Valuing Home Energy Efficiency
The Home Performance Coalition works with the Department of Energy, Elevate Energy, the Real Estate Standards Organization (RESO), and other partners of the Better Buildings Home Energy Information Accelerator to make energy efficiency improvements visible in the real estate transaction. When information about energy efficiency improvements is visible to home buyers and others involved in the home sale transaction, these improvements are more likely to be fairly valued at the time an existing home is sold.
The energy efficiency and real estate industries agree that standardizing how energy efficiency project data is documented and shared with parties in the real estate transaction will help to establish a premium on existing energy efficient homes. To facilitate the documentation of energy efficient features of a home for the homeowner, appraiser, lender and other stakeholders involved in the real estate transaction, HPC created the BPI-2101-S-2013 Standard Requirements for a Certificate of Completion for Residential Energy Efficiency Upgrades. A BPI-2101 compliant certificate provides a clear, easy-to-understand description of the home energy upgrade, including predicted energy savings or other performance indicators, and is designed to be used as a reference document by real estate agents, appraisers, and other professionals during the home sale process.
BPI-2101 identifies a subset of HPXML data elements for certificates that document the completion of an energy efficiency project, either whole-house or individual measures. There are two types of certificates that can be issued in compliance with BPI-2101. The first is a Certificate of Efficiency Improvements, which provides information about the energy efficiency improvements installed as part of an energy efficiency program. The second is a Certificate of Performance, which provides information about energy efficiency improvements installed plus quantitative information about a home’s performance.
These certificates can be formatted and branded by the programs that are implementing them. An example of a Certificate of Efficiency Improvements can be found here. All of the HPXML data elements that can be used on BPI-2101 compliant certificates are aligned with the RESO Data Dictionary, which standardizes fields in multiple listing service databases nationwide, and with the Appraisal Institute’s Residential Green and Energy Efficient Addendum. This alignment facilitates homeowner access to consistent, comparable information about the energy efficiency features in existing homes, and standardizes the flow of information about a home’s energy efficient characteristics into property listings.
Arizona Public Service and Salt River Project are currently issuing a Certificate of Efficiency Improvements to homeowners that complete the Home Performance with ENERGY STAR® program. California is also exploring the use of the certificate as part of their pilot to document energy efficiency upgrades for the California Regional Multiple Listing Service.
HPC is in the process of updating BPI-2101 to ensure its continued alignment with the new version of the RESO Data Dictionary (v.1.5), which was released in June 2016. The updated standard is expected to be released in October 2016.
HPC also regularly holds panel discussions with industry experts on valuing home energy efficiency at its regional and national conferences. For more information on BPI-2101, visit www.hpxmlonline.com.