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Market Trends in High Performing Homes Impacts on Buying and Selling a Home Presentation to Greater Hartford Association of Realtors January 27, 2016.

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Presentation on theme: "Market Trends in High Performing Homes Impacts on Buying and Selling a Home Presentation to Greater Hartford Association of Realtors January 27, 2016."— Presentation transcript:

1 Market Trends in High Performing Homes Impacts on Buying and Selling a Home Presentation to Greater Hartford Association of Realtors January 27, 2016

2 Agenda 1.Trends in home valuation related to green or “high performing” homes 2.Communicating green home concepts 3.Developing home energy plans 4.Resources for customers and realtors

3 Home valuation trends for clean energy

4 4 Home Buyers Want Green Features

5 5 Trending in High Performing Homes

6 17,500 homes with solar, and growing rapidly. Solar potential in CT… At least 150,000 homes

7 7 Economics of Going Solar

8 8 ▪2015 study from Lawrence Berkeley National Laboratory – owned solar –Solar PV adds value (~$3.75/watt) –No difference in time on market –When no solar home comps available, use “net” cost or PV Value –This study and previous statistical analysis/pricing studies showed solar premiums ▪2015 LBNL Survey for leased solar –No impact on home value –Majority said no impact on time on market ▪CT Market has excellent track record for transferring leases Trends in Solar Valuation

9 Trends in Valuing High Performing Homes ▪2015 CA study on 773 “PACE” home sales –$199 - $8,882 premium for PACE homes, vs. comps –~$7,000 premium for foreclosure sales –Homeowners recovered more than 100% of energy upgrade investment  Versus ~60% for kitchen/bath

10 Communicating green home concepts

11 11 Realtor.com and Trulia are adding new tools to provide energy scores for homeowners Coming Soon to Buyer Portals

12 ©2015 Elevate Energy Chicago Example: Energy Information at Time of Sale

13 Chicago Example: Energy Information at Time of Sale Research & Success: Usage Study Findings (April 2015) ▪Benefits both seller and buyer –Statistical tests show that homes that share are more likely to sell, but the cause is still unclear ▪Better Market Performance –Sample – Chicago Attached Single Family –Higher percentage of the asking price: Extra $4,576 for the average seller who shared energy costs –Less time on the market: About one less mortgage cycle for the average seller ▪13% of listing sharing energy data up from 10% 13

14 14 11 Salem Road, Westport List Price: $1,449,000 Sold Price: $1,425,000 Sold Date: 6/24/2013 Square Footage: 3,636 Percent of asking price: 98% Using Comps and Market Analysis Connecticut realtor did her own analysis and found solar homes sold between 95-98% of asking price in her market – well above ratio for non-solar homes

15 15 ▪Appraisers qualified to value energy upgrades –“Contributory Value”  When looking at comps in the valuation analysis, need Listing Brokers and Appraisers that will look at this for the energy upgrades that have been done in the home –Appraisal Institute’s Valuation of Sustainable Buildings professional development program  3 appraisers listed for CT for residential ▪Increasing knowledge and confidence amongst realtors –National Association of Realtors Green Designation ▪Educating customers on knowing their home’s energy features and usage to share with realtor and appraiser Better Education and Information Needed!

16 Why Energy Efficiency? Developing Home Energy Plans

17 What is the Energy Efficiency Fund?  Created in 1998 by the Connecticut Legislature ▪Program funding –Electric customers –Natural gas customers ▪Department of Energy and Environmental Protection oversight with Energy Efficiency Board

18 Energy Efficiency Fund Mission Advance the Efficient Use of Energy Reduce Air Pollution Promote Economic Development & Energy Security

19 What is Energize Connecticut SM ? ▪State’s branding initiative to help consumers save money and use clean, affordable energy. ▪ A partnership of the Connecticut Energy Efficiency Fund, the Connecticut Green Bank, the State and local electric and gas utilities ▪ Administered by The United Illuminating Company, Southern Connecticut Gas, Connecticut Natural Gas and Eversource Energy

20 Why consider energy efficiency? ▪Reduce energy and save $ ▪Comfort and safety ▪Lower impact on the environment ▪Home improvement

21 Overall Home Energy Use Source: U.S. EIA, State Energy Data System; and U.S. EIA, Annual Energy Outlook 2012.

22 Home Energy Solutions ▪Low cost ▪Direct install of upgrades –Blower door guided air-sealing –HVAC flow tests & duct sealing –Installation of energy efficient CFLs and LEDs –Low flow showerheads & aerators  Health and Safety –Environment –Equipment ▪Report with recommendations

23 Why is Air Sealing, insulation and proper ventilation important?

24 Certifications, Experience and QA ▪Lead Technicians –BPI Certifications (2) –4,000 hours of industry experience –DOE HEScore Assessor ▪Strong QA Process –In-process Inspections –Scoring performance –Vendor feedback 24

25 Recommendations ▪Technicians review findings and make recommendations ▪Customers receive: –Booklet containing rebates and helpful information, including financing information –Home Energy Report –U.S. DOE Home Energy Score

26 Go deeper with additional improvements ▪Instant incentives –Furnaces –Natural gas boilers –ECM boiler circulator pumps –Natural gas tankless water heaters –Heat pump water heaters ▪Mail-in rebates –Insulation –Central AC –Air source heat pumps –Ductless heat pumps –Wi-Fi Thermostats –Windows –Appliances

27 Home Energy Report

28

29 DOE Home Energy Score

30 Eversource Energy Savings Plan ▪Customized solutions to help manage energy costs

31 Home Energy Report Program - UI

32 Resources for Customers and Realtors

33 Energize CT Residential Offerings ▪ Services – Home Energy Solutions – HES-Income Eligible – New Construction – Multi-family Initiative (5+) ▪ Retail – Energy efficient lighting (CFLs and LEDs) – Appliances ▪ Rebates – Heating and cooling equipment, water heaters ▪ Financing – Small projects  0% Payment Plan – Projects with solar, multiple upgrades, health & safety  Smart-E and the 2.99% Bundle – Equipment  2.99% Heating Loan

34 Questions? For more information contact: Wise Use Hotline 1-877-WISE USE 1-877-947-3873 or visit www.energizect.com

35 GoSolarCT Solar Resources for CT Homeowners Updated version of GoSolarCT.com launching in February 2016 to: -Help consumers learn about the benefits of solar and find an RSIP-approved contractor -Help contractors market themselves to consumers! 35

36 Questions?

37 Contacts ▪Kerry O'Neill, Managing Director of Residential Programs Connecticut Green Bank Ph: 860-257-2884 kerry.oneill@ctgreenbank.com kerry.oneill@ctgreenbank.com ▪Joe Buonannata, Senior Associate, Residential Programs Connecticut Green Bank Ph: 860-257-2172 joe.buonannata@ctgreenbank.com ▪Diane Del Rosso, Residential Supervisor Eversource Ph: 860-655-4761 diane.delrosso@eversource.com diane.delrosso@eversource.com ▪Evan Seretan, Senior Program Administrator The United Illuminating Company Ph: 203-499-3179 evan.seretan@uinet.com

38 References Home Buyer and Seller Generational Trends (National Association of Realtors, 2015) http://www.realtor.org/reports/home-buyer-and-seller-generational-trends Appraising Into The Sun: Six-State Solar Home Paired-Sales Analysis (LBNL, 2015) https://emp.lbl.gov/publications/appraising-sun-six-state-solar-home Survey of Buyers, Sellers and Realtors Involved In San Diego Third-Party Owned Solar Home Transactions – A Qualitative Assessment (LNBL, 2015) https://emp.lbl.gov/publications/survey-buyers-sellers-and-realtors PACE Loans – Does Sale Value Reflect Improvements? (Renovate America, 2015) https://renovateamerica.com/News/New%20Study%20Shows%20Energy- Efficient%20PACE%20Homes%20Increased%20in%20Value-2015-11-30 PACE Loans: Are energy efficiency improvements financially worth it? (Blog Post by Study Authors Laurie Goodman and Jun Zhu) http://www.housingwire.com/blogs/1-rewired/post/35857-pace-loans-are-energy-efficient- improvements-financially-worth-it?eid=311689859&bid=1260363

39 References EnerScore Launches Pilot Program for Real Estate Sites (EnerScore, 2015) http://www.enerscore.com/blog/2015/08/02/press-release-enerscore-launches-pilot-program-for-real- estate-sites/ Energy Cost Disclosure in Chicago Residential Listings: Eighteen Months Out (Elevate Energy, 2015) http://www.elevateenergy.org/prod/httpdocs/wp/wp-content/uploads/ECD_Analysis_YEAR2.pdf Appraisal Institute’s Professional Development Program Registry for Residential Valuation of Sustainable Buildings program http://www.myappraisalinstitute.org/findappraiser/green_sustainability_residential.aspx National Association of Realtors Green Designation http://www.greenresourcecouncil.org/ Fannie Mae Single Family Selling Guide (December 16, 2014) - Solar Guidance on p. 320-323 (yellow highlights), which does allow for leased solar https://www.fanniemae.com/content/guide/sel121614.pdf#page=320


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