Infographic Shows ROI for Modern Energy Codes

A new infographic highlights the surprisingly robust return on investment homeowners achieve when buying an energy-efficient home. The graphic includes a detailed estimate of the cost of complying with the 2021 IECC, estimated at $7,200 nationally for a single-family home. The graphic also details that every dollar invested in energy efficiency saves the homeowner $3 in monthly energy costs.

Why it Matters

Utility bills are the second-largest household expense after a mortgage, which makes them a considerable factor in housing affordability, particularly with inflation. A leaky, energy-wasting home ultimately costs the homeowner money and decreases their comfort. Addressing a leaky home by air sealing and adding insulation can dramatically cut home energy costs and improve comfort.

Home builders often cite the cost of compliance with the IECC as a significant expense for new home construction. However, as the infographic demonstrates, federal builder tax incentives through programs like the ENERGY STAR homes program and DOE’s Zero Energy Ready Homes provide builders incentives of $2,500 and $5,000, respectively. Further, states offer up to $14,000 in rebates for certain energy upgrades (including insulation) in income-qualified housing. Some states also offer rebates and incentives to cover the entire cost of the increased energy efficiency requirements.

Since the cost of increased home energy efficiency can be entirely offset by incentives – with incentives in some cases surpassing the cost of compliance – builders should have little resistance to meeting these requirements. As the infographic shows, the cost of the energy efficiency requirements is not a significant factor in rising home prices.

Conclusion

The benefits of an energy-efficient home are enormous for homeowners, including improved health, lower energy costs, and a higher resale value. Energy-efficient investments such as air sealing, high-performance insulation, windows, doors, skylights, and appliances – pay homeowners dividends over the long term.

To download the infographic, click here.

This article was originally published in the Insulation Institute blog and is republished with permission.