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MonthMortgageIncrease

MonthlyEnergy Savings

Cu u vC s /B f

1 $154.78 $28.00 $126.78

2 $3.35 $28.00 $102.13

3 $3.35 $28.00 $77.48

4 $3.35 $28.00 $52.83

5 $3.35 $28.00 $28.18

6 $3.35 $28.00 $3.53

7 $3.35 $28.00 $21.128 $3.35 $28.00 $45.77

9 $3.35 $28.00 $70.42 10 $3.35 $28.00 $95.07

11 $3.35 $28.00 $119.72

12 $3.35 $28.00 $144.37

13 $3.35 $28.00 $169.02

14 $3.35 $28.00 $193.67

15 $3.35 $28.00 $218.32

16 $3.35 $28.00 $242.97

17 $3.35 $28.00 $267.62

18 $3.35 $28.00 $292.27

2009 INTERNATIONAL ENERGY CONSERVATION C

FOR NEW HOMES IN

KENTUCKY

One o the major barriers to energy code adoption across the country is the concern that newcodes will add to the purchase price and potential buyers will not be able to a ord the homesthey want. In Kentucky, upgrading homes to the 2009 International Energy ConservationCode will actually reduce out-o -pocket expenses or homeowners – paying o their initialinvestment in a matter o months.

For the average new home, BCAP estimates the costs o the new code will add a total o $774in construction costs—an increase o only 0.3%. When this amount is rolled into the averagemortgage, real costs to homebuyers will mean a down payment increase o $154.78, and$3.35 extra on monthly mortgage bills.

These added mortgage costs will be o set, however, by monthly energy savings o $28.00,helping homebuyers pay o their initial investment in only seven months. A ter breakingeven in month seven, the home will return buyers a pro t o $25 per month— or a totalreturn o $300 every year. This return on investment is graphed below and presented as abalance sheet at right.

Cumulative BeneftMonthly Bene t: +$25Pro t a ter Year 1: +$144

Energy Code Payback for Kentucky Single Family Homes

Monthly MortgageIncrease: $3

Monthly EnergySavings: $28

Down Payment

Increase: $155

-$100

0

1 72 8 93 4 10 11 125 6

$100

$200

-$200Month

This model assumes an average sale price of $267,451 for a2,400 square foot home. The mortgage is conserva vely set at30 years, with 20% down and the current average na onwideinterest rate of 5.05%. With a lower down payment—such as10% down—consumers will break even on their investmenteven sooner.

Break Even

$ 2 5 pr of t ever y mont h

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Homes are the biggest investment we make—and everyone deserves a home that meets national minimum energy efciency standards. While it’s truethat homeowners can always improve the efciency o their homes, it is ar more cost-e ective to upgrade building components during construction,putting in better windows or swapping out one grade o insulation or a better one. Here’s what buyers get with the 2009 IECC:

For the ull Incremental Cost Analysis study, please visit bcap-ocean.org

Climate Zone 4u- actor: .4 a .35 window

insulation

r-value: 4/13 a 10/13 basement

2009 INTERNATIONAL ENERGY CONSERVATION C

L gh g:$50

Duct Sealing andT s g: $350

Window UpgradesClimate Zone 4: $162

I su Upgr d sClimate Zone 4 : $211

Payback Period

7 months

2-y r Pr f

$440.17

A u E rgy R duc

18%

5-y r Pr f

$1,327.57

2

5