Building an Energy Star home
Power-saving appliance program moves
into residential construction

Snohomish County Business Journal/KIMBERLY HILDEN At Pasadera, Quadrant Homes’ 192-home community now under construction in the Lake Stevens area, homebuyers have the option of choosing an Energy Star package for their homes like the model home above.

By Kimberly Hilden
SCBJ Assistant Editor

The Energy Star label has been gracing computers, washing machines and refrigerators for more than a decade, promoting energy-efficient technology to consumers. Today, that label can be found on newly constructed homes in Washington state as well.

“We certified just under 500 homes last year and have over 1,500 this year,” said Tom Balderston, a building science expert with the Energy Star Homes Northwest program.

An Energy Star-certified home, with its high-efficiency heating and cooling system, tightly sealed ducts, and use of well-insulated windows and compact fluorescent lights, operates at least 15 percent more efficiently than homes built to standard code, Balderston said.

Although the U.S. Environmental Protection Agency-backed housing program has been in operation nationally since 2000, it has been in Washington state a little less than two years, he said. But it has gained the notice of contractors through the Built Green program of the Master Builders Association of King and Snohomish Counties.

The Built Green program, which uses a five-star scale to rate the environmentally friendly building practices used for a structure, requires the Energy Star standard for all four- and five-star homes, Balderston said. “Even the three-star Built Green level has Energy Star components.”

Homes built and certified through the Energy Star Homes Northwest program include:

• A high-efficiency, natural gas water heater with an energy factor of 0.61 or greater compared to standard water heaters, which usually have an energy factor of 0.58, Balderston said. The higher the energy factor, the greater the water heater’s efficiency.
• A condensing furnace that is 90 percent efficient. That compares to a building-code minimum of 72 percent efficient, he said.
• The use of compact fluorescent lighting in 50 percent of the light sockets, Balderston said. “CFL light bulbs use a quarter of the electricity of an incandescent light bulb.”
• Ducts that are sealed with well-insulating mastic, not duct tape, and tested to ensure that leakage from the duct system is less than 6 percent of airflow as measured in cubic feet per minute. “Duct systems on the whole are badly below where they should be,” Balderston said, noting that some homes have as much as 20 percent of their hot air going into crawl spaces. “Energy Star is training and certifying heating contractors to test duct systems.”
• Windows with a U-value of 0.35 vs. the standard 0.40. The U-value measures the ability of a medium to transfer heat, with a lower U-value translating to less heat loss.
• The use of Energy Star appliances for all built-in appliances, such as the dishwasher.

Energy Star-certified homes also must go through a verification process from a third-party, independent inspector, he said.

What’s the cost to upgrade to Energy Star? Not as much as one might imagine, thanks to rebates offered by energy utilities, Balderston said. Puget Sound Energy, for example, has rebates ranging from $250 for the efficient gas furnace and $50 for the Energy Star certification to $40 for the high-efficiency water heater and $2 for every CFL light bulb.

The final cost ranges from $600 to $1,200 more for the upgrade, with the overall Energy Star package raising the cost of the home about $2,500, he said.

But there are benefits to doing business as an Energy Star home developer, including eligibility for Energy Star co-op advertising — up to $2,500 per year, Balderston said. Builders also can receive $500 for each of two Energy Star model homes annually, and they can enjoy added exposure on the Energy Star Web site (www.energystar.gov), which list Energy Star builders.

Perhaps the biggest advantage of building an Energy Star-certified home is that it creates continuing value for the homeowner, Balderston said.

“The biggest point about Energy Star is if you’re on a budget, this is actually a cheaper home. There might be a slightly higher mortgage, but the homebuyer will experience $25 a month in savings,” he said.

The Energy Star label was a strong selling point for Regent Homes, which built 58 Energy Star homes in the Marysville community of Ebey Vista in 2004-2005, said Laura Reynolds of Sundance Realty Group.

“They did sell quickly; we sold them all in eight months,” said Reynolds, who was the listing agent for the homes, which were priced under $300,000.

While showing the homes, she was asked by many prospective homebuyers how much money they would save with the Energy Star standard.

“That was a big deal,” Reynolds said, noting that homebuyers also expressed their high opinion of Regent for deciding to develop energy-efficient housing. “They thought it was a better, more conscientious builder that would do that.”

Bellevue-based Quadrant Homes also is involved with the Energy Star program, giving consumers the choice of Energy Star amenities at its new-home showroom.

“I have this philosophy that the organization really needs to be a part of the solution as opposed to being part of the problem,” said Quadrant President Peter Orser.

The company, which was involved in developing the Built Green program with the Master Builders Association, decided early on that Energy Star was a program worth supporting, but it leaves the final decision up to the homebuyer.

“We do some things in our homes that make our homes Energy Star qualified, including inspecting duct work (which) is nominally more expensive, but the real issue is the appliances and the furnace. Those are capital equipment decisions that have an energy payback period, (and) only the customer can make that decision,” said Orser, whose company is now building a 192-home community in the Lake Stevens area.

In theory, the added cost of the Energy Star package should, depending on use, pay for itself within three to five years, he added.

What Quadrant is seeing in its showroom now is that the majority of customers would rather spend the extra money on a tangible amenity instead of one with a three-year payback, but Orser said he is optimistic that over time, more consumers will decide to go green.

“I still think we’re really early in the whole revolution of built green,” he said.

“The key thing for builders is taking the time to take a look at it — this is where you want to be as a builder,” said Balderston, who has noted an increase in interest from residential developers since the beginning of the year.

“Building and heating contractors are building value into their homes. It’s profitable for them and profitable for the buyer. It’s a win-win thing,” he said.

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