130 Million Reasons to Get Accredited

Raising the Bar in Home Performance Contracting

Larry ZarkerBPI

Home Performance Contracting is the Low Hanging Fruit in the Clean Energy Discussion

So is it like picking

peaches?

…or is it like picking blueberries?

Imagine picking 130 million blueberries from this field….

Residential Buildings & Climate ChangeEnergy use from residential buildings accounts for 36.5% of electricity consumed in the U.S. and 21% of carbon emissions.

Need for Home Energy Retrofit Contracting

About a one-third of owner-occupied homes are now at least 45 years old and an additional third is between 25 and 45 years old meaning that a large majority of our homes were built before modern energy codes and are drafty, uncomfortable and expensive to operate.

The Challenge

Nearly 130,000,000 housing units in U.S. NY HPwES program reaching 6,500 units per

year; after 8 years only 1% of the housing stock transformed.

How do we ramp up to a ten year upgrade on all existing homes in the country?

Ramping Up Home Performance

State Units of Housing

10,000 Years

1000 Years 100Years

10 Years

U.S. Total 130,000,000 13,000 130,000 1,300,000 13,000,000

Scenarios for Achieving Scale:

* Source: U.S. Census, 2009

We are currently on a 10,000 year path to systematically upgrading the performance of the nation’s housing stock.

Drivers for Home Performance

Dust and Allergies Comfort Issues (Drafts, Hot or Cold Rooms) High Utility Bills Hazardous Materials (Asbestos, etc.) Moisture (wet basements, mold, etc.) Climate Change (i.e., carbon footprint)

Typical home…full of systems… Drainage system Foundation system Flooring system Wall system Ceiling system Roof system Heating system Air conditioning system Ventilation & IAQ systems Moisture control systems Distribution system Exhaust systems Plumbing systems in/out Electric, Appliance

& Lighting systems Energy management system

Key Question: Do you know where your fresh air comes

from?

Furnace Filter Slot

Return Air

Corrosion on Hot Water Tank

Pipe Insulation

Join the center of the industry.

It’s all here at ACI.www.affordablecomfort.org

Regional ConferencesColorado ENERGY STAR SummitDecember 8 - 9, 2010Denver, Colorado

ACI California Conference 2011January 10 – 11, 2011Los Angeles, California

ACI Northwest Conference 2011February 1 – 2, 2011Portland, Oregon

National ConferenceACI National Home Performance ConferenceMarch 28 – April 1, 2011San Francisco, California

BPI Certification Model

Field Exam for Building Analyst

BPI Certified Building Analyst

Professional

Written Exam for Building Analyst

BPI Certified Heating

Professional

Written Exam for Envelope

Field Exam for Envelope

BPI Certified Envelope

Professional

Written Exam for Gas or Oil

Furnaces or Gas or Oil Hydronics

Written Exam for Manufactured

Housing

Field Exam for Heating

Field Exam for Manufactured

Housing

BPI Certified Manufactured

Housing Professional

BPI Certified Air Conditioning or

Heat Pump Professional

Field Exam for Air Conditioning or

Heat Pump

Written Exam for Air Conditioning

or Heat Pump

New Certifications Whole House Air Leakage Control

Installer Whole House Air Leakage Control

Crew Chief Accessible Areas Air Leakage Control

Installer

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

1000

2000

3000

4000

5000

6000

7000

8000

9000BPI CERTIFICATIONS BY YEAR

NewRe-newalsTotalPro-jected

Driven by Affiliate Growth: 216 Total

What is BPI Accreditation?A professional

credential awarded by BPI to contracting

companies who commit to offering

comprehensive “whole house” home

performance solutions for their customers.

BPI HPwES Contractor Model Educate Customers on Whole-House Offer Comprehensive Solutions Get Key Staff Trained & Certified Follow BPI Standards in Your Work Last Do No Harm by “testing out” Participate in Independent, Third-Party

Quality Assurance Program

Civil suit targets 12 for carbon monoxide deaths

Three local men indicted for manslaughter

BPI AccreditedHome Performance

Contractor

BPI CertifiedBuilding Analyst

BPI CertifiedSpecialty

Professional

Customer ServiceTeam Sets

Appointment

BPI Accredited Home Performance Contractor Model

SalesContract

ConductsComprehensive

HomeAssessment

EducatesCustomer onWhole House

Approach

Defines Scope ofWork Based on

Findings

OverseesWork in Home

PerformsInternal QC

Tests Out toStandards

Signs Off onJob

ObtainsCustomerSign-off

Solutions BasedSelling

VerifiableResults

BPI Home Performance Contractor Model

Zip Code Searching for Accredited Contractors

Marketing Materials for Accredited Contractors Newspaper ads Yellow pages ads Homeowner sheets Lawn signs Truck decals Neighborhood door hangers

Co-Branded Homeowner Marketing Sheet

Neighborhood Door Hangers

What’s In It For Me for Contractors?

Brand Recognition – Differentiation Access to Resources

Educational Business Training Marketing Outreach

Independent, 3rd Party Quality Assurance Feedback on Best Practices

Summary of the Value Proposition

SALES BENEFITS• Offer customer complete

solutions• HP uses a systematic

approach• Expand your scope of

services • Improve your closing rates• Be selective about projects• Perform larger value

projects• Offer competitive financing

Examples• NY: Average Project = $8,500• CA: Average Project = $12,000

OPERATIONAL BENEFITS• Differentiate business• Reduce staff down time• Retain high quality staff• Identify qualified staff to

hire• Minimize call back costs• Fewer customer

complaints• Manage your risk• Customer

satisfaction/referrals• Increased profitability• Ability to sleep, knowing

you did it right, the first time

BPI Accreditation CostsHow much does it cost to get BPI Accredited?

Training for 2 Certifications: ($790 - $2,400)BPI Certification Exam Fees: $550 x 2 = $1,100Accreditation and Quality Assurance: 1,500/year*Total Estimated Initial Cost: $3,390 - $5,000* Under Home Star, this fee will likely drop to $1,000/year.

EmbroidMe Franchise FeesHow much does it cost to openan EmbroidMe Franchise?Total Investment: $66,300-$187,400Initial Franchise Fee: $35,500Royalty Fee: 5%Advertising Fee: N/ATerm of Agreement: 35 yearsRenewal Fee: $1.5K