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Sorting Out the Plethora of
Energy Programs
By Craig Wolfe, Director of Communications & Business Development
Energy Programs
June 2009

The focus of this article will be energy programs for homes. There are too many programs to all be included in this discussion, so we will focus on those that we feel are the most important from our perspective.

ENERGY STAR® was introduced by EPA in 1992 and began by labeling products such as computers, copiers, faxes, etc. By 1995, ENERGY STAR qualified new homes was added to the mix, and soon many energy consuming products benefited from the ENERGY STAR label.
The Residential Energy Services Network (RESNET) was formed in 1995 to develop national standards for home energy ratings and to create a market for home energy rating systems and energy mortgages.
The Building Performance Institute (BPI) was founded in 1993 as a third party verifier for work skills in weatherization, and by 1996 began issuing certifications for weatherization auditors and installers.
But let's not dwell in the past. What are the programs that are now being used either by the industry or by the consumer that impact home energy performance? For our purposes, let's divide these "programs" into 3 general areas:

  • Energy or Green Programs,
  • Training Programs for Diagnosticians, and
  • Incentive Programs for Consumers and Contractors

Energy or Green Programs
There are several "competing" programs that evaluate or score new construction or guide the improvements to an existing home. (Note: Some programs can be used for both new and existing homes. We have indicated their primary use.)

  • LEED for Homes. (new homes) This program is a voluntary rating system that promotes the design and construction of high-performance green homes, including affordable housing, mass-production homes, custom designs, stand-alone single-family homes, duplexes and townhouses, suburban and urban apartments and condominiums and lofts in historic buildings. LEED stands for Leadership in Energy & Environmental Design and LEED homes are intended to be safer, healthier, more comfortable, and more durable. LEED homes will have lower energy and water bills, reduced greenhouse gas emissions and fewer problems with mold, mildew and other indoor toxins. Third party verification is a requirement to score the LEED for Homes home. LEED for Homes can also be applied to existing homes if they are a ‘gut rehab’ project, meaning that the skeleton of the building must be exposed.
  • ENERGY STAR Qualified New Home. (new homes) To earn ENERGY STAR status, a home or other residence must meet strict guidelines for energy efficiency set by the U.S. Environmental Protection Agency. These homes are at least 15% more energy efficient than homes built to the 2004 International Residential Code (IRC), and include additional energy-saving features that typically make them 20–30% more efficient than standard homes. ENERGY STAR qualified homes can include a variety of 'tried-and-true' energy-efficient features that contribute to improved home quality and homeowner comfort, and to lower energy demand and reduced air pollution through  effective insulation, high-performance windows, tight construction and ducts, efficient heating and cooling equipment, and efficient products and appliances. Third party verification is a requirement to score the ENERGY STAR Qualified New Home.
  • NAHB Green Build (new homes) NAHB Model Green Home Building Guidelines were written to provide guidance for builders engaged in or interested in green building products and practices for residential design, development, and construction. The Guidelines were also written to serve as a "baseline" so that NAHB members could easily develop local green building programs. Divided into two parts, the Guidelines cover seven areas, or guiding principles: Lot Design; Resource Efficiency; Energy Efficiency; Water Efficiency, Indoor Environmental Quality; Homeowner Education; and Global Impact. The Guidelines offer three levels of green building- Bronze, Silver, and Gold.
  • NAHB Green Building Standard (new homes) – NAHB has revamped the Guidelines mentioned previously by submitting their green program to the ANSI* review process.  The resulting ANSI approved ICC-700-2008 National Green Building Standard defines green building for single and multifamily homes, residential remodeling projects and site development projects while still allowing for the flexibility required for regionally-appropriate best green practices.  
  • DOE Builder Challenge (new homes) Builders commit to constructing homes that rate 70 or lower (better) on the EnergySmart Home Scale (E-Scale) and meet the Builders Challenge Quality Criteria. You can choose among three different pathways for meeting the Builders Challenge, as shown in the chart on the Requirements for Builders page. These processes are based on existing consensus standards and procedures that include verification and quality control. As a participant in the Builders Challenge, you can take advantage of the use of the EnergySmart Home Scale (E-Scale), as well as marketing and technical resources provided through the initiative. In addition, a design competition will make high performance home plans more readily available and annual awards will recognize and reward participation.
  • Home Performance with ENERGY STAR (existing homes) Home Performance with ENERGY STAR is a national program from the U.S. EPA and U.S. DOE. It offers a comprehensive, whole-house approach to improving energy efficiency and comfort at home, while helping to protect the environment. Contractors participating in a locally-sponsored Home Performance with ENERGY STAR program can help you cost-effectively improve your home's energy efficiency. These specially-trained contractors evaluate your home using state-of-the-art equipment and recommend comprehensive improvements that will yield the best results.
  • Energy Efficient Mortgage (New Homes) EEMs provide the borrower with special benefits when purchasing a home that is energy efficient, or can be made efficient through the installation of energy-saving improvements. Requires HERS Rating by 3rd Party.
  • Energy Improvement Mortgage (existing homes) is a mortgage that sets money aside for home improvements that will increase energy efficiency within the home. Energy improvement mortgages are available when a house is being purchased or refinanced. A certified home energy rater will examine the home and suggest improvements; once the improvements have been made and confirmed, the lender will repay the expenses (which have already been approved under the mortgage contract) to the borrower from an escrow account. Requires HERS Rating, Improvement Analysis and post improvement Q&A testing by 3rd Party.

Training Programs for Diagnosticians
As we have increased our awareness of energy, and have elevated the importance of energy in our lives, we have demanded that professionals who analyze, or work, or train others in residential energy be qualified professionals. This has resulted in national certification organizations. Below are two of these important organizations.

  • Residential Energy Services Network (RESNET) RESNET Ratings provides a relative energy use index called the HERS® Index - a HERS Index of 100 represents the energy use of the "American Standard Building" and an Index of 0 (zero) indicates that the Proposed Building uses no net purchased energy (a Zero Energy Building). A set of rater recommendations for cost-effective improvements that can be achieved by the Rated Building is also produced.
  • The Building Performance Institute (BPI) BPI measures the, knowledge, skills, and competency of individuals, and evaluates the organizations impacting building performance through an integrated certification, accreditation, and quality assurance program designed to support the building performance contracting industry.

Incentive Programs