Home Energy Rating Systems (HERS) Programs 
HERS programs rate the energy efficiency of new and existing homes and make recommendations for energy improvements. These energy ratings are often used in obtaining energy-efficient mortgages (EEMs--see below) Several states have HERS programs, which operate under Energy Rated Homes of America, a national nonprofit organization.  

The U.S. Department of Energy, in accordance with the Energy Policy Act of 1992, published a set of voluntary HERS guidelines. DOE is encouraging utilities and the mortgage industry to adopt them. The guidelines rate new and existing homes according to how closely they follow the insulation requirements of the Council of American Building Officials’ Model Energy Code, as well as other requirements. The homes are then awarded an energy efficiency rating between 0 and 100, with 100 being a home that is completely energy-self-sufficient.  

In 1995, the National Association of State Energy Office Officials and Energy Rated Homes of America founded the Residential Energy Services Network (RESNET) to develop a national market for HERS and EEMs. 

Energy Efficient Mortgage (EEM) Programs 
An EEM is a type of mortgage that allows energy-efficiency features to be included in a mortgage loan. EEMs can also allow a buyer to qualify for a higher mortgage, because the reduction in utility bills allows more debt. 

Energy Rated Homes of Colorado is the state's home energy rating system, and provides E-Star energy ratings for both new and existing homes. The program's Web site, E-Star, provides useful information for consumers and industry professionals, as well as a number of tools and information pieces.

An excellent primer on HERS and EEMs can be found at RESNET’s Web site. This site also provides contact information for HERS programs across the country and lists certified home energy raters and lenders offering EEMs. 

The Alliance to Save Energy offers on its Web site consumer and lender resources for energy-efficiency financing and HERS. Included are a brief overview and a lender's guide about energy efficiency financing, a national directory of lenders, links to HERS/EEM organizations, and an energy-efficient mortgage guide for the homeowner.

Other Rating Systems and Mortgages
The Location Efficient Mortgage (LEM) is an innovative mortgage product that is being offered in Seattle, Chicago, and several California communities to low- and moderate- income borrowers who are interested in living in urban areas served by public transportation systems. NRDC offers a helpful Guide to Location Efficient Mortgages.

The LEED rating system developed by members of the U.S. Green Building Council provides a national certification for several levels of green buildings. The U.S. Green Building Council is a nonprofit coalition of 1,500 leading companies, organizations, and federal/state/local organizations advancing buildings that are "environmentally repsonsible, profitable, and healthy places to live and work." USGBC also offers LEED training workshops and accreditation.

Utility Report Cards (URC) is a web-based Energy Information System that reports and graphs monthly utility data for schools. In addition to helping school staff track and compare energy use, the URC is also intended for teachers and students to use as an instructional tool to learn about school energy use as a complement the energy education materials available through the U.S. Department of Energy's EnergySmart Schools program (ESS).

Last Updated: June 2, 2004

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