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ENERGY STAR Version 3 Overview

NCEEAFebruary 22, 2012

Presented by Amber W. Stewart, ICF International

Outline

• Introduction• ENERGY STAR in NC• Marketing Tools and Messaging• Why Market and How?• Discussion

Introduction

The ENERGY STAR brand promise

• Cost-effective• Meaningful improvement in efficiency• Equal or better performance

CFL Quality

Lifetime

Reliability

Starting time

Color

Why a New Spec?

• As new national and regional energy codes were rapidly increasing, EPA recognized that new guidelines were needed to ensure that ENERGY STAR qualified homes continued to represent a meaningful improvement in energy efficiency over homes built to code and standard building practices.

• EPA also felt that augmenting the guidelines with cost-effective energy efficiency technologies and building science practices will help improve:– Home efficiency– Durability, and– Indoor air quality of ENERGY STAR qualified homes.

Number of ENERGY STAR Qualified Homes

Market Share of ENERGY STAR Qualified Homes

The Basics

If you want your homes to be:

Affordable Comfortable Durable

Building science says to have a:

Complete Thermal

Enclosure System

Complete HVAC System

Complete Water

Management System

1 2 3

Version 3

Core Efficiency MeasuresGuarantees that

efficiency measures areincluded in every qualified home.

Mandatory Inspection Checklists

Sets standards for details that have a critical impact

on efficiency, comfort, quality, and durability.

Builders can choose either one of the two compliance paths to meet the core efficiency measures and mandatory inspection checklists: the Prescriptive Path or the Performance Path.

Thermal Enclosure System Checklist

• Less than two pages, verified by the Rater.

• Features– High-quality insulation installation.– High-performance windows & doors.– Tightly sealed home.– Reduced thermal bridging in walls.

HVAC System QI Checklists

• Two checklists, each just two pages.• One verified by Rater, one verified by the HVAC

designer and contractor during their work.• HVAC contractor must be credentialed.

• Features– A right-sized and properly installed heating, cooling,

and duct system.– A ventilation system that meets the industry standard.– Reduced safety and air quality risks from combustion

appliances.

Water Management System Checklist

• One page verified by the builder during construction.

• Features– Water-managed roof, walls, foundation, site, and building

materials.

Why 4 Inspection Checklists?

• Sets standards for often-overlooked details that have a critical impact on efficiency, comfort, quality, & durability.

• Reflects 15 years of experience from EPA, researchers, industry, and thousands of partners like you.

How do they improve homes?

• Ensure consistent delivery from design to installation.– Satisfy homebuyer expectations– Maximize value of investments

• Avoid and catch oversights– Continuous improvement– Plan, do, check, act

Version 3: Added Value

• Value for builders– Better quality and process control– Reduced liability from building failures– Improved control over product quality – Improved customer satisfaction– Reduced risk from complaints

• Value for homeowners– Lower utility bills– Better comfort, durability, and quality– A more livable home

Update on ENERGY STAR in North Carolina

The numbers…

How many homes?

0

2000

4000

6000

8000

10000

12000

ENERGY STAR Qualified Homes Built in North Carolina

Where are they?

9069

6277

4075

3849

3063

1916

1664

1507

1215

721 713309 296 143

67 Raleigh-Cary, NC

Charlotte-Gastonia-Rock Hill, NC-SC

Fayetteville, NC

Other

Durham, NC

Jacksonville, NC

Asheville, NC

Wilmington, NC

Greensboro-High Point, NC

Winston-Salem, NC

Burlington, NC

Hickory-Lenoir-Morganton, NC

Greenville, NC

Rocky Mount, NC

Goldsboro, NC

Marketing Tools and Messaging

Market Research

• Market research shows that:

– Despite the fragile housing market, consumers still have a strong emotional desire to own a home.

– Americans have an increasing interest in purchasing “green” products.

– Americans have a greater interest in energy-efficient homes than “green” homes.

Sources: NAHB June 2011, Pacific Northwest 2011

Marketing Opportunity

• Builders have an opportunity to appeal to both the emotional desire while presenting a rational argument for energy efficiency.

• By offering even better energy savings, ENERGY STAR helps bridge the gap between what consumers want and what they can afford.

New Consumer Messaging Platform

• Marketing Objective– Aspirational and Emotional Appeal

• Tie into the homeownership desire for performance, durability, and comfort with an emotional hook

– Rational Appeal• Make a rational case for energy efficiency that builds on

building science, quality assurance, third party verification

– Leverage the ENERGY STAR Brand• Develop a look and feel that falls within the guidelines

of the ENERGY STAR brand

New Consumer Messaging Platform

• Hook: Better is better.– An ENERGY STAR qualified home is always

built better and built to last because the best, tried-and-true, integrated construction practices are used from the ground up.

• Four Pillars1. Peace of Mind2. Enduring Quality3. Wall-to-Wall Comfort4. Proven Value

These are the focus of the new Consumer Brochure.

New Consumer Brochure

New Consumer Outreach Materials

• Factsheets– Thermal Enclosure– Water Management– Heating and Cooling– Lighting and Appliances– Independent Testing and

Verification

New Consumer Materials Under Development for 2012

• Consumer Web Pages• Consumer Video • Online House Illustration

– Draft Concept

20th Anniversary Marks

May be used on promotional materials that celebrate an organization’s commitment to and partnership with the ENERGY STAR program, including:

BrochuresWebsiteAdvertisementsPromotional materials

New Partner Web page

Why Market and How?

Differentiation

• Real energy efficiency

• Quality• Trustworthiness• Environmental

leadership

=

Associate Yourself with a Nationally Recognized Brand

By the end of 2010, 80% of U.S. households recognized the ENERGY STAR label.

Reiterate New Marketing Messages

1. Peace of Mind2. Enduring Quality3. Wall-to-Wall Comfort4. Proven Value

Overcome consumer confusion

• Aren’t all new homes energy efficient?• What’s an ENERGY STAR qualified

home?• Who’s really green?• What does green mean?• ENERGY STAR builders just offer

ENERGY STAR appliances, right?

Talk about ENERGY STAR

• 0 discussion = 0 benefit to you• Train salespeople and make them accountable• Connect with other key players in your market

– Appraisers– Lenders– Real Estate Agents– Local government officials– Media– Etc.

Marketing best practices

• To get the most out of your partnership, we recommend integrating ENERGY STAR into your full marketing campaign including:

– Website and social media– Advertisements– Point-of-sale materials– Promotional materials

Two-step process

1. Display the ENERGY STAR logo

(be sure to follow the Brand Identity Guidelines!)

AND

2. Explain ENERGY STAR’s value to homebuyers.

In Summary

• NC is a leader in energy efficiency. Keep up the good work!

• EPA has created new marketing messaging and tools to help you sell and market ENERGY STAR qualified homes.

• EPA is always looking for feedback so please let us know how the new messaging and tools are working for you!

Discussion

ENERGY STAR for New Homes Main: www.energystar.gov/newhomespartnersTechnical: www.energystar.gov/newhomesguidelines

Email: energystarhomes@energystar.gov

Now on Twitter and Facebook!

@energystarhomes

facebook.com/energystar

Amber StewartAccount ManagerENERGY STAR for New Homes ProgramICF International540-878-5070awstewart@icfi.com

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