Challenges and Opportunities

Improving the energy performance of homes challenges a builder to explore new construction techniques, cost structures, and marketing strategies. To help a builder meet these challenges, the E-Star program offers Home Energy Ratings, which document home energy performance, and the support of E-Star’s technical staff, who can provide a builder with practical information on how to overcome barriers to energy efficiency in a cost-effective and time sensitive manner. In addition, E-Star provides resource lists of other programs and organizations that may aid builders in their quest to meet these challenges and opportunities.

Technical Challenges

The builder may be challenged with incorporating new materials and construction techniques while trying to understand the interrelation of a home’s components. Windows, insulation, moisture proofing of the building envelope, and HVAC systems are all related in how they affect a home’s energy-efficiency and durability. E-Star can provide a builder with information and sources to address questions related to energy-efficient construction and system-wide building performance. Addressing these challenges will allow a builder to recognize savings opportunities such as instances when a smaller HVAC system will amply satisfy a home’s needs, rather than installing one that is too large at excess cost. E-Star’s Raters can produce an Energy Rating Report on a builder’s homes that identifies ways to increase energy efficiency in a cost effective manner. Raters also consult with a builder to improve overall system performance.

Consistent Performance

One challenge of building an energy-efficient home is accounting for the many variables that influence energy performance. Factors such as variation in the quality of subcontractor work, the nature of building materials, solar orientation, shading, and wind exposure can drastically affect the energy related performance of a home. A builder can also consult with a Rater or E-Star staff about the effects of such variables after an Energy Rating Report on a home is produced.

Organizational Response

Building more energy-efficient homes often requires the builder to reorient its entire company and network of subcontractors towards this objective. A builder may need to find subcontractors and suppliers that can deliver higher quality services and products for a reasonable price and provide them within a specific time frame. Production schedules may be developed differently, to accommodate the tasks required to produce an energy-efficient home. As with any organizational change, costs decrease as methodology becomes established. E-Star technical staff members have supported many builders through this organizational change can be of great assistance.

Cost

Building homes with higher levels of energy efficiency can result in higher up-front building costs. However, these costs can be recouped in the final sale price of the home and as a result of decreased callbacks during the warranty period. The increased costs will be most marked when the builder first begins to address the challenges described here, but can be expected to decrease as the builder’s organization is reoriented to meet them. Costs will further decrease as the builder establishes relationships with quality suppliers and subcontractors. The builder may also benefit from economies of scale as it continues to produce an increasing number of energy-efficient homes. Some costs may be recouped in a faster sale, as the availability of Energy Efficient Mortgages allows for a larger pool of potential buyers. Overall, a builder may well find that in taking on the higher cost of producing energy-efficient homes now, they are better positioned in the future when what is energy-efficient today becomes the standard technology of tomorrow.

Marketing

Another challenge faced by a builder is to successfully market its energy-efficient homes to potential homebuyers. A builder’s sales staff needs to understand and convey to the potential homebuyer the benefits of the energy-efficient home, such as potential availability of Energy Efficient Mortgages, decreased home operating costs, comfort and durability, and environmentally responsible home ownership. E-Star’s High Performance Home Marketing Consortium is being used by some High Performance Home builders to educate their homebuyers, as well as sales staff, on the benefits of this type of home. This, in turn, reinforces homebuyer satisfaction and creates the opportunity for greater referrals.