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MonthMortgage

Increase

Monthly

Energy Savings

Cuuv

Cs/Bf

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 CODE

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 aord the homes

they want. In Kentucky, upgrading homes to the 2009 International Energy Conservation

Code will actually reduce out-o-pocket expenses or homeowners – paying o their initial

investment in a matter o months.

For the average new home, BCAP estimates the costs o the new code will add a total o $774

in construction costs—an increase o only 0.3%. When this amount is rolled into the average

mortgage, 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 oset, however, by monthly energy savings o $28.00,

helping homebuyers pay o their initial investment in only seven months. Ater breaking

even in month seven, the home will return buyers a prot o $25 per month—or a total

return o $300 every year. This return on investment is graphed below and presented as a

balance sheet at right.

Cumulative Beneft

Monthly Benet: +$25

Prot ater Year 1: +$144

Energy Code Payback for Kentucky Single Family Homes

Monthly Mortgage

Increase: $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 a

2,400 square foot home. The mortgage is conservavely set at

30 years, with 20% down and the current average naonwide

interest rate of 5.05%. With a lower down payment—such as

10% down—consumers will break even on their investment

even sooner.

Break Even

$ 2 5  pr of t   ever y  mont  h 

8/7/2019 Kentucky Incremental Cost

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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-eective 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 4

u-actor: .4a .35 window

  insulation

r-value: 4/13a10/13  basement

2009 INTERNATIONAL ENERGY CONSERVATION CODE

Lghg: $50

Duct Sealing andTsg: $350

Window Upgrades

Climate Zone 4: $162

Isu Upgrds

Climate Zone 4: $211

Payback Period

7 months

2-yr Prf

$440.17

Au Ergy Rduc

18%

5-yr Prf

$1,327.57

2

5