For decades, contractors have conducted home energy efficiency audits with little more than a notebook, clipboard, and a pen. But as the new Home Efficiency Rebates (HER, formerly HOMES) rebate program ramps up, energy audits will need to go high-tech. For those concerned that a high-tech energy audit sounds intimidating, software like Snugg Pro can make it easy. Features include calculating the impact of a home energy project, like whole-building insulation or replacing the HVAC system with an electric heat pump, by calibrating savings projections to a residence’s prior utility bills.
HER is part of the federal Inflation Reduction Act of 2022. It doles out $4.3 billion to State Energy Offices (SEOs) for rebates to single-family or multifamily homeowners who improve their building’s overall energy use by at least 20%.
SEOs will mainly work with contractors and aggregators to analyze how much energy a project saves in a home. And that’s where energy efficiency auditing software comes in.
This is known as a modeled savings energy efficiency audit and is one of two ways that homeowners can qualify for HER rebates. The other option is a measured savings audit. Here’s what contractors need to know about each type of audit.
The pros and cons of measured savings audits
As their name implies, measured savings energy efficiency audits are measured at the meter. After a homeowner completes their energy project, an aggregator analyzes the home’s electricity usage for the next nine to 12 months to ensure the project meets the minimum 20% threshold for HER rebates.
Measured savings HER rebates are calculated by kilowatt hour saved, based on the total energy consumption of the average home in each state. If a project shows at least 20% in energy savings, a single-family or multifamily homeowner can qualify for a $2,000 rebate or 50% of the project cost. Homeowners who make less than 80% of the area median income (AMI) can receive a $4,000 rebate or 80% of the project cost.
But homeowners may have to wait multiple months – up to a year, while the energy savings are measured before receiving their rebates. And if they discover their project doesn’t cut their energy use by at least 20%, they might not receive any rebate at all. This may be a risk many homeowners don’t want to take; especially when there is a modeled pathway that pays the full rebate right away.
The pros and cons of modeled energy audits
Energy efficiency audits based on modeled savings estimate energy use through modeling and simulations. While it’s possible to calculate these savings without modeling software, it’s more difficult with HER and other IRA-funded rebates because they require BPI-2400 certified energy audits.
BPI-2400 is a standardized process designed to improve modeled energy audit accuracy. It begins with a model calibrated to a home’s historical energy use, and then builds a model of what the energy use would be after an energy-conservation project is completed.
BPI-2400 compliant modeled energy efficiency software like Snugg Pro seamlessly does this work for contractors. And instead of requiring homeowners to wait up to a year for a rebate based on a measured energy audit, Snugg Pro can provide a rebate calculation as part of the energy audit.
The role of Snugg Pro in all types of energy audits
While BPI-2400 auditing is not required for the HEAR program and non-IRA energy efficiency programs, it’s still poised to become expected. Not only are BPI-2400 audits accurate, but they’re also a good way to set ballpark expectations for both the homeowner and the contractor.
As the only BPI-2400 compliant and DOE approved energy auditing platforms available, Snugg Pro can help contractors create easy-to-understand proposals that help you close sales opportunities on the spot. It can also calculate savings for energy upgrades; educate homeowners about comfort, health, and safety upgrades; create detailed cost templates; model HVAC systems; track job-stage pipelines; apply dynamic financing; and manage crew communications. Additionally, Snugg Pro can help you set expectations with customers. Such as understanding the impact of monthly utility bills if they are fuel switching from gas to electric on major appliances (HVAC, Water Heating, etc.).
Ready to see for yourself? Learn more about Snugg Pro to get your team started using a platform that could change the way you do business, for the better.