Living Green

Builders, buyers warm to energy-saving homes

First came the push for fuel-efficient cars. Are fuel-efficient houses next?

  As builders look for ways to move homes in a lousy market, they're increasingly taking their cue from carmakers and turning toward energy efficiency as a selling tool.

  In Atlanta, builders are pushing what the head of the Greater Atlanta Home Builders Association calls "high-performance homes" that sip water and electricity like a Toyota Prius might sip gas.

  In Austin, Texas, custom homebuilders like Ray Tonjes are adding energy-saving features like thicker insulation, sealed attics and ductwork, and dual-speed air conditioner compressors to meet customer demand for more energy-efficient houses.

 And in Florida and other states, production builder Shea Homes Inc. now offers free solar panels in some housing lines, which it claims can cut energy costs by 60 percent from similar-sized houses from other builders.

  Just like with car buyers, home buyers "don't want to feel like they're getting a house that's like yesterday's SUV," said Rick Andreen, president of Shea Homes' Trilogy division, which sells homes in Deland, Fla., as well as Arizona, California and Washington. "They want to feel like they're getting a leading-edge, efficient product."

  Some builders are teaming up with energy companies for marketing help and added credibility.

  In Florida, for instance, Florida Power & Light Co.'s "BuildSmart" program certifies builders whose homes are constructed with a higher standard of energy efficiency. "BuildSmart" homes that come with features such as sealed air ducts, high-efficiency air conditioners and upgraded insulation can save up to 30 percent on monthly energy bills, FPL estimates.

 It only makes sense that in this time of high fuel prices and economic austerity homebuilders and home buyers are looking harder at what it costs to keep the lights and furnace on.

 According to the U.S. Energy Department, the average U.S. family spends about $1,500 a year on energy costs, a number that's rising steadily.

 The department's Energy Information Administration predicts home heating costs will rise by 15 percent nationally this winter. Parts of the South that rely on natural gas could see heating bills rise by 26 percent, it said.

 In a survey released in October by building supplies manufacturer Johns Manville, about 92 percent of respondents said they were interested in increasing their homes' efficiency to meet higher energy costs. More than two-thirds said they were more interested in home energy efficiency than they were a year earlier.

 In the Atlanta area, where rising energy prices and a drought have heightened homeowners' awareness, "high-performance homes" are what's selling, said David Ellis, executive vice president of the Greater Atlanta Homebuilders Association.

 "Consumers are really starting to understand and consider high-performance homes — ones that save water and energy," Ellis said. "It's come to the forefront of the consumer's perspective, and the builder's perspective too."

 In a survey of 400 builders, developers and remodelers released in May by researcher McGraw-Hill Construction, 40 percent said they thought it was easier to market "green" and energy-efficient homes in the current poor housing market. About 36 percent respondents said they expected to be heavily involved in green building in 2009, up from about 18 percent in 2007.

 "When you're talking to a family about putting them in a healthier home with lower utility bills ... that's a pretty easy sell," said Emily Zimmerman, manager of the green building program at the National Association of Home Builders.

 More than 1,300 builders have gone through a NAHB program launched in February designed to teach environmentally sensitive and energy efficient building techniques. Classes are always full, Zimmerman said.

 New types of supplies — everything from insulation and sheathing to government-sanctioned "Energy Star" appliances and solar panels that are much less obtrusive — are making building energy-efficient homes a lot easier.

 Tonjes, the Austin builder, has been constructing "green" houses for more than two decades. But today, he said, both consumer interest and the availability of energy-efficient building supplies and systems have reached a new high.

 "Everyone is more attuned to energy," Tonjes said. "Everyone knows it's an emerging issue."

 How much more efficient can homes get?

 According the Energy Department and McGraw-Hill, a household can reduce energy expenditures by 50 percent just by using equipment like more efficient heaters, air conditioners, water heaters, appliances and electronics and by using compact fluorescent lighting.

  Chemical and building supplies company BASF Corp. recently opened a concept home in Patterson, N.J. that it claims is 80 percent more efficient than similar-sized homes.

  BASF uses solar heating and hot water systems, high-efficiency heating and air conditioning systems, new types of sealants and windows, and a design that takes advantage of natural sunlight and weather patterns to reach its goals.

  Shea Homes' Andreen said he thinks someday builders might start posting the energy usage of their homes on the window or front door, just like carmakers post the gas mileage of their vehicles and appliance makers post the energy usage of their dishwashers or clothes dryers.

  "Then we can let the industry work it out," he said. "They guys who build the (housing equivalent of a) 45 mile-per-gallon car will get all the business ... and then everybody else will follow."

WHERE THE SAVINGS ARE

Where builders are putting energy efficiency into their houses

Solar: Adding solar panels can cut a typical home's power bill by 60 percent or more.

Heating and cooling: Furnaces and air conditioners are the single-biggest energy users in a home. New energy-efficient models, coupled with programmable thermostats and tightly sealed ductwork, can dramatically reduce costs.

Insulation and sealants: Extra insulation blown into walls and above ceilings are a big advantage. So are new types of caulks, windows and whole-house wraps that keep cold air out in the winter and cooled air in during the summer.

Water: Tankless instant water heaters cut down on heating costs. Water-saving plumbing fixtures reduce water usage.

Building materials: New types of insulated concrete forms, wall panels and flooring help seal a house.

  Appliances and lighting: Government-approved "Energy Star" appliances, reduced lighting and compact fluorescent and LED light bulbs go a long way toward cutting electricity costs.

Source: U.S. Energy Department, McGraw-Hill Construction, builders.

WHERE YOUR ENERGY DOLLAR GOES

Homes consume about one-fifth of all energy used in the United States each year, and the typical U.S. family spends about $1,500 a year on utility bills. Here's where it goes:

HEATING AND COOLING: 42 percent

Lighting and appliances: 36 percent

Water heating: 14 percent

Refrigeration: 9 percent

Note: Does not add up to 100 percent due to rounding.

Source: Department of Energy