A Green Tune
by Derrick Teal
May 2, 2008
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| Though housing continues to slump overall, green homes are filling more and more of the market share.
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The New York ENERGY STAR Labeled Homes program has the sustainable-minded singing something other than the housing-slump blues.
The consistent decline in single-family housing starts (one year as of March 2008, according to the U.S. Commerce Department) has many in the residential market singing The Kinks’ “Where Have All the Good Times Gone” (or the David Bowie or Van Halen versions depending on the generation). But those who have been focusing on the green aspects of residential housing are singing a different tune.
In New York, for example, more than 11,000 ENERGY STAR-labeled homes have been built since 2001 in the New York ENERGY STAR Labeled Homes program. ENERGY STAR construction accounts for 23 percent of the state’s new construction market — a market that has seen a 20 percent decrease in new housing starts in 2007 versus starts in 2006.
So, why are ENERGY STAR homes making up such a large percentage of the state’s overall new construction starts? This is a down economy, and aren’t so-called “green” homes like these more costly?
According to the New York State Energy Research and Development Authority (NYSERDA), sponsor for the state’s program in coordination with the Environmental Protection Agency (EPA), New York ENERGY STAR Labeled Homes can be built in any price range without sacrificing style or comfort. That means customers benefit from reduced energy use and lower monthly energy costs, lower operating and maintenance costs, increased health and safety benefits, greater durability and a quieter, more comfortable living environment.
“Skyrocketing energy costs, climate change concerns and a desire for safer, healthier and more comfortable living environments are driving the demand for energy-efficient homes,” says Paul D. Tonko, president and CEO of NYSERDA. “New York ENERGY STAR Labeled Homes produce lower monthly energy bills, reduce greenhouse gas emissions and create healthier living environments, which is why NYSERDA assists future homeowners and responsible builders in constructing these homes. New York ENERGY STAR homebuilders are thriving in an otherwise struggling real estate market because they are able to meet the demand for these sustainable features.”
New York ENERGY STAR Labeled Homes use approximately 30 percent less energy than conventionally built new homes. NYSERDA reports that approximately 12 million kilowatt-hours of electricity and 690 billion BTUs of fossil fuel have been saved since the state’s program began. The collective energy savings from these homes means that more than 44,000 metric tons of carbon dioxide is kept out of the atmosphere every year — the same as taking nearly 8,000 cars off the road for a year.
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| Participants in sustainable housing programs can get performance-based incentives.
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It’s these savings for the homebuyer that presents opportunities for the architects, designers and builders of sustainable housing. For example, DeGraff Bloom Builders in Charleton, N.Y., has been part of the New York ENERGY STAR Labeled Homes program since 2002. In 2007, the company made the decision to build 100 percent of its homes to ENERGY STAR standards, rather than offering it as an option. Lee DeGraff, president of DeGraff Bloom Builders, explains why.
“With rising oil prices, dependence on foreign oil and clear signs of global warming, the consumer and the builder have an obligation to consider sustainability,” he says. “We are taking ENERGY STAR to its highest level by using all of the energy-efficient bells and whistles that we can to build our homes. Not only is this the right thing to do globally, we feel it is a great marketing strategy.”
Roughly 480 builders statewide were participating in the program as of early 2008, and more are joining to meet the demand.
The program is tiered to offer performance-based incentives to garner interest among the state’s homebuilding community. For example, better HERS scores and exemplary kWh savings can lead to financial incentives from the state as well as federal tax credits. According to the EPA, additional benefits to builders who become ENERGY STAR partners include:
- Market differentiation and recognition as leaders in energy-efficient construction and environmental stewardship.
- Enhanced customer satisfaction, resulting in fewer homeowner complaints and callbacks.
- Increased revenue for the builder if the energy savings allow the customer to afford additional upgrades.
- A range of choices for energy-efficient features that can be integrated with consumer-preferred designs, layouts and option packages.
ENERGY STAR currently does not have a partnership program for architects who design homes. However, architects can achieve some of the same benefits above by working with local ENERGY STAR builders and home energy raters, as well as educating customers about the features and benefits of homes that have earned the ENERGY STAR label.
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| Sales of ENERGY STAR-rated products have increased with the consumer demand for green housing.
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Manufacturers of certain sustainable products, especially manufacturers of ENERGY STAR-qualified products, gain benefits. According to NYSERDA, the use of ENERGY STAR electrical savings measures in New York ENERGY STAR Labeled Homes helps increase sales for ENERGY STAR-qualified products. For example, the 2007 market share for ENERGY STAR-qualified compact fluorescent light bulbs (CFLs) increased more than 86 percent from 2006. The benefits of going green are there, as the New York ENERGY STAR Labeled Homes program shows. If you’re fairly new to the whole idea of sustainability, or someone who simply has yet to examine a sustainability program, now’s the time to take a look. Find a national program like ENERGY STAR or LEED for Homes or the NAHB’s Green Guidelines or one of the many state and local initiatives available to you and examine the benefits. But if you’re still unsure, maybe the first thing you really need to ask yourself is “What tune am I singing?”
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