ENERGY FIT HOMES. In accordance with the Department of Labor and Industry s statute , Subd. 11,

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ENERGY FIT HOMES Real savings. Lasting comfort. Rebecca Olson Program Director Isaac Smith Program Manager In accordance with the Department of Labor and Industry s statute 326.0981, Subd. 11, This educational offering is recognized by the Minnesota Department of Labor and Industry as satisfying 1.5 hours of credit toward Building Officials and Residential Contractors code/energy continuing education requirements. For additional continuing education approvals, please see your credit tracking card. Pg. 2 1

Certification Program Partnership Pg. 3 Outline Why Energy Fit Homes was created Energy Fitness Score Energy Fit Homes requirements and process Current status and case studies Future plans Questions Pg. 4 2

Why Energy Fit Homes was created? Pg. 5 We are still moving too slowly Minnesotans waste over $55 million/year just from insufficient insulation levels in existing homes We need accelerators to drive demand. Tools that incorporate the value of efficiency in home sales transactions Pg. 6 3

400,000+ Minnesota homes have inadequate insulation Percentage of MN homes built 1976 Energy Code 18% 19% 23% 26% 14% Before 1929 1940 to 1959 1960 to 1979 1980 to 1999 Since 2000 ~52% Pg. 7 Efficiency is Currently Invisible Pg. 8 4

CA Housing Market Study 2012 National Association of Home Builders 2013 Study Pg. 9 Current Certifications Pg. 10 5

Shortcomings in certification market Designed for new construction Not necessarily grounded in cost-effectiveness Complex requirements/criteria Broader than energy efficiency Expensive processes Make it difficult to achieve scale Pg. 11 Pg. 12 6

What Distinguishes Energy Fit Homes? 1. Designed for existing homes Doesn t disadvantage older homes Every home can meet standards 2. Focused specifically on energy efficiency 3. Tied to existing utility efficiency programs Pg. 13 Cost Effective Improvements Pays for itself in energy savings over lifetime of the improvement Significantly improves the Indoor air quality, comfort or durability of the home Pg. 14 7

Report on website Pg. 15 Energy Fitness Score Score developed to outline a clear pathway to certification Visual representation of energy saving priorities Pg. 16 8

Energy Fitness Score Point distribution is based on housing type Individual housing types were modeled to determine proper distribution Specific to Minnesota climate Developed using the SIMPLE Model by Michael Blasnik House Type Attic Air Sealing Wall Heating Windows Total 1 story 20 8 32 28 12 100 1.5 Story 27 10 26 26 11 100 2 Story 12 9 40 27 12 100 Pg. 17 Energy Fitness Score Modeling each housing type 1 Story 1,700 sq ft 2 bedroom Typical window Area Gas Water Heater Gas Furnace (80 AFUE) Air Leakage: 1.25 ALR Wall: R-7 Attic R-20 Double/Storm Windows No Basement Ins 5 Categories Low - High Attic R-10 R-50 Wall R-5 R-11 Air Sealing 1.7 1.3 Heater 70 90 Windows Single Double Pg. 18 9

Energy Fitness Score Calculating point distribution 1 story home Category Low - High Energy Savings % of Savings Attic R-10 R-50 152 therms 20 Wall R-5 R-11 247 therms 32 Air Sealing 1.7 1.3 63 therms 8 Heater 70 90 213 therms 28 Windows Single Double 87 therms 12 Total 762 therms 100 Pg. 19 Energy Fitness Score 2 story Category Energy Savings % of Savings Attic 160 therms 12 Wall 518 therms 40 Air Sealing 117 therms 9 Heater 357 therms 27 Windows 157 therms 12 Total 1587 therms 100 1.5 Story Category Energy Savings % of Savings Attic 300 therms 27 Wall 281 therms 26 Air Sealing 106 therms 10 Heater 290 therms 26 Windows 120 therms 11 Total 1450 therms 100 Pg. 20 10

Energy Fitness Score Calculating the homes score Score is calculated within each category Determined by where the home is within the low to high range for that category Attic Example: 1 Story Home, R-22 Evaluate where R-22 is within R-10 to R-50 Use U-value (1/R-value) when calculating insulation categories 14 out of 20 points for the attic Pg. 21 Energy Fitness Score Home Scores Pg. 22 11

Energy Fit Homes Must score 96 or higher Achieve additional requirements: Pg. 23 What are the requirements and process for Certification? Pg. 24 12

Certification Components 1 2 3 4 5 6 7 Attic Insulation & Air Leakage Wall Insulation Heating System Efficiency Programmable Thermostat Windows Efficient Lighting Combustion Safety & Ventilation 7 1 3 4 7 5 6 2 Pg. 25 Pg. 26 13

Summary of Certification Requirements Category Attic insulation and air sealing Requirement Attic insulation is R-49 when possible, given existing space restrictions Attic bypasses are sealed, as measured by visual inspection or blower door testing Some flexibility allowed, as long as Home Energy Fitness score is greater than 95 Wall insulation Heating equipment Windows Lighting Ventilation Combustion safety Walls are insulated to capacity (without expanding the wall cavity) Some flexibility allowed, as long as Home Energy Fitness score is greaterthan 95 Furnace/boiler at least 90% efficiency Programmable thermostat is installed Windows are single-pane windows plus storm, or better At least 50% of lighting in permanent fixtures is efficient (CFLs or LEDs) Homereceives adequate fresh air, or has appropriate exhaust fan for added ventilation Furnace/boiler and hot water heater meet combustion safety requirements, or are closed combustion appliances Steps for Certification Receive a home energy assessment & a Home Energy Fitness Plan Complete work recommended by the Home Energy Fitness Plan Complete Certificate application ** Receive your Certificate ** Pg. 28 14

Score/Certificate Delivery Score delivery is integrated into existing Utility assessment programs no additional cost Certificate issued as part of Quality Assurance programs implemented by NEC and CEE low or not cost options for certification Currently being delivered primarily in the Metro, with some outstate work Pg. 29 12/10/2014 12/10/2021 15

Progress to Date Approximately 7,000 homes scored since 2014 253 certified homes - 217 in Metro and 36 outstate Outreach to over 500 realtors, several cities, and a few homebuyer class instructors Pg. 31 What percentage of homes already qualify? 35% of households qualified at initial assessment/audit Factors contributing to certification at initial assessment: Past participation in an EE program Newer construction 65% of households qualified after some sort of program participation (i.e. energy efficient loan, HPwES, Minneapolis Pilot, Utility rebate program, etc.) Pg. 32 16

Case Study 1 Roseville Rambler Built in 1950 Score from 81-97 Replaced 80% furnace with 96% Model with programmable t-stat Added R18 of attic insulation 15% air leakage reduction from attic bypass sealing Replaced water heater with power vented unit for combustion safety Had Home Energy Squad install CFLs Total Cost: $6,000 Modeled Savings: $307/year Pg. 33 Case Study 2 St. Paul 1.5 story Built in 1949 Score from 73-100 Added R29 in peak, R25 on kneewalls, R45 in side attics and dense packed slants 48% air leakage reduction from attic bypass sealing Dense packed exterior walls Replaced water heater with power vented unit for combustion safety Had Home Energy Squad install CFLs and programmable t-stat Total Cost: $4,360 Modeled Savings: $579/year Pg. 34 17

Case Study 3 West St. Paul Split Level Built in 1963 Score from 45-100 Replaced 60% furnace with 95% Model Added R29 of attic insulation 36% air leakage reduction from attic bypass and rim joist sealing Dense packed exterior walls and tuck under garage ceiling Replaced water heater with power vented unit for combustion safety Had Home Energy Squad install CFLs Total Cost: $8,870 Modeled Savings: $724/year Pg. 35 Average Non-certified Minnesota Homes Annual Energy Costs $1,500 to $2,000 Pg. 36 18

Average Annual Energy Cost of Certified Homes $250 to $400 less Pg. 37 Potential Barriers to Certification Ventilation misunderstood and not valued by the market Ventilation can be difficult and costly to complete as a stand alone measure Many boilers are relatively new and less than 90% due to cost issues with the condensing boiler market People complete projects in stages and often prioritize attics over walls, never completing the wall insulation work Some attic air sealing is not up to par, but attic insulation is adequate, so people aren t compelled to do air sealing as a standalone measure Existing, but inadequate, wall insulation Pg. 38 19

Expansion and Outreach Plans Work with more utilities and audit companies to incorporate score into audit programs Work with Cities to encourage partnership on outreach and incentive for residents to achieve certification (i.e. $100 bonus rebate from City for EFH Certified home) Continue to work with Realtors to use EFH Certification as selling tool Set up online portal for realtors and buyers to look up certified properties Work with home performance contractors on marketing ideas for certification to encourage larger scopes of work Potentially develop home inspector protocol to score homes on the market Pg. 39 20

THANK YOU mnenergyfit.org Rebecca Olson rebeccao@thenec.org Isaac Smith ismith@mncee.org 21