EFFICIENCY

 - - MOTIVATE CONSUMERS - - - ENABLE CONTRACTORS - - - DEVELOP NEW PRODUCTS - - - CREATE PROTOC 

 - - MOTIVATE CONSUMERS - - - ENABLE CONTRACTORS - - - DEVELOP NEW PRODUCTS - - - CREATE PROTOC

TECHNOLOGY ROADMAP

ENERGY

IN EXISTING HOMES

Volume Three: Prioritized

 Action Plan
PATH (Partnership for Advancing Technology in Housing) is a private/public effort to develop,

demonstrate, and gain widespread market acceptance for the “Next Generation” of American

housing. Through the use of new or innovative technologies, the goal of PATH is to improve

quality, durability, environmental efficiency, and affordability of tomorrow’s homes. PATH is

managed and supported by the U.S. Department of Housing and Urban Development (HUD).

In addition, other federal agencies that engage in housing research and technology

development are PATH Partners, including the Departments of Energy, Commerce, and

Agriculture, as well as the Environmental Protection Agency (EPA) and the Federal Emergency

Management Agency (FEMA). State and local governments and other participants from the

public sector are also partners in PATH. Product manufacturers, home builders, insurance

companies, and lenders represent private industry in the PATH Partnership.

To learn more about PATH, please contact

451 7th Street, SW

Washington, DC 20410

202-708-4370 (phone)

202-708-5873 (fax)

e-mail: pathnet@pathnet.org

website: www.pathnet.org

Visit PD&R’s website

www.huduser.org

to find this report and others sponsored by

HUD’s Office of Policy Development and Research (PD&R).

Other services of HUD USER, PD&R’s Research Information Service, include listservs; special

interest, bimonthly publications (best practices, significant studies from other sources); access to

public use databases; and a hotline 1-800-245-2691 for help accessing the information you need.
i

Newport Partners LLC

Davidsonville, MD

May 2004

U.S. Department of Housing and Urban Development

Office of Policy Development and Research

Washington, D.C.

Prepared for:

Prepared by:

TECHNOLOGY

ROADMAP:

Volume Three: Prioritized

Action Plan

ENERGY

EFFICIENCY

IN EXISTING

HOMES
ii

About Newport Partners LLC

Newport Partners LLC is a small business providing analytical and technical services to

clients in both the manufacturing and public sectors, with an emphasis on building

technology and the introduction of innovative products.

Acknowledgements

Newport Partners LLC recognizes the role of the dozens of public and private sector

individuals who have contributed their time and effort as participants in the Energy Efficiency

in Existing Housing technology roadmapping process, including those who participated in the

onsite meetings in Detroit, MI and Annapolis, MD and the review of multiple drafts of this

document. We would also like to thank the 118 individuals who participated in the webbased prioritization process that enabled us to set priorities for PATH technology

roadmapping for existing housing energy efficiency. Bill Asdal, John Lombardi, and Randy

Tinfow of the University for Contractors LLC provided invaluable assistance to the

development of the web-based prioritization process. Dana Bres of the U.S. Department of

Housing and Urban Development oversaw the development of this roadmapping effort.

Terry Logee of the U.S. Department of Energy and David Lee of the U.S. Environmental

Protection Agency contributed time and staff resources to the roadmap development and

review.

Disclaimer

This report was prepared by Newport Partners LLC for the U. S. Department of Housing

and Urban Development, Office of Policy Development and Research. The contents of the

report are the responsibility of the contractor and do not necessarily reflect the views or

policies of the U. S. Department of Housing and Urban Development, the U.S.

Government, or any other person or organization.
iii

The Partnership for Advancing Technology in Housing (PATH) is pleased to present the third

installment of the Energy Efficiency in Existing Housing (EEEH) Roadmap. As a follow-up

on the activities that have occurred since the Volume 1 Technology Brainstorming and Volume

2 Strategies Defined reports were published, we invite you to look at the progress that has

been made in helping to formulate a prioritized action plan for existing housing energy

efficiency.

The PATH program, administered by HUD, is focused on improving the affordability and

value of new and existing homes. Through private and public cooperation, PATH is

working to improve energy efficiency, environmental impact, durability and maintenance,

hazard resistance, and labor safety relative to new and existing homes. To accomplish this,

PATH has identified priority strategies and activities that will enable government and

industry to jointly fulfill the PATH mission. We refer to this priority-setting process as

roadmapping. The Energy Efficiency in Existing Housing Roadmap is one of five roadmaps

under development to date. The other roadmaps are: 1. Information Technology to Accelerate

and Streamline Home Building, 2. Whole House and Building Process Redesign, 3. Advanced Panelized

Construction, and 4. Technology Roadmapping for Manufactured Housing.

This report discusses eight key strategies and associated activities for bringing about new

levels of energy conservation in the nation’s existing housing stock. Priorities were

established by a broad cross-section of manufacturers, remodelers, trade contractors,

researchers, and government program officials through the application of an innovative webbased decision making tool that was developed for this project by University for

Contractors, LLC. Some of the strategies suggest ways to influence consumers to demand

energy conserving products and services, while other strategies focus on developing new

technologies and preparing remodeling and trade contractors to supply them into home

improvement and renovation.

The three EEEH Roadmapping volumes can be read independently or as a set. This third

volume expands on the concepts developed in the previous two volumes and presents them

in the prioritized order determined by the web-based decision making process. Therefore, it

can stand alone as the more definitive action plan for improving the energy efficiency of the

nation’s existing housing stock.

We invite manufacturers, builders, trade contractors, researchers, and others to examine this

roadmap and encourage your participation in improving the energy performance of housing.

PREFACE
iv
v

TABLE OF CONTENTS

PATH Program Goals.............................................................1

Roadmapping Process............................................................2

Vision...........................................................................................3

Situation Today........................................................................3

Roadmap Development.........................................................5

Setting Priorities....................................................................6

Roadmap Overview............................................................11

1. Provide Consumer Incentives for Implementation..................13

1.1 Quantify and Define the Economic Benefits of Energy Efficiency...............14

1.2 Identify and Document the Social Benefits of Energy Efficiency.................14

1.3 Develop Low-Interest Loan Programs for Consumer Investments in Energy

Efficiency.......................................................................................................14

1.4 Provide Rebates and Tax Incentives for Consumer Investments in Energy

Efficiency...........................................................................................................15

1.5 Publicize the Availability of Loans and Incentives for Energy Efficiency

Investments..................................................................................................16

2. Motivate Service Providers to Deliver Energy-Efficient

 Solutions......................................................................................17

2.1 Define the Market.................................................................................................17

2.2 Study the Business Models of Successful, Similar Service Businesses..............18

2.3 Develop a Model Business Plan........................................................................18

2.4 Develop Financial Incentives............................................................................18

2.5 Develop Award or Other Recognition Programs for Energy Retrofit

Contractors..........................................................................................................19

2.6 Develop and Implement an Outreach Program to Reach Remodelers and

Trade Contractors.......................................................................19

3. Develop a Single Industry Protocol for Practitioners................21

3.1 Collect and Document Current Industry Analysis and Design Procedures......22

3.2 Develop Standard Analyis and Design Procedures - a Protocol - for the Home

Repair and Remodeling Process.....................................................................22

3.3 Develop a Standard Process for an Independent Post-Improvement Quality

Audit...............................................................................................................23
vi

3.4 Establish Broad Agreement to Use the Protocol.................................24

3.5 Promote the Benefits of the Protocol with Consumer Outreach.....................24

3.6 Integrate the Protocol into Industry Training and Credentialing Programs......25

4. Improve Retrofit Building Envelope Performance

Technologies................................................................................26

4.1 Compile Expanded Background Information......................................................27

4.2 Identify Technologies from Other Industries for Use in Residential Energy

Retrofit Products.............................................................................................27

4.3 Convene Industry Meetings to Identify Needs and Opportunities................28

4.4 Support Efforts to Design and Develop New Products for Existing Home

Retrofits.....................................................................................................28

4.5 Evaluate and Demonstrate Underutilized and Emerging Energy Retrofit

Products..........................................................................................................29

4.6 Communicate the Results Broadly................................................................30

5. Enable Practitioners to Deliver Energy-Efficient

Solutions.........................................................................................31

5.1 Collect and Document Information on Programs, Tools, and Resources........32

5.2 Establish Recognized, Credible Sources of Information for Users...................32

5.3 Create a Viable Education Platform.................................................................33

5.4 Develop Online Education and Training Content...........................................33

5.5 Promote Strategic Alliances Among Practitioners............................................34

5.6 Promote These Actions to Remodelers, Trade Contractors, and

Consumers......................................................................................................34

6. Develop a Performance Monitoring System for EnergyConsuming Equipment..............................................................36

6.1 Identify Current Energy Monitoring, Display, and Communication

Products..........................................................................................................37

6.2 Identify and Involve Missing Players to Fill Product and System Gaps.............37

6.3 Adopt and/or Develop a Common Communication Standard.......................37

6.4 Identify Candidate Communication Devices or Techniques and Develop

Requirements.................................................................................................38

6.5 Define a Consumer Information Display Standard.........................................38

6.6 Evaluate and Develop Multi-Use and Modular Low-Cost Sensors....................38
vii

7. Increase the Value Consumers Associate With Energy

Efficiency.....................................................................................................40

7.1 Craft Uniform Messages for Consumers...............................................................41

7.2 Gauge Existing Consumer Knowledge of the Value of Energy

Efficiency......................................................................................................41

7.3 Deliver Messages Through Multiple Media..........................................................41

7.4 Measure the Effectiveness of the Message and Delivery Vehicles.....................42

7.5 Refine Messages, Then Repeat the Process................................................42

8. Build Credibility for Service Providers......................................44

8.1 Promote Stronger Relationships Between Suppliers and the Remodeling

Trades.............................................................................................................44

8.2 Recognition of Qualified Contractors by Utility Companies................................45

8.3 Motivate Contractors to Take Advanced Energy Efficiency

Training..........................................................................................................45

8.4 Promote Statewide Acceptance of CEU Credits for Energy Efficiency and

Business Management Training for Remodeling Trades.............................46

8.5 Establish an Industry-Recognized Contractor Credentialing Program............46
viii
1

The Partnership for Advancing Technology

in Housing (PATH) encourages the use of

technology to improve the affordability and

value of new and existing homes. Through

public and private efforts in technology

research, information dissemination, and

barrier analysis, PATH is adding value to

seven of the nation's key housing attributes:

• affordability

• energy efficiency

• environmental impact

• quality

• durability and maintenance

• hazard mitigation

• safety

As such, four overarching goals have been

established that all bear on those

attributes:

● To remove barriers and facilitate

technology development and

adoption.

PATH will investigate the barriers,

including regulatory barriers, that impede

innovation, and will actively propose and

develop programs to overcome those

barriers. This work will guide the other

goals and efforts.

● To improve technology transfer

development, and adoption

through information

dissemination.

PATH will coordinate dissemination of

innovation information directed to the

housing industry and consumers.

● To advance housing technology

research and speed development

of new technology.

PATH will support "background" and

applied research as well as technology

development activities in the housing

industry. This research will be

complemented by short-term and long-term

assessments of specific technologies that are

on the market.

● To support the program through

appropriate management and

resource allocations.

Partners in the PATH program - U.S.

Department of Housing and Urban

Development, Department of Energy,

Environmental Protection Agency,

Department of Agriculture, Department of

Commerce, Federal Emergency Management

Agency, home builders, researchers, and

manufacturers of building materials and

products - have long recognized the

importance of injecting current and

emerging technologies into the home

building process. The PATH program has

identified many of the relevant technologies

and has facilitated implementation of

research, pilot, demonstration, and

evaluation projects across the United States.

In addition, PATH program partners

recognize the importance of planning

research and setting priorities for technology

development that will enable the housing

industry to work toward the PATH mission.

This priority setting is known as

"Roadmapping."

PATH PROGRAM GOALS
2

The objective of PATH roadmapping is to

identify technological research in home

building to serve as a guide for investments

by government and industry. The PATH

Industry Committee (IC), comprised of

builders and manufacturers of building

products and materials, oversees the

development of technology roadmaps for

the housing industry.

As the premier planning activity for PATH,

the roadmaps dictate the main areas for

research and development in PATH's

research portfolio (which includes

background, applied, and development

activities) as well as provide the home

building industry with a strategic plan for

future technology development. Through

this process, new technologies and

additional research work will be generated

as the roadmaps are implemented.

The IC initiated the overall roadmapping

process during early 2000. A group of 40

builders, material and product suppliers,

academicians, researchers, and other

stakeholders identified and prioritized

technologies that hold promise in achieving

PATH's goals. The IC then grouped the

technologies with the greatest potential

benefits into broad portfolios. These

portfolios represent three initial technology

roadmaps for new home construction. At

about the same time, additional roadmaps

were initiated by the manufactured housing

industry and the remodeling industry to

address PATH goals and objectives relevant

to these sectors of the home building

industry. The result is the following five

roadmapping activities currently in different

stages of development:

1. Information Technology to

Accelerate and Streamline Home

Building

2. Whole House and Building Process

Redesign

3. Energy Efficiency in Existing Homes

4. Technology Roadmapping for

Manufactured Housing, and

5. Advanced Panelized Construction

Each of the roadmaps has a separate report.

This report deals specifically with the Energy

Efficiency in Existing Homes Roadmap.

In late 2000, the Energy Efficiency in

Existing Housing Roadmapping group met

to brainstorm technology development ideas

that could help the PATH program meet

existing housing energy efficiency goals.

Subsequently, in May 2002, the working

group met to identify key strategies and

activities in the existing housing area. In

2003, a process was initiated to prioritize

key strategies and activities. This report

summarizes the results of this Roadmapping

process.

ROADMAPPING PROCESS

Meeting of the Technology Roadmapping

Work Group
3

The Partnership for Advancing Technology

in Housing (PATH), a public-private

initiative to speed the adoption of

beneficial new and existing technologies in

U.S. homes, has been pursuing a broadbased effort to improve energy efficiency in

the nation’s housing stock on an

unprecedented scale. PATH has brought

together remodelers, product

manufacturers, energy utilities, service

providers and federal agency representatives

to create a comprehensive plan designed to

achieve substantial energy efficiency

improvements in large numbers of houses.

The planning process has led to the

development of this Technology Roadmap,

which presents a prioritized set of strategies

and supporting research and

implementation activities designed to

increase consumer demand for energy

efficiency upgrades to their homes at the

same time as it enhances the ability of

private sector firms to satisfy that demand.

Public attention to the energy efficiency of

existing homes is justified by the large

contribution of the residential sector to

total U.S. energy consumption. The latest

data, published by the Energy Information

Administration (EIA) of the U.S.

Department of Energy, indicates that in

2001 the residential sector consumed just

under 20 quadrillion Btus (quads) of

primary energy out of total national

consumption of about 96 quads, with the

balance used by the industrial,

transportation and commercial sectors.

Long-term growth in energy consumption

has outpaced domestic production and

imposed cost burdens on consumers. The

resulting growth in imports has led to

national policy concerns about dependence

on unstable foreign sources of energy.

Trends in energy production and

consumption have also prompted

environmental concern on scales ranging

from local (e.g. oil spills and smog) to

regional (acid rain) to international (ozone

depletion and global warming). At the same

time, energy consumption has also led to

major improvements in the standard of

living and the convenience of everyday life

throughout society. Changing patterns of

use in this environment has proven

controversial and difficult.

A more detailed analysis published by EIA

shows that the 101 million U.S. housing

units in existence as of 1997 used about 19

quads of primary energy out of a total of 93

quads of primary energy used for all

purposes in that year. The 74 million

existing single-family homes in 1997

accounted for about 83 percent of energy

use in the residential sector. Average 1997

expenditures for energy used in the singlefamily houses were slightly under $1,500.

Total residential use, measured at the

building site, dropped slightly from 10.6

quads in 1978 to 10.25 quads in 1997. Site

energy consumption (which does not

include energy lost in the process of

generating or transmitting electricity)

dropped from 138 million Btus per

VISION

offset the monthly costs for financing the

installation of the energy efficient

technologies. An organized infrastructure

for marketing and installing the necessary

technologies will also be in place.

By 2010, consumers will be able to

substantially improve the energy efficiency

of their homes and achieve positive cash

flow in the process. That is, energy savings

on monthly utility bills will more than

SITUATION TODAY
4

household in 1978 to 102 million Btus in

1982. This indicates some improvement in

energy efficiency during a period when

prices were rising and energy awareness was

very high. However, per-household

consumption remained essentially constant

from 1982 through 1997. Total residential

energy consumption measured at the

building site declined less than 0.5 quad

from 1978 to 1997, while primary energy

consumed by the residential sector increased

by about 2 quads over the same period.

The major energy end uses in the U.S.

housing stock vary widely by region, year of

construction and other variables. However,

for the average housing unit in 1997 space

heating accounted for more than one-half of

site energy use, and about one-third of

energy expenditures. Electricity was about

one-third of site consumption and twothirds of energy expenditures. About 13

percent of electricity was used for

refrigerators, 12 percent for air conditioning,

11 percent for water heating and 11 percent

for space heating (these numbers do not

reflect natural gas water heating or natural

gas space heating). More information and

detailed breakdowns can be found in the

EIA report describing results of the 1997

Residential Energy Consumption Survey.

There has, of course, been much work since

the late 1970’s aimed at reducing residential

energy consumption. For example, the

federal government has worked successfully

over the last 20 years to increase the

stringency of energy codes and standards, as

well as to promote their adoption across the

country. These code requirements generally

apply only to newly constructed houses, so

their effect is very slow to materialize. The

government has also sponsored research into

passive solar technology, improved house

design procedures, and voluntary programs

that call for building houses that use far less

energy than houses built to minimum code

requirements. Once again, these are aimed

primarily or entirely at new houses. Finally,

government has raised the minimum

efficiency standards for furnaces, air

conditioners, water heaters and many other

devices, but even these standards have no

impact on existing homes unless and until

older appliances are replaced. This record

strongly suggests that the policy focus on

household energy consumption has largely

overlooked existing homes. Given the

longevity of housing and the very slow

turnover of the housing stock, a policy

aimed at new homes is destined to have very

Replacing drafty old single-pane windows

and leaky doors (top photo) with low-E,

argon-filled energy-efficient upgrades

(lower photo) reduces heating and

cooling costs, cuts down on drafts, and

improves comfort.
5

At the inception of the PATH program, the

building industry was challenged to meet a

very ambitious goal of improving the energy

efficiency of 15 million homes by at least 30

percent within 10 years. Rather than

counting on achieving this goal through the

uncoordinated efforts of remodelers,

homeowners, manufacturers, government

and others, PATH chose to initiate a process

of Technology Roadmapping, a systematic

planning process that brings together all of

these interest groups to create a strategic

plan for technology development and

introduction. Roadmapping typically starts

by developing a short vision statement

designed to give a central focus to the

process. Participants then identify a

comprehensive set of strategies that would,

if accomplished, successfully achieve the

underlying vision. Finally, the strategies are

prioritized and an action plan is drawn up

with specific activities, a timeframe, and an

estimate of the resources required for

implementation.

In order to develop the EEEH Roadmap,

PATH’s Technology Roadmapping Working

Group has conducted two Roadmapping

sessions and significant follow-up work. The

first Working Group meeting, held late in

2000, was a brainstorming session during

which industry experts identified nearly 40

different areas where improved technology

suitable for use in existing houses could

produce tangible energy-saving benefits. The

technologies were classified into: (1)

building envelope technologies, (2) HVAC

systems and controls, (3) appliances and

lighting, and (4) distributed generation.

Individual ideas ranged from “high tech”

little impact on total residential energy use

for many years to come. Most of the

government resources applied to energy

efficiency in existing housing during recent

years have gone to support low-income

weatherization programs. Since federal tax

credits expired over 20 years ago, the energy

efficiency of existing homes has largely been

left to market forces of supply and demand.

In recognition of the importance of

addressing energy use in houses more

broadly, PATH has adopted a goal that

focuses specifically on improving energy

efficiency in the existing housing stock.

This goal rests on two premises. The first

premise is that over the last 20 years many

new and improved products that have

become available can save energy in the core

applications of space heating, air

conditioning and water heating. Some of

these products can be used equally well in

new or existing homes, while others are

specifically designed for retrofit application.

The second premise is that the market for

repair and remodeling (R&R) of existing

homes is large and very healthy; in dollar

volume it is around three-quarters as large as

the entire new home market. There is also a

large professional infrastructure to support

the R&R market. Even a modest shift of

R&R expenditures towards energy upgrades

could have a broad and significant impact

on household energy consumption in a

relatively short period of time. Although

much of the discussion in this report focuses

on the involvement of third party

professionals, do-it-yourself (DIY) jobs are

commonplace in this sector. Thus,

homeowners with modest skills and the

right information represent another resource

for improving energy efficiency through

retrofit.

ROADMAP DEVELOPMENT
6

products incorporating results of the latest

research to low-tech solutions to problems

encountered in retrofit work or faced by

homeowners who lack the resources to make

significant investments in energy upgrades.

The group also discussed the need for

outreach strategies and tools. Results of the

session were documented in the report

Volume One: Technology Brainstorming (June

2002).

A second meeting of the EEEH Working

Group was held in May 2002. That meeting

was devoted to identifying high-level strategic

approaches for improving energy efficiency

through using the types of new technologies

discussed in the earlier brainstorming

session, as well as expanded use of existing

technologies. The Working Group

formulated eight broad strategies and

identified a series of action items for

implementation under each strategy. Several

dozen implementation activities were

described in all. While the session was

successful in identifying promising strategies

for achieving residential energy efficiency

improvements on a large scale, there was no

opportunity to systematically address

priorities across the strategies. Results

appeared in the Roadmapping report, Volume

Two: Strategies Defined (April 2003), which

Introduction of a Web-Based Prioritization

Tool

The first two published roadmapping reports

(Brainstorming and Strategies Defined) were

the results of in-person meetings of the

EEEH Roadmapping group. To complete

the Roadmapping process, it was necessary

to develop a more systematic view of

priorities across these strategies than was

possible at the meetings. To this end, an online methodology was developed in the

spring of 2003 with the assistance of

University for Contractors, LLC. A special

website was created for this purpose.

Visitors to the website were provided with

information about the EEEH roadmapping

process and background on each of the 8

strategies. Those who provided a name and

e-mail address, and classified themselves as

“contractor”, “supplier”, “academic”,

“government” or “other”, were invited to

also suggests how implementation of the

strategies could be phased.

The eight strategies developed by the

Working Group in the May 2002 meeting

are listed below in the order presented in

the Volume Two report. The first three

strategies were designated for immediate

implementation.

● Enable practitioners to deliver energyefficient solutions.

● Increase the value consumers associate

with energy efficiency.

● Improve retrofit building envelope

performance technologies.

● Develop a single industry protocol for

practitioners.

● Motivate practitioners to deliver

energy-efficient solutions.

● Build credibility for service providers.

● Provide consumer incentives for

implementation.

● Develop a performance monitoring

system for energy-consuming

equipment.

SETTING PRIORITIES
7

rate the strategies in several respects by

submitting an on-line form. The existence

of the website and the rating tool was

publicized by e-mail to participants in the

EEEH Roadmapping meetings, by

announcements to the readership of

ToolBase e-news, through a link on the

NAHB Remodelers Council website,

www.contractor.com, and through other

on-line resources.

The rating form is illustrated in Figure 1.

Visitors were requested to score each

strategy with respect to three criteria:

● the impact on energy efficiency if

successful (1=low to 10=high)

● the likelihood of success, assuming

public support of $2 million per year

(1=low to 10=high), and

● the number of years needed to achieve

the potential impact.

Scores for these three criteria were

combined to calculate indices of the

perceived long-term impact (LTI) and shortterm impact (STI) for each strategy,

computed as follows:

● LTI = (potential impact if successful) x

(likelihood of success)

● STI = LTI ÷ (number of years needed to

achieve potential impact)

Because the calculated values of LTI and STI

weight potential impact on energy efficiency

by probability, they are each designed to

reflect the participants’ views of the

“expected value” of pursuing each strategy.

LTI indicates potential impact without

regard to how long a strategy takes to

achieve results, while STI gives higher scores

for strategies that deliver near-term results.

A total of 118 visitors completed and

submitted rating sheets over the web

between mid-March and late April, 2003.

About 70 percent were self-classified as

“contractors” and another 22 percent were

classified as “other”. There were also four

suppliers, four government workers and one

academic. For this analysis the rating sheets

were broken into two categories:

contractors/suppliers, and all others.

Discussion and conclusions are based on the

responses from contractor/suppliers unless

otherwise indicated.

Figure 1

Web Prioritization Rating Form

Scores from all visitors classified as

contractors or suppliers were assessed to

determine overall rankings of the strategies.

The assessment was based on the set of

values of the LTI and STI for each strategy as

computed in the original scoring sheets.

Both means and medians of LTI and STI

were considered. Using the means gave an

unambiguous ranking while using the

medians sometimes resulted in tied ranks,

most often for long-term impact (which was

the product of two integers and assumed
8

relatively few values). However, the results

from both approaches were generally

consistent. The mean values of LTI for the

different strategies tended to stay within

about 25 percent of each other, while STI

values were within about 40 percent of each

other. These facts indicate that, as viewed

by the participants, the spread in expected

benefits across the strategies was not

especially large in the long run, and slightly

greater in the short run. In other words,

although some strategies rated better than

others, all the strategies have considerable

merit.

Rankings of the strategies based on mean

ratings from contractor/supplier input are

summarized below.1

 It is important to note

that the classification into first, second and

third priority is relative; since it is clear the

participants consider all the strategies to be

important and worth pursuing. Finally, the

priority classification of strategies proved to

be the same whether long-term or shortterm savings potential was considered.

Priorities for EEEH Roadmapping

Strategies based on Contractor/Supplier

Scoring

Top priority:

● Provide consumer incentives for

implementation

● Motivate service providers to deliver

energy-efficient solutions

Second priority:

● Develop a single industry protocol for

practitioners

● Improve retrofit building envelope

performance technologies

● Enable practitioners to deliver energyefficient solutions

● Develop a performance monitoring

system for energy-consuming equipment

Third priority:

● Increase the value consumers associate

with energy efficiency

● Build credibility for service providers

There are significant differences between

these priorities and the previous list. The

two top priority strategies above were much

further down the earlier list, and the strategy

that previously headed the list (increase the

value consumers associate with energy

efficiency) now ranks behind most of the

others. In interpreting these results it is

important to keep in mind that priorities are

subjective in nature, and will naturally vary

from one person to another. Priorities also

may differ systematically between interest

groups. Participants in the earlier

Roadmapping meetings included academics,

researchers and government agency

representatives, while the priorities

developed through the web-based process

reflect input from professional remodeling

contractors, specialty trade contractors, and

product suppliers. The results are relevant

1

 Even though the pool of respondents in the government, researcher and “other” (GRO) categories

was much smaller than the pool of contractor/supplier responses, it is interesting to compare the

prioritization based on input from the two groups. The two highest priorities for the GRO

respondents were “Improve Retrofit Building Envelope Technologies” and “Develop a Performance

Monitoring System for Energy-Consuming Equipment”, both of which are in the second-priority

category above. In addition, the GRO group assigned the lowest priority to “Motivate Practitioners

to Deliver Energy-Efficient Solutions”, which is in the first-priority category above. These

differences are consistent with a GRO orientation that places more emphasis on expanding the

supply of next-generation technologies for housing, and less on affecting the behavior of

consumers and industry members.
9

not just to the industry, but to the

government agencies charged with funding

programs such as outreach and research.

An overview of how implementation of the

strategies should be phased, based on the

industry input, and how they operate to

increase the underlying level of investment

in energy efficiency technologies, is in Figure

2 below.

The strategies (shown in boxes) are placed

in the figure according to whether their

primary impact is on the “demand” side

(i.e., influencing consumers to demand

more retrofit products) or on the “supply”

side (i.e. expanding the size and skills of the

pool of service providers available to

provide and install retrofit products). Time

generally proceeds from left to right across

the figure, and the level of market activity is

indicated in the bar extending across the

center of the figure. The small bar near the

left side represents the generally low level of

market activity at the present time. With

each step across the chart the bars grow in

size, signifying continued growth in the

market. The higher priority strategies and

associated activities involve greater near-term

work in the diagram, while the lower

priority strategies and activities generally

involve work further in the future.

● The two top-priority strategies call for

providing consumers with incentives,

and motivating service providers to

participate in the retrofit market. Each

of these is a direct approach that can be

expected to increase the pace of retrofit

investment.

● The second-priority strategies are shown

near the middle of the diagram. On the

Figure 2

Impact of PATH Energy Efficiency Strategies on Retrofit Investment

Demand-Side

Strategies

Supply-Side

Strategies

Top Priority

Near Term

Second Priority

Medium Term

Third Priority

Longer Term

Strategy 6

Develop a Performance

Monitoring System for

Energy-Consuming

Equipment

Strategy 7

Increase the Value

Consumers Associate with

Energy Efficiency

Strategy 3

Develop a Single Industry

Protocol for Practitioners

Strategy 4

Improve Retrofit Building

Envelope Technologies

Strategy 8

Build Credibility for

Service Providers

Strategy 2

Motivate Service

Providers to Deliver

Energy-Efficient Solutions

Strategy 1

Provide Consumer

Incentives for

Implementation

Strategy 8

Build Credibility for

Service Providers

Strategy 5

Enable Practitioners to

Deliver Energy-Efficient

Solutions

INCREASED

RETROFIT

INVESTMENT

ADDITIONAL

GROWTH IN

INVESTMENT

LOW LEVEL OF

RETROFIT

INVESTMENT

CONTINUED

GROWTH IN

INVESTMENT
10

demand side, the performance

monitoring system would increase

“energy consciousness” and provide

quick feedback in a way designed to

motivate and enable some consumers

to take positive steps to save energy.

On the supply side, a single industry

protocol for practitioners would bring

more order and standardization to the

market. The other two strategies would

expand available technology options for

retrofit, and increase the pool of

practitioners aiming to serve this

particular market.

● The two strategies at the right side of

the diagram (shown in three boxes) are

of lower priority, and are less tangible

and less critical to success than the

others. Both strategies operate on the

demand side, although one (increase

credibility of service providers) is also

shown on the supply side because it

directly affects industry members.

Increasing the value that consumers

associate with energy efficiency (through

means other than incentives) requires

affecting perceptions and attitudes

through information and persuasion.

It complements the strategy that calls

for creating consumer incentives.

Improving the credibility of service

providers responds to the perception

that remodelers and trade contractors

lack the competence or integrity to be

entrusted with energy retrofit projects.

While lack of credibility has not

prevented major growth in the overall

R&R market, energy-related work may

raise special issues that should be

addressed in this strategy.

The balance of this report reviews and

discusses the eight strategies in priority

order as well as the specific implementation

activities included under each strategy.

Where appropriate, activities listed in the

Volume 2 report have been reorganized in a

more logical way, or to eliminate

redundancy. Additional activities have also

been added as necessary. Comments and

notes under each strategy explaining the

relationships between activities and

documenting recent progress or existing

resources are included to assist in

implementation. Discussion in this report is

intended to help guide decisions about what

kinds of implementation work to pursue,

and to show how each of the suggested lines

of work relates to the more general PATH

goal of improving energy efficiency in

existing homes.

Note that in the interest of completeness

many distinct activities have been separately

described under these eight strategies. It

should not be concluded that all eight of the

strategies must be pursued, or every one of

these activities performed, in order to

produce a strong improvement in the energy

efficiency of existing houses.

Finally, most of the strategies include

activities that call for some type of outreach

to consumers, or to remodelers and allied

professionals. While these outreach efforts

are described individually, they clearly

should be components of an overarching

communications strategy that grows in scope

and content over time.
11

ROADMAP

OVERVIEW

This section presents the roadmap for improving the energy efficiency of the

nation’s existing housing stock. The roadmap is a prioritized action plan.

It is not a set of directions that shows how to move from one point to

another; rather, the roadmap presents a coordinated set of strategies and

related activities that when collectively accomplished will bring about

advances in existing housing energy efficiency. The eight strategies are

identified below and listed in order, based on the prioritization process

described earlier. This order helps distinguish between those activities that

require near-term, intermediate term, or longer-term focus. The strategies,

however, are not necessarily sequential. Many of the activities can run

concurrently and should be addressed any time that sufficient resources can

be applied to successfully completing the activity.

Top Priority Strategies

Strategy 1: Provide Consumer Incentives For Implementation

Create a need, desire, and/or incentive in consumers to implement energy-efficient

solutions either by themselves or by engaging professional assistance.

Strategy 2: Motivate Service Providers to Deliver Energy-Efficient

Solutions

Help remodelers, trade contractors, and DIY practitioners understand the economic

and social benefits of delivering energy-efficient solutions.

Second Priority Strategies

Strategy 3: Develop a Single Industry Protocol for Practitioners

Develop a single protocol — a process and methodology — for analyzing the energy

efficiency of existing homes and helping homeowners combine sound, energy-efficient

decisions with other remodeling and renovation projects. The protocol should be

usable by motivated homeowners with technical DIY skills.

Strategy 4: Improve Retrofit Building Envelope Performance Technologies

Provide a continual flow of emerging and new technologies that will reduce the energy

required for heating, cooling and providing hot water to existing homes, in order to cut

energy use and lower operating costs. The technologies should be designed for ease of

assembly.
12

Strategy 5: Enable Practitioners to Deliver Energy-Efficient Solutions

Provide home repair and remodeling professionals with the tools, skills, and knowledge

needed to guide homeowners to energy-efficient solutions and to efficiently and

effectively implement these solutions. Make the same resources available to

homeowners interested in performing improvements on their own behalf.

Strategy 6: Develop a Performance Monitoring System for EnergyConsuming Equipment

Develop a system that gives homeowners the information they need to understand and

manage their energy-consuming equipment in real time and in a consistent and easyto-interpret form.

Third Priority Strategies

Strategy 7: Increase the Value Consumers Associate with Energy Efficiency

Deliver a consistent, coordinated outreach message to homeowners on the value of

energy-efficient improvements. Coordinate the message among federal, state, and local

government agencies, utilities, manufacturers, distributors, and remodelers and trade

contractors.

Strategy 8: Build Credibility for Service Providers

Establish the credibility of remodelers and trade contractors by implementing a strong,

effective contractor credentialing program that includes training, testing, and periodic

review.
13

Homeowner investments in energy efficiency upgrades are fundamentally a

matter of supply and demand. Supply is governed by the availability of

relevant technologies and the ability of practitioners to install them, while

demand reflects the value of potential energy savings and ancillary benefits

balanced against the cost of the investment. Notwithstanding the

importance of energy conservation to the nation as a whole, in today’s

market environment the relatively low cost of energy to the end user

depresses the value of energy savings and translates into a relatively low

return on investment compared to other alternatives available to the

homeowner. The result is inaction.

Consumer incentives are a direct and potentially simple way to change the

investment equation and increase the number of households that decide to

upgrade their homes without having to change underlying attitudes or

perceptions. They are a fundamental tool for guiding private choice

through public policy. Incentives can sometimes be very costly so they

must be carefully structured, but incentives also can take many forms, not

all of which require cash outlays. Approaches to creating new incentives

and maximizing the impact of those that already exist are further discussed

below. While the PATH program will not create or find these incentives,

PATH partners can directly influence the timing and scope of incentives

under consideration. Tax credits, low-interest loans and other incentives

could help stimulate demand for energy-efficient technologies and

ultimately improve the supply of more advanced products.

Activities 1.1 and 1.2 under this strategy are preparatory steps that, while

not essential, could potentially help to shape development of specific

incentives and messages for outreach.

Activities 1.3, 1.4 and 1.5 are the most important parts of this strategy.

They involve establishing and promoting tangible consumer incentives of

different types in order to change the economics of energy efficiency

investments as perceived by the consumer. Decisions about energy retrofit

are logically based on costs and benefits. Years of relatively low energy

prices have kept the economic benefits of investment modest relative to the

cost of retrofit. While higher energy prices or energy taxes would also

create incentives, these steps may be politically unacceptable. Reducing the

cost of retrofit through direct incentives also shifts the economic equation

in favor of more energy retrofit, and can overcome the market imperfection

resulting from externalities. Direct incentives can be very expensive, but

their effect is immediate and potentially strong. Rebates and tax credits

have a dollar-for-dollar impact on the cost of retrofit, while low-interest

loans are helpful to consumers who lack cash to invest and also reduce

carrying costs for the improvements.

PROVIDE CONSUMER INCENTIVES

FOR IMPLEMENTATION

1
14

1.1 Quantify and Define the Economic Benefits of Energy Efficiency

Consumers who understand the various economic benefits that result from

a more energy-efficient home will be more easily convinced to implement

retrofit energy solutions. The key economic benefits are direct return on

investment (lower energy bills), improved “curb appeal” and the related

possibility that upgrades may increase the resale value of the home, and any

applicable tax incentives. Less tangible economic benefits may include

lower costs of maintenance and repair, especially with modern HVAC

equipment, as well as improved comfort or indoor air quality. Some of

these benefits such as energy savings are well documented in the literature

and can even be estimated with tools deployed on the web. Specifying or

quantifying the other benefits in order to create a more complete picture

may require original research.

1.2 Identify and Document the Social Benefits of Energy Efficiency

The direct economic drivers covered in Activity 1.1 are a very important

part of the picture, but not the entire picture. In order to make the

strongest possible case for private action, it is also important to understand

the broader, societal benefits resulting from conservation. These primarily

involve “external benefits,” i.e., effects that are enjoyed by large numbers of

people regardless of whether they invest as individuals or not. For example,

reducing energy use cuts the adverse environmental impacts of power

generation, including air pollution and acid rain from conventional plants,

low-level radioactive waste from nuclear plants, or habitat destruction from

hydroelectric plants. It will frequently cut the production of greenhouse

gases and the threat they pose to the global environment. And it will

directly or indirectly reduce the dependency of the U.S. on imported oil,

which has left the country vulnerable to supply disruptions in politically

unstable parts of the world. Different themes will resonate with different

consumers, and not all consumers will respond to public benefits that have

no direct link to their pocketbook, but personal philosophies and even peer

pressure can turn social benefits into motivating factors.

1.3 Develop Low-Interest Loan Programs for Consumer

Investments in Energy Efficiency

Incentives do not necessarily have to involve up-front cash payments.

Making money available on attractive terms for financing energy upgrades

defers the payment of the subsidy while addressing the lack of savings

available to invest by many cash-poor homeowners. Below-market interest

rates and long repayment periods can turn a large expense into a manageable

one, without requiring the out-of-pocket payments that characterize other

types of incentives. Many states have offered special lending programs in

recent years, although not all are available at this time.

There are other lending approaches targeting energy efficiency such as

“energy efficient mortgage” (EEM) programs offered by secondary mortgage

lenders and the FHA. These have been available for nearly 20 years and are
15

directed primarily at new home purchasers but in theory can be applied to

existing homes as well. EEMs do not lower the interest rate, but rather

make additional money available to any given borrower based on improved

ability to repay due to lower energy bills. Utilization of EEMs has

historically been low; for example, FHA insure 16,000 EEMs in FY 1988

(1.5 percent of total FHA loans) 30,044EEMs in FY 1999 (2.3 percent) and

28,578 in FY 2000 (3.1 percent). The “Energy Star Mortgage” is a new

approach where EPA and lenders work together to offer special loan

packages to purchasers of Energy Star homes. The incentives can involve

reductions or waivers of closing costs, or even reduced interest rates. Once

again, the target is new home purchasers. Finally, FHA home improvement

loans can be used for energy upgrades or other purchases relating to existing

homes.

This activity involves extending or supplementing the available lending

programs to better address improvements by homeowners who are not

planning to move or refinance. These steps will help make lending

incentives work in the existing home market.

1.4 Provide Rebates and Tax Incentives for Consumer Investments

in Energy Efficiency

Cash incentives, whether in the form of rebate checks, income tax credits or

other tax benefits, are a standard economic tool for stimulating desired

investments. The use of tax credits to promote investment in energy

conservation was questioned after this was tried in the 1970's, but from an

economic standpoint incentives remain a viable option. Investments in energy

efficiency are low in part because consumer willingness to pay for them is low

relative to the cost. Consumer incentives strengthen the market because they

increase consumer willingness to pay.

Federal income tax credits for the retrofit of existing homes are one recent

incentive option. Several versions of this potential incentive have been recently

proposed in the US Congress, with varying tax credit values assigned to

homeowners for energy improvements on existing homes and to homebuilders

for new home construction energy upgrades--both of which would be measured

against building code and inspection criteria like the International energy

Conservation Code (IECC) or Energy Star Homes ratings. One example of t

his which was supported by the White House proposed a maximum of $2,000

in tax credits to homeowners for satisfying the 2000 IEC in their existing

homes, and either $1,000 or $2,000 for builders of new homes who exceeded

the 2000 IEC by 30% or 50%, respectively. The Roadmapping group believed

that incentives that shape consumer spending habits like tax credits should be

studied and monitored.

Some states have also shown a willingness to promote energy efficiency

investments through state tax policy. Examples include tax credits for solar and

renewable energy systems, still available in many areas, as well as waivers of sales

tax on Energy Star appliances and property tax systems that prevent energy
16

efficiency investments from raising assessed values and increasing tax bills. A

summary of state incentives for energy efficiency upgrades is available at

http://www.ase.org/consumer/tax_credits.htm.

Ongoing analysis, research, and review regarding the effectiveness of all

consumer incentive programs should be continued.

1.5 Publicize the Availability of Loans and Incentives for Energy

Efficiency Investments

This activity is needed whether or not additional incentive programs are

developed and implemented. Incentives can only affect consumer decisions

if consumers know they are available. In addition to information noted

above on the Alliance to Save Energy website, a DOE-funded website giving

summaries of incentive programs available in each state as well as at the

federal level is being operated by North Carolina State University (NCSU)

at http://www.dsireusa.org. The focus of the NCSU website is on

incentives for investing in renewable energy (e.g., solar water heating and PV

systems), but there is also some information about incentives available for

other types of energy upgrades including sales tax exemptions, property tax

exemptions and financing programs. This website represents an excellent

start in the right direction and should be kept up to date. In addition the

site would be more useful to consumers as a way of quickly identifying

incentive programs available to them if (1) its existence was widely

publicized, (2) its scope was enlarged to specifically include incentives for

additional types of energy efficiency investments, particularly in a retrofit

context, and (3) it incorporated a motivational message to show consumers

how the programs can benefit them rather than its present, purely

informational tone.

FIGURE 3 FIGURE 3
17

In order for the private market to deliver energy retrofit services to existing

homes, two basic elements are necessary: consumer demand for retrofits

and available capacity to supply retrofits. This strategy speaks directly to

expanding supply. Although companies specializing in energy retrofit are

presently quite uncommon, there are hundreds of thousands of remodeling

firms and specialty trade contractors potentially available to serve this

market, if only they can be motivated to do so. The present strategy

represents the most immediate method for focusing capacity on this sector.

Activities 2.1, 2.2 and 2.3 involve developing key elements of a “business

case” to convince contractors that marketing energy upgrades to existing

homes can be a profitable business niche, whether performed alone or in

conjunction with other remodeling projects. Activity 2.4 would reduce the

costs of transitioning or expanding to perform this type of work and make

the business case more attractive. Activity 2.5 would provide publicity and

positive reinforcement to firms that provide leadership in this market.

Activity 2.6 ensures that contractor audiences learn about the opportunity

so they can make informed decisions about whether and how to participate.

The possibility of developing a formal certification program for energy

retrofit contractors is not considered essential to contractor motivation and

so is not covered here, but is discussed under a later strategy, “Build

Credibility for Service Providers.”

2.1 Define the Market

Simply urging remodelers to start doing “energy retrofit” for the greater

good of society is unlikely to achieve much if anything at all. Making a

strong case for this business move requires presenting data to describe the

market opportunity in specific terms. What kinds of retrofits would such a

business undertake? Presumably with current technology these would

include adding insulation to underinsulated assemblies, insulating basement

walls or floors above unfinished basements and crawl spaces, general

building envelope air sealing, duct sealing, duct insulation, replacing old

HVAC equipment or controls, replacing weatherstripping, replacing

windows and doors, installing high-efficiency lighting, installing attic

ventilation, and other more exotic types of improvements. In some

situations retrofits might also include steps designed to preserve or improve

indoor air quality through ventilation, source control or air cleaning,

particularly if homes have undergone extensive air sealing or are known to

be unusually tight. Defining the market would include, as a minimum,

determining the extent to which existing homes of different ages in different

regions would need and potentially benefit from these types of activities.

Survey data from the Energy Information Administration, the American

Housing Survey or other sources could be used to document the housing

2 MOTIVATE SERVICE PROVIDERS TO

DELIVER ENERGY-EFFICIENT

SOLUTIONS
18

characteristics, while information collected over the last twenty years in

federally or regionally funded weatherization programs could give an idea of

how effective different retrofit technologies can be in reducing energy bills.

Additional data to document consumer attitudes and perceptions about

their interest in retrofit work and the circumstances under which they

would or would not be interested in it would be a useful adjunct to the

housing characteristics data in establishing the potential market

opportunity.

2.2 Study the Business Models of Successful, Similar Service

Businesses

There may be valuable lessons to learn from identifying and studying similar

service businesses to determine what has made them successful and

profitable. At least two types of businesses should be studied. One type is

services focused on energy efficiency; for example, firms that install and

maintain upgrades to commercial and institutional buildings in exchange

for a percentage of the energy savings. During the late 1970’s and early

1980’s there were also firms specializing in residential energy analysis and

upgrades, often operating in conjunction with local utilities. Companies

that provide home energy ratings or energy diagnostics and analysis to home

builders are modern examples. The second type is service businesses which

have arisen in response to evolving needs; for example, duct cleaning or

mitigation of EIFS, lead-based paint, asbestos, and more recently, mold and

mildew. Case studies focused on these or related sectors would provide a

framework of similarities and differences to help today’s trade contractors

evaluate their own market opportunities in energy retrofit. One important

element is identifying the factors that made some of these businesses

economically successful.

2.3 Develop a Model Business Plan

Information developed in Activities 2.1 and 2.2 about the potential

business opportunities in the retrofit market and the economics of similarly

situated service businesses should next be used to develop a simple model

business plan for the entrepreneur performing retrofits. The model plan

would project investment for tools and equipment, revenues and operating

expenses to estimate profit margins and return on invested capital. The

model plan should be designed to make sense where retrofit is performed in

addition to other remodeling projects or specialty contracting such as

HVAC work. It would be made available electronically as a template that

could readily be modified or tailored to reflect market-specific assumptions

or conditions applicable to an interested business. The template could also

be used to perform the types of sensitivity analysis required for sound

business planning. Users could evaluate scenarios relevant to their business

and assess the potential financial rewards.

2.4 Develop Financial Incentives

The need for financial incentives to expand consumer demand was

discussed at length under the previous strategy. Similar types of incentives
19

would help to improve the economics of providing retrofit services. While

there are large numbers of contractors who could theoretically fill this

niche, the vast majority are small, thinly capitalized operations that may

lack the ability to cover start-up or transitional costs. Supply-side incentives

might include low-interest or interest-free loans to cover the purchase of

diagnostic equipment or fees for training. Tax breaks or grants, while

usually more expensive, would serve the same purpose. The New York

State Energy Research and Development Authority (NYSERDA) is an

example of a state agency that has adopted this approach, providing energy

service contractors with financial assistance for purchasing testing

equipment.

2.5 Develop Award or Other Recognition Programs for Energy

Retrofit Contractors

Programs where successful businesses compete with their peers for awards

recognizing excellence in different aspects of their work have the potential

to raise interest and awareness among large numbers of companies. The

awards obviously benefit the winners, who receive excellent publicity within

the industry and even among consumers. They are also valuable to other

firms who have the opportunity to learn by example from success stories,

and they broadly publicize the existence of this specialty form of contracting

to consumers. This activity involves developing and implementing award

programs based on demonstrated technical and marketing success in

providing energy retrofit services. Awards can be made at the national,

regional and/or local levels. Results can be showcased in the trade press

and promoted through a wide range of other media outlets. Key elements

of a successful awards program include systematic promotion; clear,

objective judging criteria; independent, qualified judges; fair and orderly

administration, and recognition of the winners in a prestigious venue that

justifies the cost and effort required to participate. Publicizing the results

to homeowners who might benefit from retrofit work is also very important

to developing a successful awards program.

At this time there are no national award programs targeting remodelers or

trade contractors for their role in improving the energy efficiency of existing

homes. The closest examples are the annual EPA-sponsored “Energy Star

Award of Excellence in Home Improvement”, presented this year to the

New York State Energy Research and Development Agency (NYSERDA) for

its leadership in improving the energy efficiency of existing homes. EPA

also presented HUD with the “Energy Star Award for Affordable Housing”

for its work in identifying ways to reduce energy consumption in all of the

housing units managed or owned by the agency.

2.6 Develop and Implement an Outreach Program to Reach

Remodelers and Trade Contractors

The results of activities 2.1 through 2.5 under this strategy are designed to

motivate remodelers and trade contractors to take on energy retrofit

projects. Remodelers need to know about these results as well as the steps
20

being taken to stimulate consumer demand. Therefore, there will be an

ongoing need to communicate the availability of these resources (as well as

related work performed under Strategy 1 and elsewhere) throughout the

remodeling community.

FIGURE 4 FIGURE 4

 Strategy 2. Motivate Service Providers to Deliver Energy-Efficient Solutions

 Implementation Activity Near Term

(<2 Years)

Mid-Term

(2-4 Years)

Long-Term

(>5 Years)

2.1 Define the Market

2.4 Develop Financial Incentives

2.5 Develop Award or Other Recognition Programs

for Energy Retrofit Contractors

✓

✓

✓

✓ ✓

✓ ✓ 2.6 Develop and Implement an Outreach Program

to Reach Remodelers and Trade Contractors

2.3 Develop a Model Business Plan ✓

2.2 Study the Business Models of Successful,

Similar Service Businesses
21

Homeowners face a nearly endless array of choices when doing major home

repair, home remodeling, home modification, energy-efficient

improvements, home expansion, or accessibility improvements. Difficulty

in making the best choices can dilute the effectiveness of the remodeling or

renovation investment. When homeowners decide to replace a major piece

of equipment or remodel a kitchen or a bath, there is no standard process

for reviewing alternatives for functionality, cost, maintenance, energy

efficiency, and financing features.

This strategy involves developing a unified approach, or standard protocol,

for assessing the energy efficiency of a home and identifying beneficial

improvements. It would be used by remodelers, certain trade contractors,

and retail outlets to help homeowners make the best choices for home

improvement projects. It should also be produced in a format that a DIY

homeowner can understand and use. The protocol should be designed to

address an existing home as a complete and integrated whole. Users should

be able to identify and evaluate potential energy improvements either as

stand-alone projects that can improve comfort and reduce energy bills, or in

conjunction with other work that can lower the marginal cost of

improvements and help secure advantageous financing for the project as a

whole. The protocol will provide a consistent, high-quality, consumeroriented approach that can be taught to and used by those whose work

impacts energy efficiency. At the same time it should be promoted to

consumers as part of overall consumer outreach on energy retrofit, so they

will know to ask their contractors about it or can even choose to use it

themselves.

A starting point for this standardization may already exist in the Home

Energy Rating Systems (HERS) guidelines, as well as in earlier protocols

used for utility energy audits or weatherization programs. The question is

whether the existing protocols for analyzing a house and identifying the

most appropriate improvements are either too simple or too complicated

for the purpose at hand. If so, they should be adapted under Activities 3.1

and 3.2 to achieve reasonable accuracy while being suitable for teaching to

and implementation by home improvement contractors and other

audiences. Success in this area would make it easier for more contractors to

participate in this market, and give consumers more meaningful choices

among service providers. Activity 3.3 calls for standardizing the process for

conducting an independent post-improvement audit. Although such an

audit is not necessary in all cases, it may be required by lenders that provide

financing for improvements, or public authorities who subsidize particular

costs. Standardizing the audit procedures would provide greater

consistency when audits are used.

3 DEVELOP A SINGLE INDUSTRY

PROTOCOL FOR PRACTITIONERS
22

Activity 3.4 calls for cross-industry agreement to use the protocol. This

may be informal so long as it is effective. Promoting the protocol to

consumers under Activity 3.5 would create awareness and demand for its

use that would drive practitioners to rely on it. Regardless of how the

protocol is publicized to consumers, the training described in Activity 3.6

is critical to its ultimate success.

3.1 Collect and Document Current Industry Analysis and Design

Procedures

This project would identify and document the different methods currently

used by professionals to make decisions about home improvements, both

with respect to major repair and remodeling, and energy-efficiency upgrades.

Major home remodeling would include common activities such as kitchen

and bath remodeling, whole-house renovation, room additions, roofing and

siding replacement, HVAC replacements and upgrades, and window and

door replacements. Documentation of the results would provide a starting

point for development of an improved protocol where energy efficiency

plays a larger role. The study must look at the standard sales and marketing

strategies currently used by remodelers to identify and meet the needs of

their customers, the ways they guide product selection, the opportunities

they seek to expand the scope of any particular job, and the role they play

in arranging financing. Special attention should be paid to the types of

energy analysis or audits currently used in this process. The ways that

building product retailers (especially the large home product chain stores)

market and sell directly to homeowners for do-it-yourself projects also need

to be investigated and documented.

3.2 Develop Standard Analysis and Design Procedures - a

Protocol - for the Home Repair and Remodeling Process

Develop a unified and standard protocol that allows home improvement

industry professionals to identify comprehensive approaches that satisfy

homeowner needs with the best combination of functional and energy

conservation benefits. Many homes can benefit from properly selected

energy upgrades even when they are installed in isolation, and the protocol

needs to be able to identify beneficial energy upgrades directly. Of equal

importance, the protocol needs to address situations where energy upgrades

are performed together with other remodeling work or home expansion. In

those cases, homeowners may lower the cost of the upgrades and become

eligible for financial incentives or loan packages.

The protocol should include an energy analysis, which may range from a

simple checklist to a formal energy audit depending on the home, the

homeowner, and the work requested. The analysis should provide a

prioritized set of energy retrofit improvements reflecting the climate where

the home is located, the type of construction and HVAC system, and other

work that may also be performed. For example, if a homeowner wants to

replace an old or failed heating system, the HVAC contractor should not
23

only identify the proper efficiency of the new equipment, but also consider

whether the air distribution system would benefit from air sealing and

insulation, and assess the potential benefits of setback or programmable

thermostat. A separate activity calls for developing a standard protocol for

a post-improvement quality audit in situations where it is desired or

required.

This protocol will be available for use by energy auditors and trade

contractors who do energy-related work, as well as by general remodelers

and other trade contractors. Ideally, it should also be suitable for use by

the skilled do-it-yourselfer. In order to be accepted and successful the

protocol must be developed by the industry, including remodelers, trade

contractors, energy auditors, and home improvement retailers, all of whom

will be the ultimate users of the protocol. Technical organizations and

trade associations for roofing, insulation, siding, windows, and other

related products also need to be involved.

The EPA Energy Star Homes program, while best known for promoting

energy efficiency in new homes, is already developing a component for

existing homes. The standards do not presently distinguish between new

and existing homes; either type must receive a HERS rating of 86 or better

to earn the Energy Star label. Energy Star requires at least one on-site

inspection of an existing home, including a blower door test and a duct

leakage test. Results of these tests, along with other information about the

house, are entered into a computer simulation program to generate the

HERS score and estimate the annual energy costs. This has the makings of

a protocol but falls short of providing a method for helping homeowners

optimize investments in energy efficiency.

The Energy Star Homes program web site also provides “Home Energy

Advisor” to help consumers understand how they can improve the energy

performance of their house. The user inputs information about the

construction of the house, the energy systems used in the house, the

number of people in the family, and the geographic location. It then

provides the consumer with a list of recommendations and estimated costs

for upgrading the energy performance of the house. This also provides a

starting point for developing the protocol envisioned in this strategy.

3.3 Develop a Standard Process for an Independent PostImprovement Quality Audit

There are various situations where energy upgrades must pass a quality audit

by an independent third party before a job is considered complete. This

type of audit goes well beyond the health and safety issues addressed by

code inspectors. The purpose is to provide assurance that the upgrades will

perform as intended, with insulation properly installed to agreed-upon

levels, caulking and sealants used where appropriate, etc. An independent

audit provides an element of consumer protection at the same time as it

assures lenders or organizations that provide incentives for this work that
24

the job has been properly done. The audit could even provide the

occupants with information about how to operate their homes to achieve

maximum comfort and low utility bills, although this kind of information

can and should be presented in various other ways as well. Finally,

availability of an audit might prove to be a selling tool that could help

overcome reluctance from customers who feel unqualified to determine

whether a job is properly done or not.

Like the protocol for identifying and recommending improvements, the

audit protocol must draw on the expertise of current industry professionals

to ensure that the resulting procedure is both usable in the field and

inexpensive relative to the benefits at stake. Post-improvement quality

audits might be performed by home inspectors or energy auditors who were

not originally involved in specifying or performing the improvements.

3.4 Establish Broad Agreement to Use the Protocol

The protocol will have maximum impact if remodelers and professional

members of the home energy efficiency industry (such as energy auditors

and HVAC contractors) agree to cooperate in its use. This will make

responses to homeowner requests for major repairs, renovations, or

remodeling more consistent, regardless of who responds. Agreements need

not be formal or written, although some participants might take this

approach. A cooperative marketing approach can expand the market for all

services offered by the various industry segments. Large retail chains are

another potential link to homeowners whose home improvement needs are

in the initial stages of development. Retail stores could routinely refer

homeowners to a list of cooperating home improvement contractors to

initiate the whole-house assessment, and home remodelers could routinely

call on energy auditors for both initial home energy assessments and postimprovement quality assessments. HVAC contractors can refer customers

to remodelers or to energy auditors to initiate the process of the wholehouse analysis and assessment, if they cannot perform it themselves.

Remodelers would likely choose to use energy auditors and HVAC

contractors as subcontractors on more comprehensive home improvement

projects.

3.5 Promote the Benefits of the Protocol with Consumer

Outreach

Widespread acceptance and use of the protocol will occur only if

consumers understand the benefits of looking at home improvement

options in a unified and organized manner. The protocol needs to be an

important element in the consumer outreach described in a subsequent

strategy, “Increase the Value Consumers Associate with Energy Efficiency.”

Use of a unified analysis and design protocol also will increase the

credibility of, and provide benefits to, the home improvement industry. It

also might potentially reduce the level of concern felt by homeowners that

they are being pressured into including more in their home improvement

project than they originally intended.
25

3.6 Integrate the Protocol into Industry Training and Credentialing

Programs

The protocol is an important element of the remodeler and trade

contractor training and credentialing program discussed under a subsequent

strategy, “Build Credibility for Service Providers.” With a standard

approach as a baseline for training, the additional aspects of financing

programs and utility industry rebate programs could be presented to

homeowners in a favorable context. A new certification program, such as

one for energy improvement contractors or remodelers, could utilize this

unified protocol to build value into the analysis and design phase of the

interactive contractor-homeowner process.

FIGURE 5 FIGURE 5

 Strategy 3. Develop a Single Industry Protocol for Practitioners

 Implementation Activity Near Term

(<2 Years)

Mid-Term

(2-4 Years)

Long-Term

(>5 Years)

3.1 Collect and Document Current Industry

Analysis and Design Procedures

3.4 Establish Broad Agreement to Use the

Protocol

3.5 Promote the Benefitis of the Protocol with

Consumer Outreach

✓

✓

✓

✓ ✓

✓ ✓ 3.6 Integrate the Protocol into Industry Training

and Credentialing Programs

3.3 Develop a Standard Process for an

Independent Post-Improvement Quality Audit ✓

3.2 Develop Standard Analysis and Design

Procedures--a Protocol--for the Home Repair

and Remodeling Process
26

The development of technologies that can improve energy efficiency is one

area that has seen considerable progress over the past two decades. Much of

this success is due to collaboration between government and industry. The

use of double-pane windows with low-E glazing and argon gas fill has

become widespread in today’s window retrofit market. Gas furnace

efficiencies typically exceed 90% and central air conditioning systems rated

at SEER 12 and above are widely available. These latter products are not

specifically aimed at retrofit, but they have found use in that market. PATH

represents an opportunity to expand the focus of this work.

Activity 4.1 is a research task designed to compile more succinct energy

usage information by housing type and age in the various climatic zones of

the U.S. In addition, it compiles state-of-the-art information on energy

retrofit approaches and technologies throughout the U.S. Activity 4.2 has

been addressed to date by PATH through an ongoing process of

“Technology Scanning” which has included a wide range of industries such

as automotive and aerospace. The idea is that new technologies need not

be developed from scratch if they can be adapted from other applications.

The PATH Scanning results are published in short topical summaries that

describe products or technologies and discuss how they might be adapted

for housing or home building. This kind of work is meant to help give

ideas to technology developers, and should be continued.

Activity 4.3 calls for holding periodic meetings similar to the “Technology

Brainstorming” held early in the EEEH roadmap development. The

brainstorming session involved remodelers, trade contractors, researchers,

utility representatives, and federal program officials. The output of that

meeting was dozens of concepts, many never documented before, for

products and systems that could be of particular value for energy retrofit.

Some of these specifically address deficiencies in existing product choices,

while others represented new approaches to the underlying challenges

presented by existing homes. The report containing results of the

brainstorming session, Volume I of the EEEH Roadmap, has been widely

distributed in order to help stimulate the development of responsive

technologies. It is available for download at http://www.pathnet.org.

Holding similar sessions every few years would keep this essential process

moving forward.

Activity 4.4 is a key follow-up item that will keep new technologies moving

through the pipeline and emerging into the market. While the private

sector is well-equipped to develop some products in this area, there are

others that call for R&D which requires public support because the

benefits would be difficult to appropriate. Suitable products or retrofit

IMPROVE RETROFIT BUILDING

ENVELOPE PERFORMANCE

TECHNOLOGIES

4
27

methods can receive public support through a variety of different financial

vehicles. In turn, there are clear opportunities for field testing and

evaluation of retrofit technologies under Activity 4.5, and disseminating the

results under Activity 4.6. Most PATH field evaluations to date have

focused on new homes.

4.1 Compile Expanded Background Information

A great deal of work has been completed in identifying large and small

contributors to heat loss, heat gain and energy consumption in existing

houses. In the past, the focus has been on areas of large heat loss and heat

gain, including walls, ceilings and floors, windows and doors that leak air,

and smaller air leaks spread throughout the surface of the building exterior.

The Energy Information Administration compiles extensive data on energy

usage in existing housing of different age groups.

This activity calls for pulling together information on the state-of-the-art of

energy retrofit in housing in the various climatic zones. DOE has the best

information on low income weatherization retrofit, as its budget in this area

is approximately $230 million each year. Collecting state-of-the-art energy

retrofit practices in the various climatic zones would enable the PATH

EEEH Roadmapping team to identify current needs for new technology

development and opportunities for collaboration. The results of this task

will be used as background information for the brainstorming sessions in

Activity 4.3 below.

4.2 Identify Technologies from Other Industries for Use in

Residential Energy Retrofit Products

The PATH program has sponsored a scanning process for the past three

years focused on technologies that have successfully entered other industries

and may find application in the residential building industry. This

scanning process utilizes PATH Roadmapping as a filter for determining

whether a newly identified technology should be pursued for transfer into

housing. Researchers ask such questions as “how could the thermal and

structural performance of relatively thin airplane skins apply to housing

systems?” or “are there lessons to be learned from the automobile

manufacturing process in terms of clustering utilities that could streamline

home systems design and installation?” The PATH scanning process has not

categorized technologies for application to new construction versus existing

housing, so a sorting process will need to occur for applications that are

appropriate to existing housing. The PATH technology scanning reports are

available at http://www.pathnet.org/sp.asp?mc=rd_techscan. Some

examples raised during the roadmapping process include:

● Insulation materials with markedly higher R-value per inch, such as

thin but warm fabric from the apparel industry that permits

dramatic increases in the thermal resistance of existing walls

without adding perceptibly to the thickness of the inside or outside

wall surface.
28

● Environmentally sensitive roofing materials that change thermal

characteristics, such as light color to reflect or dark color to absorb

radiant solar energy, when climate conditions change.

● New glazing technologies that permit windows to become radiant

energy absorbers or electrical energy generators.

● Durable, flexible, and inexpensive caulking and weatherstripping

materials that help maintain an airtight envelope.

● Reflective window film that can be retrofitted easily and firmly

onto existing residential windows, or other enhancements that

improve spectral performance or air leakage of windows in place.

● Air barrier membranes that can be retrofitted over the interior or

exterior of existing walls or ceilings, and that shrink to fit after

initial installation.

● Additional options for retrofit materials that increase the R-value of

walls, floors, and ceilings.

This research will also serve as background for another round of industry

brainstorming meetings, discussed in the next section, where ideas and

priorities for technology development will be discussed and documented.

4.3 Convene Industry Meetings to Identify Needs and

Opportunities

The initial Detroit brainstorming meeting in 2000 on technology needs and

opportunities for energy efficiency improvement in existing housing led to

the first EEEH roadmapping report. When the EEEH Roadmapping team

met again a year later in Annapolis, MD, the group re-affirmed the need to

draw from the expertise that produced the brainstorming report, as well as

the need to re-convene these sessions periodically to examine progress and

identify new needs and opportunities for technological development.

Government and private industry researchers need to meet regularly to

brainstorm R&D priorities and new opportunities for energy retrofit

technology development. A 2-year or 3-year cycle would be appropriate,

which means that another brainstorming session is now due. Each meeting

should build on ideas expressed at the earlier ones, rather than repeating

previous concepts.

4.4 Support Efforts to Design and Develop New Products for

Existing Home Retrofits

A continuous flow of new and improved products to serve the existing

home energy retrofit market is needed to support an ongoing national effort

to reduce energy use in existing homes. Beginning immediately and

continuing through this initiative, public and private sector research and

product development groups should be challenged to address the unique

requirements encountered by remodelers, trade contractors, or DIY

practitioners when retrofitting homes. These challenges include space and

access constraints, the need to interface with dissimilar or archaic systems,
29

and the need to work in occupied buildings. As they emerge from an

ongoing loop of research, testing, documentation of product applications,

and product demonstrations, the resulting products will become part of the

effort to implement the vision of energy usage reductions in the existing

housing stock. Product designs should recognize the labor skill challenges

in today’s workforce as well as the need of DIY home energy retrofitters for

products that are easy to work with.

The U.S. Department of Energy issued a $16 million per year solicitation in

early 2003 to support the development of new energy-conserving retrofit

products or renewable energy products designed for existing homes. A

companion renewable energy development procurement was also issued in

Spring 2003 by the National Renewable Energy Laboratory in Golden,

CO. Each of these procurements recognizes the role of PATH

Roadmapping in this area and both procurements require industry cofunding. Depending on what is funded there may need to be additional

work undertaken in this area. PATH has funded existing housing energy

retrofit projects to understand the cost, installation issues, technical

performance, and market acceptance issues so that it can communicate

these results to the industry. DOE is also funding research in this area.

More work needs to be done in evaluating next generation products and

systems.

Examples of envelope technologies or products that could make significant

improvements include:

● Highly energy-efficient, thin-skinned siding replacement systems.

● Vacuum glazing for retrofit into existing sashes and frames.

● Spectrally-selective, durable, and low-E films designed for

application to existing window glazing.

● Standardized weatherstripping profiles for windows and doors.

● Removable, reusable caulk.

● Highly efficient replacement HVAC and air distribution systems for

existing homes.

4.5 Evaluate and Demonstrate Underutilized and Emerging Energy

Retrofit Products

Products or systems that look good on paper and in the laboratory may not

be widely applied in the field for a wide variety of reasons. Prospective users

often are skeptical about performance claims and may be wary of premature

failures. Remodelers and trade contractors may be unfamiliar with a

technology and how and where to apply it. This activity identifies

underutilized products and systems that show promise for significantly

contributing to the energy efficiency of existing homes, evaluates their

performance in the real world, and disseminates the results to homeowners,

remodelers, and trade contractors. The approach collects real world

information about installation costs and the installation process, as well as
30

performance and other information about the product or system when it is

used in particular house designs and climatic regions. Investigations of this

type already are being performed for technologies applied to new

construction under the PATH Field Evaluations, and a similar approach is

recommended for retrofit technologies for existing homes. Examples of

energy retrofit technologies that might benefit from field evaluations

include conversion of ventilated crawl spaces to conditioned spaces, or highR leveling boards installed under siding. Data should be analyzed and

results published promptly after each evaluation.

4.6 Communicate the Results Broadly

Lessons learned from the evaluations and demonstrations of retrofit

technologies help consumers understand what works and what doesn’t

work. It also helps to verify installed costs and identify practical issues that

arise when contractors attempt to install the new technologies. HUD

actively disseminates results of current evaluations to the building

community as they become available, through several avenues. Both DOE

and EPA also actively communicate results to consumer audiences. The

three agencies need to collaborate on message content and delivery so that

remodeler, trade contractor, and consumer audiences all benefit from the

research that has been conducted.

FIGURE 6 FIGURE 6

 Strategy 4. Improve Retrofit Building Envelope Performance Technologies

 Implementation Activity Near Term

(<2 Years)

Mid-Term

(2-4 Years)

Long-Term

(>5 Years)

4.1 Compile Expanded Background Information

4.4 Support Efforts to Design and Develop New

Products for Existing Home Retrofits

4.5 Evaluate and Demonstrate Underutilized and

Emerging Energy Retrofit Products

✓

✓

✓

✓ ✓

4.6 Communicate the Results Broadly ✓ ✓

4.3 Convene Industry Meetings to Identify Needs

and Opportunities ✓

4.2 Identify Technologies from Other Industries for

Use in Residential Energy Retrofit Products

✓

✓

✓

✓

✓
31

Most remodeling companies are “home grown” businesses led by a

carpenter who managed crews for a builder or another remodeling company

before leaving to start a remodeling business. The company managers often

acquire business and management skills after they start their company

through education and training programs like the Certified Graduate

Remodeler program. While their job skills are usually well developed, very

few have access to education and training for specialized energy retrofit.

They hire specialized crews to install various parts of the comfort system for

their jobs (e.g., framers for windows, doors, and insulation, HVAC

companies for the heating and cooling system, plumbers for the hot water

tank, etc.). However, specialty trade contractors typically do not have the

tools to develop a systematic understanding of energy performance in

houses and how best to market energy upgrade packages to their customers.

These trade contractors are usually called directly by consumers for product

or system replacement as in the case of furnaces, air conditioning systems,

and water heaters.

At nearly $170 billion per year, residential remodeling represents

approximately two percent of the U.S. gross domestic product and about

40% of all investment in housing. Remodeling contractors are well versed

in selling kitchen and bath upgrades and room additions. However, they

miss a large opportunity by not having the tools to sell a comprehensive

home energy upgrade at the time the homeowner is obtaining financing to

pay for the costs of the remodeling job. By adding in the home energy

upgrade, the consumer would not only lower their utility bills, but would

also benefit from better comfort levels throughout the house. Most

consumers wait for the furnace to break, usually during a cold spell in the

winter when furnaces are most expensive to replace and financing terms are

more expensive than the home equity loan or home refinance. Air

conditioning systems also fail most often when the weather is exceptionally

hot and the system is working the hardest to maintain comfort. The result

in either case is several days of waiting in unpleasant conditions for a service

technician who is fully booked replacing other systems that have failed.

Proactive comfort system upgrade at the time of the remodeling project

would alleviate the crisis of expensive system replacement at the time of

failure.

This strategy focuses on providing the remodeling industry with the tools

they need to enable them to deliver energy efficient solutions for their

customers. It also provides technically oriented homeowners with the

education and training necessary to efficiently and effectively implement

these solutions when they do energy upgrade work themselves.

5ENABLE PRACTITIONERS TO

DELIVER ENERGY-EFFICIENT

SOLUTIONS
32

5.1 Collect and Document Information on Programs, Tools, and

Resources

Existing programs that promote energy efficiency or educate, train, or certify

remodelers, builders, trade contractors, or consumers need to be identified

and documented. These programs include federal government programs,

such as those run by EPA, DOE, and HUD; state energy programs such as

the one sponsored by the New York State Energy Research and

Development Authority (NYSERDA), and programs sponsored by trade

associations, such as the National Association of Home Builders (NAHB),

the National Association of the Remodeling Industry (NARI), and a variety

of trade contractor associations.

The wide range of testing and analysis tools and protocols that already exist

also need to be identified and documented. Testing tools include various

hardware devices, such as blower doors, infrared cameras, “duct blasters”

and airflow sensors. Analysis tools predict the energy savings of specific

retrofits or calculate payback. Many computer software packages provide

this functionality, and information about these is compiled in various

sources.

5.2 Establish Recognized, Credible Sources of Information for

Users

DOE operates an online resource for consumers and the building industry

called the Energy and Renewable Energy Network (EREN). Within EREN

is a clearinghouse of information on a wide range of energy efficiency and

renewable energy topics. EREN also maintains an online “Ask an Expert”

function as well as a toll-free hotline. Some DOE national laboratories also

maintain useful web based technical information sites. Lawrence Berkeley

National Laboratory, for example, maintains a home energy saver web site

that is designed to advise consumers about the best ways to save energy in

their homes. It is accessed at http://hes.lbl.gov/. State agencies like the

California Energy Commission (CEC) and NYSERDA have extensive

information on energy efficiency and renewable energy. The CEC has

developed a series of training videos for energy professionals that can be

downloaded and viewed online. These are available at http://

cec.ishow.com/. The Alliance to Save Energy provides consumers with an

online Home Energy Checkup at http://www.ase.org/checkup/home/

index.html designed to help homeowners understand how much they will

save by investing in energy efficiency upgrades. The NAHB Research Center

maintains an online portal for the PATH program called ToolBase

(www.toolbase.org) and a toll-free hotline for the building trades.

There are a growing number of free information resources available to

contractors and their customers regarding energy efficiency tips, techniques,

and technologies. It is not clear whether contractors are using the online

resources or toll-free telephone lines. Research needs to be conducted on

how each of the specialty trades acquires information on new techniques
33

and products. Information may be available in one format that is not

generally seen by a specialty trade so the information does not get picked up

and put into practice.

Many of the existing resources identified above, while relevant to the

professional, are actually aimed at consumers. This is logical given the large

role of do-it-yourself projects in the home improvement area. As PATH

sponsors development of new technical resources it should keep in mind

that many items will also be of interest and value to consumers who plan to

do the work themselves. As a result, these materials should be made easily

available to consumers.

5.3 Create a Viable Education Platform

Current platforms for delivering educational materials to contractors

usually involve taking them away from their work to a physical location

where they receive training. This occurs in training facilities, local builder

association meeting rooms, or at workshops and conferences. A small

number of online training courses now exist relating to housing. Online

education in general has been growing in recent years as the academic

community has learned how to expand course offerings beyond the

classroom, but the building industry does not yet have a viable online

education platform for delivering information to the remodeling and

contracting trades or directly to homeowners. A successful model would be

one that would deliver focused information to users in a format that they

understand and can put into practice. It would be affordable and flexible

enough that the student would pursue coursework online at their pace and

during the time they have free to “attend” class. While online training may

seem like a reach for many in the industry today, the benefits and

economies are numerous.

5.4 Develop Online Education and Training Content

There are a growing number of programs designed specifically for

remodelers and specialized energy contractors. Home Energy magazine

(www.homeenergy.org) maintains a listing of contractor training programs

available in each state. The list is organized by who offers the training, a

description of the program, whether there is certification, and specific areas

of training. The National Association of the Remodeling Industry provides

a training program entitled Certified Green Building Professional. That

program focuses on California licensed building professionals. See http://

www.stopwaste.org/naricert. The San Francisco Bay Area Chapter of NARI

is the certification body for this program. The Energy and Environmental

Building Association (EEBA) created the “EEBA Institute” to offer training

in a broad range of areas relating to energy efficiency and indoor air quality.

In addition to the training that is available through the institute, EEBA

holds an annual Excellence in Building Conference with in-depth pre-conference

sessions and specialized energy efficiency tracks led by prominent researchers

and practitioners in the energy efficiency field. Information is available at

http://www.eeba.org. The U.S. Green Building Council offers specialized
34

training in Leadership in Energy and Environmental Design (LEED) design

leading to accreditation of professionals to the requirements of LEED

Version 2.0. Hanley-Wood Exhibitions holds an annual Remodelers’

Show with workshops and educational programs. NAHB provides

educational seminars in conjunction with the annual International Builders

Show. The substances of these offerings should be mined for applicability

to online training courses.

A small number of vendors are now offering online training. These include

Apogee Interactive, Inc., Build IQ, and University for Contractors, LLC.

Current online offerings are not tailored to support a remodeler or

contractor in advanced energy efficiency techniques for building retrofit. A

much broader curriculum of online training needs to be developed that is

targeted to each of the specialty contracting trades as well as the remodeler

and even the consumer who is interested and able to make some energy

efficient upgrades.

5.5 Promote Strategic Alliances Among Practitioners

The ultimate success of energy-efficient remodeling, repair, or retrofit

depends on coordination of diverse groups including remodelers, energy

raters, trade contractors such as roofers, siding contractors, plumbers,

electricians, and HVAC contractors, and others. In order to produce

effective and efficient business relationships, these diverse groups of people

need to be able to communicate and coordinate their efforts. Remodelers

may need to know the qualified and certified HVAC contractors, roofers, or

available energy raters in the area. Energy efficiency and business

profitability benefits may be realized by some formal agreements for referral.

This action involves promoting such alliances.

5.6 Promote These Actions to Remodelers, Trade Contractors, and

Consumers

PATH can play a critical role in determining what information and

educational offerings are available to each of the specialty audiences. A

coordinated effort involving key federal and state agencies, utility

companies, local government, and industry trade associations would be

much more effective at communicating with practitioners and consumers

on the availability of the technical information that has already been

developed.
35

FIGURE 7 FIGURE 7

 Strategy 5. Enable Practitioners to Deliver Energy-Efficient Solutions

 Implementation Activity Near Term

(<2 Years)

Mid-Term

(2-4 Years)

Long-Term

(>5 Years)

5.1 Collect and Document Information on

Programs, Tools, and Resources

5.4 Develop Online Education and Training

Content

5.5 Promote Strategic Alliances Among

Practitioners

✓

✓

✓

✓ ✓

✓ ✓ 5.6 Promote These Actions to Remodelers, Trade

Contractors and Consumers

5.3 Create a Viable Education Platform ✓

5.2 Establish Recognized, Credible Sources of

Information for Users ✓
36

This strategy is directed at development of a system for collecting operating

data from the various energy consuming products and systems in a home,

communicating the information to a central point, and displaying it to the

home occupants in an easy-to-understand, consistent format. It is unlike

the other strategies because it calls for development of a set of compatible

products reminiscent of several items identified in the brainstorming report

(e.g. “HVAC Monitoring and Trouble Alert System”; or “Programmable

Load Monitoring and Management”). The information might include the

current status of any operating equipment, such as the maintenance level,

years of expected remaining operation, current operating efficiency

compared to manufacturer’s specifications, and actual energy consumption

in a normal operating mode. It might even indicate to-date and projected

utility costs.

The system would not necessarily reduce energy consumption on its own.

Rather, it would provide ongoing consumer education and afford

homeowners greater control over their homes and the energy-consuming

devices they contain. It could reduce the monthly operating costs of

existing homes by giving occupants a clear understanding of the

consequences of their behavior. The system also would improve the service

life of equipment through delivery and use of real-time maintenance and

service requirements. It could improve comfort by allowing for the

correction of faulty equipment operation and maximizing opportunities to

operate energy-consuming equipment in an economical way.

Responsibility for the development of systems that implement this strategy

ultimately lies with the manufacturers of home automation systems, energy

management systems, HVAC systems, and others. A number of enabling

activities, described below, will facilitate the development and diffusion of

compatible products and systems.

Consumers have become familiar with set-back thermostats and generally

know how to allow their HVAC system to drift when no one is in the

house. Typical settings include sleep, awake, leave, and return. However,

they don’t know how effectively they have managed their energy

consumption until the utility bill arrives. Utility meters have become more

sophisticated in being able to track time-of-day energy consumption

information to relay to the utility company. Marrying these two products

would enable the consumer to track energy consumption on a real-time

basis and provide immediate feedback on decisions that affect energy use.

No such product currently is offered in residential construction.

6DEVELOP A PERFORMANCE

MONITORING SYSTEM FOR ENERGYCONSUMING EQUIPMENT
37

6.1 Identify Current Energy Monitoring, Display, and Communication

Products

In the past, focus on residential energy use has resulted in a wide range of

available equipment that can monitor and display equipment performance. For

example, most home automation systems provide a limited degree of energy

consumption monitoring and control.

Many manufacturers of HVAC equipment and controls, home automation

systems, and appliances either are already marketing or are developing

equipment that is capable of communicating status and diagnostic information.

Companies that develop and manufacture the above products need to be

identified and their products need to be documented, with the results forming

the basis for identifying what is available, what needs to be developed, and

which companies have the best platforms for further work.

6.2 Identify and Involve Missing Players to Fill Product and System

Gaps

This activity forms connections and linkages, identifies and recruits missing

players, and creates a top-level plan to facilitate development of appropriate

products and systems. The plan needs to be inclusive, ensuring that no viable

developers and manufacturers are excluded. It may be that cooperative publicprivate funding will be required to stimulate the development of certain

products.

6.3 Adopt and/or Develop a Common Communication Standard

Communicating the status of energy-consuming equipment from a variety of

manufacturers back to a centrally-located local display requires a standard

communications protocol. Allowing several manufacturers to provide their own

versions of the display reinforces the need for a standard. Unfortunately, several

standards currently exist, any one of which could likely provide the

communications capability needed for energy monitoring. The challenge of this

activity will be to select from the available standards the one that is most

appropriate and most acceptable to the manufacturers that will be using it.

Some organizations providing potentially applicable standards include:

● Electronic Industries Association – Consumer Electronics Bus (CEBus,

EIA-600 and Home Plug and Play);

● Consumer Electronics Association – Versatile Home Network (VHN);

and

● Universal Plug ‘n Play Forum – UPnP.

This activity needs to evaluate the existing standards, determine if any can meet

the energy monitoring needs, identify required changes, and ultimately obtain

consensus, especially among the manufacturers of sensors, communication

devices, and displays.
38

6.4 Identify Candidate Communication Devices or Techniques and

Develop Requirements

Reliable, low-cost data communication from equipment to a centralized

display or gateway is especially challenging in an existing home. Running

wires often is labor intensive and sometimes unsightly. Wireless alternatives

include radio frequency (RF) used by home security system providers; power

line carriers (PLCs) used for many years for simple control applications; and

infrared (IR) used for years in remote controls and wireless connections for

personal computers. More robust wireless networking standards are also

coming into wide use. Depending on a variety of factors, any given energy

monitoring application might use any one or a combination of these

techniques. A comprehensive assessment needs to be performed to identify

the gaps and omissions. For example, development may be needed to

provide a chip set for manufacturers that interfaces with equipment via the

communication protocol selected in Activity 6.3 and allows

communication by wires, RF, PLC, or IR at the discretion of the

equipment manufacturers. The output would be a set of requirements for

communications alternatives that would provide guidance to

communications vendors.

6.5 Define a Consumer Information Display Standard

A sufficiently specific display standard for all manufacturers is needed so

that consumers, remodelers, and trade contractors can use the displays with

a minimum of training or retraining. The challenge is for the standard to

provide sufficient latitude for manufacturers to provide features or

functions that achieve product differentiation. Some ground rules would

make this process more effective. For example, regardless of who designs

and manufactures a display, it would be best if every display uses the same

name for the same device, the same name for each energy measurement

parameter, the same units of measurement, and so on. Another element

that needs to be consistent is the format for tabular and graphical data. A

third element is navigation through control menus, which is a very large

issue with consumers, most of whom have trouble learning to program

setback thermostats or VCRs. The standard should allow alternative

implementations, such as an enhanced thermostat display, an enhanced

security system panel, a TV set, a personal computer, or a standalone

display. Handheld devices also should be considered for use by remodelers

and trade contractors.

6.6 Evaluate and Develop Multi-Use and Modular Low-Cost

Sensors

Affordable sensors are needed to collect real-time information on active

systems and equipment. Some of the basic items are:

● On/off status of appliances;

● Power requirements for whole-house systems;

● Energy consumption status of smaller system components;
39

● Maintenance status of mechanical systems; and

● Warnings of impending peak power needs.

Other information that could be valuable to collect and display includes:

● Current and historical information on local weather conditions;

● Status of indoor air quality; and

● Quantitative information on moisture in concealed envelope areas.

The first step in this activity would require evaluating existing sensors, with

the help of sensor manufacturers and the manufacturers who use sensors in

their systems. Then needs and opportunities would need to be assessed and

the development of required sensors initiated by the sensor manufacturers.

FIGURE 8 FIGURE 8

 Strategy 6. Develop a Performance Monitoring System for Energy-Consuming

 Equipment

 Implementation Activity Near Term

(<2 Years)

Mid-Term

(2-4 Years)

Long-Term

(>5 Years)

6.1 Identify Current Energy Monitoring, Display,

and Communication Products

6.4 Identify Candidate Communication Devices or

Techniques and Develop Requirements

6.5 Define a Consumer Information Display

Standard

✓

✓

✓

✓

✓ 6.6 Evaluate and Develop Multi-Use and Modular

Low-Cost Sensors

6.3 Adopt and/or Develop a Common

Communication Standard ✓

6.2 Identify and Involve Missing Players to Fill

Product and System Gaps
40

7INCREASE THE VALUE CONSUMERS

ASSOCIATE WITH ENERGY

EFFICIENCY

The ranking of this strategy may reflect perceptions that much is already

being done by government and the private sector to encourage consumer

investment in energy efficiency, and that the PATH program need not invest

scarce program resources to duplicate this effort. This should not diminish,

however, the importance of continuing to motivate consumers about the

value of energy efficient investments. Consumers are notoriously willing to

invest in amenities like whirlpools and countertops, but are frugal when it

comes to investing in higher levels of energy efficiency for their houses.

EPA’s Energy Star Homes Program has devoted considerable resources to

developing and delivering consumer messages of this type in recent years,

and has successfully built value by associating the Energy Star “brand” with

energy savings. The Energy Star label also can be found on a broad range of

consumer appliances, like washers, dryers, dishwashers, and refrigerators.

The appliance part of the program is managed by DOE. Capitalizing on

this brand awareness has been and will likely remain highly relevant to

reducing energy use in existing homes. EPA promotes a “Home Energy

Advisor” developed by Lawrence Berkeley National Laboratory that presents

users with specific energy efficiency upgrade suggestions tailored to the

specific house configuration and location. EPA also works closely with

industry partners to craft uniform messages and deliver them through

multiple media vehicles. At the state level, programs like the one in New

York state administered by NYSERDA deliver strong messages to residents

of the state about the importance of energy efficiency, and the availability of

rebates and other financing vehicles to encourage energy efficient

investments. NYSERDA also informs the public on the availability of

certified home auditors and repair/replacement professionals.

Activity 7.1 relates to consumer concerns about the credibility of the

information they receive from product manufacturers on energy efficiency

and energy savings. Uniform messages consistently delivered by credible

sources that share common interests in energy efficiency would help

reinforce the call to action rather than fostering confusion. The second

activity recognizes that consumers have different understandings of the value

of energy efficiency. Knowing how much depth of understanding

consumers have helps to create messages that will be recognized and

understood as part of Activity 7.3. Multiple media will be employed in

delivering the messages under this activity. Activity 7.4 focuses on

evaluating how well these messages are received by consumers. The messages

will be refined and the process will be repeated, as described below.
41

7.1 Craft Uniform Messages for Consumers

Individual product manufacturers like Owens Corning and Andersen

Windows spend millions of dollars each year on television advertising

aimed at getting consumers to buy their products. A portion of their

message is aimed at getting consumers to understand the value of improving

the energy efficiency of their homes. Non-governmental organizations like

the Alliance to Save Energy produce public service announcements (PSA)

aimed at consumer audiences. The theme of these PSAs is that energy

efficiency improvements reduce operating costs, make houses more

comfortable, and improve national energy security. Government agencies,

like EPA and DOE, use a variety of methods in attempting to get

consumers to reduce energy consumption. EPA works through its partners

to create more uniform messages.

It is important to understand the approach that each of these organizations

is taking to reach consumers with targeted energy conservation messages.

The first step is to conduct a comprehensive review of existing messages and

an assessment of the most effective messages. Areas of overlap or common

interest form the potential for collaboration by these stakeholder groups.

PATH can play an important role in bringing together key manufacturers,

government agencies, and non-governmental organizations to focus on

creating a more uniform message on the value of energy efficiency

improvements in existing homes. The result of this task will be agreement

on opportunities for collaboration as well as an understanding of the roles

that each organization will play in developing new messages.

7.2 Gauge Existing Consumer Knowledge of the Value of Energy

Efficiency

PATH has started the process of learning directly from housing consumers

about how they make decisions with respect to new technologies. A series

of focus groups at the Summerset at Frick Park project in Pittsburgh

provides insight on how consumers make tradeoffs between investments in

functional versus aesthetic upgrades in new home construction. More

research needs to be done in this area, particularly as it relates to consumer

decision making relating to their own remodeling or energy upgrade

projects. What motivates consumers? Do they make decisions based on

crises such as war or energy blackouts in parts of the country? Do they

make decisions based on financial return? Or, simply because it makes

their house less drafty and more comfortable? Understanding how these

factors interact to drive decisions of individual consumers would make it

easier to construct effective messages that motivate action.

7.3 Deliver Messages Through Multiple Media

It is unrealistic to expect that large corporations will invest significant

resources on collaborative advertising with industry or government partners.

They focus first and foremost on selling products and achieving

profitability. However, there is a strong rationale for collaborating on
42

message content so that consumers get sufficient information to make

informed decisions regarding upgrading their homes’ energy efficiency. By

increasing consumer awareness of the value of energy conservation upgrades,

the market for energy efficient products and services will increase.

The groups that work together on message content under Activity 7.1 will

identify common or uniform messages that each can use in their own

advertising campaigns. They will also examine opportunities for

collaboration. The PSA offers one avenue for reaching consumers. Building

on the lead taken by the Alliance to Save Energy, PATH can pull together

complementary sets of interests to cooperatively fund PSA development and

delivery. These groups should also examine the potential for reaching a larger

number of consumers through cooperatively funded paid advertising.

7.4 Measure the Effectiveness of the Message and Delivery Vehicles

As with any educational or marketing effort, the message developed and

delivered is only effective if it has meaning and impact for the information

receiver. For this reason, it is necessary to gauge the effectiveness of both the

message and the delivery channels. Advertising firms have sophisticated ways

of measuring impact from a communications campaign. Numerically based

assessment should also be balanced with consumer based qualitative research

to determine if the messages are on target, if they are communicating a message

that the consumer understands, and whether it will persuade them to make an

energy efficiency upgrade to their homes.

7.5 Refine Messages, Then Repeat the Process

Once armed with the results of the assessment noted in Activity 7.4, involved

stakeholders need to adjust or uphold the developed message and the delivery

modes. This step might involve reassembling the stakeholders involved at the

beginning of the process. Building alliances with these parties will further the

goals of getting consumer buy-in for the concept of energy efficiency in their

existing homes. Then the entire process of message delivery, assessment and

revision should be repeated.
43

FIGURE 9 FIGURE 9

 Strategy 7. Increase The Value Consumers Associate with Energy Efficiency

 Implementation Activity Near Term

(<2 Years)

Mid-Term

(2-4 Years)

Long-Term

(>5 Years)

7.1 Craft Uniform Messages for Consumers

7.2 Gauge Existing Consumer Knowledge of the

Value of Energy Efficiency

7.3 Deliver Messages Through Multiple Media

7.4 Measure the Effectiveness of the Message

and Delivery Vehicles

7.5 Refine Messages, Then Repeat the Process

✓

✓

✓

✓

✓ ✓

✓

✓

✓

✓
44

Consumer mistrust of the building and remodeling industry is widespread.

Although many of these feelings may be based on misconceptions and

negative generalizations, the remodeling industry is characterized by a large

number of small firms who are not sufficiently capitalized to weather large

fluctuations in cash flow. Most remodeling companies work on the “draw”

system, where the customer provides a down payment on services to be

performed and makes additional payments after pre-agreed stages of the

construction process are completed. The discussion in Strategy 5 pointed

out that many remodelers do not start their businesses with strong

backgrounds in management and business. They may have supervised crews

in the past but had little responsibility for bidding jobs. The draw system

can turn into a nightmare for remodeler and consumer alike if the

remodeler gets behind on progress and needs to keep cash flow up. Their

only alternative is to start a new job so that they can generate more cash.

This puts more pressure on their ability to deliver previously scheduled jobs

as well as their new ones.

Another side of the credibility equation for consumers is the prospect of

being held captive by specialists. Consumers know that when they have a

service problem with an appliance like a central air conditioning unit, for

example, they are at the mercy of the service provider who comes to give

them an estimate for the repair or replacement. Since most repairmen

charge for the service call, the consumer may find it difficult to get

competitive bids for the work to be performed.

This strategy focuses on key steps that service providers can take to improve

credibility with their customers. Activity 8.1 suggests that product

manufacturers can do more to build the credibility of the remodeling trades

by providing them with tools they need to succeed. Activity 8.2 encourages

utility companies to help qualify and publicize the services of contractors

who meet their performance criteria. Activity 8.3 explores ways to motivate

contractors to upgrade their skills training. Activity 8.4 proposes that

education and training programs in the area of energy efficiency and

business management should be recognized by state programs requiring

CEU’s. New York state is investigating an industry credentialing process

similar to the suggestion in Activity 8.5.

8.1 Promote Stronger Relationships Between Suppliers and the

Remodeling Trades

Product manufacturers must first make a stronger effort to understand the

changing demographics of those who are involved in residential remodeling

and retrofit. This includes understanding the technical and business skills

of their customers in the remodeling and energy retrofit trades; it also

8BUILD CREDIBILITY FOR SERVICE

PROVIDERS
45

involves understanding language requirements. The producers would also

benefit by studying what types of information their customers need to build

their credibility in the marketplace. Do they need more informative, less

sales-oriented marketing materials? Or, do they need “leave behind”

materials that showcase the benefits of the product or material the

remodeling contractor is installing? Do they need more graphically

oriented, language appropriate installation instructions that enables the

contractor to minimize their call-backs?

Product manufacturers can also help build the credibility of their

contractor client base by providing co-op advertising opportunities for their

customers. Name brand products allied with a local contractor leaves the

impression with the homeowner that the contractor installs quality

products. Manufacturers need to support this by ensuring that the

contractors know how to install their products to manufacturer

specifications.

There is considerable emphasis today on systems level or whole house

building performance. Contractors need to understand how to deliver

comfort for their customers that reduces overall energy cost at an affordable

price. The contractor needs to know what steps to take to deliver best

energy efficiency at the price the customer expects. Manufacturers have a

role in supporting this by not pushing their customers toward a single high

performance purchase that consumes too large of a proportion of the home

energy retrofit budget. They can do this by working closely with the energy

performance contractors like the ones discussed in Activity 8.5 below.

Many manufacturers have in-house business skills improvement training.

They should consider developing online business skills improvement

training programs for their contractor customers. If they can help their

contractors succeed in business, it will help them sell more product.

8.2 Recognition of Qualified Contractors by Utility Companies

Utility companies can support efforts by contractors to improve their

credibility by accrediting or certifying contractors and making this

information available to utility customers throughout their service region.

The utility company can provide training to its program specifications or

accept the certification of recognized training and certification

organizations. This recognition provides assurance to homeowners that

they will receive a qualified estimate and workmanship for their remodeling

or energy retrofit work.

8.3 Motivate Contractors to Take Advanced Energy Efficiency

Training

Despite the wealth of education and training programs available

nationwide, there is still concern that an insufficient number of remodelers

and trade contractors are taking advantage of this training. Most training

requires attendance at a seminar facility, either for hands-on training or for a
46

conference workshop. Many contractors cannot afford the time away from

work to take advantage of training. Online training that fits the schedules

of contractors could give them better access to advanced training and help

them succeed in a new market area. However, contractors are generally not

yet internet savvy and would not be able to take advantage of online courses

if they were available.

This activity focuses on ways to motivate the remodeling and contracting

trades to appreciate the value of advanced energy efficiency training and to

recognize how this training will open market opportunities for them with

their customers.

8.4 Promote Statewide Acceptance of CEU Credits for Energy

Efficiency and Business Management Training for Remodeling

Trades

Not all states have mandatory annual continuing education requirements in

order for contractors to maintain their licenses, but some states, like

Florida, do require ongoing education and training. In these states,

programs of education and training relating to energy retrofit need to be

accredited by the state. It would be good if these programs tied into the

certification process discussed in Activity 8.5 below.

8.5 Establish an Industry-Recognized Contractor Credentialing

Program

EPA’s Energy Star Home Improvement Program supports the development

of contractor credentialing programs. The Building Performance Institute

in New York State serves as a model of the type of contractor certification

program the agency envisions. BPI is developing a trade-based certification

process. It sets the standards and administers certification of technicians

and accreditation of companies. Remodelers, inspectors, builders,

insulation contractors, and heating and cooling contractors are examples of

the trades that can benefit from building performance certification. The

BPI-certified contractor is trained to understand the whole house and can

help guide homeowners in making home improvement decisions to

maximize energy savings, comfort and safety. If issues are identified that

require services outside of a building performance contractor’s field of

expertise, the homeowner is notified of the issue and given the option to

bring in a subcontractor to make the appropriate repairs. BPI currently

operates in New York state but has initiated training in conjunction with

the Kansas Building Science Institute in Kansas City.
47

FIGURE 10 FIGURE 10

 Strategy 8. Build Credibility For Service Providers

 Implementation Activity Near Term

(<2 Years)

Mid-Term

(2-4 Years)

Long-Term

(>5 Years)

8.1 Promote Stronger Relationships Between

Suppliers and the Remodeling Trades

8.2 Recognition of Qualified Contractors by

Utility Companies

8.3 Motivate Contractors to Take Advanced

Energy Efficiency Training

8.4 Promote Statewide Acceptance of CEU

Credits for Energy Efficiency and Business

Management Training for Remodeling Trades

8.5 Establish an Industry-Recognized Contractor

Credentialing Program

✓

✓

✓

✓

✓

✓

✓
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