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ENERGYEFFICIENT HOMES

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Title: ENERGYEFFICIENT HOMES


1
ENERGY-EFFICIENT HOMES
2
POLICY
  • This presentation will analyze the potential
    effectiveness and benefits of Energy-Efficient
    Homes.

3
ISSUES
  • A 25 reduction of foreign oil imports would
    cause the price of oil to increase.
  • This in turn would cause the cost of heating a
    home (that uses oil for its heat) to increase.
  • Also, the price of gas at the pumps would
    increase, creating greater monthly expenses for
    all who drive.
  • Energy efficient homes create other benefits not
    related to oil.

4
CONCLUSIONS
  • Energy efficient homes can dramatically decrease
    the cost of maintaining the average home.
  • Energy efficient homes also have the benefit of
    using renewable energy sources, which conserves
    existing energy resources.

5
BACKGROUND
  • Industries aside, our homes are the chief
    consumers of many energy sources.
  • The amount of energy wasted just through poorly
    insulated windows and doors is about as much
    energy as we get from the Alaskan Pipeline each
    year.
  • The amount of electricity generated by fossil
    fuels for a single home puts more carbon dioxide
    into the air than two average cars.

6
  • Almost every home in the United States could be
    powered by renewable energy of some kind to a
    greater or lesser extent.
  • Converting existing homes to energy-efficient
    homes, and building only new homes which are
    energy-efficient, would result in a myriad of
    benefits, both long term and short.

7
EXISTING HOMES
  • Improvements to an existing home, to make it an
    energy efficient home, focuses chiefly on
    ensuring that every aspect is properly installed,
    insulated, and all equipment is energy efficient.
    The major areas of concern are
  • Building Envelope
  • Space Heating and Cooling
  • Water heating and supply
  • Waste water
  • Appliances
  • Garbage
  • Lighting

8
NEW HOMES
  • Construction of a new home can take advantage of
    a concept known as Whole Building Design.
  • Whole Building Design takes an integrative
    approach to building design so that all elements
    of the building help achieve an optimal energy
    performance. The building has to interact
    effectively with the outdoor environment a
    concept known as climate-responsive architecture.
  • Whole Building Design combines
    Energy-Efficiency with Solar Technologies to
    boost energy savings, and it reduces the amount
    of energy required to operate a home compared to
    conventional houses.

9
NEW HOMES (CONT.)
  • The Energy Efficiency aspect of Whole Building
    Design is concerned with the same areas as
    mentioned with Existing Homes.
  • The Solar Technologies incorporated into the
    Whole Building Design involves the use of
    Passive Solar Design and Solar Thermal Technology.

10
NEW HOMES (cont.)
  • Passive Solar Design
  • Is the technology of heating, cooling, and
    lighting a building naturally with sunlight
    rather than with mechanical systems.
  • Some design features include large south-facing
    windows and building materials that absorb and
    slowly release the sun's heat.
  • It can also involve the use of Photovoltaic (PV)
    technology. PV is basically "solar electricity"
    that results from converting sunlight into
    energy.
  • PV systems help preserve the Earth's finite
    fossil-fuel resources such as coal, oil, and
    natural gas. It also helps reduce air and water
    pollution associated with these energy sources.
  • Incorporating passive solar designs can reduce
    heating bills as much as 50.

11
NEW HOMES (cont.)
  • Solar Thermal Technology
  • Is the use of solar water-heating systems.
  • Solar water-heating systems use collectors
    generally mounted on a south facing roof.
  • These collectors heat water either Passively or
    Actively (Active being the most energy efficient).

12
NEW HOMES (cont.)
External Whole Building Design Features
13
NEW HOMES (cont.)
Internal Whole Building Design Features
14
THE BIG QUESTION
  • Relatively few homes (existing new
    construction) across the U.S. are
    energy-efficient homes.
  • Considering the environmental benefits that an
    energy-efficient home creates, why havent more
    people chosen to make their homes an
    energy-efficient home?

15
The Human Barrier
  • Reluctance on the part of consumers to undertake
    the conversion of their homes to energy-efficient
    homes can be summed up in one word
  • MONEY
  • The upfront costs that are required to make the
    conversion are often too great a barrier for the
    average consumer to overcome.

16
  • Some energy efficiency improvements involve
    little or no implementation cost.
  • However, there are also improvements that can
    cost a great deal of money.
  • Replacing a heating system can cost up to 5,000
    in a large house or even more if you are
    converting from electricity to another energy
    source.
  • Installing new windows, while very beneficial to
    your home and the environment, can be a financial
    strain to implement.

17
Overcoming Human Barriers I
  • Knowledge of the long-term benefits and monthly
    utility savings that an Energy-Efficient Home can
    provide.
  • Knowledge about Energy-Efficient Home financing
    programs (government backed conventional loan
    programs).

18
THE BOTTOM-LINE
  • The average homeowner spends close to 1,300 a
    year on utility bills.

19
  • But an energy-efficient homewith such features
    as proper insulation, high efficiency heating and
    cooling systems, and energy-efficient windowscan
    lower utility bills by 10 to 50 percent.
  • This would all be reflected in a myriad of
    benefits, both long term and short.

20
Where the Money Goes
21
FINANCING AN ENERGY EFFICIENT HOME
  • Because an energy-efficient home is
    cost-effective, there are financing programs
    available from mortgages to home improvement
    loans, which allow more people the opportunity to
    live in such a home.
  • Consumers can benefit from energy-efficient
    financing whether buying, selling, refinancing,
    or remodeling a home.

22
  • People looking to buy an energy-efficient home,
    can qualify for a better, more comfortable home
    because with lower utility costs, they can afford
    a larger mortgage payment.
  • Most Energy-Efficient financing programs will
    encourage you to have an ENERGY RATING for your
    new or existing home, which will tell you and the
    lender how energy efficient it is.
  • A rating typically involves an inspection by a
    professional energy rater who is certified under
    a nationally or state accredited Home Energy
    Rating System (HERS).

23
  • An energy rater will inspect the energy-related
    features of a home, such as
  • insulation levels
  • window efficiency
  • heating and cooling systems
  • air leakage
  • After inspection, the inspector will generate a
    report that includes the home's energy rating
    along with an estimation of annual energy use and
    costs.

24
  • To help qualify for most energy-efficient
    financing, the report usually must show that the
    home is energy-efficient or that any recommended
    improvements are cost-effective and will save
    more money than would be needed to be borrowed to
    install them.
  • While calculating whether a borrower qualifies
    for a mortgage, a lender can recognize these
    savings and add the cost of the improvements into
    the mortgage.

25
  • Or, if the home is already energy-efficient, the
    lender can stretch the debt-to-income qualifying
    ratio (a borrower's monthly payment obligation on
    long-term debts divided by the borrower's net
    effective income or gross monthly income).
  • An energy rater will inspect the energy-related
    features of a home, such as insulation levels,
    window efficiency, heating and cooling systems,
    and air leakage.

26
  • Energy-Efficient financing is offered through
    either government-insured or conventional loan
    programs.
  • There are 2 types of Energy-Efficient Mortgages
  • For a New Home
  • For an Existing Home
  • You can purchase or refinance a home that is
    already energy-efficient, or you can purchase or
    refinance a home that will become
    energy-efficient after energy saving improvements
    are made.

27
ENERGY EFFICIENT FINANCING PROGRAMS
  • Government Insured
  • U.S. Department of Housing and Urban Development
  • FHA Energy-Efficient Mortgage
  • FHA Section 203(k) Rehabilitation Mortgage
    Insurance
  • FHA Energy-Efficient Home Mortgage
  • FHA Mortgage Increase for Solar Thermal Systems
  • FHA Title I Property Improvement Loan Insurance

28
  • Government Insured (cont.)
  • U.S. Department of Veterans Affairs
  • The U.S. Department of Veterans Affairs (VA)
    guarantees mortgage loans for veterans.
  • It can be used to purchase or refinance a home
    along with the cost of making energy-efficient
    improvements.

29
  • Conventional Programs
  • Most of the national lenders who offer
    energy-efficient financing operate through one of
    the following programs.
  • ENERGY STAR Mortgage
  • Fannie Mae
  • Freddie Mac
  • E Seal
  • DETAILS

30
HOW AN EEM SAVES MONEY
31
HOW AN EEM INCREASES BUYING POWER
32
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33
THE ENERGY EFFICIENT MORTGAGE PROCESS SIMPLIFIED
34
Overcoming Human Barriers II
  • It has been suggested that the only way to
    encourage widespread use of Energy-Efficient
    Homes is through Governmental Legislation
    requiring energy-efficiency.

35
Existing Legislation
  • Most existing legislation is done at the state
    level.
  • The Model Energy Code (MEC), published and
    maintained by the International Code Council
    (ICC), has influenced most legislation.
  • While not all states have a requirement regarding
    the energy efficiency of homes, most states have,
    in some form, adopted provisions of the Model
    Energy Code (MEC).
  • Other states have adopted the MEC as recommended
    practice but have no statewide-requirement that
    all new construction use it.

36
  • The MEC contains energy efficiency criteria for
    new residential and commercial buildings and
    additions to existing buildings.
  • The MEC covers the buildings ceilings, walls,
    and floors/foundations and the mechanical,
    lighting, and power systems.
  • While some states have adopted the MEC without
    modification, some states have adopted one of the
    MEC editions with state-developed amendments.

37
  • In an effort to harmonize building codes across
    America, the MEC was revised to become the
    International Energy Conservation Code (IECC),
    first printed in 2000.

38
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39
FEDERAL INVOLVEMENT
  • Federal involvement in the effort to encourage
    energy efficient homes has chiefly come in the
    form of tax incentives.
  • Example The Omnibus Federal Energy Bill
  • Passed by the House on August 2nd
  • Awaiting approval by the Senate

40
The Omnibus Federal Energy Bill
  • This Bill contains several tax credit provisions
    aimed squarely at residential real estate.
  • It provides federal tax credits for homeowners
    who install energy conservation items such as
  • New insulation
  • Energy-efficient windows
  • Doors
  • Solar hot water
  • Photovoltaic equipment

41
  • For owners of existing homes the credit will be
    20 of the amounts spent on Qualified Energy
    Efficiency Improvements", up to a maximum credit
    of 2,000.
  • Tax credits are more valuable to taxpayers than
    deductions because they are subtracted
    dollar-for-dollar off the bottom line of a
    taxpayers federal tax bill.

42
  • There is a separate credit available for the
    installation of solar and photovoltaic
    energy-production equipment.
  • These tax credits are similar to the credits for
    conservation, with a maximum allowable credit of
    2,000 during a tax year.

43
  • Under this Bill, home builders and contractors
    also get a shot at tax relief.
  • When they install energy-efficient heating and
    cooling systems in a new home they are
    constructing, they may be able to qualify for up
    to a 2,000 credit per home.

44
  • These new federal tax credits are expected to be
    extremely popular.
  • The congressional Joint Committee on Taxation
    estimates that the home improvement incentives
    alone will lead to 1.6 billion worth of tax
    credits to homeowners in the coming decade.
  • The solar and photovoltaic credits are estimated
    to put 125 million back into home owners'
    pockets during the same period.
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