ENERGY STAR is the symbol for energy efficiency, as designated by the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA). In addition to homes, the ENERGY STAR label can be found on energy-efficient electronics and appliances.

What distinguishes an ENERGY STAR home?

An ENERGY STAR labeled home uses 30 percent less energy for heating, cooling, and water heating than a home built to the Model Energy Code. In addition to energy savings, an ENERGY STAR home offers quality construction, improved comfort and indoor air quality, and higher resale value, all while protecting the environment. Energy efficient features typically include a tighter home envelope, tighter duct sealing, improved levels of insulation, high-efficiency heating and cooling equipment, and energy-efficient windows. All ENERGY STAR labeled homes undergo a third party evaluation of their energy efficiency.

Does an ENERGY STAR home cost more?

An ENERGY STAR labeled home actually costs less because of the dramatic decrease in monthly utility bills. These energy savings can more than offset any increase in mortgage payments needed for the improved energy features, which can result in a positive monthly cash flow. Through better construction and the use of energy-efficient features, ENERGY STAR labeled homes offer lower operating costs (mortgage + utility bills) than typical homes of the same, or even lower, purchase price.

	ENERGY STAR Home	Standard Home	Net
"Sticker Price"	$223,000	$220,000	$3,000
Down Payment (5%)	$11,150	$11,000	$150
Mortgage Amount	$211,850	$209,000
Monthly Costs
Mortgage Payment	$1,483	$1,463
Utility Bills	$107	$142
Net Monthly Payment	$1,590	$1,605	$15 Monthly Cash Flow
Annual Cash Flow	$180		120% Rate of Return