As developers and builders look to qualify for the §45L Tax Credit, understanding which design and construction features are likely to succeed or fail in energy modeling is essential. Not all projects are created equal, and some may not be worth the effort to model. Here’s a quick guide to identifying red, yellow, and green flags in your building plans before you invest time and resources in your energy modeling projects.
Red Flags
These features prevent projects from passing 45L requirements and should be considered non-starters unless significantly improved.
Electric Resistance Heating add
remove
- While electric resistance heat is technically 100% efficient (in that 100% of the energy is being used to create heat), it is not very effective at heating a space and is expensive.
No Slab Edge Insulation in Climate Zones 4 and Up add
remove
- Slab edge is no longer required for Energy Star Homes, but you’d have a hard time passing without it. Without slab edge insulation heat leeches out of the home through the concrete slab, also making the floors colder than the home.
2×4 Exterior Walls in Climate Zones 4 and Above add
remove
- 2×4 walls only allow for 3.5 inches of insulation, which not enough to efficiently keep up with winters in Climate Zones 4 and above. Fiberglass batts (which are commonly used) can only get to R-15 in 2×4 walls, compared to the R-21 fiberglass batts that can fit in 2×6 walls.
Missing Kitchen or Bathroom Ventilation add
remove
- Kitchen and bath fans that exhaust to the outside are both required by the Energy Star Program. They must be able to pull 100 CFM and 50 CFM respectively, though there are some exceptions.
Yellow Flags: Marginal Cases
These elements may still pass with careful planning and trade-offs, but they signal caution.
Gas + AC Combined PTAC Units add
remove
- Integrated gas furnaces with PTACs have become popular for multifamily construction. They tend not to be the most efficient, but their deficiencies can usually be made for elsewhere in the model.
No Listed Continuous Ventilation Strategy add
remove
- Energy Star requires all dwelling units to meet ASHRAE 62.2 which requires an amount of ventilation based on the climate, infiltration, size of the dwelling unit and number of occupants. While there are plenty of ways to meet the requirements, taking into account design considerations early allow you to more to do so more efficiently.
80% AFUE Gas Furnaces in Climate Zones 1–3 add
remove
- Climate Zones 1-3 have mild winters. Since buildings there won’t have their heat on very often, they can sometimes get away with using an inefficient gas furnace. That being said, if more efficient models are cost comparable, it’s still beneficial to opt for the better system.
Green Flags: Good Candidates for 45L
Buildings with these features are usually in a strong position to qualify for the 45L Tax Credit.
ERVs/HRVs add
remove
- Energy recovery ventilation or heat recovery ventilation are ventilation systems that recover some of the energy/heat from the air when they exhaust air and reintroduce that energy/heat to fresh air being brought into the home. They can be extremely efficient and will always model better than exhaust only ventilation.
Triple-Pane Windows add
remove
- Windows are one of the most important parts of the energy models, because windows are the least efficient part of the home. An efficient window model can be U-.25, which is only equal to R-4 while the rest of the walls are R-15-21. Triple pane windows are very expensive but can get down to U.15 or lower. While that may not seem like a huge change, it has a big impact on energy modeling and energy efficiency.
Air Source Heat Pump Water Heaters add
remove
- Normal electric water heaters can have an efficiency of .92 UEF, while heat pump water heaters can have an efficiency of 3.00 UEF or even higher. They are more expensive than normal water heaters but many rebates and incentives are available to defray the increased costs.
High-Efficiency Air Source Heat Pumps add
remove
- Air source heat pump technology has come a long way in recent years. They have become extremely efficient with some having SEER ratings in the 20’s and HSPF ratings in the up teens. Newer cold climate models can deliver significant amounts of heat even at well below freezing temperatures. Using newer, more efficient heat pumps has a positive impact on all energy models, regardless of climate zones.
Geothermal Heat Pumps add
remove
- Geothermal Heat Pumps take advantage of different temperatures in the earth’s crust to produce heating and cooling. They are very efficient and homes that use them can take advantage of many rebates, tax credits and incentives to make them more cost effective.
If your energy modeling projects incorporate several of these green flag elements, it’s probably a great candidate for 45L certification.
Final Thoughts
Understanding these indicators early in your planning process can save time and help you focus on energy modeling projects with the best ROI. When in doubt, consult an energy modeling expert to assess feasibility before committing to a 45L certification strategy.
How Leyton Can Help
Leyton helps builders and developers secure the certifications needed to qualify for the 45L Tax Credit, often at no additional cost. By pursuing certifications like ENERGY STAR or Zero Energy Ready Homes, your project becomes more energy efficient and can unlock significant tax incentives that cover the certification cost and more. Talk to a Leyton expert today to see if your project is a good fit and start turning clever design into real savings.