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Treasury & IRS Guidance on Energy Credit to Home Builders

 

Energy Rated Homes of Utah is offering Home Energy Rater Training workshops for 2007.

 
 


 

 

 

 

 

 


 

 

 

 

 


Do you have any upcoming training seminars or workshops related to the EPA Energy Star Homes Program or Energy Efficiency?
  Here is a list of the most current workshops that we are aware of for 2007.
Home Energy Rater Training Dates and Information (2007)
Training Registration Form

 

 

I'm on a tight schedule. How will working with Energy Rated Homes of Utah impact my schedule and time-line?

 

At ERHU, we pride ourselves on our ability to integrate with your schedule and cause you no delays in your current schedule. We have made a concentrated effort to understand the issues that are important to builders and focus on them. We strive to respond to all inquiries within 2-3 business days whenever possible.

Buyers aren't asking for this “stuff”, why should I do it?

 

That is an excellent question, and one we hear a lot. Here is our answer to this question.

If you as a builder:

  • are interested in differentiating yourself from the competition, it makes sense to build as efficiently as possible.
  • don't want to be left behind as more and more builders adopt high-performance energy standards, it makes sense to make this “stuff” standard practice in all your homes.
  • don't want to be perceived as building a home of lesser quality, it makes perfect sense.
  • would like to give your sales people an additional tool to sell and market your houses, it makes perfect sense.
  • would like to add quality control or supplement your current measures and improve liability avoidance, it makes great financial sense.
  • want to be able to take advantage of federal & state tax credits (when they become available), it makes sense.

How much will it cost?

 

Building a high-performance home costs anywhere from a few hundred to a few thousand dollars. Typical high performance energy efficient changes affect the insulation systems, mechanical systems, windows and your air-sealing practices. Some of these are easy and some require some effort. ERHU works with all of its builder clients to train and provide a measure of quality control to their work. For a direct quote on your costs for our services, please call 1.800.550.8322
I'm concerned about liability issues, what about that?

 

Nothing that ERHU typically recommends is anything other than tried and true sound building practices. Some builders enjoy experimenting, but most don't. Our recommended changes are designed to decrease your liability exposure. Implementing a quality assurance program with an independent 3 rd party outside organization forms a strong part of any liability protection.
I already have a QC/QA program, why do I need you?

 

Few QC/QA programs pay any attention to the issues that surround high-performance energy efficient construction. We are focused on all of the elements that typically are left out of many builders QC/QA programs. For example, few QC/QA programs give adequate attention to insulation or HVAC issues. Not only are we engaged in visual inspections to ensure quality, but we can also perform a complete set of diagnostic tests to ensure that work was done properly and any sub standard situations don't go uncorrected.
Can I customize your services to meet my specific needs?

 

Absolutely! We are able to customize a program of tests and inspections to meet your unique needs. We will be happy to meet with you to hear what is important to you and make suggestions. Please don’t hesitate to contact us @ 1.800.550.8322 or via email: info@utahenergy.org .

Who are you and why are you in my office?

 

We are Energy Rated Homes of Utah, a subsidiary of Utah Energy Conservation Coalition a 501(c)(3) organization. We provide services throughout the Wasatch Front and along the I-15 corridor in Utah. We work with a wide variety of builders from custom home builders to some of the largest builders in the state. Our range of services is complete and constantly evolving to meet our client's needs. It would be our honor to get to know you and assist you in providing energy efficient housing in Utah.
 
 

What are some "TIPS" that I can use to make my house more energy efficient?

Why Have an Energy Efficient Home?

What is A Home Energy Rating?

What Are the Benefits of an Energy Rating?

What Are the Benefits to the Housing Industry?

Why Should the Mortgage Industry Be Interested in Home Energy Ratings?

What is an Energy Efficient Mortgage (EEM)?

Energy efficient mortgages offer opportunities to:

What is an Energy Improvement Mortgage (EIM)?

Energy improvement mortgages offer home buyers of existing homes opportunities to:

Who Do I Contact to Set up an Appointment for a Rating?

How Can I Be Assured That I Am Getting Consistent and Professional Information?

What is a Blower Door Test?

How Much Time is Required to Have a Rating Done on My Home?

What are some methods of measuring duct leakage in a house?

Where Can I Obtain Additional Information?

 

 

 

What are some "TIPS" that I can use to make my house more energy efficient?

Turn It Down !

Turn down the furnace thermostat. You can save as much as $3-$5 per month by simply turning down the thermostat one degree, and another $15-$25 by setting it back 5 degrees at night or when no one is at home. Installing a set-back thermostat will do this automatically. Remember, keeping your furnace clean and in good repair will ensure that it runs to peak efficiency. It is good practice to change your furnace filter monthly during the heating season.
Turn down the water heater thermostat.

Most people have their water heaters turned up way too high (160 degrees), 120 degrees (the low setting for gas water heaters) is high enough to meet your hot water needs. Wrapping your water heater and inlet and outlet pipes with additional insulation will decrease heat loss and pay for itself in less than one year.
Use low wattage task lighting where illumination is needed only for a small area, such as a favorite reading chair. Consider replacing frequently used high wattage bulbs with compact fluorescent light that last ten times as long as incandescent bulbs.
Install low-flow showerheads. Typically a standard showerhead allows more water flow than is needed. Installing a low-flow showerhead can save you close to 10 gallons during a five minute shower.

Seal It Up !

Caulk, weather-strip, and foam to seal air leaks. Even though you may have a furnace and an air conditioner that run at or above standard efficiency, losing all that conditioned air through leaks in your house is truly "conditioning the great outdoors". Pay special attention to the areas around windows and doors, where pipes enter walls, around light switch and outlet boxes (foam gaskets work best), and anywhere two materials meet. Caulk the interior of wall cracks, not the exterior. Use rope caulk around very leaky windows. Weather-strip your attic access hatch to prevent conditioned air from escaping. Seal your exposed air ducts with mastic or metal butyl tape and wrap them with insulation.
Close your fireplace damper when it is not in use. Don't ever start a fire and turn up the furnace thermostat at the same time! If you rarely or never use your fireplace, consider covering the opening with cardboard or some other type of material to decrease loss of conditioned air.
Repair or replace windows. When repairing windows, don't seal cracks in the glass, replace the whole pane. Make sure your windows shut tight and fit properly. Windows are expensive to replace, if you are considering replacing all or a large portion of your windows, make sure it will be a cost effective upgrade.

Fill It In !

Make sure walls, attics, and floors are filled with adequate insulation. Too often existing homes have little or no insulation in the walls and attics. Removing switch plates or outlet covers on outside walls and paying a visit to your attic can help you determine how much insulation you have working for you during those cold winters and hot summers. Attic insulation should be at an R-30 or greater level for a cold climate. The type of insulation you have in your attic determines the thickness and R value present. An insulation specialist can help you determine if it is necessary to add to your attic insulation. The R value of the insulation in your walls is harder to determine and difficult to increase. With typical 2 x 4 construction, you should have at least an R-11 in your walls. If your walls have no insulation and there is space to add it, consider having insulation blown-in. This will help to keep the conditioned air in and your energy bills down. Make sure that it is a cost effective improvement. If you have an unfinished basement or crawlspace, adding insulation to the ceiling (floor joist) will work to ensure that you are not allowing heat to travel to this area. Heat only the areas that you want to heat and not the unconditioned parts of your home.

Keep It Full !

Wash only full loads of clothes and dishes, but do not overload or oversuds. Wash clothes in cold or warm water and rinse in cold. Always remember to vent your clothes dryer to the outside.
Keep your freezer full, even if only with containers of water, to keep it operating at peak efficiency. If you have a second freezer or refrigerator, be aware that it may be costing you more than $20 per month. Remember to vacuum the condenser coils on your refrigerator or freezer every three months. Also, replace your refrigerator door seal when it becomes worn. To keep your freezer running efficiently, defrost it whenever the ice inside gets to be a quarter inch thick.
Use small cooking appliances like microwaves, frying pans, and crock pots. Save the big appliances for the big jobs.

Make It Happen !

The most important thing you can do to increase your home's energy efficiency is to determine what your needs are, make a plan, and do it! You may not do everything at once, but each improvement will add to your comfort and increase your savings!

Check It Out !

Energy Savers Booklet (Get Acrobat Reader)
Basic Energy Conservation Checklist
Home Energy Savings

 

Why Have an Energy Efficient Home?

  • Utility expenses are one of the largest costs of home ownership after the mortgage.
  • Energy efficient homes save money on utility bills and provide greater comfort.
  • Reduces environmental pollution.

What is A Home Energy Rating?

  • A measurement of a home's overall energy efficiency by a Home Energy Rater, similar to knowing the miles per gallon rating for your car.
  • Data is recorded and analyzed from the energy using and energy saving features of the home.
  • The information is then translated into a multiple point system and given a specific energy rating depending on the number of points the home achieved.
  • The energy ratings range from 1 STAR to 5 STAR (0-100 points).
  • The average rating fee is about $350.00. Some rating fees may be incorporated within your mortgage costs--check with your local lending institution for details.

What Are the Benefits of an Energy Rating?

  • To pinpoint specific areas that are wasting energy and money.
  • To participate in various Home Energy Loan and Energy Mortgage programs.
  • To know before you buy a home whether it's energy efficient or an energy waster.
  • To offer as a valuable selling point for a home.

What Are the Benefits to the Housing Industry?

Lenders

  • larger loan volume and higher loan amounts
  • unique marketing niche
  • more qualified buyers

Buyers

  • more house for the money, more money for the house
  • lower operating costs
  • increased comfort and resale value

Sellers

  • a home that stands out in a crowd
  • more qualified buyers

REALTORS®

  • more qualified buyers
  • increase listings and commissions
  • enhance customer service
  • future inclusion in the MLS

Builders

  • energy design analysis
  • more qualified buyers

Why Should the Mortgage Industry Be Interested in Home Energy Ratings?

A 20% national market penetration in energy ratings would result annually in:

  • 1.6 million homes rated
  • a minimum 11% increase in first-time buyer activity
  • an $8 billion investment in energy improvements
  • additional mortgage payments of $640 million, higher resale value and,
  • the creation pf 50,000 full-time jobs

(Data from: Indiana Office of Energy Policy, 1985 and "The Effect of the Shelter Industry Energy Rated Homes System on Home Ownership", Harvard/MIT, 1985)

What is an Energy Efficient Mortgage (EEM)?

  • An EEM allows the home buyer to finance 100% of the energy improvements.
  • Works best when a Home Energy Rating System documents the relative efficiency the home.
  • FHA allows home buyers to finance the energy efficiency of a new home above its appraised value when the home energy rating documents of the home exceeds the Current Energy Code in place in that area.
  • Through this program, home buyers can purchase homes whose prices exceed FHA limits.

Energy efficient mortgages offer opportunities to:

  • Help more lower and middle class families achieve the dream of home ownership.
  • Purchase higher quality and more affordable housing.
  • Create a market demand and value for energy efficient homes.
  • Catapult new construction standards above minimum energy codes.

The Buyer of an Energy Efficient Home Can Get a Bigger Mortgage Loan and More Easily Afford a Dream Home!

What is an Energy Improvement Mortgage (EIM)?

  • Energy Efficient Mortgages finance cost-effective energy improvements at the time of sale or refinancing.
  • A home energy rater inspects the home and recommends cost-effective improvements.
  • The funds for the improvements are placed into an escrow by the lending institution.
  • A post-improvement rating is performed to confirm the improvements were installed. The lending institution then releases the escrow funds to pay for materials and contracted labor.
  • The FHA and VA Energy Improvement Mortgage programs can finance improvements above the appraised value, if the measures are shown to be economical.

Energy improvement mortgages offer home buyers of existing homes opportunities to:

  • Upgrade the homes they are buying immediately without tapping the family's savings or taking out a higher interest, home improvement loan.
  • Own a more comfortable home that costs less to heat and cool.
  • Net a better return when selling because of the higher resale value.

Example II: Energy Improvement Mortgage

$95,000 VA 30-Year Mortgage at 7.5% Interest
(Source: Energy Rated Homes of Utah.)

Monthly Costs

With $4,000 in energy improvements Without energy improvements
Monthly mortgage payment $699.67 $664.25
Monthly energy expenses $114.00 $190.00
Total monthly cost $813.67 $854.25

 

The buyer in this example reduces his monthly housing costs by $41, nearly $500 a year, and has a more comfortable and durable home, after making the energy efficiency improvements.

Who Do I Contact to Set up an Appointment for a Rating?

  • All of the Energy Rated Homes of Utah (ERHU) certified Home Energy Raters are independent contractors.
  • A current list may be obtained by contacting ERHU directly. Please be sure to contact all of the raters in your area for price quotes since prices may vary. Also, ask them for references.

Utah Energy Raters

How Can I Be Assured That I Am Getting Consistent and Professional Information?

  • Energy Rated Homes of Utah is associated with RESNET (Residential Energy Services Network) which is a nationally recognized association with a collective investment of over $15 million.
  • All ratings are professionally reviewed and centrally processed by ERHU.
  • All Home Energy Raters must complete a rigorous education and testing process to ensure quality is maintained at all levels.

What is a Blower Door Test?

  • A blower door test is performed as part of the Home Energy Rating.
  • It pinpoints areas of air leakage that cannot be seen otherwise.

How Much Time is Required to Have a Rating Done on My Home?

  • The time it takes to perform a rating will vary somewhat depending on the size of the house.
  • You should expect a rating to last about 1-2 hours.

What are some methods of measuring duct leakage in a house?

METHODS OF MEASURING DUCT LEAKAGE

METHOD
DIAGNOSTIC EQUIPMENT NEEDED
GENERAL DESCRIPTION OF TEST PROCEDURES
Simple Subtraction
Blower Door
Pressurize house and all ducts (recommend 50 Pa). Record Cfm 50 level.
Tape off all supply and return registers and grills. Pressurize house again (same level if possible). Record Cfm 50 level.
Untaped Cfm 50 – tapes Cfm 50 = leakage in Cfm 50.
Modified Subtraction
Blower Door & Digital Pressure Gauge
Same procedure as above, plus a measurement of pressure inside the taped ducts is taken with reference to the house to account for additional leakage from the inside of the house that communicates with the duct system and eventually ends up outside.
(You are not taping stairways, baseboards, or sheetrock penetrations that may communicate with the duct system, so they are leakage points that are not counted by the Simple Subtraction method used above.
Flow Hood
Blower Door & Flow Hood
Tape off all supply registers and return grills except the largest and least restricted return.
Pressurize the house to 50 Pa (Pascals) with the Blower Door.
Place the Flow Hood up to the open return and measure the flow. The duct leakage is in Cfm 50.
Total Leakage Calculations (Duct leakage to Inside + Duct Leakage to Outside = Total Duct Leakage)
Duct Blaster
Tape off all supply registers and return grills except for the largest and least restricted return.
Install the Duct Blaster on the return selected.
Pressurize the duct system to 25 or 50 Pa.
Duct leakage will be in Cfm 25 or 50Pa.
Leakage to Outside
Blower Door & Duct Blaster
Save as above, except pressurize the house to 25 or 50 Pa with the Blower Door and pressurize the ducts to the same chosen static pressure with the Duct Blaster simultaneously.
Duct leakage is Cfm 25 or 50 measured to the outside only.

Where Can I Obtain Additional Information?

For any questions that you may have about your rating, please contact your ERHU Home Energy Rater. For information about energy efficient building techniques, energy conservation, various workshops and training seminars on energy efficiency, or about becoming a certified rater yourself, please contact:

Energy Rated Homes of Utah
112 South Mountain Way Drive, Orem, UT 84058-5118
801.765.0034 - 801.765.1976 (fax) - 800-550-8322 (toll free)