Southern Company tests affordable “smart neighborhood” concept

A rendering of the Nicor Gas Smart Neighborhood in Illinois. Credit: Nicor Gas.

Utilities that provide natural gas in states with net-zero goals are in a bit of a bind. They understand that at least according to the current laws, gas will be phased out in an all-electric future but exactly when and how that will need to happen is unclear.

On October 26, Illinois-based Nicor Gas and Southern Company announced a new partnership with the Fox Valley and Northern Fox Valley Habitat for Humanity affiliates to develop “Smart Neighborhood” communities dedicated to providing affordable, net zero greenhouse gas emissions housing options in the Chicago area.

“These neighborhoods are part of Southern Company’s research initiative to determine what homes and smart home automation will look like in 2040,” said a spokesperson for Nicor Gas in an email.

The two planned communities, one in Aurora and a second being developed in Northern Fox Valley, will total 30 single-family net zero emissions homes equipped with a combination of renewable, electric, and natural gas technologies. They are intended to be among the most energy-efficient in the country, with improved reliability, increased use of distributed energy resources and decreased operating costs, according to the company.

Also known as CARE communities (Carbon-neutral, Affordable, Resilient and Efficient), each “Smart Neighborhood” will come with high efficiency building envelopes, solar panels and battery solutions that will allow for further reliability in the event of storms or inclement weather.

Similar smart neighborhoods have already been developed by Southern Company in Georgia and Alabama with another in Mississippi coming soon, said the spokesperson.

“The Aurora community will be the first Smart Neighborhood to be built in Illinois and will launch a three-year research study to examine how natural gas can be part of the solution toward meeting net-zero energy goals,” said the spokesperson. “As carbon neutral technologies advance, Nicor Gas believes it is critical to make energy efficient homes and upgrades affordable so that everyone can enjoy the savings, while reducing their carbon footprint,” she added.

Affordable, equitable, and efficient

The program will select the residents to live in the homes based on a combination of need, willingness to partner with Habitat, and ability to pay the mortgage. Homes are expected to appraise for around $325,000 said the Nicor Gas spokesperson who added that the average home values in Aurora are between $275K-$375K.

“Habitat will develop and sell the homes and Nicor Gas will provide the net zero strategy and technology to make residents’ use of energy carbon neutral,” said the spokesperson.

As with all Habitat homes, homebuyers invest approximately 500 hours of their own labor, called sweat equity, working alongside volunteers and other Habitat homeowners, in addition to paying an affordable mortgage and receiving financial education. Habitat for Humanity follows a nondiscriminatory policy of family selection, the spokesperson said.

In addition, the homes will be single story and have accessible entrances for residents who need special accommodations and wish to stay in their home long-term. Because the homes will be equipped with energy efficient appliances and home automation, monthly energy costs and other living expenses should be manageable, said Nicor Gas.

Habitat for Humanity Fox Valley will be responsible for selecting families through an application process for the first Smart Neighborhood development in Aurora, IL.

“We’re only now at the beginning of imagining the potential within renewable technology and the resiliency of a net zero future,” said Wendell Dallas, president and CEO of Nicor Gas. “As we enter this fourth industrial revolution, we must be more than innovative but inclusive to ensure everyone is able to enjoy the cost savings and the satisfaction of knowing they are doing their part to ensure a clean energy future for their communities.”

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