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 Scott Flynn, Flynner Homes
Scott Flynn
(208) 867-4587
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The Value of Energy Star Homes
Main / Building Value into Boise Real Estate  

Best way I have found to prove the value for building an Energy Star (EStar) Home is the monthly savings in your utility bills.

Best way I have found to prove the value for building an Energy Star (EStar) Home is the monthly savings in your utility bills. I am going to compare two homes I have on the market, one with EStar certification and one without. Both homes are comparable in size.

 Home #1 (Without EStar): 2x6 construction, 80% furnace, 50 gal water heater, Low-E windows, EStar appliances.
 
Home #2 (with EStar): 2x6 construction, 90%+ furnace, EStar water heater, Low-E windows, EStar appliances. Keep in mind EStar certification also includes increased insulation, energy saving light bulbs, higher efficiency duct work and air infiltration testing.
 
Assuming the home will be built to the new 2006 residential building codes the cost to upgrade to EStar should not exceed $3000 (includes Idaho Power rebate and 3rd party certification). $3000 financed at 5.5% is about $17/month (includes P&I).
 
Comparing just the natural gas bills for December 2007 for the two homes, Home # 1 was $85.30 and Home #2 was $51.90, a $33.40 per month savings (39.2% reduction). THINK OF WHAT THE SAVINGS WOULD BE IF HOME #1 WAS 2X4 CONSTRUCTION!
 
So it costs about $17.00 a month to finance EStar up-grades and you save about $33 a month in JUST natural gas! In this example the homeowner of Home # 2 would be putting approximately $16 a month in their pocket. EStar pays you to be efficient and comfortable.
 
To discuss additional values of EStar homes contact me directly, 208-867-4587 or visit us at www.flynnerhomes.com .
 
Cheers,
 
Scott Flynn
Posted by Scott Flynn at 1/29/2008 11:19 AM Permalink | Trackback
Comments (2)
Re:The Value of Energy Star Homes
Wait till March to compare when Idaho Power receives it's rate increase. Or do a July comparison when it is time to boost the AC back on.
But really, it is just money. Interesting to me that so many builders still don't get it. Do your clients a favor and reduce their monthly payment.
Posted by tlangford on 1/29/2008 12:46 PM
Re:The Value of Energy Star Homes
Thanks for the great example and for breaking it down to the monthly payment impact since that is how most of my buyer's relate!

Also, FYI, I had recently updated my gas furnace at my home and was surprised to find out that not only am I saving money on my gas bill as I expected to, but the fringe benefit was my electric consumption and bill dropped too since the motors and fans are much more efficient now than my old tired furnace.

Result = double bonus!
Posted by Jim Paulson on 1/31/2008 10:34 PM
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