Built-in Energy Efficiency: Developers Reach for Star Logos

A big, blue sign with the Energy Star logo like the one on new dishwashers stands prominently in front of the sales office at a new Montvale condo development.

It piques homebuyers' curiosity, but most don't know what it means, said Doug Fenichel, spokesman for K. Hovnanian, builder of the 126-unit complex.

New Jersey's largest developer has found that homebuyers don't know about energy efficient homes and the savings they create. Developers, enticed by state rebates, are forging ahead regardless.

"You won't find anyone coming in here saying: I want an Energy Star home," said Fenichel. "People may not want to pay for Energy Star, but they will pay for the benefits it brings, so it's a lot of education."

A 15 to 30 percent savings on annual energy bills, better insulation, fewer drafts and less dust are all benefits of increased efficiency in new homes built to comply with the state's Energy Star program.

Since the New Jersey Energy Star Homes a voluntary rebate program to encourage energy efficient new construction began in 2001, about 30,000 new homes have been built to the standard. The state's larger Clean Energy program, of which Energy Star Homes is a part, has saved enough energy to avoid building a new power plant, according to the program's annual report.

Run by the state and the Board of Public Utilities, the program provides incentives to developers averaging $2,300 for 2,000-square- foot homes, said Gayle Dougherty of Haggman Inc., which handles public relations for the program.

New Jersey builders have seen the light of energy efficiency, you could say.

Hovnanian began building all of its wood-frame homes to the Energy Star standards when the program began in 2001. Three hundred developers now build to the standards, and several use the standards for all their homes, according to the program's Web site.

Forward-thinking builders made 2005 a landmark year for the program. Twenty percent, or 8,009, of all homes built that year were built to Energy Star standards. A larger number 8,337 homes was committed to be built to the standard, an increase of more than 25 percent over 2004.

The tightly built homes have sealed ductwork to minimize leaks, contain thicker, tighter-fitting insulation and use materials such as low-E windows that control the sun's heat according to the season.

Hovnanian says for a home that could typically cost $1,500 a year to heat, Energy Star standards could reduce costs by $450 when built with 30 percent increased energy efficiency, and $225 for 15 percent efficiency.

Most homes built to the Energy Star standards run at 20 to 25 percent efficiency, said Mark MaGrann, president of MaGrann Associates in Moorestown. The company has advised builders on energy efficient and sustainable design for 25 years, and has the state contract to verify new homes are built to the Energy Star standards.

Energy efficient construction also somewhat reduces the high costs to heat and cool homes with the open floor plans, high ceilings and lots of windows that new construction buyers want.

"It certainly makes energy efficient important," said Fenichel. Town homes in Hovnanian's Montvale complex have those features. "That's when they [homeowners] realize the value it brings."

For those popular features that make it difficult to heat and cool efficiently, building new is better than retrofitting, said MaGrann. Climate control systems can be designed for efficiency and to save on costs with those features in mind, he said.

Energy Star homes cost more to build, said Fenichel, but says Hovnanian doesn't pass the cost onto homebuyers because it buys in volume and has internal purchasing and design departments.

Twenty-five percent to 30 percent of new homes are built to Energy Star standards, said MaGrann, whose company tracks the home- building market.

"I would say it's a growing trend, no doubt about that," said MaGrann, and a good one for all construction-related businesses, including his. The company added staff and has grown 15 percent a year over the past decade, he said.

The Energy Star Homes program is the state version of the national program. The state's goal is for all new homes to follow the national program's 15 percent efficiency standards.

Energy Star standards are the energy component in building to stricter green standards, and achieving them is a key step. Two organizations are nearing completion of a national green building code for homes.

The Leadership in Energy and Environmental Design (LEED) for Homes standard is under development by the U.S. Green Building Council (USGBC), a non-profit organization promoting environmentally responsible buildings. Testing is ongoing in nationwide pilot programs, and a residential standard is due by the year's end. Commercial real estate LEED certification already exists.

New Jersey home builders are ahead of most states with pilot projects aspiring to LEED certification, said Robert Wisniewski, New Jersey's USGBC representative, who promotes and certifies homes for the standard.

Pilot projects went from zero to 30 in the past eight months, totaling over 1,000 housing units, and twice as many are in the pipeline, he said.

"We're kind of cleaning up here in New Jersey, compared to the other states," said Wisniewski, who is also a senior technical consultant for MaGrann. The company is one of 12 in the U.S. that certifies and advises builders on LEED standards.

Hovnanian is debating adopting the LEED standards, or the National Association of Home Builders standards, due in early 2008, said Fenichel. Whichever it chooses, it maintained its Energy Star commitment despite the 2005 program's stricter standards. The developer is also set to begin construction on a pilot home following stricter green building standards by the end of the year.

"You can't price yourself out of the market," said Fenichel. "We have to make sure we can sustain it and we can grow with it."

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Retrofit or build?

For more about retrofitting or building homes to environmental standards:

* New Jersey's Clean Energy program: njcleanenergy.com/ residential.html

* U.S. Green Building Council: usgbc.org

* National Association of Home Builders: nahb.org. Go to Resources, then to Housing Issues and then to Energy and Green Building

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Keys to an energy-efficient home

1. Improved insulation

Installing insulation with higher R-value levels helps keep warm air in during the winter, and outside in the summer.

2. Air sealing

Sealing air leaks, cracks and gaps throughout the home and around equipment reduces drafts and energy loss.

3. High-performance windows

Low-E Energy Star qualified windows reduce drafts and moisture problems for a difference you can see and feel.

4. Right-sized cooling equipment

Properly sized and installed high efficiency cooling equipment maximizes energy efficiency and system performance.

5. High-efficiency heating equipment

Energy efficient heating equipment and water heaters for maximum savings.

6. Sealed and insulated duct system

Well-sealed and insulated duct systems reduce air loss by as much as 25 percent for greater comfort.

7. Energy Star qualified appliances

Made by leading manufacturers you know and trust, Energy Star qualified refrigerators, clothes washers, dishwashers and other home products offer a range of styles and features, while meeting high standards for energy performance.

8. Energy Star-qualified lighting

Light bulbs and fixtures that have earned the Energy Star last up to seven times longer and use two-thirds less energy. And, they've never looked better in light quality and design.

9. Mechanical ventilation

Provides fresh air exchange to help reduce indoor moisture problems, odors and pollutants.

Source: N.J. Clean Energy program

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E-mail: fletcher@northjersey.com

(c) 2007 Record, The; Bergen County, N.J.. Provided by ProQuest Information and Learning. All rights Reserved.