1 / 0

Home Performance with ENERGY STAR: Growth Opportunities for Remodelers

Home Performance with ENERGY STAR: Growth Opportunities for Remodelers. Lew W. Pratsch Building Technologies Program U.S. Department of Energy National Capital Contractor Forum Manassas, VA April 7, 2010. The President on Retrofitting Buildings.

gamada
Download Presentation

Home Performance with ENERGY STAR: Growth Opportunities for Remodelers

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Home Performance with ENERGY STAR:Growth Opportunities for Remodelers

    Lew W. Pratsch Building Technologies Program U.S. Department of Energy National Capital Contractor Forum Manassas, VA April 7, 2010
  2. The President on Retrofitting Buildings http://blogs.america.gov/obama/tag/home-depot/ “We were at the roundtable and somebody said insulation is not sexy. I disagree. (Laughter) Frank, don’t you think insulation is sexy stuff? (Applause) Here’s what’s sexy about it: saving money.” President Obama, Dec. 15, 2009 2010 Contractor Forum
  3. Energy Efficiency Sells ENERGY STAR New Homes: Market Penetration EPA expects ENERGY STAR new homes will achieve >20% market penetration in 2009. “86% of Americans would choose one home over another based on its energy efficiency” Shelton Group 2006 Source: EPA 2010 Contractor Forum
  4. American Recovery and Reinvestment Act (ARRA) $80 billion in clean energy investments and home energy retrofits $8 billion in Weatherization Assistance & Retrofit Ramp-up $600 million in green job training programs 2010 Contractor Forum
  5. ARRA: Activity State Summary: -New Retrofit Programs: 8 -Existing Retrofit Programs: 11 -Enabling programs: 19 -Grants Available: 4 -Solar Initiatives: 4 -No Program: 4 2010 Contractor Forum
  6. ARRA: EECBG Competitive Block Grants $454 million available--proposals due Dec. 14, 2009 Retrofit Ramp-up General Innovation Fund Goals Make energy efficiency & renewable energy options of first choice Develop sustainable programs beyond the grant monies Program Funding Source: http://www.eecbg.energy.gov 2010 Contractor Forum
  7. Weatherization Assistance Program In 32 years, Weatherization Program has: Improved energy efficiency in about 6 million low-income homes Reduced heating bills by 32% saving about $350/year $2500 installation cost max per house + $700 in administration costs About 100,000 homes retrofitted annually In 2009 the maximum was increased to $6500 $5 billion was provided from ARRA funds 2010 Contractor Forum
  8. Incentives & Tax Credits for Homeowners Federal Existing Home Retrofit Tax Credit Provides homeowners a tax credit for installing energy efficient property, such as windows and insulation 30% tax credits up to a $1,500 through December 2010 Energy Efficient Mortgages (EEM) provided through FHA, VA, & Fannie Mae Check dsireusa.org for additional State, local and utility incentives January 19, 2010 2010 IBS 2010 Contractor Forum 8
  9. Home Performance with ENERGY STAR (HPwES) A whole house approach for existing homes based on building science: Home energy assessment/audit Cost-effective energy efficiency retrofits MUST meet minimum health, safety & durability standards, including combustion safety testing Great brand recognition with 75% of Americans recognizing logo 2010 Contractor Forum
  10. HPwES: Common House Problems 2010 Contractor Forum
  11. HPwES Program Success 70,000+ homes retrofitted Whole house energy savings 20-50% Average job cost $10,000 Incentives often $1,000 to $3,000 + Implemented by local sponsors such as utilities, state energy offices, and not-for-profit organizations. Currently in 28 states 2010 Contractor Forum
  12. HPwES Benefits for Remodelers/Builders Differentiates company Powerful brand recognition of the ENERGY STAR label Offers customers practical solutions to reduce energy costs Potentially higher margins Home performance contracting is a growth market Federal incentives for homeowners for energy efficiency upgrades helps create demand Federal, State, Local, plus utility incentives 2010 Contractor Forum
  13. Expanding Your business with HPwES Specialized training Homeowner incentives Equipment rebates Financing Marketing Network Website for participating locations: energystar.gov/ homeperformance 2010 Contractor Forum
  14. Benefits to Homeowners Utility bill savings of 20% to 50% Improved comfort Work performed by trained & certified contractors Third-party quality assurance Reduced greenhouse gas emissions 2010 Contractor Forum
  15. Retrofitting Existing Homes: Challenges Home Issues: Moisture Lead, asbestos Knob & tube electric wiring Zoning (historic buildings) Combustion safety Many different home types Contractors: Qualifications/certification Diagnostic equipment required Homeowner: cost of diagnostic energy audit; credit & market misinformation/false claims Market: Little awareness by home inspector, appraiser, MLS label. 2010 Contractor Forum 15
  16. Home Performance Success Stories Adding home performance offerings have increased sales in down market: Grupe Homes: Stockton, CA HartmanBaldwin: Claremont, CA Neil Kelly: Portland, OR WarmTech Solutions: Yarmouth, ME GreenHomes America: CA, NY, & NJ Bill Hawthorne: Alexandria, VA 2010 Contractor Forum
  17. Grupe Homes: Overview Grupe is a 40+ year old Home Builder in California Built more than 50,000 homes in 35 states Added a Green Homes Solutions division in 2009 Whole house approach Diagnostic Testing BPI accreditation 2010 Contractor Forum 2010 IBS
  18. Grupe Homes Approach Key Lessons: BPI training & certification critical to understand building science Community outreach required to raise awareness Hired PR/marketing firm to promote energy retrofits Jobs: Completed 30 energy audits & 5 energy retrofits in 2009 Plan to complete energy retrofits on 300 homes in 2010 2010 Contractor Forum
  19. Grupe Homes: Lodi Retrofit 22 year old house in CA’s Central Valley 3 bedroom, 2,129 sq ft Homeowner’s Issues, old furnace, high electricity bills & comfort issues Grupe Audit: Used blower door tests & infrared cameras Examined insulation levels, infiltration, and windows Inspected heating, cooling, and water heating system Checked all appliances and lights Conducted combustion appliance tests Checked for moisture infiltration & measured humidity levels 2010 Contractor Forum
  20. Grupe Homes: Lodi Retrofit Homeowner agreed to all recommended measures Replaced Pool Pump with Energy Efficient Variable Speed Pump Sealed House from 2,451 cfm 50 to 1,150 cfm 50 (Over 50% Reduction) Replaced Ducts and Buried New Ducts in R-49 Insulation Insulated Attic from R-30 to R-49 Downsized Cooling System-- 4 Ton to 2.5 Ton Replaced Heating System-- 80,000 Btus to 40,000 Btus Installed Window Film on West Facing Windows Installed Supply Side Outside Air System Gross project cost: $20,000 – $3,000 tax incentives/rebates = $17,000 total job cost Savings range from $109 - $389 a month Note: One child left for college post retrofit 2010 Contractor Forum 2010 IBS
  21. HartmanBaldwin Design/Build HartmanBaldwin is a 30 year-old award winning remodeling firm in LA area Embraced energy efficient audits & upgrades in 2007 Incorporated audits to measure & verify all design/build projects 2010 IBS 2010 Contractor Forum
  22. HartmanBaldwin Design Build: Success Steps to Success: Understand building science- get trained, gain knowledge Offer building science- integrate with your business model and evaluate your overall approach to green Engaged in grassroots community retrofit efforts Public speaking to raise awareness and create a market “Ongoing multi-faceted education” Need certification to ensure quality 2010 Contractor Forum
  23. HartmanBaldwin: Pasadena Retrofit Owner originally wanted kitchen remodel, but switched to energy retrofit as she could not afford A/C Comprehensive energy audit identified: Rusted out return plenum in crawl space Major air leakage in attic & around recessed can lights Numerous electrical code violations 2010 Contractor Forum
  24. HartmanBaldwin: Pasadena Retrofit Electric bills cut in half Measures included: A/C reduced from 8 to 3 tons Air leakage dropped from 13,523 cfm50 to 7400 cfm50 Attic insulation from R-5 batt to R-38 blown cellulose Air-tight boxes around 52 non-insulated, leaky recessed can lights R-8 insulated plastic flex duct 2010 Contractor Forum
  25. Neil Kelly Neil Kelly--award-winning design / build & remodeling company in Oregon since 1947 Total 2009 sales revenue--$20 million 130 employees 57 are Union Carpenters 4 employees solely dedicated to Home Performance “Tripled sales in 90 days with correct sales person” Brian McVay 2010 Contractor Forum
  26. Neil Kelly Home Performance (HP) pilot - retrofitted 200 homes in 3 yrs Currently Home Performance is about 1/20th of NK business Expect to grow to 10% of revenue in 2010 Goal: conduct HP audits on 60% of their remodeling jobs Selected to participate in the Clean Energy Works Portland pilot program "Neil Kelly's participation and success in the Oregon Home Performance with ENERGY STAR program has paved the way for other remodeling firms to add home performance contracting services.  Neil Kelly is a high-quality firm with very happy customers.” Diane Ferington Manager of Residential Programs EnergyTrust of Oregon 2010 Contractor Forum 2010 IBS
  27. Neil Kelly: Success Neil Kelly works closely with Energy Trust of Oregon, a government funded HPwES type sponsor Energy Trust is their #1 source of leads, followed by referrals and repeat clients Home performance plays a large role in creating viable career pathways Staff & customer education is critical Sales and marketing is key Home performance is part of a healthy home: link energy related improvements to health, safety, and sustainability 2010 Contractor Forum
  28. “Having launched a Home Performance division three years ago, we have built the foundation for a new division that has the potential to grab back from depths of the ‘Great Recession,’ all of the thirty or more employees that we lost in the last two years. In addition to providing jobs and prosperity, we will be making a serious contribution to the resolution of our global warming challenge. It is a very exciting time. I believe the remodeling industry is the most important vehicle to deliver home energy retro-fits to the American consumer.” Tom Kelly, President
  29. WarmTECH Solutions 30 years experience in home building / remodeling industry Primarily weatherization: 40% of jobs are low income, others are paying clients Typically achieve fuel savings of 25-30% Broad service offering: audits ($250-500), insulation, and general contracting work “I do know that the work that I do puts families into healthy homes, saves them money and is good for the environment.” Ashley Richards General Manager 2010 Contractor Forum
  30. WarmTECH Solutions Recommendations to Colleagues: Offer energy efficient upgrades Determine your level of participation: as an auditor or through partnering with an auditor Listening to customer needs is key to sales; they expect an increase of 30% this year due to sales training Market through home & garden shows, radio ads, TV ads, local home infomercial, etc. Interviews by local paper & TV, which gets their name out Most work through referrals, but yellow pages works 2010 Contractor Forum
  31. GreenHomes America Residential Home Performance Contracting business Founded in 2005 Over 5,000 retrofits Located in Central New York, New Jersey, and Southern California 100+ employees ALL comprehensive jobs Guarantee 25% savings on heating and cooling 2010 Contractor Forum
  32. GreenHomes America Approach Comprehensive installation, operations, sales, and marketing procedures and systems delivers consistency & quality Single source provider provides simplicity for the homeowner Manages entire installation, financing, rebates & incentives process for the homeowner Now offering home performance franchises Accelerates a contractor’s adoption and success in HPwES Ensures consistent quality across all locations 2010 Contractor Forum
  33. Bill Hawthorne:Deep Energy Efficiency Retrofit 1918 Alexandria, VA duplex completely transformed into a highly efficient single family residence Located between two subway stations, 5 minutes from Reagan National airport & 7 miles to Washington DC Condemned by the city fire marshal in June 2008 Has both “ENERGY STAR” and “LEED” certifications Recycled wood from existing building where possible Final costs for re-construction--$110-130/sq ft Energy efficiency upgrade costs are comparable to standard building practices Two houses sold in 2009-- HERs 66 & 70 2010 Contractor Forum
  34. Bill Hawthorne’s Deep Retrofit 2010 Contractor Forum
  35. Home Energy Retrofits—Strong Growth Opportunity A major emphasis of President Obama’s Administration Billions in ARRA funding for the retrofit industry funded 2009 $400 million in new programs to be announced this quarter Goal: millions of whole house retrofits per year Today: about 25,000 whole house retrofits per year Congress considering new incentives Best growth opportunity in the housing industry today? Economies of Scale, community based, resale regulations New business models will emerge 2010 Contractor Forum

  36. HPwES Contacts:

    Chandler von Schrader U.S. Environmental Protection Agency vonschrader.chandler@epa.gov Lew Pratsch U.S. Department of Energy lew.pratsch@ee.doe.gov (202)586-1512
More Related