ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, December 31, 1996 TAG: 9612310053
SECTION: EXTRA PAGE: 3 EDITION: METRO
COLUMN: At Home With Technology
SOURCE: DAVID BUTLER
Q: My wife and I are in the market for a quality older home in an established neighborhood. Naturally, we're concerned about high energy bills. Is software available that would help us evaluate the energy efficiency of a given house? We plan to set aside some money to make improvements.
A: I'm not aware of any consumer software that does what you want, at least none that are accurate. The problem is this: A home's overall energy performance is affected by many factors, some of which can only be quantified by direct measurement using highly specialized equipment.
However, don't be discouraged. You are wise to consider energy performance before making your purchase decision. The true cost of a house is not just the sticker price, but must recognize day-to-day operating costs. An older home, even when outfitted with a modern heating and cooling system, can put a serious drain on your budget. And older homes are often uncomfortable to live in.
Building codes have only recently begun to address energy efficiency. When buying a pre-owned home, you're on your own. However, it doesn't have to be that way. A growing community of energy professionals have the necessary training, equipment and experience to evaluate a home's energy performance. An audit costs as little as $200.
Because the industry is still rather small, it may be difficult to find people who are qualified to do this work. They go by names such as energy auditor, home energy rater, and weatherization specialist. Fortunately, several national organizations have been compiling lists and are now able to make referrals for interested builders and homeowners.
An energy audit serves three purposes. First, it gives you a good idea of how much it will cost to heat and cool a house. Second, it identifies problems. Finally, it recommends specific remedies. Each improvement is qualified as to how much energy it should save and what the payback period would be. This way you can get the most from a limited budget.
The secondary mortgage market has dabbled in energy efficient financing for years. Energy escrows and other incentives, though rarely used, have been available for more than two decades. The mortgage industry has been reluctant to promote them.
The theory behind financing incentives is this: Buyers of energy efficient homes spend much less than average on electricity and gas, and thus should be able to afford a larger mortgage. Although no one disputes this logic, mortgage underwriters have had no way to quantify the relative efficiency of a given home. That is, until now.
The Home Energy Rating Systems Council, the Environmental Protection Agency and the Edison Electric Institute have developed comprehensive energy rating systems for homes, much like fuel efficiency stickers on cars and certain appliances. So far, these ratings are voluntary in most states.
New homes are most often rated in conjunction with utility-sponsored programs, or because a builder wants to call attention to a job well done. However, a small but growing number of national mortgage lenders are creating incentives to encourage home buyers and sellers to order an audit.
For example, one mortgage company will lower interest rates for qualifying homes by one-eighth percent, provide a $350 credit toward closing costs and stretch qualifying ratios by up to four percentage points. Special long-term financing programs are also available (in conjunction with primary mortgage) for energy improvements predicted to generate an immediate positive cash flow.
Even without incentives, a home energy audit nearly always pays for itself.
To receive my Home Energy Rating Resource List, please send $2.00 and a self-addressed envelope to David Butler F-629 Department TWN, P.O. Box 36352, Cincinnati, Ohio 45236-0352. The list includes information on national energy rating programs and energy efficient mortgage programs along with phone numbers of organizations that can help locate qualified energy raters.
TechTalk: Energy auditors use blower doors and duct blasters to measure air infiltration, pressure gradients and duct leakage, all major contributors to wasted energy. Factors that cannot be measured are estimated based on a highly structured point system. The entire process is designed to ensure accuracy and consistency from one rating service to the next.
LENGTH: Medium: 81 lines ILLUSTRATION: GRAPHIC: A home energy rating is the equivalent of the yellowby CNBenergy consumption sticker found on many appliances.