BBWG has pioneered a new way for energy-conscious builders to provide value that’s missing from re-sale homes. This revolutionary program is called Residential Energy Guarantee. And according to an independent survey just published, homeowners love the idea.
With REG, homeowners are guaranteed reimbursement for energy costs when usage exceeds a set percentage of the annual estimate indicated by the HERS Index.
Independent market research indicates that an energy use guarantee would greatly increase consumer interest in purchasing a new, energy-efficient home.
In addition, more than 85 percent of new home prospects were concerned about energy costs and their monthly bill.
In testing this new value-added guarantee, BBWG commissioned an independent survey of recent home buyers and they overwhelmingly love the concept. Buying a new home gives them a clear idea of their total living expenses before they move in and now there’s a guarantee for their energy usage.
The terms of the guarantee are relatively simple. It is based on an energy-efficiency rating of the new home, which allows the builder to predict the expected consumption of all the energy used in the home, covering both electric and gas utility bills. If the homeowner’s actual energy usage over a one-year period exceeds the guarantee level, the homeowner receives a refund for the amount above the guarantee.*
BBWG asked GFBA, LLC, to conduct concept test research to evaluate an energy use guarantee concept.
The main objectives were to:
- Quantify the overall appeal and receptiveness of the energy use guarantee program to new home purchasers.
- Understand attitudes toward energy usage.
- Understand the importance of the refund offer and the guarantee terms.
- Identify ways to improve the guarantee program.
Summary of Survey Responses:
- Overall, the energy use guarantee concept was very appealing to new home purchasers.
- Three-fourths of home purchasers indicated the energy use guarantee would have increased their confidence in the energy savings promoted by their builder.
- Over seven in ten home purchasers indicated the energy use guarantee would increase their interest in purchasing a home.
- Over nine in ten home purchasers found the concept appealing
- When deciding whether to purchase a home with an energy use guarantee versus purchasing a home without the guarantee, over eight in ten purchasers indicated the guarantee would have been influential in their decision.
- Over nine in ten home purchasers would be likely to recommend a builder who offered the energy use guarantee.
To learn more about this new program, contact your local BBWG representative. You can find a list of them here.
*Refer to program documents for complete terms and conditions of the guarantee.Share