the environment.

They’re the most passionate about sustainability across energy efficient appliances, smart energy use monitoring, and a willingness to invest in renewable energy.

What to Look for in a Net Zero or Net Zero-Ready Home

If you’re shopping for a net zero home, ask your builder about:

  • Certifications: Look for homes that meet DOE’s Zero Energy Ready Home standards or any state and municipal certifications that may be in place where you live. Some of these certifications come with rebates and incentives that help you or your builder with upfront costs.

  • The home’s HERS score: The Home Energy Rating System (HERS) score rates a home’s energy efficiency. A lower score means better performance – with a zero score indicates net zero energy use.

  • The solar plan: If the home includes or is ready for solar, ask about panel capacity, battery storage options, and local utility incentives. You may be ready to include solar power into your energy mix or it could be something you’d like to work toward as you settle into your new home.

  • Insulation and air sealing: Proper insulation and airtight construction are critical for reducing energy demand.

  • Future-proofing: Is the home wired for EV charging? Does it support future upgrades like home batteries or geothermal systems? Your builder may have already incorporated capabilities, such as space for geothermal heat pumps, solar paneling connected to the home’s energy grid, and all-electric appliances.

Whether you’re looking to reduce your environmental impact, lock in long-term energy savings, or stay ahead of future building standards, a net zero or net zero–ready home might be the smartest investment you can make.

Follow NewHomeSource on Instagram and Facebook.

carmen-chai

Carmen Chai

Carmen Chai is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. For NewHomeSource, Carmen covers a variety of topics, including insurance, mortgages, and more.