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ENERGY STAR Version 3 Is Live! Where Are the HVAC Contractors?

Posted by Allison Bailes on Fri, Jan 20, 2012
  
 

ENERGY STAR Version 3 is live!The transition to ENERGY STAR Version 3 accelerated on 1 January. That's when Version 2 of the program expired. Now all new homes in the program will qualify under Version 2.5 or Version 3, depending on the dates of permitting and final inspection. Anything permitted last year can still qualify under V2.5 as long as it's finished before July. Everything else will be V3. The chart below shows the relevant dates.

energy star homes version 3 implementation schedule 2012

One of the new features in the program is the requirement for training. HERS raters have to take a two-day class from an accredited training provider and pass a test. Home builders have to go through an online module and correctly answer a few questions about the material.

The training requirements for HVAC contractors are a little more involved. They have to:

  1. Take a class from an HVAC Quality Installation Training and Oversight Organization (H-QUITO);
  2. Apply to be approved after the class;
  3. Participate in the H-QUITO's quality assurance process.

Last I heard, only a few HVAC contractors had completed the training requirements. Since home builders looking to qualify their homes for Version 3 must use HVAC contractors who meet the requirements, this is an opportunity for HVAC companies. If the numbers for ENERGY STAR homes are down this year, it looks like the numbers for qualified HVAC companies may be one of the reasons.

If I ran an HVAC company (we do design but not installation), I'd definitely be signing up for the next training class I could find. Go to the ENERGY STAR page for HVAC contractors to find out more.

 

[NOTE: I promised my response to the thermostat setback guest post in this space today, but that article's not ready yet. Look for it next week.]

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Comments

List of ACCA's QA (ESV3) Contractors is posted at https://www.acca.org/industry/quality/quality-assured/qa-new-homes-recognized-contractors 
 
Looks like about 230+/- nationally.
Posted @ Friday, January 20, 2012 9:31 AM by geoff hartman
Allison, 
An HVAC contractor once asked, "do you know how you make $1 million as an HVAC contractor?"  
 
The answer - "You start with $2 million." 
 
The HVAC business is a heavy labor and high overhead industry. The lowest I have ever seen is 20% of gross sales. Most companies run 25% to 30%. To make double digit net profits at 30% OH, you must consistently price your work for a minimum of 40% gross profit. Then pray that your labor and materials don't exceed your estimate.  
 
News Flash - New construction work will not pay that margin. Moreover when you include the time necessary to provide a professional design, your cost basis increases. So its a double whammy. Higher cost and high overhead.  
 
At the end of the first year or two, most savvy contractors realize they can become box changers, make 50% gross and get their money within 5 to 6 days. Is there any wonder why these guys are not stampeding to sign up for the ACCA QA process? 
 
 
 
Posted @ Friday, January 20, 2012 9:38 AM by Danny Gough
Hi Guys, 
 
I am still waiting for a "Building Scientist" to come with me to a production builder and start this pitch while bent over the table assuming the position while fighting over $1.00/system vs the other manufacturers. 
 
I will be happy to arrange the meeting so I can witness your sales pitch and learn. 
 
Let me know. The International Builder Show is February 8th, 9th, and 10th, I'll be there, will any BS guys? Or is this BS reserved for 1-2 custom houses per year?  
 
Waiting to here from you. 
 
pj
Posted @ Friday, January 20, 2012 10:43 AM by pj
Geoff H.: Thanks for the link to ACCA's list of ES V3 qualified HVAC contractors. I knew I'd seen it before but thought it was on the ENERGY STAR website. 
 
Danny G.: Yes, there's no question that HVAC contractors have to make money to stay in business, and it's not an easy business. Still, I'd rather be in the HVAC business than a car dealer, where the net profit margin is less than 2%. The new ES V3 guidelines can give those same savvy contractors you mention an edge in new construction. If there's demand (which remains to be seen) and only a few qualified to meet it, they can use it to their advantage. We'll see this year how it works out.
Posted @ Friday, January 20, 2012 10:47 AM by Allison Bailes
pj: I appreciate the comic relief you provide, but seriously, you need some new material.
Posted @ Friday, January 20, 2012 10:59 AM by Allison Bailes
Phil, I routinely work with builders, architects and homeowners on new construction projects. My clients are typically going for 'green' (whatever that is) and they're baseline specs are woefully misguided. Too much money on some things, and often not enough on attention to QA. When bidding on high performance homes, HVAC contractors always propose their top-of-the-line equipment. Naturally. 
 
I'm able to convince clients they're better off spending extra $ on proper design and installation rather than high end equipment. In fact, in most cases I'm able to pull money *out* of a project. The biggest challenge is helping the client find a good HVAC contractor. It's getting better as a new generation of smart guys (and gals) embrace building science.
Posted @ Friday, January 20, 2012 1:13 PM by David Butler
Thanks for posting the link. 
 
This week I have met with 2 builders that have around 75 homes they ARE building and want to do ENERGY STAR. They are amazed to hear of the value it is when compared to other programs available. They are happy to hear that it doesn't require new fancy products, but that it only requires quality work on all fronts. They are excited to hear of the marketing opportunity it brings. I am with David on this one and have builders that will vouch for those $ saving successes. 
 
Posted @ Friday, January 20, 2012 7:15 PM by Les Watts
David B.: Hear, hear! ENERGY STAR Version 3 can help us get past this crazy idea that HVAC is all about the box. 
 
Les W.: Great work. I hope those two builders take the next step.  
Posted @ Friday, January 20, 2012 7:45 PM by Allison Bailes
 
Looks like Building Science is more of a Boutique Business than anything in the mainstream. I guess I'll have to face all those builders by myself. 
 
I still don't get the part where we constantly bad mouth HVAC guys and talk folks out of better, high performance equipment.  
 
Posted @ Friday, January 20, 2012 9:35 PM by Pj
I'm surprised that no one mentioned the cost to get and stay ACCA credentialed as a point of heartburn. I think you will see the number of available contractors shoot up as the timeline gets shorter and shorter. In the NW, we saw some steady attendance at our prior mandatory classes for credentialing in the program, but our first class after the new year had nearly triple the attendance of the classes that came before. This is the kind of thing folks like to put off until the 11th (or 12th or 13th) hour.
Posted @ Monday, January 30, 2012 4:31 PM by Thomas Anreise
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