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Pennsylvania Cz4 2012 IECC True Cost_0

Pennsylvania Cz4 2012 IECC True Cost_0

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Published by: bcap-ocean on Mar 29, 2012
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10/15/2013

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FOR NEW HOMES IN

Pennsylvania Climate Zone 4

2012 International Energy Conservation Code
Upgrading new homes in Pennsylvania’s Climate Zone 4 to the 2012 International Energy Conservation Code (IECC) will reduce out-of-pocket expenses for homeowners – paying o their initial investment in a matter of months. For the average new home, the 2012 IECC will only increase construction costs by $2,428-3,375. When this amount is rolled into the average mortgage, real costs to homebuyers will mean a down payment increase of no more than $675, and $13 extra on monthly mortgage bills. The added mortgage costs will be o set by monthly energy savings of $35.95, helping homebuyers pay o their initial investment in only eighteen to twenty-nine months. After breaking even during that time, the home will return buyers a pro t of $23 per month—for a total return of $276 every year. This return on investment is shown in balance sheet below. For additional Incremental Cost Analysis, please visit energycodesocean.org.

18 29 MONTHs
Break-Even Point

$718.81
5-year Profit

1 6-17%
Annual Energy Reduction

$2,099.58
10-year Profit

Energy Code Payback for Pennsylvania Single Family Homes
Month 1 2 3 4 5 6 7 8 9 10 11 12 25 26 27 28 29 30 Mortgage Increase $674.90 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 $12.94 Monthly Energy Savings $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 $35.95 Cumulative Cost/Bene t -$638.95 -$615.93 -$592.92 -$569.91 -$546.90 -$523.88 -$500.87 -$477.86 -$454.84 -$431.83 -$408.82 -$385.81 -$84.64 -$63.63 -$40.61 -$17.60 $5.41 $28.42

This model assumes a 2,400 square foot home. The mortgage is conservatively set at 30 years, with 20% down and the current average nationwide interest rate of 4.03%. With a lower down payment—such as 10% down—consumers will break even on their investment even sooner.

BREAK EVEN AND START EARNING $23 IN PROFIT EVERY MONTH.

FOR NEW HOMES IN

2012 ENERGY CODE Payback:

Pennsylvania Climate Zone 4

Homes are the biggest investment we make—and everyone deserves a home that meets national minimum energy e ciency standards. While it’s true that homeowners can always improve the e ciency of their homes, it is far more cost-e ective to upgrade building components during construction, putting in better windows or swapping out one grade of insulation for a better one. Here’s what buyers get with the 2012 IECC:

CLIMATE ZONE 4

High-efficiency Lighting

$ 25
Window Upgrades

$ 300 JAMB EXTENSION
Whole-house Sealing and Testing

$ 350
Hot Water Insulation

$ 100
Insulation Upgrades

$ 696-1,643 WALL $ 576 CEILING

Homes built to the 2012 IECC could yield a

$17 profit every month
and $7,600 over 30 years.

Additional Upgrades:
Hard-Ducted Returns Improved Bathroom Ventilation

R

-

$201 $180

For additional Incremental Cost Analysis, please visit energycodesocean.org

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