Selling Energy Efficient Homes Programs and Incentives for New Construction and Existing Homes

Transcription

1 Selling Energy Efficient Homes Programs and Incentives for New Construction and Existing Homes Mike Young, Certified Energy Advisor Glenys Verhulst, Communications Coordinator City Green Solutions Delivered March 15, 2012 to Nanaimo Coast Realty Group

2 City Green Solutions is an enterprising non-profit with a mission to excite, inspire and lead British Columbians in finding innovative home and building energy efficiency solutions. Founded in 1999, we have performed over 15,000 home energy assessments across BC.

3 What We Do Energy modelling for new and existing homes Energy assessments for commercial and institutional buildings Thermal imaging services Sustainability assessments for businesses Energy management services Customized energy efficiency outreach programs Research and evaluation services Education and training

4 Presentation Goals 1. Introduce the new ENERGY STAR for New Homes Initiative and incentives to help you sell efficient newly constructed homes 2. Review time of sale labelling programs and grants for upgrades and how you can use them to sell older homes. This presentation is made possible by a financial contribution from Natural Resources Canada.

5 What Is ENERGY STAR? ENERGY STAR is the international symbol of premium energy efficiency.

6 The Powerful ENERGY STAR Symbol ENERGY STAR is a familiar, trusted symbol Visual awareness of the ENERGY STAR brand is approx. 90% in Canada. Over 70% of surveyed Canadians say that purchasing ENERGY STAR products makes them feel like they are helping the environment.

7 Where ENERGY STAR Comes From The ENERGY STAR mark is administered and promoted in Canada by Natural Resources Canada, a federal government agency. It is not affiliated with any one builder or industry group or association, and is accessible to builders of all sizes. Natural Resources Canada holds an agreement with the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) for use of the ENERGY STAR symbol in Canada.

8 Can it be used to sell homes? Yes! The ENERGY STAR for New Homes Initiative is newly available in BC, and recognizes homes that are built to bestin-class energy efficiency specifications. ENERGY STAR is very popular in other jurisdictions. 25% of U.S. new homes 20% of Ontario new homes 600 home builders in Ontario are participating

9 Growing Demand for Energy Efficient Homes 9/10 homeowners consider energy efficiency important when purchasing a home Almost 70% of homebuyers are willing to pay at least $5,000 more for an energy efficient home. 9 out of 10 homebuyers say they will seek out an energy efficient home in the future #1 reason homebuyers didn t choose energy efficient options is they weren t offered by builder Source: EnerQuality th Annual Energy Efficiency& Green Building Survey.

10 ENERGY STAR Qualified Homes Sell Faster and for a Premium In a U.S. study, ENERGY STAR qualified homes sold for a 2% premium and up to 89 days faster compared to similar conventional homes. ( mpact_study.pdf,

11 What is an ENERGY STAR Qualified Home? At least 20% more energy efficient than those built to minimum building codes. A more comfortable home: warmer in the winter and cooler in the summer. Uses less energy for heating, cooling, and hot water, delivering considerable energy bill savings to homeowners. Independently tested and verified for best-in-class energy performance offering peace of mind to homebuyers. Minto Communities Gainsboro Home, Ottawa

12 What is an ENERGY STAR Qualified Home? Typical energy efficiency measures for ENERGY STAR qualified homes include: Insulation upgrades Higher-performance windows Better draft proofing More efficient heating, hot water and air conditioning systems Sealed ducts for improved air distribution ENERGY STAR qualified appliances (when builder supplied) Minto Communities Stonefield Home, Ontario

13 Technical Specifications Single family homes, duplexes, townhomes, rowhomes, and low-rise multi-unit buildings are eligible. Min. EnerGuide rating = 80 ENERGY STAR qualified space and water heating, and ventilation ENERGY STAR qualified windows and doors (1 door exemption possible) ENERGY STAR qualified lighting (min of 75%) ENERGY STAR qualified appliances, HRVs and range hoods are recommended

14 Why Promote ENERGY STAR Qualified Homes? Use the power of the symbol to help sell qualifying homes. Promote financial incentives for qualifying homes. No hassle, low admin program. Minto Communities Stonefield Home, Ontario

15 Energy Labelling Is Important to Buyers 63% of homebuyers reported that a label was important to them

16 Buyers Say They ll Pay More for Energy Efficiency

17 And MLS Data Proves That They Do

18 Incentives for Builders and Buyers If homes are ENERGY STAR qualified, they also qualify for: $2000+ rebates BC Hydro Power Smart (for builders) CMHC 10% Mortgage Loan Insurance rebate (for qualifying buyers) Local government incentives (for builders) North Vancouver density bonuses Vancouver feebates (upcoming) Saanich 30% building permit rebates

19 BC Hydro Power Smart Rebates for Builders Financial support for advertising and in-kind promotion from BC Hydro also available.

20 Mortgage Loan Rebates for Buyers CMHC offers 10% rebate of your mortgage loan insurance premiums if you improve the energy efficiency of your home, or purchase an energy efficient home.

21 How It Works: An ENERGY STAR Story Let s say ABC Building Co. in Nanaimo would like to build two homes to ENERGY STAR specifications. We start with identical plans for a typical home: Wood frame, light construction 2 Levels Slab on Grade R20 Wall Insulation R40 Attic Insulation Double pane, LowE, inert gas fill windows: 33 Insulated Doors: Air Changes Per Hour (@ 50Pa) = Average Except they have two different heating systems. 90% A.F.U.E. Gas Boiler + Gas DHW Tank Electric Baseboards + Electric DHW Tank

22 First Step: Get the Plans Rated 1. ABC Builder sends the house plans to a Certified Energy Advisor (CEA) providing ENERGY STAR verification. (A complete list of CEAs can be found on NRCan s website: 2. CEA provides builder with an estimated EnerGuide rating of the current plans, builder upgrade options for improving energy efficiency.

23 Initial Modeled Energy Efficiency Gas Current EnerGuide: 74 Potential EnerGuide: 82 Annual Energy Use: GJ Annual GHG:5.278t Annual Energy Cost: $1760 Electric Current EnerGuide: 73 Potential EnerGuide: 81 Annual Energy Use: 116.2GJ Annual GHG: 1.71t Annual Energy Cost:$3123

24 What does the CEA Advise? Several options for getting to EnerGuide 80: Building Envelope Improvements + Water Heating System Upgrades, OR Space Heating System Upgrades

25 Upgrade the Building Envelope Upgrade wall and ceiling insulation Decrease air leakage Use window coatings for passive solar gains Add drain water heat recovery EG Point gain Net GJ savings Gas Boiler ERS-76 Annual $ savings New Total GHG GHG Change $ t t EG Point gain Electric Baseboards ERS-75 Net GJ savings Annual $ savings New Total GHG GHG Change $ t t New ERS - 80 New ERS - 80

26 Add Upgraded Mechanical Systems + + Instantaneous Gas Water Heater Heat Recovery Ventilator Electric Heat Pump Water Heater EG Point gain Net GJ savings Gas Boiler ERS-77 Annual $ savings New Total GHG GHG Change $ t t EG Point gain Electric Baseboards ERS-75 Net GJ savings Annual $ savings New Total GHG GHG Change $ t t Cumulative ERS -82 Cumulative ERS -83

27 Or Add an Air Source Heat Pump to Initial Plans + + Air Source Heat Pump Gas Boiler ERS-77 Electric Baseboards ERS-76 EG Point gain Net GJ savings Annual $ savings New Total GHG GHG Change EG Point gain Net GJ savings Annual $ savings New Total GHG GHG Change $ t -1.52t Cumulative ERS $ t t Cumulative ERS - 83

28 What s Next? Builder can choose most cost-effective upgrades to get to EnerGuide 80, or offer them as options to buyers. Once the home is built, the builder calls the CEA for a site visit which includes a blower door test for air sealing.

29 What Are The Savings? New EnerGuide: 80 Energy Savings: 19% GHG Savings: 0.635t Annual Cost Savings: $106 New EnerGuide: 80 Energy Savings: 20% GHG Savings: 0.235t Annual Cost Savings: $460

30 The Results The CEA finds that both homes have reached the ENERGY STAR specifications, and issues ENERGY STAR certification labels. ABC Builder receives a $2200 rebate plus $150 for marketing support from BC Hydro for each home. Sales team markets the ENERGY STAR qualified homes.

31 ENERGY STAR Messaging Ideas ENERGY STAR qualified homes are the best in class energy-efficient new homes ENERGY STAR qualified homes are 20% more efficient than homes built to minimum code, which is like getting 3 free months of energy use every year. ENERGY STAR qualified homes are more comfortable throughout the year warmer in the winter and cooler in the summer. ENERGY STAR homes are third-party tested and verified for energy efficiency. Metric Homes, Gordon Kings Development, Ontario

32 What Homebuyers are Looking For:

33 Use the ENERGY STAR Symbol to Promote Qualifying Homes

34 Lawn Signs on Qualifying Homes

35 Brochures/Print Ads/Website Profiles of Qualifying Homes Minto Communities Gainsboro Home, Ottawa

36 Plaques on Qualifying Homes

37 Websites

38 Business Cards

39 Flag for home show displays, show home lawns, etc. Flags

40 Summary With the ENERGY STAR for New Homes Initiative, you can: Set your homes apart from the crowd with an internationally recognized and trusted brand. Deliver on a growing consumer demand for energy efficient homes. Provide qualifying buyers with incentives for qualifying homes.

41 To Get Involved Work with your builders to: 1. Register as ENERGY STAR Participants. (Free and quick! City Green fills out the forms for the builder.) 2. Send house plans to a Certified Energy Advisor for energy upgrade options.

42 The ENERGY STAR symbol is a powerful tool for you to promote your energy efficient homes. Make the most of it!

43 Energy Efficiency and Older Home Sales

44 An Energy Efficient Home Is Good For: Your Planet Your Wallet Your Comfort Your Health

45 Energy Efficient Homes Are Better for the Environment Average homes save 20% on their energy use after upgrades. Average home GHG emission reduction is equivalent to taking the family car off the road for 6 months every year.

46 Energy Efficient Homes Save Money The more energy efficient a home, the more futureproofed it is from BC Hydro rate hikes and the volatility of oil and gas prices. Energy efficient homes therefore deliver a great return on investment.

47 Energy Efficient Homes Are Healthier & More Comfortable Drafty Cozy

48 Financial Incentives for Energy Saving Upgrades

49 Examples of Selected Grants Retrofit LiveSmart BC Air Sealing $400 Attic Insulation $600 Wall Insulation $1200 Basement Insulation $1000 Gas Furnace $500 Air Source Heat Pump $1500 Windows, Doors, Skylights $60/item Solar Water Heater $500

50 How to Access LiveSmart BC Grants: Complete an initial home energy assessment with a Certified Energy Advisor before renovations Complete renovations Complete a follow-up home energy assessment before March 31, 2013 Receive a rebate cheque and enjoy the savings in a more comfortable, efficient home

51 CMHC offers 10% rebate of your mortgage loan insurance premiums if you improve the energy efficiency of your home, or purchase an energy efficient home. Mortgage Loan Rebates

52 And More! Visit for energy efficiency incentives/rebates and available across the province.

53 Time of Sale Home Energy Labelling Pilot Projects in BC The BC Climate Action Secretariat has recommended that BC implement labelling at time of sale. Utilities and the BC government are supporting labelling pilots in several BC communities, including Salt Spring Island, Oak Bay, and Victoria.

54 What is Energy Labelling? When choosing a vehicle, consumers can compare the fuel efficiency of different models. 36 MPG 34 MPG When buying appliances, they can compare the energy efficiency of different brands.

55 EnerGuide Labelling for Homes A B

56 How to Get an EnerGuide Rating Contact a Certified Energy Advisor working with a Service Organization licensed by the federal government. Advisors are educators and independent, third-party home energy performance testers. They are not salespeople. Find a complete list on NRCan s website at

57 How Time of Sale Labelling Works 1. Seller has a home energy assessment to obtain an EnerGuide Rating, customized retrofit plan, and access to incentives. 2. Seller chooses whether to: a) Upgrade and access grants, and post the improved EnerGuide Rating on the MLS, or b) Post the original EnerGuide Rating on the MLS and pass the customized retrofit plan and access to incentives on to the buyer.

58 Energy Labelling Benefits for Sellers A high rating can help sell hidden features like good air sealing, upgraded insulation, and efficient mechanical systems.

59 Energy Labelling Benefits for Sellers A low rating for a fixerupper will come with a customized retrofit plan from a Certified Energy Advisor plus a host of financial incentives for upgrades the seller can pass to the buyer.

60 Energy Labelling Benefits for Buyers Better information for choosing a home that meets their preferences. If not accessed by seller: A customized, buildingscience based energy saving upgrade plan. Access to incentives for upgrades.

61 Pilot Plan Results Hard to determine effect of labelling since participation numbers have been low so far. Instead of working with sellers, some Real Estate Agents chose to promote energy efficiency with buyers instead by providing a home energy assessment gift certificate housewarming present to help get them started with their energy saving upgrades.

62 Remember the Most Important Selling Point: High Energy Bills Savings Every Month!

63 Questions? City Green Solutions