In the past, builders of energy-efficient homes have struggled to justify the extra cost of energy-saving features, such as thicker insulation, better windows and high-performance equipment. After less than two years in operation, the ENERGY STAR® Homes Program is making progress with an entirely different marketing message: energy-efficient homes cost less.

"With ENERGY STAR, home owners realize lower costs, because monthly energy savings exceed any increase in the monthly mortgage payments," says Sam Rashkin, ENERGY STAR Homes Program manager. "The result is positive cash flow every month for the owners of energy-efficient homes."

Energy-Efficiency Benefits

But money is only a secondary marketing message. ENERGY STAR marketing emphasizes benefits, such as superior comfort, quiet, durability, safety and peace of mind.

"These are the same benefits for which the automobile industry has proven consumers will pay thousands of additional dollars," says Rashkin. "Certainly, consumers would pay for these same benefits when purchasing a home, too." Energy-efficient homes are the solution, whether home buyers want to:

• choose the lowest cost option
• afford more upgrades
• qualify more easily for mortgages
• make good investments
• be assured of comfort and quiet
• minimize maintenance or
• maximize resale value

These benefits appear in all ENERGY STAR promotions, including brochures, fact sheets, home-buyer workshops, a video and public service announcements for print and radio. The message also is delivered through ENERGY STAR training workshops for those involved in home sales.

Financial Benefits

Rather than apologizing for greater up front cost, ENERGY STAR takes the offensive by offering compelling financial advantages in a package that's easy for consumers to understand. "Through ENERGY STAR mortgages, builders can offer various combinations of lower interest rates, money back at closing and easier loan qualification," says Rashkin.

Financing is presented to potential home buyers with the ENERGY STAR Home Calc software. A salesperson can quickly produce customized financing information tailored for a specific customer's needs. The software displays: charts and tables demonstrating positive cash flow, upgrades for less monthly cost than in standard homes, reduced income requirements, superior rates of return for the amount invested and substantial savings over time.

No Subsidies

Noticeably absent from the sales pitch are the words payback and rebate. The entire concept of payback is taboo, because it introduces a financial variable where one just doesn't belong. "We don't buy cars, computers, food, vacations, education or professional services based on payback," says Rashkin. "It only confuses home buyers and leads to unreasonable expectations."

According to Rashkin, rebates undermine the value of energy efficiency by implying to consumers that energy-efficient homes and technologies are not worth their full cost and need to be subsidized. "Rebates have sustained a perception in the market that subsidies are needed to justify purchasing more energy-efficient technologies, while these very same technologies deliver impressive performance benefits at a lower cost."

ENERGY STAR Branding

Home buyers have enough stress juggling the hundreds of decisions they need to make when choosing--or building--a new home. Choices of location, quality of schools, safety, architectural design, floor plan and neighborhood all require careful thought. In this situation, few home buyers want to get intimate with the details of their insulation. Nationwide promotion of the ENERGY STAR brand name and logo will make it easy for buyers to identify homes and other products that have their efficiency verified by a third party. This allows buyers to add energy efficiency to their shopping list without becoming energy experts or inspecting detailed building practices.

Construction Industry Allies

The program is building a diverse network of allies who are committed to promoting its message. ENERGY STAR Homes Allies include manufacturers, industry associations, utilities, state and local governments, rating organizations, trade periodicals and advertising specialty companies. "We expect the allies to play a key role in shifting away from a market that is based strictly on first cost to one that recognizes the true cost of ownership."

If you are interested in becoming an ENERGY STAR builder or ally partner, call the EPA's toll-free hotline at 888-782-7937. Ask for either the builder or ally package.

Early Success

The program is off to a good start. Nearly 300 builder partners have committed to building over 16,000 ENERGY STAR homes. There are more than 130 allies actively promoting the program. Working with the building industry, the ENERGY STAR Homes Program intends to destroy the myth that energy-efficient homes cost more.