The Residential Energy Services Network, or RESNET, recently published findings from a new study conducted by the Consortium for Energy Efficiency about how utilities are encouraging the growth of energy efficiency in new home construction, largely by requiring a HERS score.

Many new construction energy efficiency programs provide financial incentives to builders or consumers who have incorporated specific measures in their home. These measures include insulation, windows, ducts, heating and cooling equipment, lighting, and appliances.

The study found that a majority of these programs rely on HERS ratings for compliance verification. Some of these programs even require an impressive HERS Index score of 65 or lower to show eligibility in the program.

The report is based on 71 utility programs located in 36 U.S. states and two Canadian provinces. Those utilities with a HERS Index requirement include:

• Alabama Power
• Alliant Energy – Iowa
• Ameren Missouri
• Baltimore Gas and Electric Company
• Berkshire Gas
• Cape Light Compact
• Columbia Gas of Massachusetts
• Columbia Gas of Ohio
• Connecticut Natural Gas
• Duke Energy
• Efficiency Vermont
• Eversource – Eastern Massachusetts
• Eversource – New Hampshire
• Eversource – Western Massachusetts
• Georgia Power
• Gulf Power
• Liberty Utilities
• MidAmerican Energy – Iowa
• National Grid – Massachusetts
• National Grid – Rhode Island
• New Hampshire Electric Co-op
• New Jersey Natural Gas
• New Jersey’s Clean Energy Program
• PECO
• Questar Gas – Utah
• Questar Gas – Wyoming
• Salt River Project
• Southwest Gas – Arizona
• Unitil – New Hampshire
• Vermont Gas
• Xcel Energy

To learn more about becoming a certified HERS Rater and joining this growing industry, please visit our RESNET HERS Rater Training page or call us at (800) 460-2575.

This broke the record for the number of homes HERS rated in a year!

For a better understanding of HERS Scores, visit our RESNET HERS Explained page.

In 2016, there were 16,403 more homes HERS rated than in 2015.

In addition, the average HERS Score in 2016 was 61, while the average in 2015 was 62. Though this may not seem like a huge improvement year to year, RESNET’s Executive Director, Steve Baden, highlighted this impact when compared to the majority of the housing stock.

“This is 39% more efficient than homes built as recently as 2006 and 69% more efficient than a typical home built in 1970,” he said. “Homebuilders are increasingly seeing energy efficiency as a major selling point for buying a new home….I expect that this trend will continue.”

Impact of Building Codes on Energy Efficient Housing

By far, the state with the most number of HERS-rated homes in 2016 was Texas.

As it turns out, Texas is one of the nine states that has adopted the 2015 IECC code for residential buildings. Within the energy efficiency section of the 2015 IECC, there is an option for homebuilders to meet code requirements using a home energy rating index, such as RESNET’s Home Energy Rating System (HERS) Index.

Among the six states with the most number of HERS-rated homes, two states have adopted the 2015 IECC. I’m not sure which of the following is more impressive – states that basically require HERS ratings or states with no mandatory code that push themselves toward more energy-efficient homes.

The six leading states in terms of homes receiving a HERS score were:

• Texas (2015 IECC) – 40,012
• North Carolina (between 2009 and 2012/2015 IECC) – 13,397
• Arizona (no statewide code) – 12,522
• Florida (2015 IECC) – 12,484
• Colorado (no statewide code) – 12,320
• Indiana (2009 IECC or equivalent) – 8,951

Where to Find Energy-Efficient Housing

The six states with the lowest average HERS scores are equally mixed with their adoption of 2015 IECC code, which goes to show that energy-efficient housing goes beyond building code requirements.

It’s possible that there are rebates and incentives in the following states that help drive the home energy rating industry. It’s also possible that energy-efficient housing simply makes more sense in these areas — cutting high energy costs and saving homeowners more money over time.

As a reminder, the lower the HERS score (out of 100), the more energy-efficient the home is.

The six states with the lowest average HERS scores were:

• Maine (less energy efficient than 2009 IECC) – 26
• Hawaii (no statewide code) – 31
• Vermont (2015 IECC) – 47
• Montana (between 2009 and 2012/2015 IECC) – 49
• Minnesota (between 2009 and 2012/2015 IECC) – 51
• Nebraska (2009 or equivalent) – 52

It appears from these numbers that perhaps the best places to buy an energy-efficient house or to find work as a HERS Rater are in the Midwestern states. Of course as all the states adopt more stringent energy codes, we can expect to see improvements across the country. Efforts are already underway for the 2018 IECC, which is expected to uphold the home energy rating index compliance path. We look forward to seeing how states will respond and to see more updates from the RESNET organization in 2017 and beyond.

To begin your efforts in the home energy auditing field, register for one of our RESNET HERS Rater Training sessions or call us at (800) 460-2575 to discuss your career goals.

If you’ve been researching RESNET HERS Rater Certification, you’ve probably wondered, “Who hires HERS Raters?” Typically, we see Raters working with home builders to meet energy code requirements and to ensure that the most energy-efficient home is being built.

Understanding builder expectations can improve communications between builders and HERS Raters, making it easier for both groups to work together and advance the common goal of “greener” homes. When builders need help delivering the energy-efficient, comfortable, and environmentally conscious homes customers and codes demand, they turn to HERS Raters.

For more information about what HERS Raters are, visit our RESNET HERS Rater overview series.

To deliver value to builders, HERS Raters must understand what builders want from them. In the first half of 2016, the Insulation Institute conducted two rounds of qualitative research to better understand how builders and HERS Raters interact.

This included a focus group of 10 builders, followed by a series of one-on-one interviews with 10 other builders. The residential builders involved in the research included a broad mix of regions, type, and number of homes built per year. What they all had in common was significant experience working with HERS Raters, ranging from two to ten years. Also, all but one of them still work with Raters.

What Residential Builders Think of HERS Raters

The Insulation Institute broke the responses down into three categories:

• Why Builders Use HERS Raters
• What Builders Expect from HERS Raters
• How Raters Can Exceed Builders’ Expectations

Why Builders Use HERS Raters

When asked why they use HERS Raters, the responses showed that builders find significant value in using Raters.

• A HERS Score can help validate that a home was built properly and will achieve a certain level of performance.
• Many builders view a good HERS Score as a way to promote themselves as credible builders. Getting a HERS rating score is an external proof point that the builder does good work.
• Builders use HERS Scores to meet the qualification requirements for certain certifications and rebate or incentive programs.
• HERS Scores help builders compete in competitive markets and give them an edge over the existing housing stock.
• HERS Ratings provide marketing value to builders targeting homebuyers who are interested in “green” or sustainable homes.

What Builders Expect from HERS Raters

When asked to describe HERS Raters, builders’ responses showed their respect for Raters and also indicated what they value most from them.

• HERS Raters must be building science experts. Builders expect to rely on the Rater’s knowledge and expertise to validate the work that has been completed.
• HERS Raters must advise, not just critique. If Raters point out issues but don’t offer constructive alternatives, they risk losing customers.
• Builders take pride in building quality homes, and the HERS Rater provides the “evidence” that the builder has built a home that performs better than others.
• HERS Raters should not make brand recommendations when working with builders; it causes suspicion that the Rater is trying to push a specific product and thus compromises the Rater’s credibility.

How HERS Raters Can Exceed Builders’ Expectations

Builders believe that there are many things Raters can do to differentiate themselves.

• Back the builder’s approach – Sometimes homeowners question a builder’s choices; supporting a builder with the homeowner reinforces his credibility and can help him ensure his customers are satisfied.
• Inform and advise: don’t just test and report – Builders appreciate when Raters explain how and why a building received a specific score. Raters deliver the most value when acting as trusted advisors and consultants.
• Provide marketing assistance – When builders see value in HERS Scores and HERS Raters, most expressed a desire to extract more value for the score from homebuyers. With this in mind, builders suggested a few ways Raters could add value, including educating Realtors, educating homebuyers and even educating builders’ sales teams on how to better sell “greener” homes. One example shared was a Rater who educated Realtors before a series of open houses to make sure they could talk up the efficiency of the homes. The builder who shared this story indicated it was a successful approach.
• Help make lower HERS Scores mean more dollars – While there is a desire for general marketing assistance, the “holy grail” for builders is to extract incremental value as they proceed further and further down the HERS rating system toward net zero. Helping them crack the code on this would make a Rater invaluable.
• Make building science understandable for homeowners – Builders want to see scores, efficiency metrics, and the other outcomes associated with “green” homes translated into value propositions that can be understood by the average homebuyer. Raters who do this will differentiate themselves. In many ways, this is an enabling component of the previous bullet on marketing assistance.
• Share your ideas – Builders indicated that they want Raters to offer ideas early on, not just accept their approach. This shows that builders consider Raters to be experts. The builders voiced the opinion that part of why they pay an expert is to get good ideas.
• Train the trades – Builders were split on whether this part of a Rater’s job was a given or added value that a Rater could offer. Given the split, it would be helpful to set expectations on proper subcontractor training in advance with builders.
• Save builders money – If Raters can offer different ways to deliver comparable performance outcomes (e.g., similar scores) for less money, builders want to be told about them. Examples of this would be valuable in a Rater’s marketing materials.
• Provide a quick turnaround for scores – Builders felt that it took too long to get scores. Besides creating anxiety over results, score delay can impact work schedules should remediation be necessary.

Overall, builders think that as energy codes become more stringent, the need for HERS Raters will increase. HERS Raters can help builders better understand how to achieve target results and meet code requirements. Builders will be forced to change their practices to meet more stringent code requirements and will turn to the expertise and experience of HERS Raters.

If you’ve been thinking about becoming a HERS Rater, call us at (800) 460-2575, and we can assist you with all of your HERS Rater training and certification needs.

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