Improvement of energy efficiency in homes

Translate Request has too much data
Parameter name: request
Error in deserializing body of reply message for operation 'Translate'. The maximum string content length quota (8192) has been exceeded while reading XML data. This quota may be increased by changing the MaxStringContentLength property on the XmlDictionaryReaderQuotas object used when creating the XML reader. Line 2, position 13485.

Building energy efficient homes and improving energy efficiency in our homes can increase their value.

Over the past few years, there has been a ground swell of Green building interest by home buyers and builders. In response to the growing demand to conserve energy in our homes, there are several new mortgage programs that allow home buyers to finance the cost of energy improvements into their mortgage, to increase their loan-to-value, or improve their qualifying ratios. Some of the more common improvements that are used to make homes more energy efficient include the addition of new windows, high efficiency heating/cooling systems, and improved insulation. All of these contribute to reduced energy use, and also to making homes quieter, more comfortable, and more desirable.

Mortgage Programs

These programs allow buyers to purchase a more expensive home that has a lower cost of ownership to offset the larger mortgage payment. There are 2 types of financing options available that cover a variety of scenarios for energy efficient homes.

o Energy Efficient Mortgages (EEM's) allow borrowers to qualify for a larger loan, using expanded income ratios, sometimes with the same down payment.

o Energy Improvement Mortgages (EIM's) allow borrowers to include in the mortgage the cost of making an existing home more energy efficient, when they refinance or purchase the home.

These products are available through your local mortgage brokers and banks using FNMA, FHLMC, FHA, and VA guidelines.

EPACT 2005-2008 provides $2000 Builder Tax Credit

The Energy Policy Act of 2005 established a federal tax credit for builders that apply to each home that exceeds the energy performance threshold outlined in the 2004 International Energy Conservation Code (IECC2004). Eligible homes must be at least 50% more efficient than homes built to the IECC2004. It is fairly easy for builders to achieve this threshold by building tighter homes, installing high-performance insulation, and sealing duct work. The best way for a builder to find out how to meet EPACT is to consult with a certified RESNET (Residential Energy Services Network) Home Energy Rater. In order for a builder to receive a $2000 tax credit, the home must be rated by a RESNET certified rater using IRS approved software. For more information, visit http://www.natresnet.org/taxcredits/default.htm.

What makes a home energy efficient?

The cost of heating and cooling a home represents the largest cost of ownership, outside of the home mortgage expense. Everyone wants a home that is comfortable to live in, and yet the costs associated with reaching a comfortable level can be very high. Energy Efficiency can be defined as the use of products or systems that use less energy to do the same or better job as conventional products. In home construction and performance, there are many areas where energy efficiency can be achieved, to allow you to meet those desired comfort levels.

The EPA's ENERGY STAR® program has developed a process for evaluating products used in a home, such as appliances, windows, lighting and other products that meet or exceed certain efficiency standards or recommendations. When choosing products for a home, ensure the products meet Energy Star ratings. This can include furnace, air conditioning and water heater performance, replacement of appliances in the home, and installation of energy efficient lighting such as Compact Florescent Lamps (CFL's).

Other construction design aspects can have a significant impact on the energy performance of a home. Insulation levels should be adequate for the environment, and more importantly, proper installation of the insulation is critical in ensuring it is performing to the expected levels. Air infiltration and leakage can be another area where hidden openings in the building shell can cause heat and cooling losses to occur, reducing the efficiency of the home's performance.

In addition to performance of individual components in a home, the EPA's Energy Star Program also works with builders to qualify and certify home performance, to ensure that maximum performance is achieved. ENERGY STAR® qualified homes are designed to be at least 15 percent more energy efficient than homes built to the 2004 International Residential Code (IRC). ENERGY STAR® qualified homes offer homebuyers all the features they want in a new home, plus energy-efficient improvements that deliver better performance, greater comfort, and lower utility bills.

ENERGY STAR® homes have had their energy efficiency independently verified by an inspector known as a Home Energy rater. A HERS Rater will inspect and test the home during construction, and verify that the home meets EPA's strict guidelines for energy efficiency.

RESNET; Establishes rules for the energy rating industry

In 1995 RESNET was founded to develop a national market for home energy ratings and energy efficient mortgages. One main goal of RESNET was the development of standards for quality of rating services. The standards set the national procedures for home energy ratings, and include testing and accreditation for raters and providers, development of verification processes for homes meeting ENERGY STAR® and energy efficient building standards, as well as meeting local Energy Code compliance.

A certified HERS Rater follows a prescribed standard for how a home is measured, verified and rated, and must comply with national standards to continue to perform certified ratings.

What is an energy audit or HERS Rating

A Home Energy Rating, performed by a Certified HERS Rater, consists of a full visual analysis of components and aspects of the home, along with energy performance testing of air infiltration with a tool called a blower door. Evaluation of home energy bills can also be included. A blower door slightly de-pressurizes the home and determines the amount of air leakage present. The home is compared to a hypothetical reference home which is based on the IECC 2004, and the home is then provided with a rating. The rating can be a numerical HERS rating or a 'star' rating based upon ENERGY STAR® requirements.

Along with the actual performance rating, the homeowner will be provided with details on areas of the home that need to be improved, in order to further save energy costs and improve the comfort and efficiency of the home.

For more information, visit: [http://www.greenenergysavers.com/]

READ MORE - Improvement of energy efficiency in homes

Energy efficiency pays best

Translate Request has too much data
Parameter name: request
Translate Request has too much data
Parameter name: request

In some parts of the Northeast, the skyrocketing cost of oil could cause residential winter heating bills to climb as high as $7,000. Oil reached $145 a barrel in late May, and many analysts are predicting $150-200 per barrel oil within two years. With heating oil averaging $4.71 a gallon, natural gas rates headed for a 20 to 30 percent rise. Add that to electricity bills up, some municipalities are shifting to four-day work weeks, and moving aggressively into renewable energy & energy efficiency.

Utah made headlines in July by becoming the first to put most state employees on a four-day week of 10-hour days. About one-third of the state's 3,000 government buildings will be closed on Fridays, with expected savings on heat and air conditioning to hit $3 million a year. Commuters will also save on gasoline. Utah's Governor Jon Huntsman said, "The reaction from the public has been very much a willingness to give this a go."

Energy efficiency is happening in all sectors. Behavior is changing rapidly in light of higher prices; SUV and light truck sales have dipped 30-60% (depending on the brand) over the last year. Small car sales are up. Total "vehicle miles traveled" dipped for the first time since 1979. Yet, in the 1970s after the oil embargo prompted conservation habits for about a decade, U.S. Americans returned to wasteful ways, as oil prices dropped, ignoring past lessons.

The difference this time is that higher prices are prompted mostly by fundamental supply and demand issues. Peak oil production is either already here, or will be sometime between 2010-2015 at the latest. When global peak oil production is reached, prices will be far higher than today's.

In order to lessen our dependence on oil, and keep our economy moving, energy efficiency is essential. This past July, U.S. Secretary of Energy Samuel Bodman met with the energy ministers from the Group of Eight (G8) industrialized countries, plus China, India and South Korea, to discuss ways to enhance global energy security while simultaneously combating global climate change. The G8, which includes Canada, Russia, France, Germany, Italy, Japan, UK and the US, established the International Partnership for Energy Efficiency Cooperation (IPEEC). It states that energy efficiency is one of the quickest, greenest and most cost-effective ways to address energy security and climate change while ensuring economic growth.

Meanwhile, financial support for the federal assistance "weatherization" program here in the US, which helps low-income families be more energy efficient, has dramatically declined. President Bush proposed eliminating the program entirely. An Energy Dept spending bill before the Senate, would provide $201 million for the fiscal year beginning in October ($40 million less than was supplied in 2007), while winter heating costs have soared. Bush, and GOP presidential candidate John McCain, and Republicans in Congress have touted drilling as the primary short-term solution to rising energy prices, despite the fact that opening offshore areas to production wouldn't lower gasoline prices until about 2030 -- if it does at all.

Currently, the average price for natural gas on the New York Mercantile Exchange (NYMEX) shows an increase of 33% this year. New Jersey customers will pay another 18% based on an increase requested by NJ Natural Gas to take effect this coming October, and another 15% or more expected next year. Between 2002 and 2007, the price of natural gas nearly doubled, according to the NJ Board of Public Utilities (BPU), with corresponding increases in the price of electricity and heating fuels in New Jersey.

To address the steadily rising prices of energy, New Jersey created an Energy Master Plan. Its primary goal is to maximize energy conservation and energy efficiency. Reducing energy consumption through conservation and efficiency is the most cost-effective way to help lower utility bills, increase reliability, and lower the state's contributions to global warming and other air pollutants. Reductions of energy use by at least 20% by 2020, as Governor Corzine has directed, would yield annual electricity savings of 20,000 GWh per year and annual heating savings of 119 trillion BTUs, and result in substantial cost savings, thereby promoting economic growth in the state.

Actions to this goal include the following:

- Redesign and enhance the State's current energy efficiency programs in all sectors of the economy to achieve desired results, while remaining cost-effective. This redesign emphasizes a whole-building approach to energy efficiency.

- Increase energy efficiency in new buildings with a statewide building code, which will make new construction at least 30% more energy efficient than buildings under current code by July 2009.

The market is willing to pay premiums for Energy Star buildings, says Stuart Brodsky, from the EPA's Energy Star program, as identified in the CoStar study. "The business case for energy efficiency is indisputable," he said. Green-built buildings have higher prices per square foot but have lower operating costs. Energy Star buildings are selling for an average of $61 more per square foot than conventional buildings. LEED buildings are selling for an average of $171 more per square foot, the study found. Operating costs are 10-20 percent lower in Energy Star-rated buildings, improving operating income significantly. The study also revealed that green buildings achieve higher rents and have higher occupancies.

New Jersey currently offers several programs in the way of incentives for energy efficiency:

Cool & Warm Advantage Programs - Cash rebates for energy efficient heating and cooling equipment (e.g., central air conditioners, heat pumps, furnaces, boilers or water heaters).

New Jersey for Energy Star - Offers rebates on ENERGY STAR clothes washers, room air conditioners and dehumidifiers.

New Jersey Energy Star Homes - Rebates for energy-efficient new home construction that target Smart Growth Areas. Energy Star Homes are at least 15% more energy efficient than conventionally built homes.

New Jersey Comfort Partners - Improves energy affordability for income-eligible households. If you qualify, a contractor will assess the energy savings opportunities and install the measures at no cost. Personalized customer energy education and counseling is also provided.

Home Performance with ENERGY STAR (HPWES), administered by New Jersey's Clean Energy Program, uses a whole house approach to energy-efficiency, lowering energy costs by up to 30 percent or more. This program covers renovations only, not new construction. Participating contractors are accredited through the Building Performance Institute (BPI), a national resource for building science technology that sets standards for assessing and improving the energy performance of homes.

Where To Start

Call in an expert that can show you the "biggest bang for your buck" when it comes to paying for energy efficiency upgrades. A specially trained and certified technician will conduct a Comprehensive Home Assessment, which has two phases.

Phase one consists of the technician taking inventory of, and reporting on, the current conditions in your home, including the following:

- Health & safety check (carbon monoxide levels, moisture, and indoor air quality problems)

- Overall comfort level (cold/hot spots, indoor air quality stuffiness/stale odors)

- Air infiltration rates

- Insulation levels

- Heating and cooling systems efficiency

- Domestic hot water system efficiency

- Major appliances

- Lighting

Certified technicians use a number of diagnostic tools during the first phase of your Comprehensive Home Assessment. Some of the tools they use are:

- Carbon Monoxide (CO) Analyzer: important health and safety tool

- Blower Door: measures the air tightness of a home and assists in identifying areas where air leakage is occurring

Phase two consists of contacting a BPI certified contractor to receive pricing on the proposed improvement work. They test carbon monoxide levels and potentially dangerous gases in the home before and after performing energy improvements. You will receive a detailed plan with recommended measures, costs and payback analysis. Many owners use home equity loans to finance the upgrades.

Low-interest financing or cash incentives are available through HPWES utilizing participating BPI accredited contractors. These financial incentives are for improvement packages of $2,500 or more. The more energy savings measures you install, the greater the incentive you will receive. A tier system breaks down the incentive level you can receive based on the comprehensiveness of work performed. (Visit http://www.njcep.com, enter "Tier" in the Search field, then select "Financial Incentives.")

Cash incentives range from $250 to $5,000. Or you can choose the low-interest financing option available to help pay for home improvements. The rates are either 5.99% or 3.99% depending on the level of upgrades you install. There are no application fees or closing costs, and the loans do not require a down payment.

To participate in this program, first you sign a contract for program-eligible work with a participating BPI accredited contractor. The program requires a copy of the contract before the work starts and provides your contractor with a Work Scope Approval form. Make sure your contractor has received approval from the program prior to starting the work. When the work is finished, your BPI contractor will perform some final testing to make sure the installation went well and that your house is safe and healthy. Then you both sign the Certificate of Completion, indicating the work has been done satisfactorily.

If you selected the cash incentive, a check will be sent to you directly. You make arrangements to pay your contractor in full under the terms of your contract. If you choose the low-interest unsecured loan, you apply for it through Energy Finance Solutions (EFS) before the work starts, to make sure you qualify. EFS offers low-interest loans ranging from $2,500 to $20,000. The process is quick. You can call EFS to find out if you pre-qualify for the loan at 1-888-264-4367 or visit http://www.energyfinancesolutions.com. Additional assistance may be available when homeowners meet certain income eligibility requirements.

By upgrading your home's energy efficiency, you'll increase your physical comfort, save energy, reduce your carbon footprint, and lower your monthly utility bills. Your house will increase its value in the marketplace. For every one dollar you save on energy, you increase the market value by $20 according to EPA studies.

Basic Things To Do On Your Own

- Fluorescent bulbs can save up to $30 per bulb

- Low-flow showerheads use just two gallons of water per minute, instead of five or six

- Change furnace/air conditioner filters regularly and unblock and clean ventilation registers

- Seal air leaks around windows with silicone caulk

- Weather-strip around doors

- Hot water heater set at 1200

- Close chimney dampers when not in use!

- Open shades during day in winter, shut at night

- Install a digital thermostat - raise the temperature for summer, lower it for winter,

- Dress for the season, even when you're indoors

READ MORE - Energy efficiency pays best