Developing an Energy 

Performance Modeling 

Startup Kit

Amber Wood

NAHB Research Center

October 2012
NOTICE

This report was prepared as an account of work sponsored by an agency of the 

United States government. Neither the United States government nor any agency 

thereof, nor any of their employees, subcontractors, or affiliated partners makes any 

warranty, express or implied, or assumes any legal liability or responsibility for the 

accuracy, completeness, or usefulness of any information, apparatus, product, or 

process disclosed, or represents that its use would not infringe privately owned rights.

Reference herein to any specific commercial product, process, or service by trade 

name, trademark, manufacturer, or otherwise does not necessarily constitute or imply 

its endorsement, recommendation, or favoring by the United States government or 

any agency thereof. The views and opinions of authors expressed herein do not 

necessarily state or reflect those of the United States government or any agency 

thereof.

Available electronically at http://www.osti.gov/bridge

Available for a processing fee to U.S. Department of Energy

and its contractors, in paper, from:

U.S. Department of Energy

Office of Scientific and Technical Information

P.O. Box 62

Oak Ridge, TN 37831-0062

phone: 865.576.8401

fax: 865.576.5728

email: mailto:reports@adonis.osti.gov

Available for sale to the public, in paper, from:

U.S. Department of Commerce

National Technical Information Service

5285 Port Royal Road

Springfield, VA 22161

phone: 800.553.6847

fax: 703.605.6900

email: orders@ntis.fedworld.gov

online ordering: http://www.ntis.gov/ordering.htm

Printed on paper containing at least 50% wastepaper, including 20% postconsumer waste
iii

Developing an Energy Performance Modeling Startup Kit

Prepared for:

The National Renewable Energy Laboratory 

On behalf of the U.S. Department of Energy’s Building America Program

Office of Energy Efficiency and Renewable Energy

15013 Denver West Parkway

Golden, CO 80401

NREL Contract No. DE-AC36-08GO28308

Prepared by: 

Amber Wood

NAHB Research Center

400 Prince George’s Boulevard

Upper Marlboro, MD 20774

NREL Technical Monitor: Stacey Rothgeb

Prepared under Subcontract No. KNDJ-0-40335-00

September 2012
iv

[This page left blank]
v

Contents

List of Tables .............................................................................................................................................. vi

Executive Summary.................................................................................................................................. vii

1 Introduction........................................................................................................................................... 1

2 Remodelers’ View of Current Industry and Energy Efficiency ........................................................ 2

3 Remodelers’ Gaps and Barriers to Adding Energy Efficiency into Remodeling........................... 4

4 Remodelers’ Needs for Improving Home Energy Efficiency ........................................................... 7

Appendix A Qualitative Market Research―Understanding Remodeling and Energy Efficiency 

Upgrades (initial set of remodeler focus groups) ......................................................................... 10

Appendix B Qualitative Market Research―Energy Efficient Upgrades in Remodeling 

Exploration of Gaps and Potential Solutions (second set of remodeler focus groups)........... 43

Appendix C Quantitative Market Research―Building America Remodelers Start-Up Kit 

(quantitative market research with remodelers based on the focus groups).............................. 64
vi

List of Tables

Table 1. Client Attitudes Toward Energy Efficiency Upgrades .............................................................. 7

Table 2. Company Approaches to Energy Efficiency Upgrades............................................................ 7

Table 3. Issues Important to Remodelers................................................................................................. 9

All tables were created by the NAHBRC team.
vii

Executive Summary

The U.S. Department of Energy’s Building America (BA) Program is a research and 

development program to improve the energy performance of new and existing homes. BA’s

ultimate goal is to achieve examples of cost-effective, energy-efficient solutions for all U.S. 

climate zones. This goal will be met using a whole-house system engineering approach and by 

uniting segments of the industry that traditionally work independently of one another, including 

architects, engineers, builders, remodelers, trade contractors, manufacturers, material suppliers, 

community planners, and mortgage lenders.

As a BA team, the NAHB Research Center Industry Partnership has a significant research focus 

on high performing existing homes. The goals for this work include addressing technology 

solutions and whole-house packages, considering implementation tools to foster adoption of BA 

best practices, and helping to hasten the growth of the energy retrofit market. Technology 

solutions are important, but one significant gap for existing home energy performance 

remodeling is business models. In this context the practices of business management, 

deployment, risk management, and motivation associated with potential growth and profit drive 

remodeling and hold the promise of a sustainable energy retrofit industry.

The NAHB Research Center Industry Team’s strategic approach for this project is to identify 

business models for the remodeling industry that foster remodelers’ adoption of energy 

efficiency services. Remodeling contractors often need additional technical, marketing, and other 

resources to successfully provide energy upgrades to their customers. The ultimate goal is to 

develop and assemble a set of operating and marketing guidelines and resources for remodelers, 

similar to the business startup kit, to increase their likelihood for success in expanding their 

current services to include a comprehensive menu of energy upgrade options.

This is a multiyear effort. The major tasks include: 

• Assess the needs and motivations of residential remodelers.

• Assess the needs and motivations of homeowners.

• Develop energy performance remodeling startup guidelines, tools, and central 

information resources.

• Outreach.
1

1 Introduction

In 2011, the NAHB Research Center began the first part of the multiyear effort by assessing the 

needs and motivations of residential remodelers about energy performance remodeling. For this 

work, energy efficiency was defined as either a whole-house gut rehab (remodel) or above-code 

measures enhancing the energy efficiency of the existing home. The scope is multifaceted—all 

perspectives will be sought related to remodeling firms ranging in size from small-scale, sole 

proprietor to national. This will allow the Research Center to gain a deeper understanding of the 

remodeling and energy retrofit business and the needs of contractors when offering energy 

upgrade services.

The research questions to assess the needs and motivations of residential remodelers for 

ultimately developing an energy performance remodeling startup kit include:

• What business models have worked and failed for remodelers in the energy improvement 

services market?

• What are the known untapped markets and ideas for accessing them?

• What are the current barriers and solutions for overcoming these obstacles? 

• What are the gaps and challenges to entering the market and sustaining a market 

presence?

To determine the gaps and the motivation for energy performance remodeling, the NAHB 

Research Center conducted (1) an initial series of focus groups with remodelers at the 2011 

International Builders’ Show; (2) a second series of focus groups with remodelers at the NAHB 

Research Center in conjunction with the NAHB Spring Board meeting in Washington, D.C.; and 

(3) quantitative market research with remodelers based on the findings from the focus groups.

Three goals ensued:

• Understand the current remodeling industry and the role of energy efficiency.

• Identify the gaps and barriers to adding energy efficiency into remodeling.

• Quantify and prioritize the support needs of professional remodelers to increase sales and 

projects involving improving home energy efficiency.

This report will outline all three tasks with remodelers.
2

2 Remodelers’ View of Current Industry and Energy Efficiency 

The first step was to conduct three focus groups with remodelers at the 2011 International 

Builders’ Show in Orlando, Florida, in January 2011 to understand the current remodeling 

industry and the role of energy efficiency. The purpose was to explore perspectives and practices 

related to energy efficiency upgrades in the remodeling business to identify ways to help 

remodelers successfully increase sales of energy efficiency upgrades. The objectives were to 

gain a better understanding of the remodeling business, determine various approaches to energy 

efficiency upgrades and retrofits, and identify tools that could help remodelers and contractors 

position and sell energy efficiency upgrades. Results will be used to develop quantitative 

research.

The conclusions of the three groups about the current remodeling industry included: 

• The slowdown in new construction and economic climate has shifted to greater focus 

on existing homes and remodeling. 

o More consumers are staying in their homes and deciding to upgrade, and many 

builders are turning to remodeling work to supplement their businesses.

o The lending restrictions, lack of appraisal value on energy efficiency upgrades,

and the flood of individuals into the remodeling arena have created a very 

competitive, price-sensitive market.

• Qualified remodelers and builders strive to differentiate themselves based on 

experience, knowledge, and customer service, in addition to quality building 

practices.

o Anything that can help differentiate them from the “hacks” and convey to the 

consumer the value an experienced, qualified remodeler or builder brings to the 

table would be appreciated.

o Any tools provided should help position the remodeler or builder as the expert 

and build trust and confidence among consumers. 

The conclusions of the three groups about the role of energy efficiency in the remodeling 

industry included: 

• Information sources that remodelers/builders could use to demonstrate return on 

investment (ROI) or provide a cost/benefit analysis for energy efficiency upgrades 

would be valued.

o Include an energy audit that assesses current energy consumption and lifestyle.

o Demonstrate to consumers the potential savings or “payback” they could realize if 

they make various upgrades; connect the dots in terms of upgrades and real-world 

benefits.
3

• Finally, educate remodelers and builders about best practices and approaches and 

help to motivate.

o Remodelers and builders who have conviction that energy efficiency upgrades are 

“the right way to build” tend to have more success implementing the upgrades. 

Their approach comes across as a knowledgeable recommendation with the 

consumer’s best interest in mind rather than a sales attempt with the remodeler’s

or builder’s financial interest in mind.

The complete key point summary report to understand the current remodeling industry and the 

role of energy efficiency is included in Appendix A.
4

3 Remodelers’ Gaps and Barriers to Adding Energy Efficiency 

into Remodeling

The next step was to further identify the gaps and barriers to adding energy efficiency into 

remodeling through two focus groups with remodelers at the NAHB Research Center in 

conjunction with the NAHB Spring Board meeting. The purpose was to explore current practices 

related to energy efficiency upgrades in the remodeling business to identify ways to help 

remodelers successfully increase sales of energy efficiency upgrades. Results will be used to 

develop quantitative research. The objective was to build on the previous focus groups to further 

detail the gaps and specific solutions for adding energy efficiency upgrades to remodeling 

including tools to sell the upgrades to homeowners.

The conclusions of the two groups about the gaps and barriers to adding energy efficiency into 

remodeling included: 

• Most remodelers believe there is definite growth potential for energy efficiency

upgrades; however, long-term success depends on upgrades becoming market 

driven.

o Incentives that are based on improved home performance rather than specific 

products will have greater long-term benefit because they broaden perspectives.

o Shifting homeowner mindsets to “performance” of the home helps them to 

understand the value of making energy efficiency upgrades beyond the scope of 

their remodeling projects.

• There are several points of frustration for remodelers:

o Perhaps the greatest source of frustration is that homeowners do not perceive the 

value of doing energy efficiency upgrades.

o It is difficult to teach homeowners to think in terms of the home’s energy 

efficiency performance when they are focused on one specific area of the home 

for the remodeling project.

o Cost barriers are also a pain point.

 Many homeowners do not want to spend money on blower door tests or 

energy audits. Remodelers believe, however, that results of the audits and 

tests would demonstrate problems to homeowners.

 Because costs are typically out of pocket for homeowners, they may not 

be able to afford the energy efficiency upgrades, or they may cut the 

energy efficiency upgrades from their budget in favor of aesthetic 

upgrades.

 The monthly energy bill savings may not be worth the upgrade 

investments to homeowners.
5

 Energy efficiency improvements do not add appraisal value to the home; 

therefore, the improvements are viewed as a cost and homeowners looking 

to sell are not motivated to make the improvements.

• Homeowners need to perceive a “reason why” they should invest in the upgrades.

o Motivators and hot buttons will vary; however, remodelers can identify pathways 

to positioning the upgrades by listening for cues and by asking homeowners 

specific questions during the beginning phases of the project.

o Predominant motivators for making the upgrades tend to be:

 Reducing monthly energy bills.

 Having more predictable energy bills each month.

 Being able to maintain more even and/or comfortable temperatures within 

the home.

 Improving indoor air quality.

o Some homeowners are motivated by being more environmentally responsible 

(e.g. living green) and contributing to the conservation of our nation’s resources.

o Helping homeowners to connect the dots between a problem and solutions is 

necessary for buy in.

• Remodelers don’t want to come across as “selling” but rather as recommending 

solutions that will benefit the homeowner. 

o Equipping remodelers with key questions to ask, as well as key facts, can enable 

them to position themselves as knowledgeable professionals.

o Educational information regarding energy inefficiency and its implications can 

help to create awareness among homeowners that there are issues that could be 

improved. 

 Ex: Did you know that you could be paying 10 – 20% more than you 

should be in monthly energy costs because of leaky ducts, drafts, outdated 

heating & cooling systems or insufficient insulation?

o Industry information from a 3rd party source (e.g. Department of Energy, NAHB, 

etc.) adds credibility. Energy saving tip sheets or “Did You Know?” informational 

pieces that remodelers could give homeowners would help to create receptivity, 

and to build confidence in the remodeler.

• Most remodelers agreed that the most beneficial things for stimulating growth of 

energy efficient upgrades would include:

o Development of an Energy Performance Scores rating system for existing homes, 

which is implemented nationwide.

o Establishing appraisal value for energy efficient upgrades.
6

o Realtor education as to value energy efficient upgrades bring, and how to sell the 

features.

o Points off mortgage interest for energy efficient upgrades.

• For remodelers, the following “tools” would be of value:

o Informational/educational resources to shift consumer thinking to home 

performance, increase understanding of problems, understand benefits of various 

types of upgrades, etc.

 Website, DVD, printed materials

o Consumer campaign to increase awareness and understanding of the value of 

energy efficient upgrades (done by government, utilities, etc.).

o Free/low cost energy audits for homeowners.

o Key questions to ask in order to identify opportunities, position benefits to 

homeowners.

o Means of quantifying impact of energy efficient upgrades (e.g. pre/post testing, 

energy savings calculators, etc.).

o Connecting remodelers with energy auditors so they can develop a referral 

network.

The complete key point summary report to further identify the gaps and barriers to adding energy 

efficiency into remodeling is included in Appendix B.
7

4 Remodelers’ Needs for Improving Home Energy Efficiency 

The final step was to quantify and prioritize the support needs of professional remodelers to 

increase sales and projects involving improving home energy efficiency. This was addressed 

through quantitative market research with remodelers. This phase of the research builds upon the 

qualitative remodeler focus groups, conducted at IBS and at the NAHB Research Center, to 

quantify and prioritize the support needs of professional remodelers to increase sales and projects 

involving improving home energy efficiency.

The qualitative market research included a total of 160 respondents. Key questions and the 

research results included: 

What percentage of your recent clients fit into the following groups when it comes to 

accepting energy efficient upgrades? According to remodelers, 21% of their clients actively 

seek energy efficiency upgrades during a home remodeling project. Another 39% said their 

clients are open to the idea of energy efficiency upgrades (Table 1).

Table 1. Client Attitudes Toward Energy Efficiency Upgrades

% Clients in Following Groups Mean

Bottom line focused—will not spend any more than they have to. 40%

Can be convinced—may or may not think about energy efficiency, 

but are open to the upgrades once they understand the benefits.

39%

Embraces, or actively seeks, energy efficiency. 21%

Total 100%

When working with clients, which of the following statements most closely describes your 

company’s approach to energy efficient upgrades? Forty-three percent of remodelers follow the 

approach of incorporating energy efficiency into as many jobs as possible (Table 2).

Table 2. Company Approaches to Energy Efficiency Upgrades

Company Approach to Energy Efficient Upgrades Frequency

We do not try to sell or offer energy efficient upgrades unless they 

are specifically asked for by the client.

6%

We offer or recommend it when the energy efficient upgrade is cost 

effective and is directly related to the home improvement project.

51%

We believe energy efficient upgrades are part of “doing it the right 

way” and incorporate this into as many remodeling jobs as possible.

43%

Total 100%
8

• What is the relative importance of all of the issues (see Table 3)?

o Remodelers believe their biggest obstacle to selling energy efficiency upgrades is 

that appraisal values factor into what types of remodels clients are willing to 

undertake.

o Other major obstacles include: clients unable to discern between high and low 

quality construction in the bidding phase; Realtors are not able to describe the 

value of energy efficiency; Difficulty in comparing existing homes on their 

energy efficiency; and that homeowners want to see tangible differences after a 

remodel, making it difficult to sell energy efficiency.

o The top 10 issues are included in Table 3. The complete Start-Up Kit Remodelers 

Quantitative Market Research Results Overview report to quantify and prioritize 

the support needs of professional remodelers to increase sales and projects 

involving improving home energy efficiency is included in Appendix C.
9

Table 3. Issues Important to Remodelers

Priority Issues Sorted by Importance to Remodelers

1 Appraisal values factor into what type of remodels clients are willing to

undertake, and energy efficiency is difficult to value.

2 Clients are typically unable to discern between high quality and low 

quality construction at the bidding phase. Often they select the lowest 

cost bidder. This makes selling upgraded energy efficiency difficult.

3 Realtors, who are in contact with homeowners as they buy/sell homes, 

aren’t able to describe the value of energy efficiency.

4 There is no standard way to compare a home’s energy efficiency when 

buying or selling an existing home.

5 Homeowners want to see tangible differences, often focusing on 

aesthetics or functionality, which makes energy efficiency a difficult 

sell.

6 One popular way to determine airtightness, a blower door test, is 

expensive and most clients are not willing to pay for just an evaluation.

7 Homeowners see energy efficiency upgrade costs as an expense and not 

an investment.

8 Clients don’t understand the value of energy efficiency. They place little 

value on it. If consumers don’t see a problem, then they won’t purchase 

the solution.

9 There is little real demand for energy efficiency. Homeowners are just 

following the money for rebates.

10 No coordinated efforts between the federal government, state 

government, and utilities when it comes to offering, applying for, and 

complying with energy efficiency incentive programs.

The next step of the multiyear project will include similar research with homeowners. These 

findings will then be the basis for developing the Energy Remodeling “Start-up Kit” guidelines 

and assembling the most relevant technical and business resources.
10

Appendix A Qualitative Market Research―Understanding 

Remodeling and Energy Efficiency Upgrades 

(initial set of remodeler focus groups)
11

Prepared for:

Understanding Remodeling Business and 

Approaches to Energy Efficient Upgrades

February, 2011

Qualitative Research 

Key Points Summary

0

2011 International Builders Show

Orlando, FL

The NAHB Research Center Industry Partnership

as part of the

U.S. DOE Building America Program
12

 Specific objectives were to:

 Gain a better understanding of how the remodeling business works

 Assess perspectives and approaches regarding energy efficiency upgrades/retrofits

 Identify tools that could benefit remodelers/contractors in positioning and selling 

energy efficient upgrades to homeowner

 Discuss within context of whole-house and partial energy efficiency upgrades 

 Three focus group discussions were conducted among remodelers, 

general contractors, and custom builders at the 2011 International 

Builders Show.

 Group 1 = regularly installing a lot of energy efficient upgrades (more than 3 types)

 Group 2 = frequently/always installing energy efficient upgrades, but only 2 – 3 types

 Group 3 = occasionally install energy efficient upgrades

Objectives and Methodology

1

The purpose of the research was to explore perspectives and practices related to energy 

efficient upgrades in the remodeling business in order to identify ways to help remodelers 

successfully increase sales of energy efficient upgrades.

Energy efficient upgrades screened for:

 Appliances

 Windows

 Insulation

 HVAC

 Solar panels

 Other
13

 Each group consisted of eight participants who...

 All either made or influenced the final decision for selecting building materials used in 

their projects

 Represented a mix in terms of remodelers, general contractors, and custom builders

 Represented a mix in terms of title/role and geographic market

 Participants represented 17 different states:

 CA, CO, DE, FL, IA, KS, MA, MD, MT, NC, NJ, NM, OR, PA, TN, TX, WA

Objectives and Methodology

2

NOTE: Qualitative research seeks to develop insights into attitudes, beliefs, and opinions, rather than quantify precise 

measures; therefore findings can not be reliably projected to a larger population. Results provide a better 

understanding of perceptions and practices and should be used as directional insights.

Type of Business (n= 24)

Remodeling 2

Remodeling/General contracting 7

Remodeling/Custom new home building 11

Custom new home building 7
14

Summary of Key Findings

3
15

4

Overview

Remodeling Business –

Market Climate Snapshot

Understanding the 

Remodeling Business

Energy Efficiency: 

Perspectives & Practices

Energy Efficiency: 

Tools for Success

Conclusions

Summary of Key Findings

5

6

10

15

27

30
16

The exploratory nature of the research helps to uncover 

opportunities and barriers for increasing energy efficient 

upgrades

Overview

5

• What trends or shifts have been impacting the 

remodeling business

• How the current market climate influences the potential 

for energy efficient upgrades in remodels/retrofits 

Current market climate

• How business structure impacts approach

• What attitudes & philosophies shape business practices

• How energy efficient upgrades are handled

• How well equipped remodelers/builders feel to sell 

energy efficient upgrades

Remodeling business 

structure, approach

• What consumers are looking for in their remodel

• Degree of receptivity to energy efficient upgrades

• How to connect with them to position energy efficient 

upgrades

Consumer mindset

By exploring: We can identify:
17

The economy and decline in new home construction have impacted 

the remodeling business in numerous ways

Remodeling Business –

Market Climate Snapshot

6

More 

competitive 

market 

climate

Size and scope 

of projects 

changing

Remodelers’/

Builders’ 

business 

changing

Consumers 

seeking tangible 

benefits

Consumers 

scrutinizing their 

dollars

Remodelers/builders are faced with a number of challenges and must find ways to 

differentiate and demonstrate the value they bring to the consumer
18

 Lending restrictions are stifling new home purchases; therefore, many consumers are 

focused on updating their existing home

 Some renovate with the intent of staying in the home over a longer period of time

 Others renovate with the goal of increasing the appraisal value for resale

 Decline in new home construction has forced many builders to downsize and/or pursue 

more remodeling business

 Many have been forced to reduce the number of employees

 The amount of remodeling projects as a proportion of their business has increased in order for them to 

stay afloat

 Layoffs within the building industry, and even other industries, have resulted in an influx 

of people vying for the remodeling work

 Climate is extremely competitive

 Market has been flooded with “hacks” who often are not well qualified and who undercut on price

 Prevalence of individuals doing whatever work they can at a low price has created a dollar focus rather 

than value focus among many consumers

Focus on remodeling has increased among both consumers 

and builders

Remodeling Business –

Market Climate Snapshot

7

Consumers often don’t have a good understanding of what 

it takes to do a job right, so they don’t want to pay more

Yield different 

implications for 

energy efficiency
19

 By far, the greatest challenge faced stems from the flood of competition for remodeling 

projects

 Most do not mind competing against other qualified remodelers who are in the same boat; however...

 What remodelers/builders consider to be greatly hurting the remodeling industry is the influx of “hacks” 

who may or may not be qualified, or even licensed, to do the work and who greatly undercut bids in order 

to get the work

Remodelers/builders consistently noted several challenges 

faced as a result of the economic climate

Remodeling Business –

Market Climate Snapshot

8

“I’ll have a $50,000 - $60,000 kitchen job that’s a total gut, all new lighting, new 

appliances, and then I’ll have Joe in the pickup truck come by and say he’ll do it 

for $25,000 and I’ll lose the job.” (Remodeler, NJ)

Detrimental impact because:

 Most are not licensed and have no insurance (puts homeowner at risk)

 Lack of education among homeowners leads them to believe they are getting an apples to 

apples comparison in terms of job quality and scope, when often they are not

 Low bidding magnifies already existing price sensitivity and fosters a price-driven consumer 

mindset rather than benefit and value-driven mindset

“A lot of people are really just going for price now; they’re not going for 

quality. You can tell them all the extra energy factors and things but they’re 

not really concerned.” (Remodeler/GC, TN)
20

 The scope of work/size of remodeling jobs has diminished in many areas due to 

economic factors

 Many consumers are not willing to spend, or not able to get financing

 For many remodelers, scope of work has shifted from whole house guts or major additions to just 

focusing on the kitchen, bath or other single rooms; or instead of adding to the house, focusing more on 

renovations

 Projects have gone from $100,000+ in scope to $30,000 - $40,000

 See increase in consumer mentality of “do some now, then wait and do more later” or in trade-off 

evaluations where other things (car, landscape, etc.) are competing with remodel for available dollars

 Appraisal value shapes what some consumers are willing to invest in, which can be 

barrier to selling energy efficient upgrades

 Lenders will not give appraisal value for energy efficient upgrades; therefore, many consumers chose to 

spend their dollars on “cosmetic” renovations and upgrades that will increase the resale value of their 

home

 Consumers who value energy efficiency may believe it’s better to invest in a new home than to invest in 

upgrading their existing home

The type of remodeling projects are also shifting, with consumers 

having to scrutinize use of their dollars more carefully

9

Remodeling Business –

Market Climate Snapshot
21

 Many of the participants have had to reduce number of employees. As a result, some are 

“putting back on the toolbelt” and doing some of the work themselves

 For many of the participants, number of employees has declined to 3-4 or to no other employees

 The larger remodelers and custom builders have remained more stable, maintaining anywhere from 10 to 

20 employees

 Most, but not all, use sub-contractors, particularly for specialty trades such as electrical, plumbing and 

HVAC

 Reasons for not using subs are primarily:

 Financial – capable of doing work and want to keep more dollars in-house

 Quality control – subs can have a compartmentalized mentality and only focus on their task rather 

than how everything needs to work together

 Most of the custom builders have taken on more remodeling work due to slow down in 

new home construction, but reliance on remodeling business varies within their 

business mix

 For some custom builders/GCs, remodeling projects have become more of a primary focus due to sharp 

declines in new home sales 

 While some are committed to focus on building their business, or part of it, around remodeling, 

others are simply doing whatever it takes to survive until new home construction picks up

 For custom builders with a more diversified mix of business (high end custom, production, townhomes, 

light commercial, etc.) remodeling projects have increased but remain a smaller proportion of business

 These builders tend to be more selective in the remodeling projects they take on

The participants have had to adjust their business focus and 

structure in order to survive

Understanding the 

Remodeling Business

10
22

There are varying degrees of perceived potential, and 

subsequent emphasis on remodeling among the builders

Understanding the 

Remodeling Business

11

Smaller 

percentage of 

business

Have more diverse new 

construction business 

mix

Tend to be more 

selective in remodel 

projects

Apply new construction 

business philosophy to 

remodels (e.g. “this is 

the way we build”)

Increased %; may 

even exceed new 

construction

Will do variety of projects -

whatever available

Exploring potential in 

remodeling; searching for 

ways to differentiate 

themselves

Primary focus

See great business 

potential in remodeling

Have had success

Many tend to position on 

green building practices

One builder shared that his 

company modified their 

business plan to no longer 

include remodeling because:

 Too competitive

 Low margins

 Low volume of jobs

A larger builder 

created a whole 

separate division 

focused on 

remodeling, and on 

doing it from a 

green or energy 

efficiency 

perspective
23

 Only a handful of the builders participating specifically market themselves as being a 

specific type of remodeler

 All who do, emphasize green building practices. While they do promote energy efficiency, the positioning 

in their minds is “green” which encompasses more than energy efficiency.

 These builders approach the remodels much the same way they do custom home building, in that they 

are selling their business philosophy and target specific types of customers.

 Energy efficiency can range from adding efficient appliances in the kitchen to a whole house remodel with 

energy efficiency included. 

 Often remodelers/builders rely on their reputation for quality and experience as a 

“reason why” for homeowners to consider them

 Many participants have had much success with referrals; customers who experience the benefit of their 

work share the outcomes with neighbors, which helps to drive demand. The remodelers/builders describe 

a “neighborhood effect” in which one project often leads to several other projects on the street or in the 

neighborhood.

 The remodelers/builders pride themselves on their industry knowledge and in their client base.

 While most participants are using some type of marketing materials (website, brochures, magazine 

advertising, etc.), they firmly believe in the value of interpersonal interaction and reputation.

 Building trust among their clients is important to them.

Most of the remodelers/builders position themselves on their 

reputation for quality rather than on a particular area of expertise

Understanding the 

Remodeling Business

12

“The only people surviving in our area are 

the guys who have a reputation and who 

do it right and are trusted.” (Remodeler/ 

custom builder, WA)

Although many of the remodelers/builders have committed to doing energy efficient upgrades as 

standard practice, they treat it more as a part of their overall business philosophy rather than a unique 

selling point or strategic positioning.
24

 Strategies and tactics that remodelers/builders use in their approach to winning 

business include:

 Clearly and precisely outlining scope of work and what it will take to do the project upfront during the bid 

process. Remodelers/builders shared several different approaches to this:

 Charging a small fee for putting the scope of work/estimate together ($250 - $2500, depending on scope). 

The fee will be credited to the project if the homeowner chooses the remodeler, or the homeowner is then 

free to take the scope of work to other remodelers to use for estimating. The homeowner has paid for the 

scope, so they are free to work with another remodeler if they choose.

 Preparing a detailed scope of work but not providing an estimate at that time. The homeowner is then 

encouraged to get other bids and bring them back. Then the remodeler/builder will provide their estimate. 

This keeps control of the bidding process in the remodelers’/builders’ hands.

 Providing a project schedule with the estimate so the customer understands what is encompassed and how 

long it will take

 Setting parameters for type and size of projects:

 “I limit myself. We’ve had longevity in the area so we have a reputation. There’s so many people competing 

in the market. I limit my focus to $100,000 or above which eliminates competing with the guy working out of 

his truck. So people know that if they want a high end kitchen or high end job they come to me. I really push 

the service to differentiate. The regulatory market in Boston is unbelievable so you really need qualified 

people to do the work.” (Builder, MA)

 Screening customers to ensure the customer is a good fit for the remodeler’s/builder’s building philosophy. 

Being willing to walk away from customers or projects who are not a good fit.

 Emphasize having the resources to stay on the job everyday and to stay on schedule, particularly if 

homeowners are living in the house during the remodels. Educate homeowners as to the process and 

what is involved.

 Positions against “guy in the pickup truck”. If he is sick or gets busy with other work, could lose days on the 

project, which is inconvenient for homeowners. He might not provide lien waivers, ec.

Much of what the participants emphasize is knowledge and 

service, with the goal of building trust among clients

Understanding the 

Remodeling Business

13

Helps to ensure 

apples to apples 

comparisons on 

bids
25

 One of the main challenges with remodeling or even additions is that you are only 

focusing on a portion of the home

 This can be a particular challenge in respect to energy efficient upgrades because only updating 

isolated areas does not yield a maximum benefit to the homeowner

 Remodelers are also constrained to some degree because they can not go in with the “whole house” 

perspective in terms of how things integrate

 There is also an element of unpredictability with remodels

 The remodeler/builder can often get into a project and discover issues that need to be addressed that 

were not evident when the project scope was originally developed

 This often involves insulation, pipes or electrical

 The additional work needed can create worry and stress among homeowners because they may already 

be maxed out on their budget, or they may feel like the remodeler/builder is just trying to sell them

 However, scope of work often changes due to homeowners wanting to do more once they get into a 

project. The remodelers/builders strive to paint a concise, clear picture of the project at the time of 

contract, so “scope creep” can be challenging in terms of managing expectations and budget.

 The “problem solving” often required in remodeling influences the subcontractors used

 Remodelers/builders prefer to use the same subs on a regular basis because they know the quality of 

their work and their work ethic  trust is an important factor

 Expect the trades to be licensed, but don’t go through a process of reviewing certifications/credentials; 

focus more on quality of work and reputation; rely on referrals from other remodelers/builders

 Several builders prefer to use a different group of subs for remodels than they use for new construction 

for several reasons. First, remodeling requires thinking from a broader, more integrated perspective and 

new construction subs tend to think compartmentally. Builders also want to make sure homeowners 

would be comfortable with the subs in their homes.

Remodelers/builders contrast remodeling work to new construction in 

terms of predictability and ability to impact whole house performance

Understanding the 

Remodeling Business

14

“New 

construction 

is a process 

and most 

people 

understand 

that process. 

But when you 

go into a 

remodel, you 

have to have 

someone on 

the job that 

actually 

knows how to 

build.”

(Builder, DE)
26

 Nearly all were in agreement that our country is moving toward greater energy 

efficiency and that the emphasis will only increase

 New energy codes are coming out

 Some municipalities are adopting Energy Star requirements as code

 People are slowly becoming more educated on energy efficiency

 A few however, had “wait and see” attitudes, somewhat anticipating a pendulum swing 

backward after current momentum dissipates

 Cite example of big push in 1970s toward energy efficiency, then “nothing”

 Concern about consumers jumping on the government rebate bandwagon without truly understanding 

energy efficiency and how they can benefit

 All were in agreement that consumer education plays a vital role in the acceptance and 

embracing of energy efficient upgrades, particularly in remodeling

 The remodel is the homeowner’s project, “their dream,” and the remodeler’s/builder’s role is to fulfill that 

dream

 The remodeler/builder can recommend energy efficient upgrades but the homeowner needs to perceive 

a meaningful benefit to them in order to spend the money on it, particularly if it means shifting dollars 

from aesthetics

The majority view energy efficiency as a long-term shift in 

building practice

Energy Efficiency: 

Perspectives & Practices

15

“I’ve been through the cycle and it just follows the money. I’ve already started to see a cool 

down. It’s either the norm, the normal way of thinking or there’s the customers who just look 

at it as a way to get a new window.” (Remodeler/Builder, PA)
27

Remodelers/builders approach energy efficient upgrades with 

different philosophies and practices

Energy Efficiency: 

Perspectives & Practices

16

“This is the way we build”

Believe energy efficient upgrades are part of “doing things the right way”; 

incorporate as part of their business model

Have certain upgrades that include as standard part of process, if warranted

Approach as “this is what we’re going to do” then educate consumer as to 

why they do it

“My responsibility to recommend”

Believe energy efficient upgrades are in customer’s best interest and actively 

seek opportunities to recommend upgrades

Seek to guide consumers as to benefits; try to drive them toward it

May recommend upfront, but most often wait until have gotten a feel for the 

house and customer

“We’ll offer as an option”

Intellectually know it should be recommended, but don’t have strength of 

conviction

View more as a consumer driven decision; give them information then let them 

decide

Anticipate consumer bottom line focus

Remodeler/builder in control, benefit focus

Consumer in control, cost focus

Tend to be 

higher end 

remodeler/ 

custom 

builders
28

Remodelers/builders approach energy efficient upgrades with 

different philosophies and practices (cont’d)

Energy Efficiency: 

Perspectives & Practices

17

“For us it’s a standard. We won’t even think about doing a remodel without upgrading 

everything we touch. If we’re putting in a new kitchen, then part of the package has to 

be, ‘we’re insulating this kitchen’ even if they don’t insulate the rest of the house.” 

(Builder, CA)

“I tell everyone that any project I do is going to be built to green standards.”

(Remodeler/Builder, CO)

This is the 

way we 

build

Responsibility 

to recommend

“We give people an option of the type of insulation we use. If they want to use 

closed cell foam and pay for it, they’ll get a higher R-value, or if they just want to 

meet code, we’ll meet the code. (Remodeler/Builder, PA)

“We always offer it as an option, but with our customers it always comes down to 

bottom line and they have to make the decision as to the way they want to go.” 

(Remodeler/Builder, TN)

Offer as an 

option

“I’m a very firm believer that it’s my duty to inform the customer of all the necessary things 

that make the house work properly, within the realm of the project.” (Remodeler/Builder, 

PA)

“Most of the time when you’re in the house they’ll start mentioning their heating bill is high 

or this room is drafty and then you get in there and see that they don’t have enough 

insulation and make the recommendations. They may not do it at the time, but at least 

you’ve educated them and they’ll come back later on [and call you because they see you 

as the expert]” (Remodeler/Builder, TN)
29

 Remodelers/builders find that many older homes have no insulation or little insulation

 Adding insulation when there is little to none makes sense and is something the homeowner can easily 

grasp

 It is often easier to get buy-in under this scenario than in situations where the house has adequate 

insulation but could benefit from an upgrade

 Kitchen remodeling was frequently cited as another opportunity for insulation upgrades

 Benefits are typically positioned more on comfort and efficiency than on dollar savings off of utility bills

 Homeowners will often decide to upgrade insulation in other areas of the house after experiencing the 

difference in the room that was upgraded

 Other energy efficient upgrades cited by the remodelers/builders included:

 Air sealing

 Windows

 HVAC

 Tankless water heaters

 Technology such as lighting control, HVAC control

 Appliances

Insulation is one of the most common energy efficient 

upgrades that the remodelers/builders incorporate

Energy Efficiency: 

Perspectives & Practices

18

Some remodelers/builders consider insulation 

and windows to be the easiest and most costeffective upgrades because consumers can 

more readily notice a benefit

“In my area, some of these older houses have no insulation at all. It’s a given 

that nobody does a remodel without adding insulation and a housewrap or foam 

on the outside.” (Remodeler/Builder, IA)
30

 None of the remodelers/builders go in with the primary purpose of the project being to 

upgrade the home in terms of energy efficiency

 One remodeler/builder did share that in his entire region he only knew of one remodeler who has truly 

embraced energy efficient upgrades as a business focus. This remodeler does not go through a 

traditional project bid process, but rather goes out to the home and does an energy analysis and then 

puts a package together for the homeowner. Much of the remodeler’s success has come from educating 

the consumer through the sales process.

 Another remodeler/builder cited the example of remodelers/builders in his area getting into window & 

door replacement or insulation upgrades driven by the electric company; however, he considered those 

weatherization projects, not remodeling projects.

 The remodelers/builders tend to think of energy efficient upgrades as a business practice 

rather than viewing it as a specific business opportunity

 Their mindset and approach is to evaluate the opportunities within the context of the remodeling project 

rather than to specifically pursue energy efficient upgrade projects.

 Remodelers/builders who incorporate energy efficiency upgrades as a standard part of the building 

approach know that they are going to do whatever they can on each project anyway; therefore, they don’t 

perceive a need to focus primarily on energy efficiency to generate business.

 Other remodelers/builders believe that the greatest potential for offering energy efficient upgrades comes 

after they have spent some time in the house and become familiar with it, and familiar with the 

homeowners themselves. 

 This gives them the opportunity to more fully assess the needs

 It also gives them the opportunity to build trust and confidence with the homeowners

Energy efficiency is rarely the driver of the remodeling 

projects

Energy Efficiency: 

Perspectives & Practices

19
31

Pathways to energy efficiency vary; however, several key 

ingredients to successful approaches were revealed

Energy Efficiency: 

Perspectives & Practices

20

Incorporate a discovery 

process

Consultative, 

educational approach

Use numbers with 

caution

Connect the 

dots/translate into 

something meaningful

Ingredients to 

successful 

approaches
32

 Incorporate a “discovery” process to better understand clients, their values and their 

lifestyles

 Sitting down and talking with them and getting to know them helps the remodelers/builders to better 

identify how best to position the benefits of energy efficiency upgrades to them

 Simply asking what they do for a living can yield insight. For example: accountants, engineers and 

people who are more numbers oriented tend to respond best to facts and figures, seeing thing on paper, 

etc.

 One remodeler/builder specifically asks clients where they are on the green building scale and tries to 

identify what really matters to them (e.g. savings on utility bills, more comfortable rooms, 

sustainability, saving the environment, etc.), then he positions the benefits accordingly.

 Consult and educate homeowners throughout the sales process

 The remodelers/builders want their clients to value the knowledge and experience they bring to the 

table, and to trust in their recommendations. 

 They try to educate the homeowner as to implications of current state of the home, consideration 

factors, and benefits they can gain from the energy efficient upgrades.

Key ingredients to successful approaches

Energy Efficiency: 

Perspectives & Practices

21

“Let’s say we’re doing an addition over the garage and we have a separate [HVAC] system just for that. 

We’ll start the conversation of best use of the system and energy efficiency, discuss the age of their 

existing system and things to consider. We’ll let them talk to the heating subcontractor...” (Builder, DC)

“One thing I always talk about is air infiltration in the home and I try to put it on the customer’s level...The next thing I do is 

talk about duct work because most of our duct work is in the attic. If they haven’t had the ducts replaced in the last 8 years 

I tell them to go up in the attic, turn the air handler on and put their hands on the joints and they will feel the leakage. I tell 

them in a typical setting, we’re losing 25 – 30% of the air conditioning right in the attic through leakage in the duct work, so

if I can reseal imagine what you could be saving on utility costs. Instead of telling them I’m going to reduce it by 30%, I’m

going to tell them what their loss is and let them make up their own mind.” (Remodeler/Builder, TX)

“All triggers for 

consumers fall 

into one of two 

categories –

monetary or 

lifestyle”
33

 Connect the dots for the customers in terms of benefits they can gain from the 

upgrade  and recognize that what you emphasize depends on the project and the 

customer (i.e. it’s not one size fits all)

 Position as an investment and demonstrate potential savings to show return on investment. Show how 

potential return compares to other types of investments, for example, CDs, or money markets.

 If homeowners mention drafty rooms or rooms with different temperatures, emphasize gaining a more 

comfortable living environment

 For women, highlight the benefits of having a cleaner house and less bugs as a result of air sealing

 Use numbers with caution

 Remodelers/builders have to find a balance between being able to demonstrate potential value and 

guaranteeing numbers. Giving examples and comparative ways of thinking about the investment 

works. Don’t want consumers to come back and say “you promised I would save $X”

 One remodeler/builder uses an energy computer model from the DOE to generate reports that show 

clients their potential for energy savings if they incorporate various upgrades. He is able to give them 

a baseline estimate for their remodeling project then show several “what if” scenarios to demonstrate 

what the options are and the impact of different upgrades. This enables customers to make educated 

decisions.

 Make sure if you use numbers, they are realistic numbers from a reliable source

 Rather than throw out potential savings estimates, cultivate referrals where customers who have had 

upgrades done can share how they have benefited

Key ingredients to successful approaches (cont’d)

Energy Efficiency: 

Perspectives & Practices

22

“For example, I might say, ‘you know, your grandmother comes and stays with you for x 

months. Insulating that room will make her more comfortable.” (Remodeler/Builder, TN)
34

 There were somewhat varying perspectives in terms of how the remodelers/builders bucket the 

consumers (i.e. benefits sought, lifestyle, mindset regarding remodel, etc.) however, no matter 

the criteria, consumers generally fall into one of three categories regarding energy efficiency.

Remodelers/builders acknowledge that consumers fall into 

different buckets in respect to energy efficient upgrades

Energy Efficiency: 

Perspectives & Practices

23

Embraces 

and seeks

Can be 

convinced

Bottom 

line 

focused

Types of Clues Used to Identify

 What they do for a living

 Age

 Current lifestyle and habits

 What they are seeking from their home

 How long they intend to stay in the home

 Reason for remodel
35

 Consumers who more readily embrace, or even actively seek energy efficiency often 

have some of the following characteristics:

 Tend to be younger and well educated

 Are already incorporating some “green” practices in their lifestyle (i.e. driving a hybrid car, using energy 

saving appliances, interested in products and practices that contribute to sustainable living, etc.)

 Have health issues (e.g. allergies, asthma, etc.) and are seeking a healthier living environment

 Have already done some of their own research

 Desire a better performing home

 Those who can be convinced may or may not think about energy efficiency, but are open 

to the upgrades once they understand how it can benefit them

 Have committed to staying in their home for a longer period of time

 Have a mindset of investing in their home to improve their quality of living

 Tend to skew a little older

 Are motivated by receiving benefits (e.g. more comfortable living environment, savings on utility bills, tax 

credits, etc.)

 Those who are bottom line focused are typically easy to identify, and often exhibit some 

of the following characteristics:

 Price driven, so typically seek multiple bids and are looking for the lowest price

 Remodeling to update and increase appraisal value on home

 Don’t intend to stay in home for a long period of time

 Want to see numbers 

 Are focused on return on investment

Knowing what type of consumer they are working with enables 

remodelers/builders to identify how to position energy efficiency

Energy Efficiency: 

Perspectives & Practices

24

Often most difficult to 

convince
36

 The influx of “hacks” going after remodeling business has polluted the industry

 Shifts consumer mindset to price rather than value, which can make consumers relate to energy efficient 

upgrades as a cost rather than an investment that can benefit them

 “Joe in the pickup” remodelers often don’t educate consumers, provide apples to apples comparison of 

job scope when bidding, or provide the level of quality control needed, which can make qualified 

remodelers appear high priced 

 Lack of appraisal value for energy efficient upgrades knocks the upgrades out of 

consideration

 Consumers who are remodeling with the goal of updating the house for resale focus their dollars on 

upgrades that will add appraisal value and increase chances of selling the home.

 “Everybody’s concerned about resale and evaluations of houses are down so they’re saying, ‘well, I’ll get 

money back from the kitchen, but if I make the house more energy efficient and it’s still got a 1975 

kitchen in it, it’s not going to up the value’.” (Builder, MA)

 For some consumers desiring an energy efficient home, it is often a better investment to purchase a new 

home that is energy efficient/green built than to try to remodel and create energy efficiency in the home 

they’re in.

Remodelers/builders face several challenges to selling energy 

efficient upgrades

Energy Efficiency: 

Perspectives & Practices

25

“What we do to 

make the home 

better – better 

insulation, better 

windows, etc. –

we’re not getting 

the bang from the 

appraisers.” 

(Builder, NC)

“There is no best pathway, there’s a lot of different ways you can make a house more efficient. That’s another part of the 

struggle too, because when you’re starting at a different point with each existing home, you are fighting your exemployees or the guy that got laid off at the mill who doesn’t understand the building science, and so there’s total lack of

parity when it comes to energy efficiency.” (Builder, MT)
37

 Other challenges the remodelers/builders face:

 Lack of consumer education regarding energy efficiency, how the house performs, and what lifestyles 

and habits can impact energy consumption and savings

 There are no incentives to the remodeler/builder to educate consumers or push for energy efficient 

upgrades

 It is often difficult to get reliable data to show consumers and to educate them on potential energy 

savings

Remodelers/builders face several challenges to selling energy 

efficient upgrades (cont’d)

Energy Efficiency: 

Perspectives & Practices

26

Remodelers/builders consider consumer education to be a key factor in being 

able to implement more energy efficient upgrades. Education needed:

➤ What contributes to energy efficiency and to inefficiency

➤ Benefits that can be gained from the different types of upgrades 

➤ What they should be looking for in a remodeler, and what they should expect from the remodeler

➤ How to understand the “payback” that can be gained from energy efficiency upgrades
38

 Most all agreed that a brief educational piece that educates consumers about how to 

think about the house and about energy efficiency would be of value

 While some preferred having the video available online as part of a resource website, others preferred 

to have a DVD or pamphlet that they could give to consumers 

 Many of the remodelers/builders felt strongly that whatever the resource is, they need to be able to 

leverage it as a value that they are bringing to their customers, and that will help position them as a 

knowledgeable, trustworthy professional. Some felt that providing customers with a DVD helped to 

foster more interpersonal interaction between the remodeler/builder and consumer than did sending 

the consumer to a website.

 The information should be easy to understand (“6th grade level”) and brief

 Remodelers/builders also felt that the information should be educational and noncompetitive (as 

opposed to manufacturer sponsored or something that comes across as sales-oriented), and come 

from a national association or DOE.

 A few saw value in resource tools that the remodelers/builders could customize for 

their own use in educating customers

 For example, an newsletter that educates on energy efficiency that the remodelers/builders could 

customize and send out to clients and prospects

Many of the tools for success that remodelers/builders felt 

were needed centered around consumer education

Energy Efficiency: 

Tools for Success

27

“But it’s a double-edged sword. If the customer goes to a website and gets educated, you start to 

devalue yourself and what you bring to the table in terms of knowledge and experience, and then it 

just becomes all about price.” (Remodeler, NJ)
39

 Some of the smaller remodelers/builders felt it would be beneficial to have a resource 

that they could go to get information to educate themselves, as well as to get 

information for the consumers, and to get marketing support

 Having to spend more time back in the field has reduced the amount of time they have to research 

and find information on their own

 Another tool that many felt would be useful is some type of cost/benefit analysis that 

they could show to customers

 Be able to calculate potential savings based on their specific area, and what the period might be to 

start realizing savings

 A method of demonstrating the payback and how it might increase the value of the home. For 

example there are charts that you can find on the Internet that show what impact a kitchen or bath 

remodel or adding a swimming pool has on the value home. If there was something similar for energy 

efficiency, even if appraisal issues prevent tying into overall home value. For example, instead being 

able to demonstrate energy savings or increase in comfort or healthier living environment.

 The remodelers/builders also desired something that would help consumers be able 

to distinguish between an experience, knowledgeable qualified contractor and those 

who are not

 They struggled, however, in identifying what that might be. While they agreed in the importance of 

certification and licensing, they did not feel that consumers would take the time to investigate and 

check qualifications.

 A few did believe that some type of referral source that listed qualified remodelers might be of value if 

promoted properly to consumers

Many of the tools for success that remodelers/builders felt 

were needed centered around consumer education

Energy Efficiency: 

Tools for Success

28
40

 Most have found their own way of reading customers and identifying their hot buttons 

and relate to this as part of the art of relationship building

 They shied away from “canned” approaches because that seemed to discount the experience and 

knowledge that they bring to the table and that they feel differentiates them

 They were more interested in information and resources that could equip them/arm them and that 

they could utilize the way that fits best with their approach, versus something that was going to 

essentially tell them what to do

 There was little perceived value in having consumers fill out “profiling” questions in advance because 

the remodelers/builders feel that the discovery process they use to find out the find out the information 

is part of their art

 Some would find benefit, however, in a “pathways” checklist or reference piece that 

could be used to identify opportunities and things to emphasize to different types of 

customers

 For example, homes built before certain dates probably don’t have much insulation  opportunity to 

recommend adding insulation based on need

 Ask the homeowner if they’ve noticed any temperature variances throughout the house  opportunity 

to talk about the comfort benefits of upgrading insulation and air sealing

 Ask how long they intend to stay in the house  position benefits of doing upgrades now while the 

contractor is there versus having to have someone come back in down the road 

The remodelers/builders were somewhat resistant to tools or 

resources to help them profile customers and talk to them

Energy Efficiency: 

Tools for Success

29
41

 The slowdown in new construction and economic climate has shifted greater to focus 

to existing homes and to remodeling. 

 More consumers are staying in their homes and deciding to upgrade, and many builders are turning to 

remodeling work to supplement their business.

 However, the lending restrictions, lack of appraisal value on energy efficient upgrades and the flood of 

individuals into the remodeling arena has created a very competitive, price sensitive market.

 Qualified remodelers and builders strive to differentiate themselves based on 

experience, knowledge and customer service, in addition to quality building practices

 Anything that can help differentiate them from the “hacks” and convey to the consumer the value of 

what a experienced, qualified remodeler/builder brings to the table would be appreciated.

 Any tools provided should help position the remodeler/builder as the expert and serve to build trust 

and confidence among consumers. 

 Information sources that remodelers/builders could use to demonstrate ROI or 

provide a cost/benefit analysis for energy efficient upgrades would be valued

 Include an energy audit that assesses current energy consumption and lifestyle

 Demonstrate to consumers potential savings or “payback” they could realize if they make various 

upgrades; connect the dots in terms of upgrades and real world benefits

 Finally, educating remodelers/builders themselves as to best practices and 

approaches and help to motivate

 Remodelers/builders who have conviction that energy efficient upgrades are “the right way to build” 

are the ones who tend to have more success implementing. Their approach comes across as a 

knowledgeable recommendation with the consumer’s best interest in mind rather than a sales attempt 

with the remodeler’s/builder’s financial interest in mind.

Conclusions

30
42

31

NAHB Research Center

400 Prince George’s Blvd.

Upper Marlboro, MD 20774

800-638-8556
43

Appendix B Qualitative Market Research―Energy Efficient 

Upgrades in Remodeling Exploration of Gaps and Potential 

Solutions 

(second set of remodeler focus groups)
44

Prepared for:

Energy Efficient Upgrades in Remodeling –

Exploration of Gaps and Potential Solutions

June, 2011

Qualitative Research 

Key Points Summary

0

NAHB Research Center

Upper Marlboro, MD

The NAHB Research Center Industry Partnership

as part of the

U.S. DOE Building America Program
45

 Specific objectives were to:

 Build on previous qualitative research by delving further into gaps and specific 

solutions that would be helpful for stimulating growth

 Identify tools that could benefit contractors/builders in positioning and selling energy 

efficient upgrades to homeowner

 Two focus group discussions were conducted among remodelers 

attending the NAHB Spring Board Meetings. Groups were conducted at 

the NAHB Research Center.

 Participants represented different markets/climates (AK, GA, IA, IL, MD, MN, OR, PA, 

TN, VT); all were President or Vice President of the company

 Average number of projects per year for most ranged from 7 to 45; two average 100 

projects per year; average value ranged from $6k to $250k

 Participants regularly incorporate a variety of energy efficiency in whole-house gut 

rehabs and other remodeling projects and consider 

a number of upgrades including:

Objectives and Methodology

1

The purpose of the research was to explore current practices related to energy efficient 

upgrades in the remodeling business in order to identify ways to help remodelers 

successfully increase sales of energy efficient upgrades. Results will be used to develop 

quantitative research.

 Appliances

 Windows

 Insulation

 HVAC

 Solar panels

 Other
46

Summary of Key Findings

2
47

This research confirmed much of what was learned during the 

Phase I qualitative research conducting in January 2011

Overview

3

• Limited dollars for projects; consumers scrutinize dollars 

carefully; energy efficient upgrades usually not a priority

• Unprofessional individuals muddy the market, undercut 

on price

Competitive market climate

• Identify opportunities once involved in the project; 

energy efficient upgrades not the impetus for projects

• Listen for cues from homeowner

• Approaches rooted in overall business philosophy

• Prefer advising/recommending vs “selling”

• Desire to be perceived as the knowledgeable 

professional, to build trust and confidence

Approach to energy efficient 

upgrades

• Believe there is potential for growth

• Struggle to identify “tools” that could help them

• Major deterrents to growth are: education/perceived 

value, appraisals, financing

Perspective of growth 

opportunity
48

 None have projects where the primary purpose is energy efficient upgrades, but rather 

identify things that are needed or could be done once they get into the project

 They stress that the focus first and foremost is on the reason the homeowner contacted them (e.g. 

kitchen or bath remodel, addition, etc.)

 Consistently stress that they need to get in and get a feel for the home, and for the homeowners’ needs 

and priorities, before making any energy efficiency upgrade recommendations

 Some automatically incorporate appropriate upgrades under their business approach (e.g. “this is the way 

we do business”)

 Remodelers do not want to come across as “selling,” but rather recommending 

solutions based on their professional expertise

 Dollars are tight and the market is competitive, so they do not want homeowners to feel like the 

remodeler is tacking on costs or just trying to sell them something they don’t really need

 It is critical that the homeowner relate to the energy efficient upgrades as a solution that will be of value to 

them  fosters acceptance, but also strengthens perceived value of the remodeler

 Most are more comfortable advising than trying to convince; some don’t want to take the time to educate 

the homeowner about energy efficiency

The remodelers look for energy efficient upgrade 

opportunities as part of their approach to doing their job well

Current approach

4

“He’s right. If they don’t get it, it is not worth our time to educate them in 

the way they need to be educated to make those kind of decisions.” –

OR Remodeler

“I’ve learned that no matter what the problem, you have to first address what they’ve called 

you about. When you are in the course of that conversation, they become more comfortable 

with you, then they start opening up more and throw out hints.” – GA Remodeler
49

 Asking key questions can identify needs/opportunities and help set up solutions

Homeowners must recognize that there is a “problem” before 

they can see value in the energy efficient upgrade solution

Developing pathways

5

➤ If the homeowner is not planning 

on staying in the house more than 3-

5 years, they typically won’t invest in 

energy efficient upgrades because 

they don’t add appraisal value

➤ Older people are becoming more 

receptive and recognize benefits 

(financial, comfort); tend to plan to 

stay in their homes longer

“If you can get them to recognize a problem, you 

can sell them a solution. But if they don’t recognize 

the problem, it’s very difficult because you are not 

solving any issue they have” – MN Remodeler

Qualifying 

Questions

Problem 

Identification 

Questions

Solution 

Set-up 

Questions

 How old is the house?

 How long do you plan to 

live here?

 What are your goals for 

this project?

 How much are you spending on 

utilities?

 Do you notice any hot or cold 

spots? Do you notice drafts?

 How old is your furnace/air 

conditioner?

 When was the last time you 

added blown insulation to your 

attic?

 Did you know that... 

(explain where inefficiencies 

are and how efficiency could 

be improved; make aware of 

any rebates or incentives)

 Have you ever 

considered...
50

Ingredients to successful approaches: establish the need, 

educate as to solutions

Successful approaches

6

• Ask questions

• Listen for hot buttons

Incorporate a discovery 

process

• Provide factual information

• Recommend an energy audit; blower door tests 

(3rd party  legitimizes need, validates)

• Identify problems and solutions

Use a 

consultative/educational 

approach

• Position solutions in terms of benefits meaningful 

to homeowner (e.g. comfort, lower energy bills, 

more predictable bills, more cost effective to 

upgrade now, better indoor air quality, etc.)

Connect the 

dots/translate into 

something meaningful

• Use numbers to educate/inform, not promise

• Create realistic expectations; advise as to how to 

maximize potential

Use numbers with 

caution

Identifies 

pathway for 

positioning

The spray foam 

and propane 

industries were 

cited as having 

done a good job 

at educating and 

connecting the 

dots
51

 Blower door tests are one of the most common ways of demonstrating both the need 

and the benefit of a solution to homeowners

 It is a quantifiable measure that can substantiate the need.

 It is a standard, accepted measure within the industry.

 Pre- and post-test comparisons validate the work, demonstrate a difference.

 In Vermont, Vermont Gas pays the contractor based on amount of savings gained in the house, based 

on blower door tests. Provides a cash incentive for contractors to do a better job insulating and air 

sealing.

 Georgia is planning to require blower door testing on all new homes, and on additions.

 Some remodelers partner with energy audit companies

 Remodeler can recommend that an energy audit be done

 Energy auditors provide independent audits and make recommendations to the homeowners as to what 

is needed to improve efficiency  can help foster credibility as to need and benefits

 Homeowner can then call the remodeler if they would like the work done

 State and/or utility or non-profit programs can make it easier for homeowners to do the 

upgrades by offering rebates, low interest loans or other financial assistance

 The state of Alaska offers a home energy rebate program, which rebates some of the cost of energy 

efficient improvements to existing homes (includes materials and contracted labor). The Alaska Housing 

Finance Corp. also offers low interest loans to assist homeowners with improvements.

 Vermont Gas offers free energy audits and will rebate 33 1/3% of the installed cost of the recommended 

measures, and provides a low interest loan for the balance.

 Efficiency Vermont, a private nonprofit organization, offers rebates and incentives to help homeowners 

make energy efficient improvements to their homes. Funding covers 30-40% of the cost.

Factors that help stimulate energy efficient upgrades 

reinforce the idea that the upgrades are beneficial

Factors that encourage 

upgrades

7

However, while remodelers may recommend 

blower door testing, many homeowners will 

not do it because of the cost.

These 

initiatives help 

to demonstrate 

the importance 

of energy 

efficient 

upgrades
52

 Government rebates or tax credits can stimulate specific types of energy efficient 

improvements (e.g. windows, doors, appliances, etc.)

 Provides a temporary boost in business for remodelers, particularly specialty remodelers

 Makes it easier to convince homeowners to make certain upgrades

 However, without the incentives many people won’t upgrade because they don’t 

perceive value

 Some remodelers believe that providing short-term incentives does not foster understanding of the true 

benefits of energy efficient upgrades; therefore, these programs do not provide long-term benefit

 The national deficit also creates concern about government funded programs to subsidize energy 

efficient upgrades

Short-term government rebates or tax credits elicit mixed 

feelings

Factors that encourage 

upgrades

8

“Often times the reason people don’t do the upgrades is because they don’t see value in it. I 

agree that without the incentives, people don’t want to do it, which tells me that energy 

efficient upgrades are not yet market driven. As long as they are being subsidized at some 

level, we’ll probably have an issue because at some point that money is going to dry up.” – OR 

Remodeler

Successful programs convey commitment, educate consumers as to “why” and “how,” 

and establish a reason to believe.

Programs that are short-term or limited-time incentives are not as effective because when 

the money runs out so does homeowner interest.


53

A number of factors make it challenging to implement energy 

efficient upgrades in more existing homes

Challenges

9

Cost

➤ Typically an out-of-pocket expense for homeowner; prefer to allocate budget to “seen” 

upgrades; energy efficient upgrades often first to get cut from budget

➤ Many homeowners don’t want to pay for blower door tests

➤ Do not get appraisal value for energy efficient upgrades

➤ Often can’t get loans or credits to do the upgrades

➤ Upfront cost can be greater than savings (i.e. no financial ROI)

➤ If gas/electric prices are inexpensive, homeowners won’t “feel the pain” and be motivated 

to upgrade

Nature of 

remodels

➤ Every project is different so difficult to implement a standard approach

➤ Typically focusing on one area of the home, not the whole house; difficult to gain 

maximum benefit of energy efficiency

➤ Goal of project is almost always something other than energy efficient upgrades

Homeowner 

mindset

➤ Often don’t see the need or value

➤ Focus is on “their project”/why they called the contractor; difficult to get them to think 

about other areas of the house (not interested, seems like adding on expense)

➤ Aesthetic upgrades/renovations are exciting and can be shown off, but energy 

efficient upgrades don’t provide the “wow” factor

Lack of 

education

➤ Homeowners often don’t perceive a problem and therefore do not understand benefits

➤ Homeowners tend to perceive as an expense rather than as an investment 

➤ Appraisers don’t understand how to value upgrades

➤ Realtors need to be educated to help potential buyers understand the value

Sends a signal that it 

is not important
54

 The bottom line is that energy efficiency needs to be tied into the perceived “value” of 

the home so that improved energy efficiency is recognized as a value-add 

Remodelers believe three fundamental things are needed to 

stimulate widespread growth of energy efficient upgrades

What is needed for growth

10

Enable/Equip Homeowners

Free energy audit

Subsidized blower door testing

Reduced loan rates/mortgage rates

Appraiser and Realtor Education

Establish energy efficiency as adding value to the home

Educate as to how to interpret and compare energy 

performance ratings of homes

Establish an Energy Performance Rating System

Standard, quantifiable measurement

Provides consistent method of evaluation, comparison

Necessary to 

create market 

demand to drive 

energy efficient 

upgrades
55

 The rating system should be designed so that consumers can make educated decisions 

about the houses

 Should be established as a basis of comparison, not a requirement to bring the house to a minimum 

standard

 Would provide a uniformly accepted means of:

 Assessing where a house is (baseline) and where it could be with improvements. It should include 

guidelines/recommendations for what could be done to improve efficiency rating.

 Comparing homes – becomes a decision factor in the home buying process

 Energy efficiency audits to rate the homes should be established as a norm, similar to 

the way home inspections have been instituted as part of the sales process

 One of the best means of getting the energy audit process rooted

 Helps to establish the importance of improving energy efficiency of existing homes

 Educating appraisers and realtors is the next key component that is needed

 They need to understand the energy performance scores and the value that energy efficiency adds to a 

home, and be able to easily explain it to home buyers

 Both should embrace the importance of having the energy performance scores

 Making it easy and/or mandatory to become educated will be important for facilitating adoption within 

both the real estate and appraisal industries

 Being able to get increased appraisal value for energy efficient upgrades will help to shift homeowners’ 

mindset from “cost” to “investment”

Establishing an energy performance rating system for 

existing homes is considered an important starting point

What is needed for growth

11
56

 Homeowners have to perceive a need for, and a benefit to, making energy efficient 

upgrades

 Lowering the cost burden through free energy audits and/or subsidizing blower door tests can motivate 

homeowners to assess their home’s energy efficiency, which increases understanding of the need for 

upgrades

 Makes it easier for homeowners to take that first step to understand the need

 Free or low cost energy audits/testing leaves homeowners more money to allocate to making the energy 

efficient upgrades (which benefits remodelers)

 Reward homeowners and homebuyers for striving for more energy efficient homes

 Awarding point reductions in the mortgage interest rate for energy efficient homes would help make it 

worth it for homeowners/home buyers

 Helps to position energy efficient upgrades as an investment rather than a cost

 Offering low interest/no interest loans to make upgrades would enable homeowners to implement 

improvements

 Awareness and education can be increased; however if homeowners can’t afford to make the 

upgrades, it doesn’t matter

 By investing in energy efficient upgrades, homeowners can better manage monthly expenses and be in 

a little stronger position to pay their mortgage

Barriers to both assessing energy efficiency and to 

implementing upgrades need to be lowered for homeowners

What is needed for growth

12

Individual states are already making strides in some of these 

areas; however, there needs to be nationwide implementation, and 

increased consumer awareness of programs available
57

Encouragement of energy efficient upgrades is needed at 

multiple levels from multiple entities

What is needed for growth

13

State Level

Remodeling 

Project

Federal & 

State 

Government

Appraisers

Lenders

Realtors

Utility 

Companies

Industry 

organizations
58

 Homeowners need to be conditioned to think of increasing their home’s energy 

efficiency as an investment rather than a cost

 Simple, straightforward information that enlightens homeowners as to where/how inefficiencies occur, 

and what the resulting implications are 

 Communicate benefits to homeowner of increasing energy efficiency

 Perhaps position as “improvements” (implies beneficial gains) rather than “upgrades” (often associated 

with “more expensive”)

 Interactive resources such as software or a website that could project potential energy 

savings based on different types of improvements would be beneficial

 While some remodelers would want to use the tool themselves to demonstrate potential to homeowners, 

others would prefer resources that they could simply recommend to the homeowner to use on their own

 Providing third party/independent information is considered important in order to add 

credibility

 Articles and information/facts from industry magazines, research institutions, Department of Energy

 Region-specific information from state or local government, utility companies

 Website sponsored by a credible, respected entity (e.g. Department of Energy, NAHB, Building 

Performance Institute)

 Being able to recommend certified energy auditors

 Having simple “Did you know?” materials that remodelers could provide to homeowners. Information 

should come from an independent source. Should be available in a variety of formats – printed, DVD, 

USB drive

Tools that would benefit remodelers largely involve 

homeowner education

Tools for Remodelers

14
59

 Helping remodelers to establish relationships with others in the remodeling industry 

such as energy programs, energy auditors, utility companies, appraisers, lending 

institutions and other entities would be beneficial

 Auditors, lenders, etc. can refer remodelers when upgrades are needed

 Some remodelers feel it is more beneficial for an outside entity (energy program, auditor, utility, lender, 

etc) to educate homeowners as to the need; therefore, this scenario enables them to stay focused on 

executing the solution

 This will be particularly beneficial if an energy ratings system is implemented

 However, many of the remodelers were not keen on the idea of having a certified 

remodeler program for energy efficient upgrades

 Too many certifications already (BPI, HBI, HERS, contractor licensing, local certification, green 

certifications, etc) 

 Do not believe most homeowners understand or really care about certifications

 A certification program may carry too many regulations/requirements

Collaborative referral programs would be beneficial to 

remodelers

Tools for Remodelers

15

“We’ve partnered with an energy audit company and they’ve printed a tri-fold brochure that 

our estimators take out, typically to houses built before a certain date.... We’ve gotten 

about 5 – 6 jobs from them. They go out and do the audit, then the people call us to come 

do the work.” – IA Remodeler
60

 Most of the remodelers believe there is definite growth potential for energy efficient 

upgrades; however, long-term success is dependent on upgrades becoming market 

driven

 Incentives that are based on improved home performance rather than specific products will have 

more long-term benefit because they broaden perspectives

 Shifting homeowner mindsets to “performance” of the home better conditions them to understand the 

value of making energy efficient upgrades beyond the scope of their remodeling project

 There are several points of frustration for remodelers:

 Perhaps the greatest source of frustration is homeowners not perceiving value in doing energy 

efficient upgrades

 Another point of frustration is that it is difficult to get homeowners to think in terms of the home’s 

energy efficiency performance when they are focused on one specific area of the home for the 

remodel project 

 “...they’ll do energy efficient upgrades to the basement when they are remodeling the basement, but ask 

them to think about the attic and they are thinking about the basement...” – MN Remodeler

 Cost barriers are also a pain point

 Many homeowners don’t want to spend money on blower door tests or energy audits. Remodelers 

believe, however, that results of the audits/tests would demonstrate to homeowners that there is a 

problem.

 Because costs are typically out of pocket for homeowners, they may not be able to afford the energy 

efficient upgrades, or they may cut the energy efficient upgrades from their budget in order to get more 

aesthetic upgrades.

 The amount of savings on the monthly energy bill may not be worth the upgrade investment to 

homeowners.

 Energy efficient improvements do not add appraisal value to the home; therefore, the improvements are 

viewed as a cost and homeowners looking to sell are not motivated to make the improvements.

Summary

16
61

 Homeowners need to perceive a “reason why” they should invest in the upgrades

 Motivators and hot buttons will vary; however, remodelers can identify pathways to positioning the 

upgrades by listening for cues and by asking homeowners specific questions during the beginning 

phases of the project

 Predominant motivators for making the upgrades tend to be:

 Reducing monthly energy bills

 Having more predictable energy bills each month

 Being able to maintain more even and/or comfortable temperatures within the home

 Improving indoor air quality

 Some homeowners are motivated by being more environmentally responsible (e.g. living green) and 

contributing to the conservation of our nation’s resources.

 Helping homeowners to connect the dots between a problem and solutions is necessary for buy in

 Remodelers don’t want to come across as “selling” but rather as recommending 

solutions that will benefit the homeowner. 

 Equipping remodelers with key questions to ask, as well as key facts, can enable them to position 

themselves as knowledgeable professionals.

 Educational information regarding energy inefficiency and its implications can help to create 

awareness among homeowners that there are issues that could be improved. 

 Ex: Did you know that you could be paying 10 – 20% more than you should be in monthly energy costs 

because of leaky ducts, drafts, outdated heating & cooling systems or insufficient insulation?

 Industry information from a 3rd party source (e.g. Department of Energy, NAHB, etc.) adds credibility. 

Energy saving tip sheets or “Did You Know?” informational pieces that remodelers could give 

homeowners would help to create receptivity, and to build confidence in the remodeler.

Summary

17
62

 Most remodelers agreed that the most beneficial things for stimulating growth of 

energy efficient upgrades would include:

 Development of an Energy Performance Scores rating system for existing homes, which is 

implemented nationwide

 Establishing appraisal value for energy efficient upgrades

 Realtor education as to value energy efficient upgrades bring, and how to sell the features

 Points off mortgage interest for energy efficient upgrades

 For remodelers, the following “tools” would be of value:

 Informational/educational resources to shift consumer thinking to home performance, increase 

understanding of problems, understand benefits of various types of upgrades, etc.

 Website, DVD, printed materials

 Consumer campaign to increase awareness and understanding of the value of energy efficient 

upgrades (done by government, utilities, etc.) 

 Free/low cost energy audits for homeowners

 Key questions to ask in order to identify opportunities, position benefits to homeowners

 Means of quantifying impact of energy efficient upgrades (e.g. pre/post testing, energy savings 

calculators, etc.)

 Connecting remodelers with energy auditors so they can develop a referral network

Summary

18
63

19

NAHB Research Center

400 Prince George’s Blvd.

Upper Marlboro, MD 20774

800-638-8556
64

Appendix C Quantitative Market Research―Building America 

Remodelers Start-Up Kit 

(quantitative market research with remodelers based on the 

focus groups)

BUILDING AMERICA START-UP KIT – REMODELERS 

QUANTITATIVE MARKET RESEARCH 

Results Overview

Prepared for

U.S. DOE Building America Program

Prepared by

NAHB Research Center, Inc.

400 Prince George’s Boulevard

Upper Marlboro, MD 20774

October 3, 2011
65

Background The U.S. Department of Energy's (DOE) Building America program is engineering the American home 

for energy performance, durability, quality, affordability, and comfort.

Building America is an industry-driven research program working with national laboratories and 

building science research teams to accelerate the development and adoption of advanced building 

energy technologies and practices in new and existing homes. The program works closely with 

industry partners to develop innovative, real-world solutions that achieve significant energy and cost 

savings for homeowners and builders.

As part of a multi-pronged approach the DOE has determined that the professional remodeling 

industry can advance its overall efforts.

Purpose The purpose of this research is to quantify and prioritize the support needs of professional 

remodelers to increase sales and projects involving improving home energy efficiency. This phase of 

the research builds upon the qualitative remodeler focus groups, conducted at IBS and at the NAHB 

Research Center, to quantify and prioritize the support needs of professional remodelers to increase 

sales and projects involving improving home energy efficiency.
66

SAMPLE/COMPLETES/QUOTA PLAN

SAMPLE:

First Choice: Home Builders Online Research Panel

Second Choice: Mail

COMPLETES: 

160 actual

QUOTA:

None

ESTIMATED TIME:

Screener: NC

Survey: 5.0 min

Feedback: NC

Total: 5.0 min

EMBED

None
67

SCREENER

0.4 min

PAGE

State: Thank you for agreeing to take part in this survey. Your opinions are vital in helping 

us better understand the home-improvement industry. Be assured that all of your 

responses will remain confidential. This survey should take approximately 5 

minutes to complete. 

S1 (0.1) Which of the following best describes the work you do? [ACCEPT ONE ANSWER]

[1] Custom new home building and remodeling 

[2] Production new home building [TAGGED FOR TERMINATION]

[3] Remodeling only

[4] General contracting, including remodeling and new construction

[5] Specialty trades, including remodeling and new construction

[6] Other [TAGGED FOR TERMINATION]

PAGE

S2 (0.1) Which of the following best describes your involvement in terms of selecting 

building materials for your projects? [ACCEPT ONE ANSWER]

[1] I make the final decision regarding the building materials we use.

[2] I share the responsibility of making the final decision regarding the building 

materials we use.

[3] I am not responsible for making the final decision, but I do influence the 

selection of building materials we use.

[4] I am not responsible for making the final decision and I do not influence the 

selection of building materials we use. [TAGGED FOR TERMINATION]

PAGE

S3 (0.1) Which of the following do you consider your company to be? [ACCEPT ONE 

ANSWER]

[1] Remodeling General Contractor

[2] Specialty Contractor [TAGGED FOR TERMINATION]

[3] Home builder that also does remodeling general contracting

[4] Other type of contractor [TAGGED FOR TERMINATION]
68

PAGE

S4 (0.1) Which state/territory do you do most of your building and/or remodeling work? 

[ACCEPT ONE ANSWER, SCROLL DOWN LIST]

[1] Alabama

[2] Alaska

[3] Arizona 

[4] Arkansas

[5] California

[6] Colorado 

[7] Connecticut

[8] Delaware 

[9] District of Columbia 

[10] Florida 

[11] Georgia 

[12] Hawaii 

[13] Idaho 

[14] Illinois 

[15] Indiana 

[16] Iowa 

[17] Kansas

[18] Kentucky 

[19] Louisiana 

[20] Maine 

[21] Maryland 

[22] Massachusetts 

[23] Michigan 

[24] Minnesota 

[25] Mississippi 

[26] Missouri 

[27] Montana 

[28] Nebraska 

[29] Nevada 

[30] New Hampshire 

[31] New Jersey 

[32] New Mexico 

[33] New York 

[34] North Carolina 

[35] North Dakota 

[36] Ohio 

[37] Oklahoma 
69

[38] Oregon 

[39] Pennsylvania 

[40] Rhode Island 

[41] South Carolina 

[42] South Dakota 

[43] Tennessee 

[44] Texas 

[45] Utah 

[46] Vermont 

[47] Virginia 

[48] Washington 

[49] West Virginia 

[50] Wisconsin 

[51] Wyoming 

[52] I do not do remodeling work in the United States [TAGGED FOR 

TERMINATION]

Climate Zone 1: [12] Hawaii

Climate Zone 2: [10] Florida, [19] Louisiana, [44] Texas

Climate Zone 3: [25] Mississippi, [1] Alabama, [3] Arizona, [37] Oklahoma, [41] 

South Carolina, [5] California, [4] Arkansas, [11] Georgia, [34] North Carolina

Climate Zone 4: [47] Virginia, [18] Kentucky, [21] Maryland, [26] Missouri, [8] 

Delaware, [38] Oregon, [48] Washington, [17] Kansas, [9] District of Columbia, [31] 

New Jersey, [43] Tennessee

Climate Zone 5: [22] Massachusetts, [7] Connecticut, [40] Rhode Island, [36] Ohio, 

[16] Iowa, [28] Nebraska, [45] Utah, [23] Michigan, [6] Colorado, [14] Illinois, [15] 

Indiana, [29] Nevada, [32] New Mexico, [39] Pennsylvania, [49] West Virginia

Climate Zone 6: [27] Montana, [42] South Dakota, [24] Minnesota, [50] Wisconsin, 

[46] Vermont, [20] Maine, [13] Idaho, [30] New Hampshire, [33] New York, [51] 

Wyoming 

Climate Zone 7-8: [2] Alaska, [35] North Dakota

[END OF SECTION INSTRUCTIONS: RESPONDENT MUST MEET 

QUOTAS/REPRESENTATIVE SAMPLE TO CONTINUE.]
70

Q1 Which of the following jobs does your remodeling company or division perform? 

Select all that apply.

[1]=Selected, [BLANK]=Not Selected

Count

Q1_1 Interior renovation 127

Q1_2 Kitchen or bathroom remodels 129

Q1_3 Room additions or sunrooms 127

Q1_4 Home exterior renovations 113

Q1_5 Converting basement, attic, porch, or garage into finished 

living space

107

Q1_6 Outdoor structures or landscaping 112

Q1_7 Attached or detached garages, shops, barns, or 

outbuildings

110

Q1_8 Other types of projects 50

n=160
71

Q2 How important has it been to your recent clients to achieve the following? 

Note: For "Other", if you have nothing in mind, select "Not at all Important"

[1]=Not at all Important

[10]=Extremely Important

Mean

Q2_1 Improving comfort for the homeowners 7.7

Q2_3 Increase living space, such as a room addition or finishing 

an attic or basement

7.5

Q2_5 Saving energy 7.5

Q2_2 Maintenance and repair of the home 7.3

Q2_7 Cosmetic work or new interior/exterior finishes 7.3

Q2_4 Change the layout of the existing living space 6.8

Q2_6 Increasing or improving safety and preparedness 5.7

Q2_8 Other (please specify) 3.1

n=160
72

Q3 What percentage of your recent clients fit into the following groups when it comes 

to accepting energy efficient upgrades? 

The total must equal 100%.

Mean

Q3_1 Bottom line focused - will not spend any more than they 

have to.

40.4%

Q3_2 Can be convinced - may or may not think about energy 

efficiency, but are open to the upgrades once they 

understand the benefits.

38.8%

Q3_3 Embraces, or actively seeks, energy efficiency. 20.8%

Total 100%

n=160

Narrative: According to remodelers, nearly 21% of their clients actively seek 

energy efficiency upgrades during a home remodeling project. Another 39% said 

their clients are open to the idea of energy efficiency upgrades.

Q4 When working with clients, which of the following statements most closely 

describes your company’s approach to energy efficient upgrades? 

Freq.

[1] We do not try to sell or offer energy efficient upgrades 

unless they are specifically asked for by the client.

6.4%

[2] We offer or recommend it when the energy efficient 

upgrade is cost effective and is directly related to the 

home improvement project.

50.6%

[3] We believe energy efficient upgrades are part of “doing it 

the right way” and incorporate this into as many 

remodeling jobs as possible.

42.9%

Total 99.9%

n=160

Narrative: Forty-three percent (43%) of remodelers follow the approach of 

incorporating energy efficiency into as many jobs as possible.
73

Q5 There are many challenges to selling home energy upgrades. If you only had $100 

to invest, how much would you spend to solve each of the following challenges to 

increase your company’s ability to sell energy efficiency upgrades?

Again, you can allocate the money to as many or as few challenges as you want.

The total must equal $100.

Mean

Q5_1 Home energy efficiency upgrades are not clearly reflected 

in a home’s resale or appraised value.

$29.04

Q5_4 Clients do not understand the full range or do not value 

the benefits of energy efficiency.

$28.76

Q5_3 Energy efficiency financial incentives from utilities and 

various government agencies are hard to learn about, 

apply for, and comply with in order for the client to be 

reimbursed.

$23.65

Q5_5 Consumers don’t know how find a qualified and 

competent contractor for providing energy efficiency 

upgrades.

$12.12

Q5_2 My sale representatives/tradesmen are unfamiliar with 

selling home energy efficiency upgrades beyond what the 

client requests.

$6.43

Total: $100.00

n=160
74

Q6a Home energy efficiency upgrades are not clearly reflected in a home’s resale or 

appraised value

How much of a barrier do you feel each of the following are to your company’s 

ability to sell energy efficiency upgrades?

[1]=A Very Low Barrier, [5]=A Very High Barrier

Section Issues sorted by Importance 

(Importance Score Mean) to Remodelers

Mean Importance 

Score Mean

Q6a_1 Appraisal values factor into what type of remodels 

clients are willing to undertake, and energy 

efficiency is difficult to value.

3.9 120.4

Q6a_2 Realtors, who are in contact with homeowners as 

they buy/sell homes, aren’t able to describe the 

value of energy efficiency.

3.8 113.7

Q6a_3 There is no standard way to compare a home’s 

energy efficiency when buying or selling an 

existing home.

3.6 103.3

n=160

Importance Score=(Respondent Q5_1 $ amount * Respondent Q6a_x Rating). The 

higher the Importance Score the more important the issue is to remodelers.
75

Narrative: The purpose of these questions is to quantify and prioritize the 

support needs of professional remodelers to increase sales and projects involving 

improving home energy efficiency.

Q6b My sale representatives/tradesmen are unfamiliar with selling home energy 

efficiency upgrades beyond what the client requests

How much of a barrier do you feel the following are to your company’s ability to 

sell energy efficiency upgrades?

[1]=A Very Low Barrier, [5]=A Very High Barrier

Section Issues sorted by Importance 

(Importance Score Mean) to Remodelers

Mean Importance 

Score Mean

Q6b_1 There are few business benefits to me for offering 

energy efficiency upgrades. Normally the budget 

for a remodel is fixed and dollars spent on more 

expensive products do not help a project’s 

bottom line.

3.0 20.5

Q6b_4 As a company we want to come across as advisors 

or consultants, not as sellers of home upgrades.

The client needs to feel like we are doing them a 

favor and not trying to sell them add-ons. Offering 

energy efficiency when customers are looking for 

something else may jeopardize the sale.

3.1 20.3

Q6b_3 My sales representatives can’t or won’t estimate 

the dollar savings for energy efficiency upgrades.

It is too difficult to reliably predict savings and the 

representative does not want to be accountable 

for misestimating.

3.0 20.1

Q6b_6 There is a need to spend a significant amount of 

time in a house to assess its potential for energy 

upgrades. This would require a change from a 

consultative approach to selling energy upgrades.

3.0 19.4

Q6b_5 My sales representatives don’t know how to 

describe the value of energy efficiency upgrades 

in meaningful terms (payback or increase in value 

of home versus other things like more comfort, 

fewer insects and dust). The approach varies 

depending on the homeowner’s intended length 

of tenure or desired functions of home.

2.7 19.2
76

Q6b_2 Selling energy efficiency is typically part of a 

business’ positioning and not an add-on. Those

who pursue energy efficient positioning also go 

environmentally friendly (green), and that 

positioning may not work for my business.

2.7 18.9

Q6b_7 We don’t know how to assess a home or a project 

for the most cost-effective energy upgrades.

2.5 17.8

n=160

Importance Score=(Respondent Q5_1 $ amount * Respondent Q6b_x Rating). The 

higher the Importance Score the more important the issue is to remodelers.

Q6c Energy efficiency financial incentives from utilities and various government 

agencies are hard to learn about, apply for, and comply with in order for the 

client to be reimbursed

How much of a barrier do you feel the following are to your company’s ability to 

sell energy efficiency upgrades?

[1]=A Very Low Barrier, [5]=A Very High Barrier

Section Issues sorted by Importance 

(Importance Score Mean) to Remodelers

Mean Importance 

Score Mean

Q6c_4 No coordinated efforts between the federal 

government, state government, and utilities when 

it comes to offering, applying for, and complying 

with energy efficiency incentive programs.

3.5 86.8

Q6c_1 Financial incentives are too small for energy 

upgrades.

3.5 86.5

Q6c_2 The incentive options need to expand to 

programs including reduced mortgage rates or 

availability of inexpensive financing for upgrades.

3.4 85.8

Q6c_3 Homeowners are unable to get financing to 

include the original remodel project and the 

additional cost of any energy efficiency upgrades.

3.5 80.6

n=160

Importance Score=(Respondent Q5_1 $ amount * Respondent Q6c_x Rating). The 

higher the Importance Score the more important the issue is to remodelers.
77

Q6d Clients do not understand the full range or do not value the benefits of energy 

efficiency

How much of a barrier do you feel the following are to your company’s ability to 

sell energy efficiency upgrades? 

[1]=A Very Low Barrier, [5]=A Very High Barrier

Section Issues sorted by Importance 

(Importance Score Mean) to Remodelers

Mean Importance 

Score Mean

Q6d_1 Clients are typically unable to discern between 

high quality and low quality construction at the 

bidding phase. Often they select the lowest cost 

bidder. This makes selling upgraded energy 

efficiency difficult.

4.1 118.3

Q6d_2 Homeowners want to see tangible differences, 

often focusing on aesthetics or functionality, 

which makes energy efficiency a difficult sell.

3.6 102.3

Q6d_5 One popular way to determine airtightness, a 

blower door test, is expensive and most clients 

are not willing to pay for just an evaluation.

3.4 98.7

Q6d_3 Homeowners see energy efficiency upgrade costs 

as an expense and not an investment.

3.4 98.5

Q6d_4 Clients don’t understand the value of energy 

efficiency. They place little value on it. If 

consumers don’t see a problem, then they won’t 

purchase the solution.

3.3 95.7

Q6d_6 There is little real demand for energy efficiency.

Homeowners are just following the money for 

rebates.

2.9 89.1

n=160

Importance Score=(Respondent Q5_1 $ amount * Respondent Q6d_x Rating). The 

higher the Importance Score the more important the issue is to remodelers.
78

Q6e Consumers don’t know how find a qualified and competent contractor for 

providing energy efficiency upgrades

How much of a barrier do you feel the following are to your company’s ability to 

sell energy efficiency upgrades?

[1]=A Very Low Barrier, [5]=A Very High Barrier

Section Issues sorted by Importance 

(Importance Score Mean) to Remodelers

Mean Importance 

Score Mean

Q6e_1 Clients don’t know how find a qualified and 

competent contractor for providing energy 

efficiency upgrades.

3.0 40.8

n=160

Importance Score=(Respondent Q5_1 $ amount * Respondent Q6e_x Rating). The 

higher the Importance Score the more important the issue is to remodelers.
79

Narrative: Remodelers believe their biggest obstacle to selling energy efficiency 

upgrades is that appraisal values factor into what types of remodels clients are 

willing to undertake. Other major obstacles include: clients unable to discern 

between high and low quality construction in the bidding phase; Realtors are not 

able to describe the value of energy efficiency; Difficulty in comparing existing 

homes on their energy efficiency; and that homeowners want to see tangible 

differences after a remodel, making it difficult to sell energy efficiency.

All Issues sorted by Importance 

(Importance Score Mean) to Remodelers

Mean Importance 

Score Mean

Q6a_1 Appraisal values factor into what type of remodels 

clients are willing to undertake, and energy 

efficiency is difficult to value.

3.9 120.4

Q6d_1 Clients are typically unable to discern between 

high quality and low quality construction at the 

bidding phase. Often they select the lowest cost 

bidder. This makes selling upgraded energy 

efficiency difficult.

4.1 118.3

Q6a_2 Realtors, who are in contact with homeowners as 

they buy/sell homes, aren’t able to describe the 

value of energy efficiency.

3.8 113.7

Q6a_3 There is no standard way to compare a home’s 

energy efficiency when buying or selling an 

existing home.

3.6 103.3

Q6d_2 Homeowners want to see tangible differences, 

often focusing on aesthetics or functionality, 

which makes energy efficiency a difficult sell.

3.6 102.3

Q6d_5 One popular way to determine airtightness, a 

blower door test, is expensive and most clients 

are not willing to pay for just an evaluation.

3.4 98.7

Q6d_3 Homeowners see energy efficiency upgrade costs 

as an expense and not an investment.

3.4 98.5

Q6d_4 Clients don’t understand the value of energy 

efficiency. They place little value on it. If 

consumers don’t see a problem, then they won’t 

purchase the solution.

3.3 95.7

Q6d_6 There is little real demand for energy efficiency. 2.9 89.1
80

Homeowners are just following the money for 

rebates.

Q6c_4 No coordinated efforts between the federal 

government, state government, and utilities when 

it comes to offering, applying for, and complying 

with energy efficiency incentive programs.

3.5 86.8

Q6c_1 Financial incentives are too small for energy 

upgrades.

3.5 86.5

Q6c_2 The incentive options need to expand to programs 

including reduced mortgage rates or availability of 

inexpensive financing for upgrades.

3.4 85.8

Q6c_3 Homeowners are unable to get financing to 

include the original remodel project and the 

additional cost of any energy efficiency upgrades.

3.5 80.6

Q6e_1 Clients don’t know how find a qualified and 

competent contractor for providing energy 

efficiency upgrades.

3.0 40.8

Q6b_1 There are few business benefits to me for offering 

energy efficiency upgrades. Normally the budget 

for a remodel is fixed and dollars spent on more 

expensive products do not help a project’s bottom 

line.

3.0 20.5

Q6b_4 As a company we want to come across as advisors 

or consultants, not as sellers of home upgrades.

The client needs to feel like we are doing them a 

favor and not trying to sell them add-ons. Offering 

energy efficiency when customers are looking for 

something else may jeopardize the sale.

3.1 20.3

Q6b_3 My sales representatives can’t or won’t estimate 

the dollar savings for energy efficiency upgrades.

It is too difficult to reliably predict savings and the 

representative does not want to be accountable 

for misestimating.

3.0 20.1

Q6b_6 There is a need to spend a significant amount of 

time in a house to assess its potential for energy 

upgrades. This would require a change from a 

consultative approach to selling energy upgrades.

3.0 19.4
81

Q6b_5 My sales representatives don’t know how to 

describe the value of energy efficiency upgrades 

in meaningful terms (payback or increase in value 

of home versus other things like more comfort, 

fewer insects and dust). The approach varies 

depending on the homeowner’s intended length 

of tenure or desired functions of home.

2.7 19.2

Q6b_2 Selling energy efficiency is typically part of a 

business’ positioning and not an add-on. Those 

who pursue energy efficient positioning also go 

environmentally friendly (green), and that 

positioning may not work for my business.

2.7 18.9

Q6b_7 We don’t know how to assess a home or a project 

for the most cost-effective energy upgrades.

2.5 17.8

n=160

Importance Score=(Respondent Q5_x $ amount * Respondent Q6_x Rating). The 

higher the Importance Score the more important the issue is to remodelers.

Q7 Finally, are there any other tools or ideas you would like to see provided that you 

believe would increase your company’s energy efficiency-related business? 

If none, type 'None'.

Comment Freq.

None 100

A big neon sign on the internet telling folks that Energy Efficient 

Building is the only way to build. And then send them to me. Cheers

1

a quick energy saver calculator 1

A single location to go to for info on rebate for energy efficiency-related 

business

1

Access to studies that show energy savings of certain types of upgrades 

that can be used as examples of cost savings to customers.

1

Already mentioned but more rebates offered on local, state and federal 

level

1

An easy way to compare comparable costs between contractors. Also a 

simple explanation of the current energy codes so customers can see 

where the costs are.

1

Appraisers must recognize the value of Green homes 1
82

Appraisals must reflect a homes annual energy cost 1

Better communication with PUC's 1

Better on line energy loss calculators. We sell on-line and let the 

customer decide on the RIO- a REMRATE program online from 

somewhere other than Alaska would make a big impact.

1

Better prices 1

Better regulatory requirements for energy efficiency. Most home owners 

are bottom line only

1

Bigger money incentives 1

Case studies House to house comparisons Long term studies on EE or 

Green products on home durability Information about what has NOT 

worked Regional data and specs

1

Clarify incentive offered thru manufacturers, energy suppliers and 

government. Make it easier to understand for the consumer and 

government should provide larger incentives for energy efficiency and 

Home Building in general.

1

Clients want guarantee of specific dollar amount saved in future utilities, 

ones energy efficiency built-in. There is no guarantee may be issued 

unless utilities providers are not going to secure prices (on per unit costs, 

such as per kwt. of electric or per cu. ft. of gas, etc.) and stop constantly 

rising prices.

1

Companies need to provide the construction personal a sample off all 

possible upgrades so they can show the homeowners what they look like, 

how they work so they can persuade the home owners to use these 

products. trying to explain and show how all the different products work 

is easier with real life working samples then a visual on a laptop or a 

pamphlet.

1

Deregulate government. the banks are not helping people who are 

seeking assistance or improvements

1

Easy method of determining the money savings one gets for upgrades in 

energy efficient practices

1

Easy to use energy calculation tools to help the design process would be 

a big help. If I could plug in a CAD model of a building, and indicate its 

orientation, shading, and climate (with micro-climate adjustments?) and 

then get details on energy consumption as I varied the SHGC of certain 

windows or the characteristics of the envelope, it would make it much 

easier to define a good cost benefit analysis.

1

Educate realtors and lenders on the benefits 1

free advertising 1
83

Gov needs to get the word out and give tax breaks so we can reduce 

energy waste

1

It's difficult in these economic times to spend a lot of time trying to up 

sell energy efficient items when they are beating us up on pricing as it is.

1

just more incentives 1

Low cost efficient contractor 1

lower cost on spray foam insulation 1

Made in America for Solar Panels and thin film PV systems at better 

costs are required. We need to stop telling the consumer a lie as to the 

benefits of energy savings versus costs just like the electric car it is not a 

good deal unless it is subsidized. Why should Arizona allow renewable 

energy fees and taxes to be added to every electric bill? IF the GOP 

believes in smaller government and the Private sector/Corporations want

something then they need to stop asking for political favors and be able 

to ell and produce the products at the least costs with the best value.

1

Making the consumer more aware of the benefits of energy upgrades has 

to offer for the health of them and the home they live in

1

More competitive prices on energy saving devices 1

More incentives for the customer to spend for energy efficiency 1

More incentives to provide energy efficient building practices. 1

More incentives with less fine print restrictions, if an improvement is 

made in a remodel it needs to be rewarded in some shape or form aside 

from over committed rebates for the state of Maine.

1

More rebates and financial incentives for the client. 1

Much has been covered here, I am not certain that I always understand 

the impediments to energy upgrades...but certainly it is now easier to 

quantify the reluctance in some way: now lenders are even more in the 

driver's seat. It valuations to not demonstrate it, there is no incentive to 

offer financing to meet the demand for such upgrades. This will be a big 

headwind going forward. Only those that have the financing, or are in 

very large projects where the same builder may be doing all the same 

levels o quality construction, will have the ability to make the value 

come to the surface.

1

Must have inexpensive standers 1

One stop shop comparing all types of energy saving products from 

siding to building members and actual energy products

1

Our clients want stuff that looks nice for their money. Crown molding 

and granite counter tops trump energy efficiency.

1
84

Pamphlets that we could hand out to potential customers detailing a 

rough sketch of energy efficient products and how much they can save in 

energy over say a 6mth-1 yr. period.

1

Real tax incentives 1

Sample Board 1

Simple charts to show typical savings with selected energy savings 

options

1

Some "real" comparison numbers without sales hype. Many promotions 

call for "SAVE $ X" but don't tell the whole story.

1

Some type of display to show clients how a home should be insulated 1

Standardization of ratings agencies (consolidate all into one). 

Standardized software for evaluation that is not over complicated to use, 

expensive or lengthy.

1

Sure there needs to be simple programs/tools that can show a client in 

black and white the saving's and benefits without the initial cost being to 

high that they don't even consider energy efficiency.

1

Tax fuel! 1

The ability to put an actual dollar amount on the savings. Customers see 

a percentage as too vague.

1

The ability to quantify "payback" time accurately for upgrade 1

The Federal Government does a poor job period. Stop trying to fix 

everything with Government spending & allow the private sector to do 

what it does best - solving problems. When the citizens of the US are 

confident, they'll spend money & typically spend it wisely. Confidence 

& cash flow will cause consumers to more carefully consider energy 

efficient construction.

1

The Government should get out of the incentive business, and 

concentrate their efforts on consumer education.

1

This survey was the most difficult for me to understand with the low 

barrier and high barrier ratios. WTF The biggest thing that I believe 

would help is the tangible rewards for energy efficiency....lower cost 

mortgages, or greater borrowing allowance ue to less utility cost. I can 

understand the reluctance of underwriters and raters to do this as it is 

easy to say we've insulated to r-38, but was the insulation installed 

correctly. Do the renewable energy systems operate properly and are 

they maintained, and optimized? Are they relatively trouble or 

maintenance free? Did the homeowners receive instruction and 

documentation for the improvements or is the contractor driving off to 

the bank? You get what you pay for, typically.

1
85

Utility company get more involved as well as our government agencies 

including safety

1

We have a 3rd party come in and insulate, inspect and test our houses. 1

We sell our energy upgrades and applications via referrals, money 

savings, but mostly explaining about "comfort" for the space and noise 

reductions. People can relate to those benefits. Using "Features and 

Benefits" as a selling tool is part of our sales raining.

1

We still need more education to understand more choices, We must be 

able to see savings in short term, Not Twenty years

1
DOE/GO-102012-3526 ▪ October 2012

Printed with a renewable-source ink on paper containing at 

least 50% wastepaper, including 10% post-consumer waste.