Saratoga Business Journal

Volume 12, Number 7
September 2007

Special Section - Home and Energy

Investing In A Home's Energy Efficiency Is A Sound Decision With A Long-Term Payoff

Energy Star Rating Is Common In New Homes

Homeowners often face the issue of whether to invest money into a project up front in order to save money in the long run. In the case of energy efficiency, it's a wise investment, experts say.

An increasing number of contractors are building Energy Star homes, and an increasing number of people are buying them without sacrificing features, style or comfort.

Energy Star is a project sponsored jointly by the U.S. Environmental Protection Agency and the U.S. Department of Energy that helps businesses and individuals protect the environment through superior energy efficiency.

Energy Star-labeled homes are built to be at least 30 percent more energy-efficient. They meet strict requirements set by the EPA to be certified. To receive the Energy Star label, the owner of the building must have a professional engineer verify that certain standards have been met. Raters conduct on-site testing and inspections to verify the energy efficiency measures, as well as insulation, air tightness, and duct-sealing details.

Thus, Energy Star qualified homes lower energy demand and reduce air pollution.

Many builders in the area are providing these energy-saving amenities.

Peter Belmonte Jr., vice president of Belmonte Builders in Clifton Park, teamed up with RPI's Lighting Research Center to build Energy Star-labeled homes in the Capital District that include energy-efficient lighting throughout the house.

"We're showing people the friendliness of ultimate means of lighting, specifically energy-efficient lighting," Belmonte said. "Many people associate it with fluorescent light, which has a negative reputation. But people are quickly surprised at how comfortable it is. Light has such an effect on people's mood. That was a big emphasis of the project."

The use of energy-efficient lighting incorporates soft effects into the home, including warmer colors and an overall soothing interior.

"Compact fluorescent lights use about one-third the electricity of standard bulbs," Belmonte said. "LED is another form of efficient lighting. Fiber optics is another specialty product, but is being more commonly used, too."

He added that the lights are constantly improving. "You can dim them now, they can change color. That couldn't be done a while ago."

Replacing incandescent light bulbs with compact fluorescent light bulbs (CFLs) will save nearly $30 over the life of each bulb. Energy Star CFLs use 66 percent less energy than a standard incandescent bulb, and last up to 10 times longer.

There are even energy efficient LED holiday lights.

And people don't have to buy new homes to benefit from Energy Star paybacks.

Anne Rockwood, production manager at Degraff Bloom Custom Builders, Inc., said, "You can't as easily add Energy Star after a house is built," but there are many certified appliances on the market that can help save on energy, such as refrigerators, washing machines, dishwashers, computers, air conditioners, televisions and dehumidifiers.

A homeowner can have a specialist evaluate the home and offer suggestions on how to conserve energy.

"Things you would definitely focus on is the quality of insulation in the ceiling or attic," Belmonte said. "If you bring in an Energy Star specialist, they can help troubleshoot areas in your house that are drafty, and sometimes it's as simple as caulking. The hot water heater, air conditioning and furnaces…You may find it's viable to replace them, if yours are getting old, with Energy Star ones."

No one is hiding the fact that it costs more to build an Energy home, or buy Energy Star-certified appliances. But as Rockwood said, "What I've seen in the last few years, as the price of energy has increased, buyers are looking for energy-conservation options."

The big payoff to the consumer is a decreased utility bill.

"The turnaround is much smaller than what it was. The cost of energy is not going down. The savings you're realizing is kind of an exponential number at this point, and it's just going to be more every year," Rockwood said.

Using a front-loading washing machine, for example, instead of a top-loading one, cuts down on electricity, water and soap. The difference in cost between an Energy Star washing machine and a standard one is roughly $175, yet the savings per year are just shy of $60 when using the energy-efficient appliance, experts say.

The difference in cost between a high-efficiency furnace and a standard model is approximately $500, with a savings per year of approximately $230.

Belmonte sees three positive aspects as a result of Energy Star. The first is reduced costs.

"You can see payback within a reasonable amount of time," he said. Those dividends continue for as long as a person owns the home.

The second is comfort, Belmonte said, "or controlling the way a home breathes and lives."

The third aspect is that people are becoming more aware that "we better start taking care of the environment we live in."

Gail DeGraff of Degraff Bloom Custom Builders said that there are federal energy efficient credits available to customers, just as there is a federal tax credit given to contractors under a certain set of circumstances if they are able to increase energy efficiency in the home.

DeGraff Bloom "used to offer the homes as a spec, and offer Energy Star as an optional package," DeGraff said. "We found that the vast majority, about 90 percent, were asking for that package. Now we build 100 percent Energy Star homes."

Since 2001, including houses that are currently on the books, they will have built 100 Energy Star homes.

Rockwood said DeGraff Bloom "does more than we have to, above the requirements. In two subdivisions, we're using tankless water heaters made by Rinnai." These are up to 50 percent more energy efficient than a traditional gas water heater and up to 70 percent more efficient than an electric water heater.

"We use PEX piping," Rockwood said, which is a plumbing system that can significantly reduce water and energy consumption in a home.

Degraff Bloom also offers an optional Energy Star Advanced Lighting Package (ALP).

Belmonte believes that energy efficiency is "becoming more talked about. Now people have seen the commercials, they've heard or read about it and are now asking questions to try to learn more about it. They can save money and do some good things."

For more information, visit www.energystar.gov or www.getenergysmart.org.