August 2023 Source Energy Page 5
Onsite Fuel Conversion
The objective of the conversion to source energy is to quantify the total amount of energy, by accounting for
conversion, transmission, and distribution losses. When energy conversion occurs on site, the losses (or gains) from
this conversion are accounted for in site energy because the building is assessed based on the fuel that is
purchased. Conversion of fuel on site can take a variety of forms. At a simple level, this could include combustion of
natural gas in a boiler to generate heat. A more complex system may be a Combined Heat and Power (CHP) system,
which converts natural gas into both heat and electricity. In the case of either a CHP system or a natural gas boiler,
the required input for Portfolio Manager is the natural gas fuel purchase. The efficiency of the energy conversion (by
the boiler or CHP system) is reflected in the quantity of natural gas purchased, and the source conversion factor for
natural gas accounts for only the transmission and distribution losses.
If the boiler or CHP system produces heat and/or electricity more efficiently than these products can be produced by
the utility, then the conversion loss on site is not as great as the conversion loss associated with purchasing those
products from a utility. In this case, the building with the efficient CHP system or boiler would use less total energy
than a building purchasing equivalent heat and electricity from a utility; hence, the building with the efficient CHP
system or boiler will have lower (better) source energy. Sometimes the reverse can be true, and the onsite production
will be less efficient. A building with production that is less efficient than the average utility will not score as well as a
building purchasing those products from the utility. The efficiency of any specific equipment at a building will depend
on proper installation, operation, and maintenance.
Offsite Renewable Electricity Generation
The electric grid includes a variety of renewable sources of electricity, including wind power, solar power, and low-
impact hydroelectric power. These renewable sources of energy do not depend on the consumption of any fossil
fuels; rather there is conversion of energy directly from sun, wind, or moving water. Although renewable energy is not
subject to the same conversion losses as other fuels, an individual building is typically not able to trace each kWh of
electricity to a specific power generation plant. Therefore, a building may be located in a utility region that includes
multiple forms of electric generation including wind, hydroelectric, and coal but because the grid is interconnected, it
is not possible to assign a specific production method to a specific building. Moreover, as noted above, individual
buildings do not have control over the available power supply options in their geographic area. Therefore, Portfolio
Manager uses national source-site ratios, which reflect the proportion of renewable electric generation on the national
grid.
Source energy and the ENERGY STAR score are focused on energy consumption, not the energy supplier or
resulting greenhouse gas emissions. The application of a single national electric factor ensures that no particular
building is credited or penalized based on its utility provider. By focusing on the building rather than the energy
supply, the score can help a building owner or manager optimize his or her energy efficiency. Efficiency is the first
step to achieving a zero-carbon building. Once a building is as energy efficient as possible, the purchase of green
power, through either utility green pricing products or Renewable Energy Certificates (RECs), is an option for
reducing indirect greenhouse gas emissions and reducing the overall carbon footprint. Portfolio Manager enables
tracking of these green power purchases and the corresponding avoided emissions. It is recommended that these
purchases be tracked alongside the building energy efficiency (i.e. score), to motivate superior, high performance
buildings. Note that the purchase of green power does not make the building itself any more or less efficient in its
energy consumption. Hence, green power does not impact the source energy or score calculations. For more
information, refer to the Technical Reference on Green Power, at www.energystar.gov/GreenPower
.