8/7/2019 Georgia Incremental Cost

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MonthMortgage

Increase

Monthly

Energy Savings

Cuuv

Cs/Bf

1 $135.07 $17.17 $117.90

2 $2.92 $17.17 $103.65

3 $2.92 $17.17 $89.40

4 $2.92 $17.17 $75.15

5 $2.92 $17.17 $60.90

6 $2.92 $17.17 $46.65

7 $2.92 $17.17 $32.408 $2.92 $17.17 $18.15

9   $2.92   $17.17  $3.90

10   $2.92   $17.17  $10.35 

11 $2.92 $17.17 $24.60

12 $2.92 $17.17 $38.85

13 $2.92 $17.17 $53.10

14 $2.92 $17.17 $67.35

15 $2.92 $17.17 $81.60

16 $2.92 $17.17 $95.85

17 $2.92 $17.17 $110.10

18 $2.92 $17.17 $124.35

2009 INTERNATIONAL ENERGY CONSERVATION CODE

FOR NEW HOMES IN

GEORGIA

One o the major barriers to energy code adoption across the country is the concern that newcodes will add to the purchase price and potential buyers will not be able to aord the homes

they want. In Georgia, upgrading homes to the 2009 International Energy Conservation

Code will actually reduce out-o-pocket expenses or homeowners – paying o their initial

investment in a matter o months.

For the average new home, BCAP estimates the costs o the new code will add a total o $675

in construction costs—an increase o only 0.3%. When this amount is rolled into the average

mortgage, real costs to homebuyers will mean a down payment increase o $135.07, and

$2.92 extra on monthly mortgage bills.

These added mortgage costs will be oset, however, by monthly energy savings o $17.17,

helping homebuyers pay o their initial investment in only ten months. Ater breaking even

in month ten, the home will return buyers a prot o $14 per month—or a total return o 

$166 every year. This return on investment is graphed below and presented as a balance

sheet at right.

Cumulative Beneft

Monthly Benet: +$14

Prot ater Year 1: +$39

Energy Code Payback for Georgia Single Family Homes

Monthly MortgageIncrease: $3

Monthly Energy

Savings: $17

Down PaymentIncrease: $135

-$40

0

1 72 8 93 4 10 11 125 6

$40

-$80

-$120

-$160Month

This model assumes an average sale price of $267,451 for a

2,400 square foot home. The mortgage is conservavely set at

30 years, with 20% down and the current average naonwide

interest rate of 5.05%. With a lower down payment—such as

10% down—consumers will break even on their investment

even sooner.

Break Even

$ 1 4  pr of t   ever y 

 mont  h 

8/7/2019 Georgia Incremental Cost

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Homes are the biggest investment we make—and everyone deserves a home that meets national minimum energy efciency standards. While it’s truethat homeowners can always improve the efciency o their homes, it is ar more cost-eective to upgrade building components during construction,

putting in better windows or swapping out one grade o insulation or a better one. Here’s what buyers get with the 2009 IECC:

For the ull Incremental Cost Analysis study, please visit bcap-ocean.org

Climate Zone 2

u-actor: .75a .65 window

SHGC: .4a .3 window

Climate Zone 4

u-actor: .4a .35 window

Climate Zone 3

u-actor: .65a .5 window

SHGC: .4a .3 window

2009 INTERNATIONAL ENERGY CONSERVATION CODE

Lghg: $50

Duct Sealing andTsg: $350

Window Upgrades

Climate Zone 4: $179Climate Zone 3: $321

Climate Zone 2: $145

Payback Period

10 months

2-yr Prf

$209.85

Au Ergy Rduc

15-16%

5-yr Prf

$722.85

2

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