Home >Articles >HERS® Index Monetizes Invisible Investments in Energy Efficiency: Blog

HERS® Index Monetizes Invisible Investments in Energy Efficiency: Blog

Oct 6, 2020


Julia Bassett Schwerin, a Maine REALTOR, recently posted a blog on the value of the HERS® Index to the real estate market.

The feature stated that “The HERS® Index is rigorous, based on math and science, not subjective measures is widely used across the country and is easily applied to both new and existing housing stock, which is not the case for all certifications. It does the job of the MPG sticker for cars, the EnergyGuide label for appliances, and the Nutrition Facts label for food.”

The author states that Maine has many certifications for residential homes such as ENERGY STAR, LEED for homes and the PassivHaus. She concludes that the “HERS® Index transcends all of them because it rates any building as it sits.” This is because “it is a performance rating rather than a certification awarded for a building that fulfills a prescriptive set of rules.”

Ms. Schwerin wrote that “Quantifying the energy efficiency with a decent HERS® score makes the case that the building is more valuable because a new building has no energy consumption history and there is no other way to showcase the insulation and air sealing that make the building high performance since it is hidden inside the structure. Carrying the HERS® Index rating with the building improves resale value as well and makes it easier for Realtors and Appraisers to give the building more value and explain to buyers how this value translates to lower energy bills and lower life cycle costs.”

“The HERS® Index allows consumers to see how a higher value on the building is offset by lower operating costs, and potentially this distinction will carry forward to the point of resale as studies have indicated. Enabling builders, remodelers, and homeowners to monetize the extra investment in insulation and air sealing will encourage the practice and give consumers confidence to value weatherized buildings more highly.”

The blog story concludes that “It is the right time to propose a state-wide promotion for the HERS® Index rating, with an educational and incentive program. Having a report card will give homeowners confidence to invest in home improvement projects for the weatherization, electrification and solarization of their homes, improve resale value, and help Realtors, appraisers, lenders, developers and buyers making good investment decisions.”

Click on HERS® Index Monetizes Invisible Investments in Energy Efficiency to download the post.