In the highly competitive real estate field, sellers always look for ways to increase the value of their properties. In recent years, builders have invested more in constructing energy-efficient homes to gain a higher return on their investment.
According to data from EnergyStar, energy efficiency programs, ranging from new appliances to insulation, can add up to 2% to 8% resale value to your home.
Energy rating programs, such as HERS, were developed recently to help builders test their properties’ efficiency and comply with local regulations. However, energy raters provide several benefits, from higher pricing to access to tax credits. Let’s explore how energy ratings work and why builders should invest in them.
What is an Energy Rating?
An energy rating evaluates a property’s energy efficiency, quantifying how well it uses and conserves energy. Energy ratings consider several factors, such as insulation R-values, air leakage, HVAC systems, windows, and appliances.
The most commonly used and recognized energy rating metric is the Home Energy Rating System (HERS) Index, which scores homes on a scale from 0 to 100, with a lower score indicating a more energy-efficient home. A score of zero represents a net-zero home or a home that produces as much energy as it consumes.
To calculate an energy rating, a certified energy rater will consult several guidelines, including energy benchmarks for comparable properties based on size and location, blower door tests, thermal conversion factors, and more.
The Benefits of an Energy Rating for Homebuilders
An energy rating indicates how efficient a home is from an energy perspective, saving homeowners money and reducing their carbon footprint. However, a home energy rating also has several benefits, including improved construction quality and financial benefits for builders. Let’s explore!
1. Improved Construction Quality
Constructing an energy-efficient home requires careful attention to detail in areas like insulation, air sealing, and HVAC installation. An energy rater helps builders identify weak points that could lead to energy loss and fix them to deliver a higher-quality product.
2. Enhanced Market Appeal
From a financial perspective, builders who prioritize energy-efficient construction can charge more by marketing the financial benefit of an energy-efficient property.
According to the National Association of Home Builders (NAHB), buyers are often willing to pay more for homes with lower energy costs. A strong HERS Index score makes your homes stand out in a competitive market, giving potential buyers a clear reason to choose your property over others.
3. A Stamp of Approval: Increased Trust
When buyers see that a home has been professionally evaluated and rated for energy efficiency, it builds trust and confidence in the finished product. This “stamp of approval” reassures buyers that the home has been built with care and consideration for energy performance and other areas.
4. Cost Savings for Buyers
Energy-efficient homes save homeowners money on utility bills, a benefit that can be highlighted during the sales process. For instance, a home with a HERS Index score of 60 is approximately 40% more energy-efficient than a standard new home. These savings make the home more attractive and easier to sell.
5. Compliance with Building Codes
Many states and municipalities, especially in metropolitan areas, have adopted stricter energy codes that require homes to meet specific efficiency standards. Working with an energy rater ensures compliance with benchmarking laws and helps avoid regulatory penalties.
6. Positive Environmental Impact
Energy-efficient homes reduce greenhouse gas emissions and conserve resources. Builders prioritizing sustainability can position themselves as leaders in eco-friendly construction, appealing to environmentally conscious buyers.
7. Access to Financial Incentives
Building energy-efficient homes can help builders recoup some of the costs via the 45L tax credits and various rebates on the federal and state levels.
Tools and Tips for Achieving a High Energy Rating
To maximize the benefits of an energy rating, homebuilders can employ various tools and techniques throughout the construction process to improve their rating.
1. Partner with a Certified Energy Rater
The first step to improve your energy ratings is to partner with a certified energy rater, such as a RESNET HERS Rater.
These professionals are trained to evaluate energy performance, recommend improvements, and verify compliance with efficiency standards. In addition, an energy consultant can also help you implement various practices to help you achieve a better rating.
2. Focus on Insulation and Air Sealing
A major focus on energy ratings is improving the way that properties consume and conserve energy. Therefore, builders can help improve these areas by maximizing energy efficiency via insulation and air sealing.
To improve energy conservation, builders should:
- Use high-quality insulation materials with the appropriate R-value for the climate.
- Seal gaps, cracks, and penetrations in the building envelope to minimize air leakage.
- Conduct blower door tests to measure and improve airtightness.
3. Invest in High-Performance Windows and Doors
Another important area that is overlooked is windows and doors. Thankfully, there are lots of great technologies to prevent energy loss from windows and doors, including:
- Install ENERGY STAR-rated windows with low-emissivity (low-E) coatings.
- Use weatherstripping and caulking to seal around window and door frames.
- Choose double- or triple-pane windows for improved insulation.
- Install insulated exterior doors to reduce thermal transfer.
- Apply window films or use storm doors for additional energy savings.
4. Optimize HVAC Systems
Likewise, heating, ventilation, and air conditioning systems account for a significant portion of a home’s energy use. This article outlines RESNET recommendations for ways to improve HVAC performance and the latest guidance on high-efficiency technologies.
5. Choose Energy-Efficient Appliances and Lighting
Selecting ENERGY STAR-rated appliances and LED lighting is an affordable way for builders to conserve energy and improve their builds’ value.
6. Use Advanced Framing Techniques
Builders should also consider advanced framing techniques, such as longer stud spacing and minimized lumber use, that reduce thermal bridging and improve insulation effectiveness. These methods enhance energy efficiency, lower material costs, and streamline the construction process.
7. Conduct Energy Modeling
Energy modeling software can predict a home’s energy performance during the design phase and help builders draft a plan to reduce energy usage and foster greater energy conservation. This tool helps builders make informed decisions about materials, systems, and construction methods to achieve the desired energy rating.
Energy Ratings as a Selling Point
Energy ratings are not just technical assessments but powerful marketing tools that can deliver powerful financial benefits. By working with an energy rater, builders can improve their energy rating and help position them as a leaders in energy efficiency in their local market.
FAQs
What is the HERS Index?
The HERS Index is a scoring system that rates a home’s energy efficiency on a scale from 0 to 100. A lower score indicates greater energy efficiency, with 0 representing a net-zero energy home.
What tools and techniques are used to improve energy ratings?
Common techniques include high-quality insulation, advanced framing methods, ENERGY STAR-rated appliances, efficient HVAC systems, and airtight construction with proper sealing.
Are energy-efficient homes more expensive to build?
While some energy-efficient features may have higher upfront costs, they often result in long-term savings for homeowners and increased property value.