Escondido Real Estate

What Qualifies As "Green"?

What makes a "green" Escondido home green? It depends on who is using the word. In the next several months, three nationwide certifications for environmentally friendly Escondido homes will be available to builders. But Escondido home buyers may be confused by the array of standards.

This week, the U.S. Green Building Council -- a nonprofit that rates commercial buildings on things like energy use and indoor-air quality -- introduced similar rating systems for people's homes. Builders can score points for things like solar panels and energy-efficient appliances, and earn ratings such as silver, gold or platinum for environmental-friendliness.

1.The National Association of Homebuilders, a trade group whose members build about 80% of the country's new homes each year, say the Green Building Council's criteria for a "green" label are too impractical and costly. They are developing their own standards, which they say are flexible depending on the region and include easier-to-achieve certification in order to appeal to first-time buyers. A new draft will be available for public comment next month, and the standards should be finalized by February.

2.Yet another eco-friendly certification is available through the federal government's Energy Star program. Started in 1995, the program focuses on certifying homes that meet a standard on energy use. The current yardstick is at least 15% more efficient than homes built to the 2004 residential code. Homes that meet the standard usually have features such as extra insulation and energy-efficient appliances, and must be verified through independent home energy raters. States and local building associations, too, may have their own green building programs or guidelines.

3.The rush to focus on green homebuilding comes as the residential real-estate market continues to struggle. Builders are eager to jump on the green marketing bandwagon as a way to differentiate their products. New-home sales were a seasonally adjusted annual rate of 770,000 units in September, up 4.8% from the previous month but down 23% from a year earlier, according to data from the National Association of Homebuilders.

Some builders say many of today's consumers would rather pay extra for luxuries such as granite countertops than for "green" features. But they believe that demand will grow in the future for green homes as energy prices stay high. The building industry also wants to develop a voluntary green standard before the federal government -- increasingly focused on energy concerns -- takes matters into its own hands. Builders recently lobbied Congress against legislation that would allow the federal government to write some energy-efficient building codes for states.

4.Environmental advocates say coaxing people to make changes to their homes that trim energy consumption is important. The residential sector accounts for about 20% of the nation's greenhouse-gas emissions, according to government figures. Buying a green home, while more costly up front, can save money down the road with lower utility bills. There are also a number of state and federal tax credits for energy-efficient upgrades; the federal government offers a $300 tax credit for installation of energy-efficient air-conditioning and heating systems, for example. Some banks even offer a discount on mortgage closing costs for new homes that meet certain energy-saving requirements.

Some builders acknowledge the various "green" labels can be confusing for consumers. Mark Fischer, a builder with Grupe Co. in Rockland, Calif., built around 70 solar-paneled homes to meet the Green Building Council's standards, through the pilot program that has been testing out the ratings. He has found, however, that potential buyers don't really understand the features, or why they should pay more for them. "With all the different green certifications out there, it kind of gets lost," says Mr. Fischer, who has lowered his prices.

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