Energy Star® Update

The Energy Star® program is alive and well in Michigan. As an emerging market the growth of new Energy Star® homes has been slow but steady. Changes in the program; regulation, tax law and rising energy prices are expected to result in an explosion of program growth.

Let's begin with program change. Effective July 1, 2006 the scoring system was turned upside down. Under the old guidelines, the higher the score the more efficient the home. Every house began with zero points and built towards 100, with 86-points the threshold for Energy Star® certification. Under the revised program every house begins with 100-points and strives to lower the score. A "new" HERS score of 85-points in the threshold for Energy Star® certification. The old standard MEC has been replaced with IECC 2004. Other important changes include; required duct blaster testing for any ductwork outside the thermal envelop (think attic), completion of an air intrusion checklist (think mandatory pre drywall inspection) and an added layer of quality control of the energy auditors (think increased fees). I've run several previously qualified houses through the new software and found that most still qualified under the new program. Those scoring at or close to the minimum score of 86 may fall short of the new standard. The new scoring system does not recognize air conditioning systems with a SEER under 13 (the new federal manufacturing standard). There are other subtle changes that may change the way we build Energy Star® homes but they are minor and lengthy for this brief update.

Tax Incentives

Anyone that has attended the Green Built training seminars has heard Michael Holcomb mention "pending" tax credits. The idea of offering tax incentives for energy efficient construction was first introduced just after the 2000 presidential election. After nearly 6-years of politics the tax incentive is law. Effective January 1, 2006 and end December 31, 2007 a $2000.00 per house tax rebate is available. The credit is available for residential structures sold during the aforementioned timeframe with an energy score that is 50% higher than IECC2004 (base line Energy Star® is 15% higher than IECC 2004). At first glance the level required seemed impossible. However, as more information became available we determined that the 50% level only applied to heating and cooling. So, lighting, appliances and water heating were left out of the equation.

I have run several existing Energy Star® homes through the new software to determine what a builder would need to improve to qualify for the tax incentive. The first home I ran through the new software was completed in 2003. I was pleasantly surprised to find that the house would be eligible (had it been built and sold during the program timeframe) for the tax incentive. The next 30 homes that I ran through fell short of the goal. Interestingly enough, by making modifications to the thermal shell I was able to raise every house to a level that would qualify for the tax rebate. Since every house is different I can't offer a prescriptive approach for success. I can suggest that you will need to pay attention to the following issue:

• Low E Windows
• Foundation Insulation
• Mechanical Ventilation
• Tightly sealed structure
• 13 SEER AC

Your Energy Star® rater can evaluate your project's eligibility for the tax incentive during the pre construction plan review. Michael Holcomb can be reached at (The Home Inspector General, Inc., 2753 - 108^th St SW, Byron Center, MI 49315 (616) 878-7200 or This email address is being protected from spam bots, you need Javascript enabled to view it