By Anne Balogh
June 14, 2006—As energy costs soar, more homeowners are taking serious measures to rein in their utility bills.
This concern for costs is spurring the market for energy-efficient building products and materials, and energizing business for builders and remodelers who are working to meet their clients’ desire to lower the light bill.
A survey by Lowe’s this year found 90 percent of the nation’s homebuilders are putting into homes products and mechanical systems that can slash utility expenses, making the move toward energy-efficient upgrades one of the biggest trends in the home building and remodeling industry.
"We are not surprised homebuilders are looking beyond the cost of building the home to the homeowner’s cost to operate it longer term," said David Steed, Lowe’s senior vice president of merchandising.
Builders in the survey said the most commonly upgraded materials for energy savings are:
* windows and doors
* insulation
* water heaters
* furnaces
Approximately half of the builders said they also were installing energy-saving light fixtures.
Howard Katzman of Southface Energy Institute, an Atlanta-based nonprofit organization that promotes sustainable building, says there’s a significant increase in demand for energy-saving improvements in the home renovation market. The most cost-effective upgrades in existing homes insulate and seal the house, he says.
"One-part spray-foam sealants, duct-sealing mastics, and spray-foam insulation are examples of simple upgrades that can deliver huge bang for the buck," he says.
SEI takes a scientific whole-house approach to energy efficiency. "Energy-saving features must be appropriate for the house and climate, and they must be installed correctly to get a high-level of cost effectiveness," says Katzman, a technical product manager for SEI who teaches a class for remodelers on energy-saving renovations.
The business of making homes more energy efficient is a lucrative one for builders and remodelers.
According to a study published in The Appraisal Journal and funded by the Environmental Protection Agency, buyers will pay $20 in home purchase price for each $1 they can save in annual utility costs. With recent passage of the Energy Policy Act of 2005, builders of new, energy-efficient homes may qualify for a credit of up to $2,000 if the home meets certain energy-saving requirements.
Owners of existing homes can also earn tax credits for energy upgrades, such as new windows, doors, insulation, and high-efficiency HVAC equipment.
Measuring and documenting a home’s energy performance is critical to marketing an energy-efficient home and to choosing the most cost-effective upgrades for existing houses, Katzman says. He recommends builders check out the Residential Energy Services Network, which tells how to get a home energy rating and includes a nationwide directory of certified raters.
Information about energy-saving construction materials and technologies can be found on National Home Builders Association ToolBase Services website. The EnergyValue Housing Award Program details the energy-saving practices of EVHA-winning builders, and all applicants for the award receive an evaluation of their energy-efficiency practices.
Other programs, such as Building America, work with builders to integrate energy-efficient systems in new and existing homes.
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