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FOR NEW HOMES IN

Minnesota Climate Zone 7

2012 International Energy Conservation Code


Upgrading new homes in Minnesotas Climate Zone 7 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 $2,704. When this amount is rolled into the average mortgage, real costs to homebuyers will mean a down payment increase of only $540.85, and $10.37 extra on monthly mortgage bills. The added mortgage costs will be o set by monthly energy savings of $77.06, helping homebuyers pay o their initial investment in only eight months. After breaking even in month eight, the home will return buyers a pro t of $67 per monthfor a total return of $800 every year. This return on investment is shown in balance sheet below. For additional Incremental Cost Analysis, please visit energycodesocean.org.

8 MONTHs Break-Even Point $1,070.17


2-year Prot

29%

Annual Energy Reduction

$3,471.14
5-year Prot

Energy Code Payback for Minnesota Single Family Homes


Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Mortgage Increase $540.85 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 $10.37 Monthly Energy Savings $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 $77.06 Cumulative Cost/Bene t -$463.78 -$397.09 -$330.40 -$263.70 -$197.01 -$130.32 -$63.62 $3.07 $69.76 $136.46 $203.15 $269.85 $336.54 $403.23 $469.93 $536.62 $603.31 $670.01

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 paymentsuch as 10% downconsumers will break even on their investment even sooner.

BREAK EVEN AND START EARNING $67 IN PROFIT EVERY MONTH.

FOR NEW HOMES IN

2012 ENERGY CODE Payback:

Minnesota Climate Zone 7

Homes are the biggest investment we makeand everyone deserves a home that meets national minimum energy e ciency standards. While its 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. Heres what buyers get with the 2012 IECC:

CLIMATE ZONE 7

High-eciency Lighting

$ 50
Window Upgrades

$ 357
Whole-house Sealing and Testing

$ 350
Programmable Thermostat

$ 50
Hot Water Insulation

$ 100
Insulation Upgrades

$ 820 WALL $ 879 BSMT $ 268 CEILING


$187 $50 + $408

Homes built to the 2012 IECC could yield a

Additional Upgrades:
Hard-Ducted Returns Sealed & Insulated Attic Hatch HVAC System Savings

$67 profit every month


and $23,500 over 30 years.

For additional Incremental Cost Analysis, please visit energycodesocean.org