 ENERGYSTAR – The Brand
By: Jon Dougal
Date: July 2009
Ednote: California’s legislation is leading the states on green building, a fact. Other states will follow - history. Fannie May &/or Freddie Mac are endorsing, promulgating Energy Efficient Mortgages. In Fact mortgages of the future may well be pegged to the operating costs of a building. What if an energy efficient building cost less to operate and therefore its occupants could afford a higher percentage of their discretionary income towards a mortgage payment. A prediction (not-to-difficult even for me) is that homes without an Energystar rating (the lowest of the energy rating systems) would be worth more than a building without an energy rating. Happening in the near future?
ENERGY STAR is a solid brand, whether you’re a builder, lender or consumer. The brand equates with quality, good consumerism, and energy efficiency and makes buyers proud of their purchase. Try one on for size.
Many homeowners are familiar with the Energy Star label – but do you know how powerful a brand it is.
Why have EPA and DOE engaged in this private/public partnership?
- Launched in 1992 for computers
- Grown to products across 40+ categories
- 1995 - new homes
- 1999 - efficient buildings
- 2003 - updated logo
- Sold 1+ billion products
- Prevented greenhouse gas emissions equivalent to those from 18 million vehicles
First, for consumers, it gives them a simple way to identify truly energy efficient products that save energy and money while protecting the environment. Too often consumers are overwhelmed trying to satisfy primary selection criteria that may or may not include energy efficiency. However, studies show that consumers want energy efficiency and a simply label that defines this attribute makes it much easier for them to act on this preference.
For manufacturers and homes builders, the label provides a simple tool that distinguishes their energy efficient and often more profitable products and homes.
EPA and DOE are also in business, but their currency is carbon rather than money. And carbon emission savings are impressive since energy efficient products, homes and buildings significantly reduce the need to combust fossil fuels. The ENERGY STAR label helps to effectively make a change for the better fighting air pollution and climate change one product, home and building at a time.
Quality is a strong indicator for value across a wide array of products, including homes.
JD Powers, the national largest customer satisfaction research organization (widely recognized in the automobile industry), has recently started surveying customer satisfaction with new homebuyers.
If you’re not sensing the presence of ENERGY STAR qualified homes in your market, the projected growth through end of this decade suggests it will probably be there soon. In fact, actual growth has far exceeded any planning projections. However, continuing what have proven to be conservative projections indicates there will be over 2 million ENERGY STAR labeled homes by the end of the decade – read 2010. Clearly ENERGY STAR is sending a signal, much like the canary in the coalmine, that your environment is changing.
The Message:
Quality is a strong indicator for value across a wide array of products, including homes.
JD Powers, the national largest customer satisfaction research organization (widely recognized in the automobile industry), has recently started surveying customer satisfaction with new homebuyers.
For homes, it is used to designate energy efficient performance significantly above code that is verified by a third-party inspector.
In communities where builders are actively building energy efficient homes that are ENERGY STAR qualified, the ENERGY STAR builder partners are consistently the top-ranked builders for customer satisfaction including either #1, #2 or both.
Las Vegas, the large metropolitan area with the highest market penetration for ENERGY STAR qualified homes, has scored the 2nd highest scores in the nation, and 9 of the top 10 highest scored builders are ENERGY STAR partners.
These results suggest a possible connection between quality construction and energy efficient builders.
ENERGY STAR has recently emerged into national prominence with exponential growth over recent years including more than 110,000 qualified homes in 2003 and cumulatively more than 330,000 qualified homes.
Consider ENERGY STAR qualified homes as a “virus” spreading across the country by observing our growth on the next series of maps with each blue dot representing 50 labeled homes,
In 1996 and 1997 we only had one viable HERS rater in Indiana
In 1998 the HERS infrastructure started to grow in New England, Florida and the southwest accounting for initial growth in these markets.
In 1999, California and Texas both get started and growth starts to establish in southwest and some mid-west states along with continued growth in New England and New Jersey.
2000 sees major traction in Arizona, Nevada, California and Texas, which emerge as the strongest regions for ENERGY STAR qualified homes.
2001 growth continues in all established markets and the Pacific Northwest takes a big jump because of manufactured HUD-code homes in that region.
In 2002 and 2003, the strong markets explode in growth along with continued growth in the mid-west, New England, Louisiana and Florida.
Remember, this is a voluntary program for builders requiring additional quality control and field inspections. This exponential growth supports the ENERGY STAR premise that energy efficient business practices are more profitable for the homebuilders.
It is the national, symbol for energy efficiency a U.S. government-backed brand so powerful that:
The most simple way to explain ENERGY STAR is that it is a government-backed label administered by the U.S. Environmental Protection Agency (EPA) and U.S. Department of Energy (DOE) that serves as the symbol for energy efficiency on over 40 different product categories, including new homes. EPA and DOE set strict criteria that must be met by product manufacturers, builders and commercial building owners that assure energy efficient performance better than standard requirements or prevailing options along with the same or better comfort, durability and indoor air quality.
Returning to the original ‘beachhead’ for ENERGY STAR qualified homes in small Gainesville, FL, Mr. Karl Sayles is now convinced that explosive growth of consumer education coupled with compelling benefits of energy efficiency will make non-ENERGY STAR rated homes functionally obsolete in five years. Is your home ENERGY STAR? More importantly, are your clients’ homes ENERGY STAR, and if so, are you providing a professionally accurate assessment reflecting the value of energy efficient performance?
About 60% consumer recognition:
90+% of consumers say they will look for ENERGY STAR qualified products after hearing about ENERGY STAR.
90+% of consumers believe that saving energy is important for both the environment and their pocketbooks. They just don’t know where to start
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