The city of Portland passed an ordinance that took effect on January 1, 2018 requiring all homes within city limits to obtain a Home Energy Score prior to listing for sale on the market. Portland is the first city in the country to require the score for listings. Sellers are subject to a fine if it is not done.
Sellers will need to contact an authorized Home Energy Assessor (who must be authorized by the City of Portland) in order to receive their Home Energy Score before listing their home for sale. They will then need to include the Home Energy Score and Report in any listing or public posting about the home.
What is a Home Energy Score?
The Home Energy Score is a measurement of the energy efficiency of a home based on an onsite evaluation of the physical characteristics of the house. This includes the foundation, roof, walls, insulation, and windows; in addition to its heating, cooling, and hot water systems. The assessment does not measure the household’s actual energy usage since that is dependent upon occupant behavior.
The evaluation will also detail improvements that could be made and what the Home Energy Score would be should the improvements be made. Homes do not need to undergo the improvements suggested by the assessment prior to listing. However, the information should be readily available and accessible to any prospective buyer.
A home scoring a 1 is estimated to consume more energy each year than 85 percent of homes. If a home scores a 5, it is expected to perform comparably to an average home in Portland. Scoring a 10 means it ranks among the 10 percent of homes expected to use the least amount of energy.
Scoring low does not conclude that a home was poorly built, it just means that there is room for improvement to reduce the home’s energy use. Even if a home scores a 10, it may still benefit from additional energy efficiency or renewable energy investments.
Will Seattle be next?
The City of Portland partnered with the U.S. Department of Energy to use the Home Energy Score model and software as the scoring system for Portland. Providing the score supplies buyers, sellers, and owners with valuable information about a home’s energy use. It remains to be seen if the score will increase or decrease a home’s final value.