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Educate Consumers About Residential Energy Efficiency
 

Marketing and education initiatives help to achieve separate, but related, goals. The successful marketing of energy-efficient homes, and the benefits of energy efficiency, can increase the demand for and value of these homes and serve as an incentive for developers, homeowners, and property owners to take steps to improve home performance and, accordingly, reduce utility bills. The rate at which this "market saturation" takes place impacts how quickly states and localities can achieve energy efficiency and emissions reductions goals and improve environmental conditions.

Within both single-family homes and multifamily buildings, educational programs and tools help to raise awareness of energy use throughout the day and strategies to reduce energy consumption,
particularly at times when demand is highest. Educational efforts also help to ensure that owners of multifamily properties, building residents, and operations and maintenance staff are informed about how to operate and maintain their properties to maximize energy performance and long-term investments. As noted in an evaluation of public housing units that had received energy efficiency upgrades, over time energy savings persisted but were substantially compromised as a result of "improper operation of equipment and lack of maintenance." [1] With a better understanding and appreciation of the measures taken to make a home energy-efficient, homeowners, tenants, and property managers can help to maintain and build on those benefits.


Why do marketing and education matter?

Photo Courtesy of the Board of Trustees of the University of Illinois, (c) 2001

Marketing and education strategies help to address common misperceptions about the costs and benefits of energy efficient homes. Oftentimes it is assumed that the price premium associated with energy-efficient homes -- in the form of higher monthly rents, home prices, or in the added costs of retrofits -- does not yield a quick-enough payback to make the benefits worth the upfront investment. This is a significant concern, especially for the low and moderate income households that are often least able to make upfront investments to improve home efficiency, yet have the most to gain from long-term energy cost savings. Part of this problem is rooted in the assumption that energy prices will remain relatively static over time. Though current energy prices are low, the energy price spike of 2006-2008 showed that we are vulnerable to fluctuation in energy prices, which are expected to rise over the long-term.

Homeowners and owners of multifamily properties may not fully understand the long-term savings that can be achieved through an upfront investment in energy efficiency, and often take a piecemeal, rather than whole-system, approach to improving the energy efficiency of their property. Marketing the value of these improvements -- from a financial, property appraisal, and utility cost reduction perspective -- would go far towards encouraging these owners to undertake improvements. Marketing efforts targeted to renters may increase demand for apartments with energy-efficient appliances and other energy-saving building features.

Education also matters to ensure that retrofits of existing homes or energy-efficient features in new homes perform at optimal levels and deliver the maximum return on the initial investment. For example, maintenance staff and building management or property owners that have not been properly trained to operate a new energy-efficient water heater or furnace can unintentionally erode the quality of its performance. Similarly, educational initiatives help to ensure that resident behavior is consistent with energy-saving goals. In a multifamily property with master metering, the benefits of a highly-efficient heating system can be undone by a tenant who leaves the windows open all winter; similarly, turning up the thermostat a few degrees in the summer can have a major impact on energy consumption and greenhouse gas emissions. While these measures may seem like common sense steps, in some cases families may not realize the cumulative effect of their behavior.


Where does this apply?

Just as energy-efficient construction and building retrofit programs benefit homeowners, property managers, and tenants in all communities, marketing and education initiatives have a place as a logical extension of these programs. Large multifamily buildings represent a particularly promising venue for educational programs, as they may already have in place the infrastructure to reach many families at once. Other marketing and education programs promote the energy efficiency of single-family homes and strive to build energy-saving attributes and activities into our everyday market values, expectations, and behavior.



Learn more about educating consumers about residential energy efficiency




Go back to learn about other policies that improve residential energy efficiency



[1] Energy Conservation in Multifamily Housing: Review and Recommendations for Retrofit Programs. [PDF] 1994. By John DeCicco et al.Berkeley, CA: Lawrence Berkeley National Laboratory.



While builders and developers have started to incorporate energy-efficient features into newly developed commercial and residential structures, in many cases home energy performance has yet to become a regular consideration in the decision-making process of homebuyers and prospective renters, and in the everyday behavior of non-movers.

Marketing efforts can increase the demand for and value of energy-efficient homes by promoting energy-cost savings and related environmental benefits. Education and training can inform homeowners, property managers, and tenants about daily habits that influence home energy performance, or provide instruction on how to operate an appliance or building to maximize energy savings.


Village at the Crossing - San Bruno, CA


Click on the links below to learn more about educating consumers about residential energy efficiency:

Influencing market values

This section covers steps the public and private sectors can take to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements


Tools for promoting behavioral change

The tools discussed in this section include technological innovations to help monitor energy-use, as well as educational and training programs to inform tenants, homeowners and building managers on reducing energy costs



Many of us are aware of simple steps that can help to reduce energy use -- turning off the lights when leaving a room, raising the thermostat a degree or two in the summer -- and the importance of taking these steps to reduce utility bills and negative impacts on the environment. Several steps can taken to increase awareness of energy consumption and the costs associated with it. Technological advances in smart meters and smart bills allow residents and building owners to better understand the impacts of their behavior by getting "real-time" feedback on energy consumption and costs. Education and training programs are other tools that can influence behavior change by providing information on how to utilize homes to maximize energy efficiency, to learning about available assistance programs.


Laurel Village, Bellingham WA - Photo credit: Bill Wortley
Click on the links below to learn more about tools for promoting behavior change:

Technological tools for behavior change
Two tools, smart meters and smart bills, provide feedback on energy consumption and costs, helping owners, residents, and property managers to better understand the impacts of their behavior

Education and training
Education and training enables homeowners and residents, property owners, and managers of multifamily properties to get the most out of energy-efficient retrofits and other energy-saving features, leading to behavior change



You are currently reading:

Tools for promoting behavioral change
The tools discussed in this section include technological innovations to help monitor energy-use, as well as educational and training programs to inform tenants, homeowners and building managers on reducing energy costs

Other pages in this section:

Influencing market values
This section covers steps the public and private sectors can take to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements



The innovative tools discussed in this section - smart meters, smart bills, and dynamic pricing- provide additional feedback on energy consumption and costs, helping owners, residents, and property managers to better understand the impacts of their behavior and identify opportunities for small adjustments that can make a big difference.

Click on the links to learn more about technological tools for influencing behavior change:

Smart meters

In homes that have traditional electric or gas meters, energy usage is determined each month either through an on-site reading by a meter-reader or the homeowner, who submits a report to the utility company; or through an estimate based on usage levels in previous years during the same period. In contrast, smart meters provide real-time reports on energy usage that are electronically transmitted to energy companies. From an energy- and cost-saving perspective, this approach may offer advantages for both the consumer and for the utility.

Smart meters still compose only a small share of all meters installed, but their presence has grown significantly in the past few years. With passage of the American Recovery and Reinvestment Act of 2009 that trend will continue: the bill set aside some $3.4 billion for investment in smart grid technology, including $200 million in funds for the installation of 2.6 million smart meters in homes and businesses. [1]

Awareness of energy use

When paired with in-home displays or linked to an interactive website, smart meters can help consumers to quickly and easily monitor their energy usage. Increased awareness will not, by itself, reduce usage or utility bills; however, consumers who can compare current consumption levels with the previous day, week, or month and track their monthly utility bill as it builds may be more likely to adjust their behavior in order to avoid high bills and conserve energy. Additionally, with data on actual energy consumption readily available, consumers with smart meters should receive more accurate utility bills, rather than estimates that may over- or under-estimate actual usage.
Solutions in Action
The affordable Central Park Apartments in Stapleton, part of a master-planned community in Denver, CO developed on the site of an old airport, include many energy-saving features. The 18-unit development, which serves households earning up to 50 percent of AMI, features roof-top solar panels and has received LEED for Homes gold certification for its superior performance. Residents pay for their own heat and hot water - each apartment has its own thermostat, furnace, and hot water tank - and each unit includes a digital monitor that displays the amount of energy being used at any time (in dollars). While not technically a meter - the display does not transmit information to the utility - the screen allows residents to monitor their usage throughout the day and make adjustments to keep bills low. [2]

Concerns about smart meters
  • Smart meters and displays range in cost from about $200 to $500 per home, and in many cases are financed by a surcharge on consumers' monthly bills. Consumer advocates have raised concerns about the fee and its impact on low-income households, and in some communities advocates have been able to secure financial assistance for these families. [3]
  • Failure to pair the installation of smart meters and displays with consumer education can leave customers frustrated and unaware of steps that they can take to reduce energy consumption. When dynamic pricing models have been adopted, these families may actually experience higher utility bills if they fail to adjust their behavior in response.


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Smart bills

A recent publication from Enterprise Community Partners notes that "many homeowners and rental property managers pay [electricity, gas, and water] bills without knowing if their usage is above average, normal or below average when compared to local norms." [4] Smart bills feature visual cues that enable customers to quickly and easily assess how their energy consumption levels measure up with the neighbors. For example, households that use significantly less energy than neighbors in similarly-sized homes may see a smiley face on their bill, indicating superior performance. Smart bills may also include bar charts that graphically compare one customer's energy use during the billing period with that of his or her neighbors and, in some cases, a subset of highly energy-efficient consumers. In one pilot study conducted in Sacramento, California, consumers who received a personalized billing statement cut their energy consumption by two percent more than those who received a traditional bill. [5]

Dynamic pricing
Smart meters also enable the adoption of dynamic pricing models in addition to, or instead of, the traditional average monthly rate. Under dynamic pricing plans, energy rates "peak" during periods of heavy usage and fall during off-peak times - a system similar to that used in communities that have adopted peak-hour toll rates to reduce highway congestion. Already common in the industrial and commercial sectors, variable pricing encourages customers to direct energy-intensive activities, such as running the dishwasher, to off-peak times when rates dip. Consumers who arrange their schedules accordingly benefit from lower utility bills; the shift in usage may also reduce pressure on the grid, helping to avoid blackouts and potentially to mitigate the need to build new energy-generating facilities.


Source: GreenTerraFirma.com

There are many ways to structure a price policy that rewards customers who reduce their consumption during critical periods. Some energy companies provide a menu of options and offer consumers the option of switching or retaining traditional billing.

Under an arrangement variously known as Variable Peak Pricing, Time-of-Use, and Dynamic Peak Pricing, utilities designate on a daily basis blocks of time during which "on-peak" and "off-peak" will be assessed. (Rates are typically announced one day in advance.) Consumers can alter their energy consumption patterns to avoid heavy usage during on-peak periods, when higher rates will prevail, and engage in more energy-intensive activities during off-peak times. Based on a similar premise, Real Time Pricing establishes rates for the next day on an hourly basis. Residential customers in Illinois can participate in ComEd's Residential Real-Time Pricing program, in which they charges are based on wholesale hourly market prices.

Energy companies that use a Critical Peak Pricing model notify customers of peak "events" a day in advance. During these critical periods, participants are asked to reduce energy consumption as much as possible. For example, PG &E's will ask customers who enroll in its SmartRate Summer Pricing Plan to minimize their energy consumption between 2:00 p.m. and 7:00 p.m. on up to 15 "SmartDays" between May and October, when demand for electricity is expected to peak. Surcharges apply for energy use during that period, but customers enjoy discounted rate for all other hours. Peak-Time Rebates take this concept to this next level by offering rewards to customers who reduce their energy use on "event days," when energy consumption and costs spike upwards. Consumers who use less energy compared with previous years may earn a cash rebate for energy saved (below a baseline amount).
Solutions in Action
Between June and August 2009, 3,000 volunteers took part in Connecticut Light & Power's Plan-It Wise Energy pilot program. The utility randomly assigned participants to one of three dynamic pricing models. In addition, a subset of participants received "enabling technologies," including in-home display monitors, smart thermostats that automatically increase temperatures during peak periods, and basketball-size "energy orbs" that provide visual cues about price levels by changing in color from green to red as rates increase.

Seventy-seven percent of the participants enrolled in the pilot program were homeowners and 23 percent of participants were renters. Evaluation of the pilot study indicated that enrollees reduced their energy use during peak hours by an average of 1.6 to 23.3 percent, depending on the rate type and enabling technology, if any, to which they were assigned. Click here to access the full pilot program report.
 

Concerns about dynamic pricing
  • Failure to pair the installation of smart meters and displays with consumer education can leave customers frustrated and unaware of steps that they can take to reduce energy consumption. When dynamic pricing models have been adopted, these families may actually experience higher utility bills if they fail to adjust their behavior in response.
  • Households that have small children or a family member with a medical condition may be unable to reduce utility use during peak hours. For these households, an average monthly rate plan would probably be most appropriate.


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Click on the links below to learn more about tools to promote behavior change:

Technological tools for behavior change

Two tools, smart meters and smart bills, provide feedback on energy consumption and costs, helping owners, residents, and property managers to better understand the impacts of their behavior

Education and Training
Education and training enables homeowners and residents, property owners, and managers of multifamily properties to get the most out of energy-efficient retrofits and other energy-saving features, leading to behavior change



You are currently reading:

Tools for promoting behavioral change

The tools discussed in this section include technological innovations to help monitor energy-use, as well as educational and training programs to inform tenants, homeowners and building managers on reducing energy costs

Other pages in this section:

Influencing market values

This section covers steps the public and private sectors can take to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements

[1] Applicants say investments will create tens of thousands of jobs, save energy and empower consumers to cut their electric bills. White House Press Announcement.
[2] Green Takes Flight at Stapleton. April 2008. By Bendix Anderson. Affordable Housing Finance Magazine.
[3] Smart Meter, Dumb Idea? April 27, 2009. By Rebecca Smith. Wall Street Journal.
[4] Incremental Cost, Measurable Savings: Enterprise Green Communities Criteria. 2009 [PDF]. By Dana Bourland. Columbia, MD: Enterprise Communtiy Parnters, Inc.
[5] Utilities Turn Their Customers Green, With Envy. January 30, 2009. BY Leslie Kaufman. New York Times.



Education and trainings enable homeowners and residents, property owners, and managers of multifamily properties to get the most out of energy-efficient retrofits and other energy-saving features, leading to behavior change; they may also build awareness of available assistance programs.

Click on the links to learn more about education and training:
Westcott Ridge
Photo Credit: Curtis Hall

Education and training for residents of multifamily properties


Training and education efforts targeted to residents of multifamily buildings can yield cost saving benefits for renters and property owners. In master metered buildings, training and education can ensure that residents use the unique energy-efficiency features of their home to maximize home energy performance. For example, the benefits of a highly-efficient heating system can be undone by a tenant who leaves the windows open all winter; similarly, turning up the thermostat a few degrees in the summer can have a major impact on energy consumption and greenhouse gas emissions. Likewise, renters that pay their own utilities can benefit from training and education to learn energy saving tips for their homes and the financial benefits of energy conservation. While these measures may seem like common sense steps, in some cases families may not realize the cumulative effect of their behavior.

In many cases, Energy Service Companies (ESCOs) build into their contracts with housing authorities an agreement to conduct energy-efficiency seminars and trainings for building management as well as tenants and resident councils. (Trainings also help to ensure that ESCOs meet contractual building performance obligations.)

Solutions in Action
In Toronto, Canada, a partnership of three community-based organizations established the Brahms Energy Saving Team (BEST), targeting the more than 800 hundred residents of two large multifamily buildings with the goal of reducing overall energy consumption in the buildings. BEST took a resident-led approach and hired six tenants from the buildings as community education and outreach workers. The six education and outreach workers designed and delivered educational materials to other tenants in the two buildings. They went door-to-door to distribute educational pamphlets, hosted neighborhood barbecues and other events to promote energy-reducing behavior, and staffed information displays in the lobbies of the apartment buildings. According to the Toronto Star, from 2005-2008, over 75 percent of Brahms residents participated in the BEST program and helped to reduce annual energy consumption by almost 17 percent, allowing property owners to invest the energy savings back into the building. In 2006, BEST was awarded the Green Toronto Awards for best community project. [1]

Click here to read a guidebook on tenant-led energy saving education, produced by BEST partners.


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Owner and management education and training

Public agencies may offer workshops - on their own or in partnership with nonprofit or for-profit training groups - to educate the owners of multifamily properties on steps they can take to improve energy-efficiency and available financial assistance or incentives programs. For example, New Jersey's Green Homes Office, a division of the state's Housing and Mortgage Finance Agency (NJHMFA), offers three-hour training events that introduce homeowners who have participated in NJHMFA's mortgage and financing programs to new programs intended to stimulate energy-efficiency investments. Previous sessions have also targeted owners of multifamily properties, offering guidance on new and existing loan, grant, and incentive programs for energy-efficiency.

Some organizations and public departments offer trainings and workshops focused specifically on homeowners and prospective buyers. ReBuilding Together, a nonprofit organized focused on low-income homeowners, offers an online training program that helps families identify energy-saving modifications that offer the greatest energy savings and financial pay-off.

Several websites and online tools make it possible for property owners or building managers to conduct a do-it-yourself home energy analysis by guiding users through each room of a home to examine common problem areas for drafts and air leaks and to identify other ways to improve home energy-efficiency. Do-it yourself audits are best suited for single-family homes or individual rental units, rather than entire multifamily buildings; however, special tools have been developed to
Solutions in Action
The 1,000 Green Supers program will, in one year, train one thousand New York City building superintendents and resident managers in state-of-the-art energy-efficient operations and maintenance. The program launched in September 2009, and in January 2010 received $2.8 million in grant funding from the U.S. Department of Labor through the American Recovery and Reinvestment Act that will enable training of 2,200 supers.

Administered by the local union of property service workers (SEIU 32BJ) and supported by Mayor Bloomberg, the Urban Green Council (the New York chapter of the US Green Building Council), the Building Performance Institute, and members of the real estate industry, the program consists of a forty-hour curriculum that trains participants to recognize areas where energy is wasted, develop a green operating plan, and perform cost-benefit analyses for building owners and managers. Click here to learn more about the 1,000 Green Supers program.
enable property owners and managers to track and assess energy
consumption in order to prioritize improvements to increase building efficiency. While not full-fledged audits, home energy assessments can build awareness of energy consumption in the home and about cost-saving measures that can improve home energy performance. Learn more about the specific home energy analysis tools available.

Other organizations conduct in-person seminars that show homeowners where opportunities exist to improve the energy-efficiency of their homes. For example, working with the Energy Trust of Oregon and the City of Portland's Bureau of Planning and Sustainability, the Conservation Services Group (CSG) offers customized trainings that show homeowners steps they can take to reduce home energy consumption and lower utility bills. The five-session workshops include information on understanding and analyzing home energy use; learning about weatherization techniques and behavior that reduces home energy consumption; and choosing high-efficiency lighting and appliances. Program participants also develop Energy-Efficiency Action Plans that detail specific improvements they intend to take. Click here to learn more.


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Click on the links below to learn more about tools for promoting behavior change

Technological tools for behavior change

Two tools, smart meters and smart bills, provide feedback on energy consumption and costs, helping owners, residents, and property managers to better understand the impacts of their behavior

Education and Training
Education and training enables homeowners and residents, property owners, and managers of multifamily properties to get the most out of energy-efficient retrofits and other energy-saving features, leading to behavior change



You are currently reading:

Tools for promoting behavioral change
The tools discussed in this section include technological innovations to help monitor energy-use, as well as educational and training programs to inform tenants, homeowners and building managers on reducing energy costs

Other pages in this section:

Influencing market values

This section covers steps the public and private sectors can take to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements

[1] Brahms residents work in concert for savings. By Peter Gorrie. April 19, 2008. Toronto Star.




Photo courtesy of Potterhilll Homes
Energy-efficient homes offer many benefits; most notably, lower utility costs and reduced greenhouse gas emissions, and, in many cases, improved indoor comfort. While recent and ongoing research programs have confirmed long-term cost savings associated with energy-efficient upgrades, many of these other benefits have yet to be fully integrated into existing homeowners' and renters' expectations of energy-efficient homes.

As researchers continue to refine estimates of the pay-off periods associated with specific energy-saving investments, interest in undertaking energy efficiency improvements or choosing homes that incorporate these features will continue to grow. In the meantime, however, the public and private sectors can take steps to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements.


A 2012 white paper, Pulling the Trigger: Increasing Home Energy, outlines new strategies for uniting public policies and private financing tools to unlock home energy savings at different points of opportunity to improve energy performance during its life cycle. Recommendations include integrating energy efficiency in the Multiple Listing Service (MLS); provide incentive programs to homeowners before during renovations; and, develop modifications to existing mortgage financing, refinancing and home equity products that incentivize and incorporate energy efficiency.  Click here to read the report



Click on the links below to learn more about specific approaches to influence market values:

Marketing to owners
The real estate industry can incorporate energy efficiency into the multiple listing service

Marketing the benefits of energy efficiency
Public marketing campaigns, paired with rebate and incentive programs, can stimulate investment and increase the demand for in energy-efficient homes



You are currently reading:

Influencing market values

This section covers steps the public and private sectors can take to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements

Other pages in this section:

Tools for promoting behavioral change

The tools discussed in this section include technological innovations to help monitor energy-use, as well as educational and training programs to inform tenants, homeowners and building managers on reducing energy costs




Integrating Energy Efficiency in the Multiple Listing Service (MLS)

The MLS system is the primary source of information on real estate available for purchase, and is not a single entity, but rather a series of more than 800 electronic databases maintained by local and regional associations of Realtors. [1] Each database collects and displays listings submitted by certified real estate brokers, enabling subscribing Realtors to view each others' listings and assist their clients -- both buyers and sellers -- in accessing a wide pool of options. In many cases the public can view a portion of the information available for each property, although viewing the full listing requires a subscription.

In some communities, forms for MLS listings have been expanded to include fields on energy-efficient features and green certifications. These new search options enable Realtors to easily identify homes that might appeal to energy-conscious buyers, and to market energy-efficient properties that

Photo courtesy of the Board of Trustees of the University of Illinois, (c) 2001
they represent as such. In addition, including energy efficiency as a standard feature in the MLS helps to bolster the standing of energy efficiency as a mainstream market value, rather than a niche interest.

According to some industry representatives, the ability to search for green properties in the MLS may also help to establish market valuations for energy-efficient features, as Realtors and others can compare the asking-prices of otherwise similarly-equipped homes. [2] Initial studies show a positive link between home values and energy efficiency through the MLS listing. A study assessing the market performance of third-party certified "sustainable residential properties" (including Built Green, Earth Advantage®, ENERGY STAR®, and LEED for Homes) for sale in the Portland, OR and Seattle, WA regions found a positive correlation between home values and certification. Using MLS data, researchers found that on average, third-party certified homes for-sale during 2006-2007 sold for 9.6 percent and 4.2 percent more than non-certified homes in Seattle and Portland, respectively. In Portland, certified homes were on the market for 18 days fewer than conventional homes. [3] Click here to view the Green MLS Toolkit, developed by the National Association of Realtors, to learn more about implementing a green initiative for their Multiple Listing Service (MLS).

A better understanding of the value added by specific energy-saving measures may stimulate more property owners to undertake these improvements, and may also increase lenders' willingness to offer lending instruments that finance energy efficiency improvements on favorable terms. Some real estate professionals have joined EcoBroker, a membership organization that provides education and training on the value of energy-efficient homes and strategies for marketing them to consumers.

To earn EcoBroker designation, members must complete a curriculum about home energy efficiency and environmentally sensitive design, which includes training on financing products such as energy-efficient mortgages and state or local tax credits available to homebuyers. EcoBrokers are also required to learn about funding mechanisms to assist with energy-efficient retrofits in existing homes. Click here to leave this site and learn more about EcoBrokers.
Greenwashing

Lacking a single protocol to certify that homes meet a standard of energy efficiency, there is the risk that developers, owners, and property managers may market as energy-efficient homes that are not actually high-performing and have not received any verification to back up the claim -- a phenomenon sometimes known as "greenwashing." As more regions adopt fields for home energy performance into the RMLS, it is important to consider developing common protocols to ensure that homes described as energy-efficient meet a tested and approved set of standards.

Solutions in Action
In 2006, members of the Board of Directors of the Regional Multiple Listing Service (RMLS) agreed to add fields for home energy performance and green home certifications to the RMLS electronic database, which consolidates property listings in the Portland, Oregon metropolitan area. Unregistered visitors can see data on basic home attributes (number of bedrooms, square footage, year built, etc.) for each RMLS listing, plus additional optional information about special features, including whether the building had received one of more than ten "Green Certifications" and the year it was awarded. [4] Subscribers to the service may access additional details on other energy-efficient features, including the use of sustainable materials such as cork flooring and whether Energy Star-certified or other high-efficiency appliances have been installed. As of early March 2010, a search of the RMLS indicated that some 6,900 listings had received green certification.

Based on the popularity of the new feature, the nonprofit organization Earth Advantage - which works with home builders and developers to reduce the energy consumption of new and existing homes - has started to offer the "Sustainability Training for Accredited Real Estate Professionals "(STAR) program. The two-day course arms Realtors with the information needed to describe green home and energy efficiency products and concepts to clients. Successful graduates receive marketing assistance through a personalized page on Earth Advantage's site and a funding award from the Energy Trust of Oregon's Trade Ally Program. Click here to learn more about the STAR program.



Click on the links below to learn more about specific approaches to influence market values

Marketing to owners

The real estate industry can incorporate energy efficiency into the multiple listing service

Marketing the benefits of energy efficiency
Public marketing campaigns and rebate and incentive programs can stimulate investment and increase the demand for in energy-efficient homes



You are currently reading:

Influencing market values

This section covers steps the public and private sectors can take to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements

Other pages in this section:

Tools for promoting behavioral change

The tools discussed in this section include technological innovations to help monitor energy use, as well as educational and training programs to inform tenants, homeowners and building managers on reducing energy costs


[1] What is a Multiple Listing Service (MLS)? National Association of Realtors.
[2] Local Homes Database Turns "Green". March 2, 2007. Real Estate Magazine.
[3] Certified Home Performance: Assessing the Market Impacts of Third Party Certification on Residential Properties. May 2009 [PDF]. By Ann Griffin. Portland, OR: Earth Advantage Institute.
[4] The "Green Certifications" in the Portland, Oregon RMLS could include Energy Star, LEED, Home Energy Rating System (HERS), National Green Building Standard, NAHB Model Green Home Building Guidelines, and Enterprise Green Communities. Click here to view the Green MLS Toolkit to learn more about implementing a green initiative for their Multiple Listing Service (MLS).



Public marketing campaigns

Communities can help to stimulate investments in energy-efficient homes by providing marketing assistance for developers and homeowners that participate in programs to improve home performance. Marketing initiatives may be targeted around specific properties that have been certified under the local green building or energy efficiency standard, or programs may recognize builders and developers that participate in such programs. For example, the Wisconsin Home Performance for ENERGY STAR program website provides direct links to eligible contractors throughout the state, marketing their ability to perform services that comply with program guidelines.

Marketing campaigns can also increase awareness of home energy efficiency benefits in order to promote public assistance programs. For example, the California Public

Photo credit John Booz
Utilities Commission's Flex Your Power campaign promotes statewide energy efficiency and employs a mass marketing, multi-media strategy to educate residents on the economic, environmental and systemic benefits of energy efficiency. The campaign also works to coordinate marketing and outreach efforts with energy industry stakeholders, consumer groups, and other program providers. Flex Your Power campaign marketing efforts include television, radio and newspaper ads, a website that can be translated into five different languages, and educational give-aways such as energy saving tip cards, grocery store fliers, appliance stickers, bill inserts, and payroll stuffers. Click here to learn more about Flex Your Power.

When compared to conventional building practices, many of the interventions that help to improve residential energy-efficiency have the added benefit of promoting a healthier home living environment by reducing exposure to allergens, chemicals, and other toxins that pose health risks for residents.   These improvements can make a big difference in families' health outcomes.  Click here to learn more about the health benefits of energy-efficient homes.

Incentives and rebates

Pairing incentive programs with marketing strategies can be an effective way for states and localities to increase the demand for energy-efficient products or build participation in related programs. As of May 2010, several states have used federal stimulus funds to offer rebates for ENERGY STAR rated products. In Florida, the state established the Florida Appliance Rebate program to distribute rebates worth 20 percent of the purchase price for ENERGY STAR rated refrigerators, freezers, dishwashers and other appliances on a first-come first-served basis via the state's website. The rebate fund was $17.5 million, enough to meet the equivalent of approximately 66,000 appliances, [1] and was depleted within a day and a half of its release.

The Wall Street Journal reports that various state rebate programs increased retail sales by five to ten times average sales, driving consumer demand for energy-efficient products. [2] As several news articles reported, the Florida rebate programs, as with similar programs in other states, were timed appropriately to coincide with tax day and earth day, allowing government agencies and private retailers to leverage other existing publicity and campaigns to boost marketing of the program and qualifying items. [3]
Solutions in Action
Introduced in 2003, Arlington County's voluntary Green Home Choice program encourages developers and homeowners to take steps to increase energy efficiency when renovating or building new homes. A program scorecard identifies building techniques and components identified as effective in promoting healthier, more efficient homes, and by incorporating these elements into their projects, participants can rack up enough points to receive Green Home Choice certification. Benefits associated with this certification include admittance to special events and "front-of-the-line plan review," as well as marketing assistance, including law signs indicating program participation. Typically, new construction represents two-thirds of participating homes and rehab projects make up one-third of the homes in the program. Click here to leave this site and learn more about Arlington's green building programs.

In 2010, the National Housing Conference hosted the Partners in Innovation preservation forums, a series of three regional forums focused on strengthening and supporting affordable rental housing preservation efforts through innovative partnerships, policy development, and legislative reform. The regional forums took place in Boston, MA; Portland, OR; and Denver, CO in 2010.

View the following presentations from the Partners in Innovation: Preserving Affordable Rental Housing Through Energy Conservation in Boston on April 14, 2010.



Click on the links below to learn more about specific approaches to influence market values:

Marketing to owners

The real estate industry can incorporate energy efficiency into the multiple listing service

Marketing the benefits of energy efficiency
Public marketing campaigns and rebate and incentive programs can stimulate investment and increase the demand for in energy-efficient homes



You are currently reading:

Influencing market values

This section covers steps the public and private sectors can take to stimulate interest in energy-efficient homes and reward those who choose to undertake improvements

Other pages in this section:

Tools for promoting behavioral change
The tools discussed in this section include technological innovations to help monitor energy-use, as well as educational and training programs to inform tenants, homeowners and building managers on reducing energy costs


[1] Appliance rebate money is going fast. April 16, 2010. By Elaine Walker and Nirvi Shah. Miami Herald.
[2] Appliance Dealers See Sales Momentum As Rebate Programs Roll Out. April 13, 2010. Wall Street Journal.
[3] Appliance Discounts, for the Swift. April 19, 2010 By Tom Zeller Jr. New York Times.