Heat on house ratings

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30 Mar 2008

Heat on house ratings

by Esther Harward - Sunday Star Times

PEOPLE SELLING a house could be required to pay hundreds of dollars to prove its energy efficiency under a compulsory ratings proposal.

"Home energy ratings" are optional at present and cost between $300 and $450 through the Association of Building Sustainability Assessors.Houses are assessed on building design and efficiency of water and space heating, and allocated stars. The Energy Efficiency Conservation Authority will report to cabinet at the end of the year whether ratings should be compulsory.

The government's energy efficiency spokeswoman, Jeanette Fitzsimons, said this would depend on the success of a trial which is considering the quality of technical assessments, whether ratings could be challenged by homeowners and how easy the process was for homeowners. Fitzsimons supported mandatory ratings. "Overseas experience shows you only get about 1% of people selling their homes with a voluntary assessment." Assessments told people how to earn additional stars, by investing in insulation and heat.

In Canberra, where energy ratings are mandatory, each star increased a house's value by 2%.About 300 New Zealand homeowners have paid for an energy rating since the trial started in December. Another 50 have signed for interest-free loans and grants for insulation and heating under EECA's $23 million "Energywise" scheme.

Cash grants up to $500 or interest subsidies up to $1250 are offered for ceiling and underfloor insulation, hot water cylinder wraps, pipe lagging, low-flow shower heads, efficient lights and "clean heat" (heat pumps, modern wood and wood pellet burners or gas space heating). EECA's $23m is enough for interest subsidies for 18,400 homes or cash grants for 46,000 homes. Eligibility is restricted to one or two people on a combined income of $100,000 before tax, or three people earning a total of $140,000.The offer applies only to homes built before 1978, when the Building Code made insulation mandatory. Providers have been taking inquiries from people in homes built as recently as this year.

Fitzsimons said she knew of homes built five years ago without insulation, where builders and developers had cut costs and council inspectors had not done their job properly. Poor insulation makes homes damp, cold, unhealthy and expensive to heat. There are more than 300,000 houses built before 1978 in this category.

ENERGYWISE SCHEME $1250 interest subsidy on a loan or a 10% cash grant of up to $500 (if people spend at least $1000). Eleven providers nationally cover most of the country. Contact them on EECA's website. Homeowners must first get an energy assessment through a provider. Most are doing it for free if people buy insulation or heat. These are a cheaper and more basic version of home energy ratings. Providers arrange loans with banks, finance companies or credit unions. The interest is paid by providers to lenders. Households pay the balance of the loan under terms and conditions set by lenders. An insulation and heat package for the average home costs $4500 (roof and underfloor insulation, hot water cylinder wrap and heat pump or wood pellet burner).

Right House, a subsidiary of Meridian Energy, is set to offer New Zealanders the first one-stop shop for creating an environmentally friendly, energy efficient home.

With three branches launching in March, Right House will provide customised solutions for people building, renovating or upgrading their homes to maximise their comfort and minimise energy usage.

Right House consultants analyse plans for building projects and create a free recommended solution that integrates each house's aspect, design, systems and products to achieve the greatest comfort and energy-efficiency. The subsidiary then installs the products and systems, delivering a start-to-finish service for building an energy-efficient home.

Right House chief executive, Hamish Sisson, said the idea for the company arose out of research by Meridian that identified comfort and energy-efficiency as key concerns for homeowners.

"There's been a growing awareness of the importance of energy-efficient homes over the past few years, but also a lot of confusion over what you need to do to actually achieve it,” Sisson said. "Right House solves this problem by overseeing the entire project and sourcing the right products and systems from the myriad ‘green' products out there, and delivering you a personalised solution.”

Right House's first Solutions Centre opened in early March in Christchurch. The other two centres will open in Botany Downs, Manakau, and Albany within the following fortnight.

The company has already received an enthusiastic response from the New Zealand Green Building Council, which is introducing a Green Star rating system for homes.

Patrick Fontein, chairman of the Green Building Council, which is introducing a Green Star rating system for homes.

Fontein, also managing director of Kensington Properties, is engaging the services of Right House for all new houses that are built on his company's development in Orewa, called Kensington Park.

"The assurance that Right House will provide for home buyers seeking a comfortable, energy-efficient house is compelling”, Fontein said. "We saw their service offering and knew we wanted every new house in Kensington Park to be a Right House.”

Over the next few years, further Solutions Centres will open throughout the country. The Right House head office in Wellington will also be able to give consultations.



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