Your builder will deposit, from his profit, 1.5% of the construction contract amount into a trust fund established for your benefit. In the event your home does not meet its projected energy goals, funds from the trust will be used to reimburse you for the additional costs.
Setting the energy goals
After your building design, drafting, engineering and HVAC solar system design is completed your project will be carefully analyzed to determine the heating - cooling - ventilation and water heating energy requirements.
The energy estimates will be in therms and kilowatt hours. The estimates become the “energy goal” for your home. The energy goal must fall within the EcoNet guidelines (See “Typical EcoNet Performance Tables”). If the project’s energy requirements exceed the maximum allowed by the table, design and engineering modifications will be made to bring the performance into compliance.
The energy goals remain the same throughout the life cycle of the building. The goals are set in therms and kilowatts rather than dollars because the average cost of energy is likely to rise throughout the ten year energy cost warranty period.
Meeting and Monitoring
During the 10 year energy warranty period, the energy used for space heating, cooling, ventilating and domestic hot water heating will be metered separately from energy used for all other purposes. If your home requires more energy to perform the HVAC and domestic water heating functions than projected, you will be reimbursed the excess cost above established goals.
Your energy warranty requires that you provide all recommended maintenance of the HVAC equipment and practice reasonable conservation measures.
To determine the fair value of energy, the term and kilowatt hour rates are adjusted annually to reflect rate increases that may have occurred during the calendar year. The reimbursable amount is based on the adjusted rate. Please review examples.
EXAMPLE 1 projected therms Current rate goals in dollars initial projection 1,500 X $1.21 = $1,815.00 first year actual 1,489 X $1.32 = $1,965.48 second year actual 1,377 X $1.49 = $2,051.73
In this example, there would be no reimbursable costs. The home used Less Therms than projected; and the increase in costs were caused by rate increases. Carry forward credits would be established for both years totaling $197.79
EXAMPLE 2 projected therms Current rate goals in dollars initial projection 1,500 X 1.21 = $1,815.00 first year actual 1,633 X 1.32 = $2,155.56 second year actual 1,444 X 1.49 = $2,151.56
In this example, the home owner would be reimbursed $175.56 at the end of year one. At the end of year two, a carry forward credit would be established toward future overages in the amount of $83.44.
The maximum payment amount extended over the ten year warranty period is limited. The limitation is set by contract but can be no less than 1.5% nor more than 3% of the contract total.
End of Warranty Period
At the end of the ten year warranty period, with the final years reimbursement being paid, any remaining funds in the trust are to be returned to the builder. Any interest earned during the ten year period is added to the principle and used for reimbursement or, if not used, returned to builder.
Administration
The fund is to be established at a reputable bank selected by EcoNet. Funds are administered by Ashcroft, Wiles, Ammann LLP. Metering and monitoring are conducted by EcoNet.Meter readings can be verified on site by home owner. Analysis of reimbursable costs are performed by EcoNet. Meter readings and the analysis is to be provided.
HOW IT WORKS