Residential applications of energy rating systems

DOE supports non-federal efforts to provide home energy ratings because a major factor reducing the effectiveness of market forces in this area is the inability of consumers and lenders to determine the true value of most home conservation investments. Rating systems range from simple prescriptive standards to sophisticated computer models which attempt to predict the energy use and costs of new or existing homes, yet most have been less than successful. Experience suggests that an effective rating system must (1) be designed for use in both the marketing of homes to buyers and the mortgage lending process, (2) enjoy the acceptance or active support of a range of local organizations, (3) be comparatively simple and low cost, and (4) be a credible indicator of comparable home energy costs. DOE expects to initiate research to answer some of the questions and to operate as a resource for voluntary rating programs.