Energy Efficiency in Homes

Building energy efficient homes and improving energyconditioning and water heater performance,
efficiency in our homes can increase their value.replacement of appliances in the home, and installation
Over the past few years, there has been a groundof energy efficient lighting such as Compact
swell of Green building interest by home buyers andFlorescent Lamps (CFL's).
builders. In response to the growing demand toOther construction design aspects can have a
conserve energy in our homes, there are severalsignificant impact on the energy performance of a
new mortgage programs that allow home buyers tohome. Insulation levels should be adequate for the
finance the cost of energy improvements into theirenvironment, and more importantly, proper installation
mortgage, to increase their loan-to-value, or improveof the insulation is critical in ensuring it is performing
their qualifying ratios. Some of the more commonto the expected levels. Air infiltration and leakage can
improvements that are used to make homes morebe another area where hidden openings in the building
energy efficient include the addition of new windows,shell can cause heat and cooling losses to occur,
high efficiency heating/cooling systems, and improvedreducing the efficiency of the home's performance.
insulation. All of these contribute to reduced energyIn addition to performance of individual components
use, and also to making homes quieter, morein a home, the EPA's Energy Star Program also
comfortable, and more desirable.works with builders to qualify and certify home
Mortgage Programsperformance, to ensure that maximum performance
These programs allow buyers to purchase a moreis achieved. ENERGY STAR® qualified homes are
expensive home that has a lower cost of ownershipdesigned to be at least 15 percent more energy
to offset the larger mortgage payment. There are 2efficient than homes built to the 2004 International
types of financing options available that cover aResidential Code (IRC). ENERGY STAR® qualified
variety of scenarios for energy efficient homes.ohomes offer homebuyers all the features they want
Energy Efficient Mortgages (EEM's) allow borrowersin a new home, plus energy-efficient improvements
to qualify for a larger loan, using expanded incomethat deliver better performance, greater comfort,
ratios, sometimes with the same down payment.oand lower utility bills.
Energy Improvement Mortgages (EIM's) allowENERGY STAR® homes have had their energy
borrowers to include in the mortgage the cost ofefficiency independently verified by an inspector
making an existing home more energy efficient, whenknown as a Home Energy rater. A HERS Rater will
they refinance or purchase the home.inspect and test the home during construction, and
These products are available through your localverify that the home meets EPA's strict guidelines for
mortgage brokers and banks using FNMA, FHLMC,energy efficiency.
FHA, and VA guidelines.RESNET; Establishes rules for the energy rating
EPACT 2005-2008 provides $2000 Builder Tax Creditindustry
The Energy Policy Act of 2005 established a federalIn 1995 RESNET was founded to develop a national
tax credit for builders that apply to each home thatmarket for home energy ratings and energy efficient
exceeds the energy performance threshold outlinedmortgages. One main goal of RESNET was the
in the 2004 International Energy Conservation Codedevelopment of standards for quality of rating
(IECC2004). Eligible homes must be at least 50%services. The standards set the national procedures
more efficient than homes built to the IECC2004. It isfor home energy ratings, and include testing and
fairly easy for builders to achieve this threshold byaccreditation for raters and providers, development
building tighter homes, installing high-performanceof verification processes for homes meeting ENERGY
insulation, and sealing duct work. The best way for aSTAR® and energy efficient building standards,
builder to find out how to meet EPACT is to consultas well as meeting local Energy Code compliance.
with a certified RESNET (Residential Energy ServicesA certified HERS Rater follows a prescribed standard
Network) Home Energy Rater. In order for a builderfor how a home is measured, verified and rated, and
to receive a $2000 tax credit, the home must bemust comply with national standards to continue to
rated by a RESNET certified rater using IRSperform certified ratings.
approved software. For more information, visitWhat is an energy audit or HERS Rating
What makes a home energy efficient?A Home Energy Rating, performed by a Certified
The cost of heating and cooling a home representsHERS Rater, consists of a full visual analysis of
the largest cost of ownership, outside of the homecomponents and aspects of the home, along with
mortgage expense. Everyone wants a home that isenergy performance testing of air infiltration with a
comfortable to live in, and yet the costs associatedtool called a blower door. Evaluation of home energy
with reaching a comfortable level can be very high.bills can also be included. A blower door slightly
Energy Efficiency can be defined as the use ofde-pressurizes the home and determines the amount
products or systems that use less energy to do theof air leakage present. The home is compared to a
same or better job as conventional products. Inhypothetical reference home which is based on the
home construction and performance, there are manyIECC 2004, and the home is then provided with a
areas where energy efficiency can be achieved, torating. The rating can be a numerical HERS rating or a
allow you to meet those desired comfort levels.'star' rating based upon ENERGY STAR®
The EPA's ENERGY STAR® program hasrequirements.
developed a process for evaluating products used inAlong with the actual performance rating, the
a home, such as appliances, windows, lighting andhomeowner will be provided with details on areas of
other products that meet or exceed certainthe home that need to be improved, in order to
efficiency standards or recommendations. Whenfurther save energy costs and improve the comfort
choosing products for a home, ensure the productsand efficiency of the home.
meet Energy Star ratings. This can include furnace, air