Energy-efficient and zero-emissions homes may seem like an ambitious goal for the future, but many builders are adopting this trend to their advantage.
According to the ENERGY STAR program, over 12% of homes and apartment buildings built in the US in 2023 were ENERGY STAR certified.
Using ENERGY STAR’s certification requirements, builders can experience a wide range of benefits, from lower construction costs to increased marketability and customer referral.
This guide will discuss the benefits of seeking ENERGY STAR certification on new buildings and provide tips for builders to get started.
1. Qualify for Incentives and Rebates
ENERGY STAR-certified homes follow many rules and incentives laid out by both federal and state agencies, often qualifying builders for several additional tax credits and rebates. For example, ENERGY STAR-certified homes comply with all 45L tax credit requirements, earning builders $5,000 for single-family and manufactured homes.
Additional rebates and incentives may be earned through installing new insulation, energy-efficient heating materials, such as electric heat pumps, and ENERGY STAR appliances.
Benefit: ENERGY STAR-certified homes can offset several of the costs of constructing a home, leaving builders with more money in their pockets.
2. Reduce Construction Costs
ENERGY STAR requirements provide specific guidance to help builders maximize their resources and reduce waste. For example, ENERGY STAR offers guidelines that specify the specific size and load limit that HVAC systems can handle, saving builders money by preventing them from purchasing an oversized unit. Other savings can be achieved via more cost-effective building materials, including recycled materials, and by reducing lumber costs.
Benefit: When followed correctly, ENERGY STAR certification guidelines reduce waste and offer cost-effective alternatives that consume less embodied carbon.
3. Enhance Marketability and Brand Reputation
As median home prices across the US topple $360,000 (probably more by the time you read this), homeowners are looking to save money wherever possible. Therefore, energy-efficient homes that consume less energy and cost less to power can be a major selling point.
Likewise, builders who offer ENERGY STAR-certified homes can establish themselves as leaders in sustainable building practices, especially for eco-focused clients. In turn, this can help secure more contracts and differentiate builders in their local markets.
Benefit: Builders can differentiate themselves from competitors by marketing their homes as more energy-friendly.
4. Access to Marketing Support from ENERGY STAR
Furthermore, ENERGY STAR offers a range of marketing resources and support to builders who achieve certification. This includes access to the ENERGY STAR brand and logo, promotional materials, and placement in the ENERGY STAR partner database, which can help attract more customers.
Benefit: ENERGY STAR’s strong brand recognition can be an added boost to builders seeking to market themselves to home buyers.
5. Reduce Operating Costs for Homeowners
ENERGY STAR-certified homes use at least 10% less energy than standard homes built to code, helping homeowners save money. In fact, builders have reported fewer comfort-related complaints from buyers when it comes to marketing and selling ENERGY STAR-certified homes.,
Benefit: Lower utility costs increase the overall value proposition for potential buyers, making ENERGY STAR homes an attractive option and giving builders a strong selling point.
6. Meet and Exceed Local Building Codes and Regulations
Many local building codes and regulations–especially within cities–are increasingly focusing on environmental sustainability. By building ENERGY STAR-certified homes and following ENERGY STAR® NextGen™ standards, builders can not only meet but often exceed these requirements, sometimes earning them additional benefits when it comes to energy benchmarking. This proactive approach can help builders avoid potential legal or regulatory issues and demonstrate compliance with the latest standards.
Benefit: Staying ahead of regulations can minimize delays and costs associated with code compliance, allowing builders to focus on delivering high-quality homes.
7. Improve Construction Quality and Performance
Perhaps the most important benefit of ENERGY STAR-certified homes is that they follow the latest standards for quality. In turn, builders who comply with these standards can save money on quality assurance and control and achieve a more superior product.
Benefit: Higher construction quality leads to greater customer satisfaction, fewer costly repairs, and a better overall reputation in the market.
How Builders Can Get Started with ENERGY STAR Certification
Thankfully, there are several resources out there, from partnering with ENERGY STAR to energy consultants, that can help you become ENERGY STAR-certified.
- Partner with ENERGY STAR: Builders must first become an ENERGY STAR partner. This involves filling out an online application and agreeing to program requirements.
- Research ENERGY STAR Guidelines: ENERGY STAR provides thorough guidelines that outline specific measures, from insulation requirements to HVAC load limits, that are necessary to acquiring certification.
- Work with Energy Consultants: Energy-efficiency experts, like Path Light Pro, are knowledgeable in the latest building practices and ENERGY STAR guidelines, so that they can help you implement various measures that help you achieve certification.
- Verification and Testing: After construction, a third-party energy rater will inspect the home and conduct tests (e.g., blower door and duct leakage tests) to verify that it meets ENERGY STAR standards.
- Certification: Once the home passes inspection, it will receive ENERGY STAR certification, and the builder can market it as an ENERGY STAR-certified home.
For builders looking to stand out in a competitive market, ENERGY STAR certification offers numerous advantages that cannot be overstated. As the cost of building materials increases and mortgage rates remain uncertain, following ENERGY STAR guidelines may be a sure way of avoiding market volatility and saving you money in the long run.
FAQs
What steps are involved in obtaining ENERGY STAR certification for a home?
Builders must become ENERGY STAR partners, design homes to meet energy efficiency guidelines, ensure construction adheres to these standards, and pass verification tests by a third-party energy rater.
How does ENERGY STAR certification help builders stay compliant with local regulations?
ENERGY STAR-certified homes often exceed local building codes and energy efficiency regulations, helping builders avoid potential compliance issues.
Is the demand for ENERGY STAR-certified homes expected to grow?
Yes, as awareness of climate change and energy costs rises, more buyers are seeking homes that offer energy efficiency and sustainability, making ENERGY STAR-certified homes increasingly desirable.