What is the Energy Star Homes Program? 

  • By Sean Reville
    • Nov 30, 2023
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Energy Model

The Environmental Protection Agency (EPA) and the Department of Energy (DoE) jointly administer the Energy Star Homes program, which was implemented to establish a standard for developing energy-efficient homes. 

The program breaks down into three steps:

  • Energy Modeling 
  • On-site Inspections
  • Registration

With the right guidance, builders can integrate the Energy Star Homes Program into existing building processes, despite its complexity. 

Energy modeling 

To qualify for Energy Star certification, you must develop a software energy model. This model must demonstrate that the home meets or exceeds the energy efficiency score of a home built to the 2012 International Energy Conservation Code standards.

For energy modeling, a certified Energy Star Rater examines architectural and mechanical plans. They input them into approved energy modeling software to confirm compliance with requirements.

Energy modeling has a certain level of flexibility. Energy Star sets explicit requirements, but if a model leverages additional efficiencies in one building system, it does not necessarily mandate other building systems to be as efficient.

While energy modeling is the only pathway to Energy Star certification for single-family developments, multifamily certification can also be completed through the ‘prescriptive’ pathway, which allows the developer to follow the exact efficiency requirements outlined by Energy Star and does not allow for the flexibility of modeling.  

On-site Inspections 

Two on-site inspections by an independent certified ‘Energy Star Rater‘ from government-approved organizations form another key component of the Energy Star certification process. On-site inspections verify the implementation of the energy model’s plans in the building. On-site inspections ensure the energy model’s plans match the building’s actual installations. The first inspection must take place pre-drywall to verify that insulation and ducts have been appropriately installed, efficient framing techniques were used, and for other early stage building verifications to take place.  

The second visit, a final test, verifies the HVAC post-construction.

Registration 

The final Energy Star certification step registers both builder and home with Energy Star.

The builder must complete the Energy Star ‘Residential New Construction Partner‘ steps for registration.

You can find the steps for registering the building itself here.

The Benefits of Energy Star Certification  

Joining Energy Star clearly benefits builders by reducing their building’s carbon footprint and favoring the environment. However, there are also substantial and wide-reaching financial benefits to the process, making it a worthy endeavor to undertake. 

Here is an outline of some noteworthy benefits: 

  • Research suggests that Energy Star homes sell for up to 6% more than similar, uncertified homes. 
  • On average Energy Star homes use 20% less energy than homes built to code, reducing utility bills significantly. 
  • Access to low-interest, government backed Energy Efficient Mortgages through Fannie Mae, FHA or even the USDA. 
  • Energy Star certified homes may be eligible for the 45L Tax Credit, a credit of up to $2,500 per dwelling. 
  • Access to countless state and local incentives that reward Energy Star certification.  

The authorities officially register the building as an Energy Star Home, ensuring that the benefits of ownership last a lifetime.

Energy Star is the way of the future. Reach out to us at Leyton to find out how to join the movement. 

Author

Sean Reville

45L Tax Consultant

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