Home%20Energy%20Ratings%20in%20Delaware - PowerPoint PPT Presentation
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Home%20Energy%20Ratings%20in%20Delaware
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Cash flow. 15. Potential Areas of Benefit. Space heating savings. Domestic hot water savings ... 19. For More Information: roger_at_fsconline.com ... – PowerPoint PPT presentation
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Title: Home%20Energy%20Ratings%20in%20Delaware
1
Home Energy Ratings in Delaware
- Roger Colton
- Fisher, Sheehan Colton
- February 1999
2
Agenda
- Review objectives
- Review energy costs in Delaware
- Introduce HERS in Delaware
- Review consumer impacts
3
Training Objectives
- To explain the link between energy costs and
shelter affordability - To explain the role of Home Energy Ratings in
supporting energy efficiency - To explain the financial impacts of energy
efficiency investments
4
Consumers Interest in Energy
- Increased energy efficiency ranked 9 in top 10
trends in consumer demands for new homes (1996). - 1997 survey 83 of consumers more likely to buy
from builder who offers energy efficiency
upgrades. - 1998 survey consumers willing to spend extra
1200 - 1500 for 300 annual energy savings.
5
Energy Costs in Delaware
- Fourth highest in nation
- 1,594 per year in 1997
- Average natural gas bill 655
- Average electric bill 940
- SOURCE
- National Consumer Law Center, Energy and the
Poor The Crisis Continues (1995)
6
Energy End Uses in the Home
7
Average Consumer vs. Lower-Income Consumer
- Average
- Bill 1,700
- Burden 4
- Low-income
- Bill 1,450
- Burden 15
8
The intensity of energy use/costs
- Average
- Cost intensity 0.62/sq foot
- Use intensity 50,000 BTU/sq foot
- of shelter costs devoted to energy 13
- Low-income
- Cost intensity 0.69/sq foot
- Use intensity 57,000 Btu/sq foot
- of shelter costs devoted to energy 27
9
Summary of Energy Use Discussion
- Distinguish heat and non-heating
- Distinguish between energy end-uses
- Distinguish discretionary and non-discretionary
use - Distinguish energy bills and energy burdens.
10
Home Energy Rating System (HERS)
- Similar to EPA rating of automobiles on a miles
per gallon basis - Represents a standard measurement of homes
energy efficiency
11
A HERS Audit Looks At
- Attic, wall and floor insulation
- Water heating
- Lighting
- Heating and cooling systems
- Quantity and quality of doors/windows
- Mechanical equipment
- Health and safety features
12
HERS Report Should Contain
- Overall rating score on the home
- Recommended cost-effective energy upgrades
- Estimates of both the costs and the annual
savings of the upgrades - Improved rating score after the upgrades
- Estimated total energy cost before and after
upgrades - Health and safety improvements
13
The Energy Efficient Mortgage
- Home purchase mortgage add-on
- Finance 4000 or 5 of loan
- Without further credit qualification
- Without further appraisal
- Insured by FHA
14
The Concept of Cost-Effective
- Saves more than it costs
- Net Present Value
- Cash flow
15
Potential Areas of Benefit
- Space heating savings
- Domestic hot water savings
- Increased comfort
16
Example 1 Cash Flow Savings
17
Example 2 Purchasing Power
18
Example 3 Effective Impacts
- Effective Interest Rate Reduction
- Assumptions
- 400 a year in energy savings
- 2000 energy efficiency investment
- 50,000, 30-year mortgage (7.5 interest)
- Effective interest rate reduction is 1.2 (from
7.5 to 6.3).
19
For More Information
- roger_at_fsconline.com
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