How to calculate financial information for home energy raters, lenders and savvy home buyers
Home ratings and energy-efficient mortgages are becoming the key vehicles in the process of moving more buyers and builders to energy efficiency that exceed minimum code limits. The energy-efficient mortgages industry requires both the projected savings of energy-conservation measures and other key financial information for builders, realtors, buyers and lenders. This paper presents the methodology used by the one state's home rating software for calculating and reporting key financial information and for selecting the most cost-effective upgrades automatically through an optimization process. Historically, many statistics have been calculated based on two pieces of information--the cost of the energy conservation measures and the projected savings from the measures. Unfortunately, when attempting to upgrade an existing or code-minimum new home up to more efficient level, such as EPA's Energy Star Home program level, a number of measures interact. The savings of a package of upgrades can be determined, but a methodology was required for attributing the savings due to each measure as required for certain national mortgage products. When examining the cash flow of measures there are a host of other factors - the amount of the upgrade that will be borrowed, the income tax rate used for deducting interest, any increase to the property that will result in higher property tax and insurance rates and the maintenance on the upgrade. The reporting of the financial analysis is of significant importance to the lending industry. This paper presents many report options contained in the Florida software, Energy Gauge, and its ability to meet the requirements of HUD, Fannie Mae, and the national HERS guidelines.
- Research Organization:
- Florida Solar Energy Center, Cocoa, FL (US)
- OSTI ID:
- 20001785
- Report Number(s):
- CONF-980815-; TRN: IM0001%%222
- Resource Relation:
- Conference: 1998 ACEEE Summer Study on Energy Efficiency in Buildings, Pacific Grove, CA (US), 08/23/1998--08/28/1998; Other Information: 10 volume set available for $200.00; PBD: 1998; Related Information: In: 1998 ACEEE summer study on energy efficiency in buildings: Proceedings, [3100] pages.
- Country of Publication:
- United States
- Language:
- English
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