Building Codes Assistance Project

Consumers save money well into the future by reducing utility bills, minimizing the negative impacts of fluctuations in energy supply and cost, and conserving available energy resources. Monetary savings derived from codes increase a consumer's purchasing power, ultimately helping to expand the economy. Reduced demand for energy prices also helps to lower prices. Energy efficient homes can in some circumstances qualify for energy efficient mortgages, which allow a homeowner to raise the mortgage cap since they are investing now in lower maintenance in the future. Additionally, a homeowner can also expect to see higher resale value for such a home.

There are numerous studies demonstrating that the payback period for capital investments in an energy efficient home is well within an acceptable period of time (generally held to be about 5-7 years). A 2004 study by the Michigan State Energy Office, Cost/Benefit Analysis: Updating the Michigan Uniform Energy Code ... for New Residential Construction in Michigan, found that on average, there was an improvement cost of $2,145 with savings of $3,191 over a seven year period, or a savings of $1,046 over this time period. Pacific Northwest National Laboratory (PNNL) also released a study in Michigan, corroborating these findings. PNNL reported a payback period of 3 to 5 years and a net positive cashflow for homeowners, taking into account mortgage impacts, since the energy savings would easily exceed the increased mortgage payments.

Energy codes capture what would otherwise be lost opportunities. Current energy standards provide energy efficiency provisions that are relatively easy and inexpensive to address in new construction, and that are far more expensive, or even impossible, after the fact.