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Builder & Buyer - California New Homes Program

Frequently Asked Questions

General

Homebuilders

Homebuyers

General:

Q. What is the SCE California New Homes Program (CANHP)?

A. Under California Public Utilities Commission (CPUC) direction and, in an effort to reduce peak electric demand, SCE offers financial incentives to homebuilders who construct energy efficient homes in its service territory.  Homebuilders who participate in this Program receive financial incentives as well as on-the-ground technical, training, and marketing support from Program Account Managers. This program runs in three year cycles and will begin a new cycle in 2009.

Q. What are the categories of homes that are CANHP Qualified?

A. CANHP qualifies both single and multifamily new homes that are more energy efficient than what is required by code. There are several levels of efficiency that are considered "CANHP Qualified":

  • Prescriptive Measures — homes that have selected from a menu of energy efficiency upgrades but do not achieve a whole home performance level of 15% better than code.
  • Code-plus 15% — homes that achieve whole home performance of at least 15% better than code. This may be done by a variety of energy efficiency measures and may not be independently verified.
  • ENERGY STAR — homes that have been independently verified to be at least 15% better than code and incorporate several key energy efficiency measures. See complete description below.

In coordination with the California Energy Commission's New Solar Homes Partnership, some of the CANHP Code-Plus and/or ENERGY STAR homes may also be installed with photovoltaic systems.

Q. What is an ENERGY STAR® home?

A. You've probably heard of ENERGY STAR appliances and other products. The U.S. Environmental Protection Agency (EPA), who administers the ENERGY STAR brand, certifies ENERGY STAR homes as at least 15% more efficient than the California building code (Title 24). One key difference between an ENERGY STAR home and a code plus 15% home is that ENERGY STAR homes are inspected by a third party, must have correctly sized Heating, Ventilating, and Air Conditioning (HVAC) units, be verified to have quality installation of insulation and do not have thermal bypass problems, which is when unconditioned air gets into conditioned space, or vise versa. To learn more visit: www.energystar.gov.

A. You've probably heard of ENERGY STAR appliances and other products. The U.S. Environmental Protection Agency (EPA), who administers the ENERGY STAR brand, certifies ENERGY STAR homes as at least 15% more efficient than the California building code (Title 24).

The key differences between ENERGY STAR homes and code plus 15% homes are that ENERGY STAR homes:

  • Are inspected by a third party
  • Must have correctly sized Heating, Ventilating, and Air Conditioning (HVAC) units
  • Must be verified to have quality installation of insulation
  • Do not have thermal bypass problems (which is when unconditioned air gets into conditioned space, or vise versa)

To learn more visit: www.energystar.gov.

Q. What is the relationship between CANHP and the New Solar Homes Partnership?

A. The California Energy Commission (CEC) is funding the New Solar Homes Partnership (NSHP) to incentivize the use of solar on new construction projects. In order to receive funds for installing Photovoltaics (PV), all homes must achieve at least 15% greater energy efficiency than required by Title 24. To align with the NSHP, CANHP is offering code-plus 15% (NSHP Tier I) and code-plus 35% (NSHP Tier II) incentive levels in addition to ENERGY STAR.

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Homebuilders:

Q. How many homebuilders may participate in CANHP?

A. The Program is open to all homebuilders constructing homes in SCE's service territory. However, incentives are paid first come first serve on a per project basis.

Q. Is there a list of specific measures I have to install to meet ENERGY STAR Guidelines?

A. There is not a specific list of required measures needed to reach ENERGY STAR guidelines in California. A Home Efficiency Rating System (HERS) Rater will treat the home as a single system, and calculate the entire house's anticipated energy performance by modeling the combined results of all measures and equipment. However, all ENERGY STAR homes must have correctly sized HVAC systems and complete the QII/TBC Checklist. Please see the California ENERGY STAR Guidelines for more details.

Q. How do my homes qualify for the ENERGY STAR label?

A. ENERGY STAR homes must be tested and certified by an accredited HERS Rater. The HERS Rater analyzes the home's energy performance using an approved simulation program and then completes both on-site and diagnostic tests before issuing the home's ENERGY STAR certificate and label.

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Homebuyers:

Q. Why should I care about buying a more energy efficient home?

A. Your home is probably the biggest investment you'll make, so it makes sense to construct it to high energy performance guidelines. You'll save money every year on lower utility and maintenance costs. Additionally, studies suggest that energy efficient homes have a higher resale value than other homes on the market. Furthermore, buyers of energy efficient homes enjoy greater comfort with fewer drafts and even improved temperature room-to-room. Some homeowners say they experience fewer colds and allergies because of the healthy indoor air quality.

Q. Do energy efficient homes cost more?

A. An energy efficient home does not have to cost more than a conventionally built home. Depending upon the construction practices of your homebuilder, the home price may not be higher. And, even if the price is higher, the monthly utility savings are greater in most CANHP qualified homes than the increase in the monthly mortgage payment, making total costs lower every month.

Q. Why don't more contractors build energy efficient homes?

A. Because customers do not demand energy efficient homes. Builders hear their customers demand a granite kitchen countertop more often than energy efficiency, and most build accordingly. However, at Southern California Edison we've never met a customer who didn't want to lower his/her utility bill. An ENERGY STAR investment pays off almost immediately in the form of lower utility bills and that value will be passed on to all future homeowners as well. As more home buyers learn about the value of ENERGY STAR homes, more homebuilders will provide them.

Q. My builder says their homes are energy efficient. Why should I look for the ENERGY STAR mark?

A. Any home that is listed as CANHP qualified has been reviewed by SCE to make sure that it meets its energy efficiency claims, whether it is a prescriptive measure, code-plus, or ENERGY STAR home. However, the ENERGY STAR is your assurance that a third party has inspected the new home and certified that the proper materials were used and correct procedures were followed to maximize its efficiency. Energy efficiency is not an automatic feature of a new home. A builder must understand the "house as a system" approach to energy efficient building in order to provide a cost effective, high performance home. Experienced ENERGY STAR builders often provide the best value because they've refined their processes and used subcontractors familiar with ENERGY STAR requirements.

Q. Isn't it better to let your house "breathe" than to build it "too tight"?

A. ENERGY STAR homes receive fresh air through the installation of a mechanical ventilation system. Concerns about houses being built "too tight" have stemmed from many homes that are built tightly "by accident" without any thought toward mechanical ventilation. Leaky houses do not provide the proper level of ventilation in the right places at the right time. Through extensive research and testing, building scientists have found that the best strategy for maximizing occupant health and comfort in homes is to "build tight and ventilate right." With a simple inexpensive ventilation system, a home can have a continuous controlled supply of fresh air.

Q. How do I know if a home has earned the ENERGY STAR label? 

A. ENERGY STAR homes committed to CANHP will be clearly designated on our Where to Find Energy Efficient Homes page. On-site, the ENERGY STAR label should be prominently displayed on the electrical breaker box. You can also ask your builder for the ENERGY STAR-labeled certificate.

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