Will Builders and Buyers Lose Their Energy Religion?
Many builders found shelter in an energy-efficiency niche during the housing maelstrom. They successfully marketed homes with low monthly operating costs against a flood of resales, often using third-party certification to their advantage. They found receptive buyers, worried about the long-term direction of energy prices and interested in doing good by the planet by buying a home with the lightest possible carbon footprint.
The question is whether builders and buyers will do an about-face once normal dynamics return to the market. Energy efficiency may now be the “new granite,” as McIlwain says, but will it be supplanted by big, jetted tubs, 20-foot ceilings, and other lavish creature comforts once the market improves?
Evidence suggests that energy-efficient new homes may not be a passing fancy. First, going forward, builders will still need a competitive edge against existing homes, and it’s easier and more cost-efficient to do energy efficiency in new homes. Plus, surveys of potential home buyers show that almost half will gladly pay an extra $5,000 to $10,000 for energy upgrades that will add $35 to $70 to their monthly payments. The more salient point, though, may be that spreading code requirements will require that new homes be increasingly energy efficient. Competition from a growing contingent of green builders will provide further impetus.
Not to be overlooked in this debate, a new generation of relatively inexpensive infrared cameras, selling for about $1,500, has hit the market. Suddenly, every builder’s dirty laundry—improperly sealed windows, leaking eaves—may be on digital display to any potential buyer or builder competitor. Sam Rashkin, who manages the Energy Star program for EPA and DOE, believes the proliferation of these cameras—which only energy inspectors used to be able to afford—will force builders to build energy-tight homes. Already, roughly one in five new homes is built to Rashkin’s Energy Star requirements.
The federal government plans to up the Energy Star ante this year. To get a stamp of approval, builders will need to form a completely sealed thermal envelope that will stand up to an infrared camera test. Also, they will be asked to size and design heating and cooling elements as a system; inspectors will check to see whether they were installed correctly. And they will need to incorporate more comprehensive water management measures to ensure water stays out of the home’s envelope. Infrared cameras can reveal water build up behind walls, too.
Continued increases in natural gas, electricity, and petroleum prices will provide further incentive to build homes that are energy misers. “It’s unlikely that we can keep the cost of energy at current levels,” says McIlwain, pointing to forecast data from the Energy Information Administration that shows steady price increases throughout the decade.
Right now, most American homeowners have almost no idea how much energy is consumed by various systems within their houses. Bill Ablondi of Parks Associates believes that will change very soon due to the spread of affordable home control systems. “Residential energy management is hot,” he says, noting that a variety of smart grid appliances and energy monitoring systems will hit the market in 2011. “Consumer awareness, interest, and willingness to spend is real and growing.”
Demand for more energy-efficient homes may grow as homeowners gain more insight into their energy consumption patterns. The introduction of more affordable home controls, linked to the Internet, will be a new awakening. They’ll be able to see how much energy they consume through lighting, computers, and individual appliances. They’ll be able to adjust the times at which they run the dishwasher and clothes dryer.