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Financing an EnergyEfficient Home HERS Example

Financing an Energy-Efficient Home: HERS Example
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HERS Example

HERS Scale

Points Stars Energy Consumption
0-39 * More than 3 x the reference home
40-59 ** More than 2 x and up to 3 x the reference home
60-79 *** More than 1 x and up to 2 x the reference home
80-85 **** 30% less and up to 60% less than reference home
92-100 ****+ 60% less and up to 100% less than reference home
Table 1. This scale, developed by the National Home Energy Rating Systems Council, is based on the U.S. Department of Energy's national voluntary guidelines for HERS uniformity. For rating purposes, a subject home is compared to a "reference home," which scores 80 points on a 100-point scale with a rating of four stars. Every 5% decrease in the annual energy costs between the subject home and the reference home increases the subject's home score by 1 point from 80 points. Meanwhile, every 5% increase reduces the score by 1 point from 80 points. Note: your state may use a different HERS and scale.

HERS Report

An Energy-Effieicnt Home
Estimated Annual Energy Use & Costs
Description   Energy Use Energy Cost
  Space Heating 23.9% 21.90 Mbtu $110.33
Space Cooling 33.2% 30.41 Mbtu $588.61
Water Heating 16.6% 15.23 Mbtu $76.14
Other Energy Uses 26.3% 24.12 Mbtu $272.36
Total 100% 91.66 Mbtu $1,047.44
Source: National Home Energy & Resources Organization, Inc.
*Mbtu= 1,000,000 Btu

Table 2. Based on the HERS scale in Table 1 (above), this brand new, energy-efficient, 3,585 square-foot home in Houston, Texas, received a score of 89 points and five stars. The home features double-glazed windows, a 40-gallon natural gas water heater, a natural gas central air furnace, and an electric central air conditioner. A programmable thermostat controls the furnace and air conditioner.

A Home In Need of Energy-Efficient Improvements
Annual Energy Use & Costs without Improvements

Description   Energy Use Energy Cost
  Space Heating 78.5% 233.44 Mbtu $1,141.43
Space Cooling 10.5% 29.27 Mbtu $645.77
Water Heating 6.2% 17.60 Mbtu $88.02
Other Energy Uses 4.9% 13.92 Mbtu $265.04
Total 100% 284.79 Mbtu $2.140.26
Source: National Home Energy & Resources Organization, Inc.
*Mbtu= 1,000,000 Btu

Table 3. Based on the HERS scale in Table 1 (above), this 1,475 square-foot home in Tulsa, Oklahoma, received a score of only 21 points and one star. The home has single-paned windows, a 40-gallon natural gas water heater, natural gas central furnace, and an electric central air conditioner. A manual thermostat controls the furnace and the air conditioner. Equivalent carbon-dioxide emissions of 31.01 tons per year.

Estimated Annual Energy Use & Costs with Improvments
Description   Energy Use Energy Cost
  Space Heating 58.7% 63.99 Mbtu $326.90
Space Cooling 12.4% 13.46 Mbtu $291.73
Water Heating 16.2% 17.60 Mbtu $88.02
Other Energy Uses 13.92% 13.92 Mbtu $265.04
Total 100% 284.79 Mbtu $971.69
Source: National Home Energy & Resources Organization, Inc.
*Mbtu= 1,000,000 Btu

Table 4. The homeowner will save more than 50% annually in energy costs if recommended energy-effiecient improvements are made to the house in Table 3 (above). These improvements include sealing heating and cooling ducts, caulking, weatherstripping, installing a more energy-efficient central cooling system (10 SEER), installing more insulation in the crawlspace/basement and in the ceiling, and insulating hot water pipes. Payback for the improvements is estimated at a little more than 4 years. Equivalent carbon-dioxide emissions of 10.88 tons per year.
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