Energy Star

In 1992 the Energy star program was launched by the environmental protection agency(EPA). Currently the Energy star program is managed jointly by the EPA and the Department of Energy(DOE). The Energy star program was initiated as a voluntarily program specifically to promote energy efficient products. In 1992 30-40 percent of computers were left on 24 hrs a day accounting the fastest growing electrical plug load adding unnecessary energy consumption in buildings. Thus Energy star was born Starting with simple labels for computers and printers.The Energy star program has continued to expand its labeling and certification to over 60 product categories products over the last 20 years. With over 80% consumer product understanding and recognition awareness…

In 1995 Energy star expand its guidelines to include several key areas for residential homes. Specifically heating and cooling systems including all HVAC system duct work, Building envelope, and high performance exterior windows. The Energy star government backed labeling identifies credible, and unbiased energy efficiency products for consumers. Since 1992 Energy star labeled products have helped save american families and business over 400 billion dollars on their utility bills.

Energy star certified homes means they are 15-30% more energy efficient than typical new conventional homes. Over the years EPA has modified and increased the requirements to meet Estar energy efficient guidelines. Pre 2006 Using Estar version 1 homes were required to achieve 86 on the HERS scale.This equates to a 30% more energy efficient home built to the Model energy code. Inspection check lists were not issued or required.

In 2006 responding to evolving national model energy codes, Energy star issued more stringent guidelines and released Estar version 2. Providing two ways to obtain new home Energy star certification. One the prescription path and two the performance path. Both paths continue to build upon the version 1 requirements and added additional requirements, proper sized HVAC systems, water heaters, efficient lighting, thermal bypass checklist, and visual insulation inspections

In 2010 Energy star released version 3. Continuing to improve the efficiency and indoor air quality Version 3 guidelines will be at least 20% more energy efficient than homes constructed to the 2009 International energy conservation code(IECC). Version 3 updates include:performance path modeling using Estar reference design specifications to establish an initial target HERS target score.Additional baseline requirements include:updated checklists, mandatory requirements for thermal enclosures, water efficiency and HVAC instillation specs. Home builders, energy raters and HVAC contractors are now required to complete training to comprehend all Estar requirements.

Over eighty percent of the nations home builders now build Energy star certified homes. bringing the total of Estar certified homes to over 1.7 million in 2016. In 2016 over 80,000 home owners retrofitted their conventional homes with improved energy/water efficiency upgrades.

As energy and water efficiency is now moving towards the forefront, verification and documentation of building metrics will become the norm in the near future. Energy star now offers an on line portfolio manger for measuring and tracking energy and water consumption in commercial properties. The portfolio manager gives you 150 different metrics (ie CO2) that can be used to analyze your buildings energy/water consumption. Additionally the portfolio manager offers a numerical score form 1 to 100 so you can compare your building energy consumption to similar others nationwide.A score of 50 is the medium energy performance, a score of 75 indicates the building is in the top 25% and may be eligible for Energy star certification. The numerical score is based upon actual measured data.

The online Estar portfolio manger tool currently tracks over 500,000 buildings nationwide. Energy and water efficiency metrics are becoming vital in the green appraisal process. As the monthly utility costs plummet 30% or now sometimes to zero in the case of net zero real estate. This reoccurring exorbitant monthly expense effects the net operating income of a property. As less cash flow is required for monthly expenses, the building retains  higher gross revenues the appraised value of the building is dramatically effected. Selected Energy star commercial real estate has seen a sixteen (16%) percent increase in rental rates and sales prices!

Recognizing documented reduced monthly operating expenses, Energy star certified homes and buildings qualify for rebates, incentives and has its own dedicated green mortgage financing. The green mortgage offers a reduced interest rate, and relaxed borrower qualifications.

Over 300,000 workers are involved with the manufacturing of Energy star.products. With over 300 million  certified Energy star products were sold in 2015, with sales volume over 100 billion dollars. Energy star has helped local governments preventing over 2.8 million metric tons of greenhouse gas emissions. from 1992-2015.

With market forces now effecting all types of real estate portfolios. Homes and buildings emitting 30% of the worlds green house gas emissions. Sustainable practices are slowly becoming the new normal. All Real estate is now becoming bifurcated.  Separated into two branches conventional lower grade real estate selling at a grey discount and high performance green real estate identified by independent third party labeling such as Energy star selling at a higher appraised value.

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