The Path for Success

1
ENERGY STAR Qualified HomesA Path for
SuccessBenefits for Builders
The Path for Success
2
Overview

• Threats to business as usual
• What is ENERGY STAR?
• What is the advantage of participating?
• Next steps
• Questions

3
Where We Are Today

• Market Downturn
• Unprecedented foreclosure rates
• Extremely tight credit
• Consumer search for bottom
• Rapidly escalating energy costs
• Ripple effects throughout economy

4
Where We Are Today

• Consumer Interest in Green Sustainability
• Growing interest across market segments
• 49 of prospective buyer rank energy efficiency
  features as important (31 rank luxuries
  important)
• 89 would be willing to pay more for them
• Awareness of greenwashing

5
Where We Are Today

• Liability Concerns
• Construction defect litigation
• American Bar Association growth opportunity!
• One firm in the Southwest recovered in excess
  of 470 million!
• Warranty calls

6
Where We Are Today

• Obsolescence of old practices
• New Infrared camera technologies make what used
  to be invisible defects in quality construction
  quite visible to the average consumer.

lt 3,000
7
Where We Are Today
8
What Builders Need

• A compelling value proposition
• to avoid competing on price alone
• and make endless buyer concessions.

9
What is ENERGY STAR?

• ENERGY STAR is a joint program of the EPA and the
  DOE helping us all save money and protect the
  environment through energy efficient products and
  practices.

10
Brand Advantage

• Brand Shorthand
• Truly Energy Efficient
• Credible
• Environmental Leadership

11
(No Transcript)
12
What Can Earn the ENERGY STAR?
13
What is the ENERGY STAR for New Homes Program?

• Voluntary
• Government-backed label
• At least 15 more efficient than 2004 IRC code
• Credible through third-party verification
• Whole-home performance
• New way to build and sell homes

14
ENERGY STAR Criteria
Effective Insulation
Tight Construction and Ducts
High Performance Windows
Efficient Equipment
Third-party Verification
Lighting and Appliances
15
Effective Insulation

• Properly installed, high-quality insulation
• Reduces heat transfer
• Protects homes from moisture damage

16
High Performance Windows

• Reduce heat loss from inside the home
• Reduce solar radiation that can fade fabrics
• Improves comfort

Improved technology reduces heat transfer
Low-E glass reflects light UV rays
Improved Technology
Non-toxic gas fills insulate better
Multiple panes insulate better
Warm edge spacers reduce heat flow condensation
Multiple Panes
17
Tight Construction and Ducts
mastic sealant
Sealed and insulated ducts decreases energy use
and improves comfort by evenly distributing
conditioned air.
Sealing holes and cracks in the homes walls and
ceilings creates a windbreaker around the house.
18
Efficient Equipment

• Efficient, properly sized HVAC systems
• Use less energy
• Reduce indoor humidity

19
Lighting and Appliances
Must include at least one ENERGY STAR qualified
product category. HVAC or Windows or 5
lights/appliances
20
Third Party Verification
21
How You Know its ENERGY STAR

• Look for the label located in the electrical
  breaker box of the home

22

• How Can You Benefit from the ENERGY STAR Program?

23

• A New Marketing Platform

24
Market Differentiation

• Typical Story
• Price
• Location
• Facade
• Floor Plan
• Amenities

ENERGY STAR Government-backed Label 3rd Party
Inspection Advanced Equipment Advanced
construction techniques

25
Only 10 of U.S. Homes Earn It!
26
A New Marketing Platform

• You can use ENERGY STAR to prove your homes are
• High-performing
• Save money
• Help the environment
• Third-party verified

(quality) (affordability) (responsibility) (trustw
orthiness)
Differentiate yourself from other builder by
competing on more features
27
Selling Quality
Properly installed features better protect
against cold, heat, drafts, moisture, pollution,
and noise ? improved comfort and durability And,
the home is tested and inspected to be sure!
28
Quality

• Our subcontractors send their best crews because
  they know their work will be inspected.
• ENERGY STAR partner
• Astoria Homes, Nevada

29
Affordability

• Market a Cost Advantage
• Homeowners can save 300-500 in utility bills
  annually
• Additional savings on maintenance
• Resale value

30
Responsibility

• Market an Environmental Advantage
• ENERGY STAR homes use less energy, which results
  in less pollution in the air.

31
Responsibility
US Energy Consumption by Sector
Source US Energy Information Administration
statistics
32
Responsibility

• For every ENERGY STAR home built, it is the
  equivalent to
• Eliminating the emissions from 0.5 vehicles
• Saving 3,000 lbs of coal
• Planting 0.8 acres of trees or
• Saving the environment 5,800 pounds of CO2 per
  year.

33
Trustworthiness

• Third-party verified by a certified Home Energy
  Rater
• Government-backed label

34
Market Differentiation

• Efficient HVAC Equipment
• Efficient Lighting Appliances
• Third-Party Verification

• Your homes have

• Effective Insulation
• High Performance Windows
• Tight Construction and Ducts

• Which makes them

• Comfortable
• Low-Maintenance
• Environmentally Responsible

• High Quality
• Affordable
• Durable

• So you can compete on

• Quality
• Affordability
• Responsibility
• Trustworthiness

35

• Free Marketing Support

36
EPA Support and Resources

• Logos
• ENERGY STAR Web Site
• ENERGY STAR Marketing Toolkit
• Partner Locator Tool
• Training Opportunities
• Consumer Materials Fact Sheets
• Outreach Partnership
• Recognition

37
The ENERGY STAR Logo
By the end of 2007, over 70 of the American
households could identify the ENERGY STAR
The Symbol for Energy Efficiency
38
The ENERGY STAR Logo
39
Brand Identity Guidelines
40
Talking/writing about ENERGY STAR

• Always write ENERGY STAR in all caps
• Always add in superscript the first time ENERGY
  STAR is mentioned on a document
• Homes are qualified not certified
• Program specifications are guidelines not
  standards
• XYZ Builder is a partner not endorsed by EPA
  or the government

41
ENERGY STAR Web Site
Ten million consumers visit the ENERGY STAR Web
site every year!
42
ENERGY STAR Marketing Toolkit
Allows builders to customize ENERGY STAR
marketing materials in minutes
43
ENERGY STAR Marketing Toolkit
44
Partner Locator

• Go to www.energystar.gov/homes and click on the
  Partner Locator to find a rater in your area.

45
Training Opportunities

• Free Webinars
• Best Practices for Selling ENERGY STAR Homes
• How to Market ENERGY STAR Homes

To register and find live events in your area go
to www.energystar.gov/homes and look for
Educational Resources.
46
Brochures and Fact Sheets
Order at www.energystar.gov/publications
47
Outreach Partnership
48
Recognition

• 100 Builder Commitment
• ENERGY STAR Leadership in Housing Award
• ENERGY STAR Award for Excellence in Promotion

49
Summary How Can You Benefit from ENERGY STAR?

• Advanced technology
• Advanced building methods

• Third-party inspection
• Government-backed label

• Your homes have

• High-performing
• Environmentally responsible

• Which makes them

• Trustworthy
• Affordable

• So you can compete on

• Quality
• Affordability
• Responsibility
• Trustworthiness

50
Summary How Can You Benefit from ENERGY STAR?

• Advanced technology
• Advanced building methods

• Third-party inspection
• Government-backed label

• Your homes have

• High-performing
• Environmentally responsible

• Which makes them

• Trustworthy
• Affordable

• Responsibility
• Trustworthiness

• So you can compete on

• Quality
• Affordability

• Market differentiation
• ENERGY STAR brand

• Marketing resources training
• Partner recognition

• Your business gets

• Sell more effectively
• Reduce liability and defects
• Increase customer satisfaction

• So you can

51

• Next Steps

52
How to Partner

• Get your teams commitment
• Use ENERGY STAR resources and register for
  online trainings

• Find a Home Energy Rater

Go to www.energystar.gov/homes
53
How to Partner

• Sign a Partnership Agreement
• www.energystar.gov/HomesPA
• Select energy efficiency and thermal envelope
  improvements

54
How to Partner

• Train construction, sales, and marketing staff.
  Market your ENERGY STAR partnership
• Test and label your homes

55
For More Information

• Visit us on the Web
• http//www.energystar.gov/homes
• Or call the ENERGY STAR hotline
• 1-888-STAR-YES