Residential
Energy Code
of Alabama

Energy codes are most effective through linking the code implementation with market-driven efforts such as home energy ratings and energy efficient mortgages. While an energy code is aimed at minimum compliance, market-driven efforts offers market recognition and mortgage financing incentives for builders to attain maximum performance.

Energy Efficiency Will Increase Housing Affordability

In the past there were concerns that increasing the energy efficiency of new homes causes higher construction costs which in turn, will reduce housing affordability. By applying the proper building practices it is possible to build an energy efficient home that does significantly increase construction costs. The value of energy efficiency greatly exceeds the small added cost. In addition, energy efficient mortgages provides the opportunity to increase consumer's "buying power" for higher quality, more comfortable and more affordable energy efficient homes. Through the market force of home energy ratings and energy efficient mortgages, investing in energy efficiency will have the positive effect of making housing in Alabama more affordable, not less affordable.

The mortgage industry recognizes that with lower utility bills home buyers can afford to afford more of a home. The energy efficient mortgage increases the buying power of a consumer purchasing a home that has been documented by a home energy rating as being energy efficient. A recent analysis sponsored by the U.S. Environmental Protection Agency found that energy efficient mortgages could have a dramatic impact on homeownership. The analysis concluded that nationally the number of families that could afford a mortgage loan would increase by an average of 6.8%.

Home Energy Ratings Measures a Home's Performance

A home energy rating involves a inspection by a specially trained and certified residential energy efficiency professional. These professionals are certified by a nationally accredited home energy rating system. The inspection includes diagnostic performance testing of the home's air and duct leakage. With an independent, non-regulatory inspection that is endorsed by the State of Alabama and the national mortgage industry, consumers have much greater certainty that the home's energy performance actually meets or exceeds the state's energy code.

Nationally studies show that when a building energy code does not provide for an independent verification by a residential energy efficiency professional, the actual building performance too often does not the code requirements. This costs consumers in higher energy costs and builders in unnecessary construction costs.

Housing Industry Embraces Market-Driven Programs

Voluntary, market-driven programs such as home energy ratings and energy efficient mortgages have been embraced by the housing industry as the most effective method of improving the energy performance of new homes. The National Association of Home Builders urges its members to participate in market-driven programs, "It's in a builder's best interest to get involved in a voluntary energy program. If we can demonstrate strong participation by the industry, we can convince government regulatory agencies that market-driven programs are more effective than less flexible, mandated codes."

There is an Emerging Market for Energy Efficient Homes

A new national trend is beginning to emerge in the Alabama housing market. The National Association of Home Builders Association has found that energy efficiency is now in the top 10 list of what consumers want in a new home. Builders in southern Alabama are building "5 Star" ENERGY STAR homes. A Five Star energy rating means that the home is more than 30% more efficient that what is called for in the energy code.

For these reasons, there is a movement nationally to include a home energy rating as an option for demonstrating compliance to local building codes. Seven states already recognize a home energy rating as a compliance option.

For more information on the benefits of linking home energy ratings to residential energy codes click on the below links:

• Alliance to Save Energy Technical Paper on Home Energy Ratings and Energy Codes
• Building Codes Assistance Project's Web Site on Home Energy Ratings and Energy Codes