Home Performance Opportunities

Raising the Bar in Home Performance Contracting

Larry ZarkerBPILZarker@bpi.org

Home performanc

e is NOT for Do It

Yourselfers.

Bureau of Labor Statistics:“Construction slow to rebound.”

Not Enough Stimulus?

Doomsday Scenario without Stimulus

Administration Projection with Stimulus

* 7.7% (February 2013)

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Small Firms Dominate in Remodeling

Source: “A New Decade of Growth for Remodeling,” January 2011, Harvard Joint Center for Housing Studies.

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Remodeling is a $300 Billion Industry

Source: “A New Decade of Growth for Remodeling,” January 2011, Harvard Joint Center for Housing Studies.

Residential Energy Efficiency Investment is Growing

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Money is in Existing Housing

Source: “A New Decade of Growth for Remodeling,” January 2011, Harvard Joint Center for Housing Studies.

Incomes of $40-80K and $80-120K spent a combined $62 billion.

$147 billion spent on professional services in the home.

Large spending on homes with values less than $250,000.

GenX and Young Baby Boomers spent over $67 billion on their homes.

$19 billion on jobs of $5-10K. $25.5 billion on jobs of $10-20K.

Over 550,000 families spent more than $50K on home upgrades worth nearly $53 billion.

Nearly 3 million people spent over $9 billion on $2500-5000 projects in 2009.

Look, I love the blower door, but…

We need a contractor’s MBA

HomePerformanceContracting

Remodeling

General contractors whodesign and oversee roomadditions, kitchen andbath upgrades, andenhancement of the livingspace in a home.

HVAC Contracting

Specialty contractors whoservice and install heatingand air conditioningequipment.

Air Sealing andInsulationContracting

Specialty contractors whoremove old insulation,use blower door guidedair sealing techniques,and install insulation inthe building envelope.

Windows, Doors andSiding Contracting

Specialty contractors whoreplace windows, doors, andsiding products.

Home Performance Contracting

Contractors who analyze thehouse-as-a-system by conducting acomprehensive assessment/energyaudit on the building, recommend ascope of work based on diagnosticfindings and perform the work requiredto optimize the performance of thehome.

Remodeling HVAC Contracting

Insulation and AirSealing Contracting

Windows, Doors andSiding Contracting

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 Home Performance 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

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

Program Risk Management Ensure appropriate use of funds

Taxpayer Ratepayer

Increased Homeowner Satisfaction Health and Safety Precautions Reduced Liability for the Program

Preventable Risk is too Much Risk

Building Analyst – goes beyond a traditional energy audit to perform comprehensive, whole-home assessments, identify problems at the root cause and prescribe and prioritize solutions based on building science.

Envelope Professional –quantifies performance and prescribes improvements to help tighten the building envelope (shell), stop uncontrolled air leakage and optimize comfort, durability and HVAC performance.

Heating – optimizes the performance of heating equipment within the context of the house as a system to help save energy and ensure occupant comfort, health and safety.

Air Conditioning and Heat Pump –understands the role of these systems within the whole home and how to diagnose and correct problems properly to achieve peak performance.

Air Leakage Control Installer* –demonstrates the ability to completely air seal all penetrations between conditioned and non-conditioned spaces.

* Residential Building Envelope Whole House Air Leakage Control Installer (whew!)

Certification Provides Differentiation

Positioning in the Market

Greed Ad for Individual Technicians

Differentiation Ad for Contractors

Positioning for the HVAC industry

www.bpi.org/hvac

HEM/BPI e-newsletter

www.homeenergy.org/hvac2hp

BPI Accreditation Costs

How 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/yearTotal Estimated Initial Cost: $3,390 - $5,000

EmbroidMe Franchise Fees

How 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

GreenHomes America Locations

Thank you

Further Questions Contact me at:

Larry Zarker

LZarker@bpi.org