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Energy Efficiency

Energy Efficiency

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Energy Efficiency

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  1. Energy Efficiency Victoria Adams Stephanie Cogswell Daureen Lingley Emily Werner

  2. Importance of Home Energy Efficiency Residential energy consumption accounts for over 20% of global energy use. In 2001, homeowners, on average, spent $1500 on energy costs. Energy bills are usually the largest portion of housing costs after rent or mortgage payments. In 2007, residential carbon emissions grew to 1242 million metric tons of carbon. Increasing price of energy.

  3. Energy Efficiency Topics 1 Energy Efficient Mortgages 2 Designing & Remodeling 3 Incentives & Rebates 4 Appliances & Home Electronics Page 3

  4. What is an Energy Efficient Mortgage (EEM)? • A mortgage that credits a home's energy efficiency in the home loan. • Let you borrow extra money to pay for energy efficient upgrades to your current home or a new or old home that you plan to buy. • EEMs recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage.

  5. History • In 1992, Congress mandated a pilot demonstration of Energy Efficient Mortgages (EEMs) in five states under Section 513 of the Housing and Community Development Act of 1992. • In 1994, the pilot was expanded to ten states. • In 1995, the pilot was expanded as a national program. • Green Energy Act of 2008 • Section 9 • Section 8 • Section 25

  6. Types of EEMs • Conventional EEM • Most powerful of the EEMs • Borrow up to 15% of the home’s appraised value for improvements. • FHA EEM: • Not as powerful as the conventional EEM. • Borrow up to 5 % of your home’s value (though not more than $8,000) or $4,000, whichever is greater • VA EEM: • Past and present military personnel • Allows you to spend up to $6,000 for energy efficient upgrades • Regardless of the value of the home.

  7. How EEMs Work • Backed by private and government mortgage programs • No additional down payment. • In most cases you already qualify for an EEM. • Funded by a lending institution, such as a mortgage company, bank, or savings and loan association • Aren’t second mortgages, rolled into primary mortgage.

  8. Home Energy Rating System (HERS) • Overall rating index of the house as it is. • Blower door test • Manometer • Recommended cost-effective energy upgrades • Estimates of the cost, annual savings, and useful life of upgrades • Improved rating index after the installation of recommended upgrades • Rating index is between 1 and 100. • usually costs between $300- $800.

  9. Efficiency double paned windows tankless water heaters New HVAC units with air ducts new insulation Weatherizing energy efficient heating and cooling systems fixing or replacing a chimney installing active and passive solar technologies

  10. What are the benefits? • Increases Purchasing Power • An average of 6.8% more families would be able to qualify for a mortgage through an energy efficient mortgage. • Stretch debt-to-income qualifying rations on loans • Reduce carbon footprint • Increases Market Value of Homes • The market value of a home increases $20 for every $1 decrease in the annual energy costs. • An estimated increased home market value of between $4,250 to $10,625. • Comfort • Cooler in the summer • Warmer in the winter • Savings • Save money every month from day one • Gas prices are rising • building a home to exceed the Model Energy Code would result in an annual savings of $170 to $425.

  11. Who benefits? • Buyers • Qualify for a larger loan on a better home • Save money every month from day one • An average of 6.8% more families would be able to qualify • Stretch debt-to-income qualifying rations on loans • Sellers • Sell your home more quickly • Make your house affordable • Increase the resale value • Remodelers/refinancers • Get EEM benefits without moving • Make improvements which will actually save you money

  12. Statistics – EEMs lower your carbon footprint! • Heating and cooling account for 50–70%. • 60% not properly insulated. • In houses with central air and heating, about 20% of the air is lost due to faulty, outdated duct work. • Updating your home’s insulation can save you up to 20% on heating and cooling costs or up to 10% of your total yearly energy bill.

  13. …Statistics – EEMs lower your carbon footprint! • Energy loss from outdated windows accounts for nearly 25% of the annual heating and cooling costs for the average American home. • Even the most basic double-paned window can reduce energy use by up to 24% in cold climates during the winter and by up to 18% in hot climates during the summer. • Programmable thermostats can save about 2% on heating bills and more than 3% on cooling bills. These numbers can translate into savings of up to $180 a year.

  14. Designing & Remodeling a Home • Passive Solar • Cool Roofs • Whole-House Design • Ultra-Efficient Homes • Log Homes • Manufactured Homes • Earth-Sheltered Homes Page 14

  15. Passive Solar Home Design Five Elements of Passive Solar Home • Aperture (Collector) • Absorber • Thermal Mass • Distribution • Control Page 15

  16. How Passive Solar Home Design Works Heat Movement Mechanisms • Conduction • Convection • Radiation • Thermal Capacitance Page 16

  17. Passive Solar Home Energy Rankings Page 17

  18. Passive Solar Home Thermogram Page 18

  19. Cool Roofs Benefits of Cool Roofs • Reduce energy bills by decreasing air condition needs • Improve indoor comfort for spaces that are not air conditioned • Decrease roof operating temperature, which may extend roof service life. • Reduce local air temperatures • Lower peak electricity demand • Reduce power plant emissions Page 19

  20. Whole House Design Systems Approach Elements of Your Home • Appliances & Home Electronics • Insulation and air sealing • Lighting and daylighting • Space and cooling • Water Heating • Windows, doors & skylights Page 20

  21. Why Become a SunBuilt Builder? Energy Advantages • Beginning March 2009, the Florida Energy Code will become 15% more stringent. • Solar water heaters can provide a significant reduction in Energy Code points. • If you’re looking to be green, solar water heaters are now a line item on the FGBC checklist. Page 21

  22. Energy Code Improvements – Ways to Reach 15% Reduction Measure Measure Effect Energy Savings Page 22

  23. SunBuilt Builder Program How it Works • Solar contractor installs solar water heater and builder submits rebate application. • Builder receives rebate and client educational materials for model or Parade home(s). • Builder agrees to participate at gold or silver level by signing pledge. Page 23

  24. Gold Builder – 100% of Homes with Solar Water Heaters • Sign Gold Builder Pledge. • Fillout and submit system voucher application. • Receive approval from SunBuilt Program to install free system. • Install system. • Receive materials for Model Home(s). • Submit rebate application after each installation. Page 24

  25. SunBuilt Program Partners Florida Solar Energy Research & Education Foundation Governor’s Energy Office Florida Solar Energy Industries Association Florida Home Builders Association SunBuilt Builders Page 25

  26. Energy Efficiency Rebates Created by the government and most are carried out by the utilities Mass Save Energy Star Products

  27. Energy Efficiency Rebates • The two utilities in the Boston Area who offer rebates are National Grid and NStar • Rebates can apply to: • Lighting and appliances • Income eligible programs • Heating and cooling • Building a house or addition, Retrofits • Programs for multi-family home owners

  28. Lighting and Appliance Rebates • A $50 rebate for purchasing an eligible EnergyStar refrigerator or freezer • The utility company will pay you $50 to come pick up your second fridge or freezer! • Order a Smartstrip by Dec 31st and get a $10 rebate and free shipping

  29. Heating and Cooling Rebate Terms • Energy Factor • Water Heater Efficiency • Annual Fuel Utilization Efficiency (AFUE) Rating • Overall efficiency rating in a typical application over 1 year • Electronic Commutated Motor (ECM) • Used with HVAC systems Page 29

  30. Heating and Cooling Rebates • $400 rebate for a natural gas warm air furnace with an electronic commutated motor (ECM) an an AFUE Rating greater or equal to 92 percent. • $300 for customers replacing an existing oil/propane fire tankless or freestanding hot water heater with an indirect fired water heater • $25 toward the purchase and installation of an EnergyStar qualified or seven day thermostat that controls an oil or propane fired heating system • 75% off up to $2000 towards insulation upgrades • $100 rebate for an Energy Star-rated storage water heater with an Energy Factor greater or equal to .67. • $500 for qualifying condensing water heaters • $400 for qualifying indirect water heaters • Upon installation of an add on outdoor boiler, a reset control attached to your existing forced hot water boiler means you will qualify for a $200 rebate from National Grid.

  31. Heating and Cooling Rebates cont. • Receive up to $1,600 after you install a combined high efficiency boiler and water heating unit with the right AFUE rating • Up to $1,500 for a natural gas hot water boiler with the right AFUE rating • Up to $800 rebate for a natural gas warm air furnace with an electronic commutated motor (ECM) • $800 rebate for an on-demand water heater with an Energy Factor greater or equal to .95 with an electronic ignition. • Up to $800 for qualifying on-demand tankless water heaters

  32. Heating and Cooling Rebates • Mail in rebates of up to $500 for purchase and installation of high efficiency central air conditioning units • Up to $500 towards purchase of a new high efficiency oil or propane fired heating system • $500 Rebate for a heat recovery ventilator. • $500 rebate for a natural gas hot water boiler with an AFUE Rating greater or equal to 85 percent. • $500 rebate for a condensing natural gas water heater with a thermal efficiency of 94 percent or greater. • $500 rebate for an on-demand water heater with an Energy Factor greater or equal to .82 with electronic ignition. Page 32

  33. Deep Energy Retrofit • National Grid Pilot Program for gas and electric customers in MA and RI • Max Incentive for an above average sized single family building is $42,000 • Candidates must be able to make their own significant financial investment and only a limited number of projects are accepted. • Costs after incentives for accepted candidates will be $35-60,000 • Candidates must team up with a contractor or designer with relevant experience to identify and propose deep retrofit projects • Must be a National Grid customer who heats with natural gas for 1-4 unit buildings, heat with electricity for 5+ unit buildings “The objective is to enhance the building envelope, increase the home’s energy efficiency, and decrease the costs associated with heating and cooling the home.”

  34. Appliances and Home Electronics • 20% of household energy bills come from appliances and electronics such as: • Clothes washers and dryers • Computers • Dishwashers • Audio equipment • Refrigerators and freezers • Air conditioners • Televisions and DVD players • Water heaters Page 34

  35. ENERGY STAR • If product costs more than non-efficient competitors, investors can recover investment in a reasonable amount of time Government-backed symbol (EPA & DOE) Easy to identify and purchase energy-efficient products Save on energy bills without sacrificing on performance or features (2010 saved $18 billion on utility bills, GHG emissions equivalent from 33 million cars) Page 35

  36. Using ENERGY STAR Page 36

  37. American Recovery and Reinvestment Act, $300 million Rebates towards new ENERGY STAR qualified appliances MA allocated $6,235,000 to 39,000 residents in 3 hours on April 22, 2010 December 31, 2010: $207 million was distributed to 1.4 million customers. This equates to annual energy savings of 1.4 trillion Btu Program still open in 22 states Page 37

  38. ENERGY STAR Compact Fluorescent Light Bulbs (CFLs) Pay for themselves in about 6 months Designed to last 6,000 hours (more than 5 years based on typical use) Average household has 30 bulbs 30 x $30 savings= $900 total savings Page 38

  39. ENERGY STAR Light Bulbs: Something to think about… • If every American home replaced 1 old light bulb with new 1 ENERGY STAR light bulb… • Save enough energy to power 3 million homes for a year • $600 million in annual energy costs • Prevent greenhouse gas emissions of equivalent of 800,000 cars Page 39

  40. ? ? ? Any Questions? Page 40

  41. References: "Stretch mortgage dollars with energy efficiency." Consumers' Research Magazine 76.3 (1993): 29. Academic Search Premier. EBSCO. Web. 23 Apr. 2011. Knoblauch, Jessica A. “Money Matters – Flex Your Mortgage: Energy Efficient Mortgages Expand Your Green Options.” Green Living. July/August 2009 Gerarden, Todd. “Rebuilding Mortgages for Energy Efficiency” Federation of American Scientists (FAS) Page 41