FOR NEW HOMES IN

Denver, CO

2012 International Energy Conservation Code
Upgrading new homes in Denver, Colorado 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 $1,412. When this amount is rolled into the average mortgage, real costs to homebuyers will mean a down payment increase of only $282.40, and $5.41 extra on monthly mortgage bills. The added mortgage costs will be o set by monthly energy savings of $23-24, helping homebuyers pay o their initial investment in only sixteen to seventeen months. After breaking even during that time, the home will return buyers a pro t of $17-18 per month—for a total return of $205-221 every year. This return on investment is shown in balance sheet below. For additional Incremental Cost Analysis, please visit energycodesocean.org.

16 17 MONTHs
Break-Even Point

$133.85
2-year Profit

1 5%

Annual Energy Reduction

$750.11
5-year Profit

Energy Code Payback for Denver Single Family Homes
Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Mortgage Increase $282.40 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 $5.41 Monthly Energy Savings $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 $22.53 Cumulative Cost/Bene t -$259.87 -$242.75 -$225.64 -$208.52 -$191.40 -$174.28 -$157.16 -$140.04 -$122.93 -$105.81 -$88.69 -$71.51 -$54.45 -$37.33 -$20.22 -$3.10 $14.03 $31.14

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 $17 IN PROFIT EVERY MONTH.

FOR NEW HOMES IN

2012 ENERGY CODE Payback:

Denver, CO

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:

DENVER CLIMATE ZONE 5

High-efficiency Lighting

$25
Window Upgrades

$ 179
Whole-house Sealing and Testing

$ 350
Hot Water Insulation

$ 100
Insulation Upgrades

$ 202 BASEMENT $ 453 CEILING

Homes built to the 2012 IECC could yield a

Additional Upgrades:

$17 profit every month
and $5,900 over 30 years.

$158 Improved Bathroom Ventilation $150 HVAC System Savings + $204
Hard-Ducted Returns

For additional Incremental Cost Analysis, please visit energycodesocean.org

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