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Houston 2012 IECC True Cost_0

Houston 2012 IECC True Cost_0

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Published by: bcap-ocean on Apr 25, 2012
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10/15/2013

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FOR NEW HOMES IN

Houston, TX

2012 International Energy Conservation Code
Upgrading new homes in Houston, Texas 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 a total of $1,622. When this amount is rolled into the average mortgage, real costs to homebuyers will mean a down payment increase of only $324.58, and $6.21 extra on monthly mortgage bills. The added mortgage costs will be o set by monthly energy savings of $21, helping homebuyers pay o their initial investment in only twenty-two months. After breaking even during that time, the home will return buyers a pro t of $15 per month—for a total return of $177 every year. This return on investment is shown in balance sheet below. For additional Incremental Cost Analysis, please visit energycodesocean.org.

22 MONTHs Break-Even Point $36.59 1 3%
2-year Profit

Annual Energy Reduction

$569.03
5-year Profit

Energy Code Payback for Pennsylvania Single Family Homes
Month 1 2 3 4 5 6 7 8 9 10 11 12 19 20 21 22 23 24 Mortgage Increase $324.58 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 $6.21 Monthly Energy Savings $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 $21.00 Cumulative Cost/Bene t -$303.58 -$288.79 -$274.00 -$259.21 -$244.42 -$229.63 -$214.84 -$200.05 -$185.26 -$170.47 -$155.68 -$140.89 -$37.36 -$22.57 -$7.78 $7.01 $21.80 $36.59

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 $15 IN PROFIT EVERY MONTH.

FOR NEW HOMES IN

2012 ENERGY CODE Payback:

Houston, TX

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:

HOUSTON CLIMATE ZONE 2 High-efficiency Lighting

$ 50
Window Upgrades

$ 1,428
Programmable Thermostat

$ 50
Hot Water Insulation

$ 100
Insulation Upgrades

Homes built to the 2012 IECC could yield a

$15 profit every month
and $5,000 over 30 years.

Additional Upgrades:
Sealed & Insulated Attic Hatch HVAC System Savings

R

-

$ 302 ATTIC

$100 + $408

For additional Incremental Cost Analysis, please visit energycodesocean.org

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