Installing solar panels on a home
For builders (and future homeowners) in the state of Oregon, a new law encourages green building practices that result in a home that uses half the energy for heating, cooling, lighting and water heating than a similar-sized home. Oregon high performance homes are those that meet stringent benchmarks for residential construction. And what is the reward, you may ask? To begin with, high performance homes will be allowed to use the Business Energy Tax Credit, which will save up to $12,000 per house. This breaks down to $3,000 for shell, heating and ventilation upgrades and up to $9,000 for renewable energy system components.
Since I live in Oregon and often represent builders and developers in my land use law practice, I have been able to see the positive effects of construction of high performance homes. Builders pay less, as a result of the tax credits, which also get passed onto homeowners in a lower-priced, more affordable home. Then, over time, the homeowner enjoys significantly reduced energy costs and the satisfaction of knowing that their residence is part of the answer to problems related to global warming and foreign oil supplies.
Christopher Dymond of the Oregon Department of Energy explains:
“Builders make important decisions that determine how much energy the house will use over its lifetime. Because nearly all of our marginal energy resources are imported fossil fuels, builders directly affect Oregon’s long-term balance of trade. Builders are an important component to our state’s strategy for a lower carbon footprint and financial independence.”
The components of a high performance home include efficiency ratings and on-site generation of renewable energy, such as solar power. The following excerpt from the Department of Energy website goes through the specific requirements to qualify as a high performance home:
“A High Performance Home is an energy facility that is a new dwelling unit constructed by a licensed builder under the Oregon Residential Specialty Code which has its own space conditioning and water heating systems, complies with the specifications listed in the BETC Technical Requirements and is intended for sale to an end-use homebuyer. A High Performance Home must include a Homebuilder Installed Renewable Energy System that produces at least 1 kWh per square foot of conditioned space on an annual basis for photovoltaics or the equivalent for other technologies as listed in the BETC Technical Requirements.”
Its all about the ENERGY STAR
In short, the technical requirements are based on, and actually supplement, the Northwest ENERGY STAR homes requirements. Not surprisingly, a builder that wishes to qualify to build high performance homes must have entered into a builder partnership agreement with the Northwest ENERGY STAR homes program. To verify that a home was built to ENERGY STAR standards, the builder must hire an ENERGY STAR homes verifier who will actually obtain certification after reviewing the building components. This helps the Department of Energy when considering tax credit applications, and the buyer can be assured that his or her new home meet the standards.
It is important to note that homeowners cannot themselves apply for state Residential Energy Tax Credits for high performance home features that qualify for the Business Energy Tax Credit. They can, however, claim federal tax credits. Potential homebuyers should ask to review all information related to high performance homes standards and ENERGY STAR home verification before entering into a purchase and sale agreement. That is what I advise my clients!
Once you own a high performance home, you can consider going even further than the 50% reduction in energy use compared to other similar houses. With such a great start on energy savings, many owners of high performance homes have continued adding more renewable energy upgrades to achieve a zero net annual energy bill home!
What if you don’t live in Oregon? Well, you are in luck – high performance homes are also certified under similar programs in Colorado. Builders in the state can consider joining HPH-100, a group that advises and assists in getting high performance home accreditation. I expect that it will not be long before other states follow suit with respect to high performance homes as demand for smart, energy efficient houses increases and builders realize that the added features of a high performance home will actually bring willing buyers who may otherwise be waiting for the residential market to “bottom out” – if it hasn’t already!
Next time you are considering buying a home – why not think about a high performance home?
Tags: business energy tax credit, department of energy, energy star, high performance homes
