Why Implement a Home Energy Labeling Policy?

By requiring sellers to make home energy performance data available to prospective buyers, home energy labeling policies provide the foundation for factoring a home’s energy performance into real estate valuation and lending practices. Mandatory energy labeling policies have been shown to offer the following benefits:

[Sources: Brown & Watkins, "The Green Premium for Environmentally Certified Homes: a Meta-Analysis" (2015); ACEEE, "Predicting Home Energy Rating & Disclosure Program - Impacts for North American Jurisdictions" (2016).]
 

1.

Benefit: 

Valuation of energy performance
Energy labels provided at time of listing allow prospective buyers to act on their potential preference for energy performance.
 

Outcome:

3-5% increase in value for higher performing homes in the US and higher premiums in other countries.




 

2.

Benefit:

Increased energy retrofit activity in a critical but challenging sector
A list of recommended upgrades along with connectivity to local efficiency programs can spur greater uptake of energy retrofits.
 

Outcome: 

Rates of 12-37% of homes making improvements within 2 years of labeling have been recorded in Europe and the U.S.


 

3.

Benefit:

Availability of data for further analysis
Building stock assessment that can provide local jurisdictions with useful data at the neighborhood level.
 

Outcome:

Data can provided an understanding of energy cost burdens or savings (as increases in median family income) by neighborhood as well as measured progress towards city climate targets.


 


What does H.E.L.P. offer?


Policy Guidance

We can leverage our experience supporting numerous cities in developing mandatory Home Energy Score policies and can help create customized guidance for effective program implementation that achieves local priorities.


Training & Engagement

We have more than 10 years’ experience providing stakeholder training for Home Energy Score program implementation.
 


Home Performance Data Management

We understand what it takes to connect energy labeling program activity to the real estate industry, including home buyers, real estate agents, appraisers, and lenders.


Home Energy Score Program Development

We are both a Home Energy Score Partner and a Home Energy Score Quality Assurance provider.

 


Interested in joining?