Time-of-Sale Home Energy Assessments

The Time-of-Sale Pilot Program is intended to streamline implementation of home energy efficiency measures by uniting energy efficiency expertise, real-estate professionals, motivated lenders and home buyers at the “golden hour” for renovation: when the home is vacant and a funding mechanism (the mortgage) is available.  A Report by the California Energy Commission titled Options for Energy Efficiency in Existing Buildings proposes a Time-of-Sale informational program as a leading strategy to reduce peak load and energy use in existing residential buildings.  Redwood Coast Energy Authority’s Time-of-Sale Program is working on implementing this strategy in Humboldt County.  We are developing a plan to train home inspectors and energy auditors, educate the real-estate community, engage lenders, and utilize local, newly trained, Home Performance contractors to actually get the work done.

This approach is unique since it engages lenders and mitigates the first-cost barrier to performing energy efficiency improvements. Typically, a mortgage has the lowest interest rate available to consumers. If energy efficiency and renewable energy improvements are folded into a new mortgage, they can also benefit from this low-cost money. When energy savings are taken into account, and the costs of the improvements are amortized over the term of the mortgage, the marginal addition to the mortgage can often be cash-neutral from day one. This product is sometimes referred to as an Energy Efficient Mortgage (EEM).