Dec 26 - Daily Herald; Arlington Heights, Ill.

When it comes to going green in home building, consumers often talk the talk, but would rather have granite countertops than extra insulated walls.

Despite the seemingly obvious environmental benefits, long-term financial advantages and the prospective 70 percent increase in heating costs this winter, the well-publicized and much-ballyhooed nationwide trend of building energy-efficient homes is slow to catch on with consumers in this area.

Home builders are taking some first steps such as installing better insulation and efficient furnaces, but it will take an unlikely strong demand from consumers to push builders to be truly environmentally friendly.

"There is more hype than action" with consumers, said Stephen East, home builder analyst with St. Louis-based research firm Susquehanna International Group LLP. Consumers are more interested in what is convenient and affordable now, rather than long-term gain, he added.

"Interest in our area has been relatively low and remains fairly low," said Tom DeBates, owner of efficient-energy building company Habi-Tek. The Geneva-based contractor said people are more interested in "instant payback."

Cambridge Homes Inc., the largest Chicago-area homebuilder, started building energy-efficient homes without consumer demand about five years ago, said Dave Smith, vice president of marketing and product development.

"If it was an option, no one would take it," Smith said. "It is not sexy or flashy and it has been slow to catch on with consumers."

The Libertyville-based company constructs all of its Carillon homes, in Beach Park, Aurora and Crest Hill, as energy efficient, which increases the price by about 10 percent.

Other area home builders, including Hoffman Estates-based Lennar Corp. and Palatine-based Concord Homes, have also taken the initiative to integrate more energy-efficient elements into their construction.

"We take it upon ourselves to educate buyers," said Mark Leohner, vice president of purchasing of Lombard-based Town & Country Homes. Building energy-efficient homes is one of the company's primary objectives.

All new Town and Country homes come standard with a 2-by-6 exterior wall, which make the walls thicker and more insulated, reducing heating and cooling costs. Other standard features include two-stud corners and insulated 1/2-inch Celotex Sturdi-R wall sheathing, both of which also improve insulation.

Nicholas Michael Builders, in St. John, Ind., advocates 90-plus percent efficiency furnaces, which will cost about $700 to $1,000, only slightly more than an 80 percent efficiency furnace. The higher- rated furnace will heat a home more efficiently and therefore lower heating costs.

In Lennar homes, a 90 percent efficiency furnace is standard in its latest community, Talamore, in Huntley. All Talamore homes are also built with vinyl-insulated thermal break windows and high- density insulation, both designed to reduce heating and cooling costs.

Installing blown-in insulation rather than the traditional batted insulation is another technique builders use in their energy-saving effort. This process of blowing the loose-filled fiberglass into the wall and sealing it with a plastic polymer coat provides greater insulation for the house.

Blown-in insulation costs about $1,000 more than batted insulation for a 2,500-square-foot home.

Using energy-efficient household appliances is another way consumers are going green. In 1982, the U.S. Environmental Protection Agency introduced Energy Star, a program that promotes the use of energy-efficient appliances. The average American household spends $1,500 annually on energy bills, 70 percent of which is for appliances and home office equipment, according to the U.S. Department of Energy. The EPA estimates that by using all Energy Star qualifying products, the $1,500 bill could be reduced by $150.

Both Town & Country and Concord Homes Inc. are installing Seasonal Energy Efficient Ratio 13 air conditioners.

"The change from SEER 10 to SEER 13 represents a 30 percent improvement in energy efficiency," Loehner said.

He estimates these enhancements increase home costs by 15 percent to 20 percent.

Urging consumers to go green, the federal and local governments have introduced programs to help them bear the cost.

On Aug. 8, President Bush signed the Energy Policy Act, the new national energy law that provides tax credits for homeowners who make certain energy-efficient upgrades, including installing efficient new windows, insulation, roofs and doors.

Consumers can get a one-time tax credit for improvements made from Jan. 1 through Dec. 31, 2007, of up to $500, reducing their income tax bill by that amount. Details about qualifying for the credit are not yet available and will be posted soon on www.energytaxincentives.org.

Home builders and manufacturers can also benefit from the new law. By building homes that will save at least 50 percent of the heating and cooling of a comparable home, a builder can get a $2,000 tax credit. The Department of Energy is now preparing the guidelines to determine what qualifies.

Measures will include installing better-insulated foundations, walls and ceiling; high-efficiency windows; well-sealed framing and air ducts; and high-efficiency heating and cooling systems.

Chicago offers help, too. ComEd, the Chicago-based unit of Exelon Corp., and the Shorebank Neighborhood Institute joined together to extend an existing program offered by the city of Chicago and the Historic Chicago Bungalow Association.

The program will supply low-income South Side bungalow owners with up to $3,000 to complete energy-efficient home improvements. To qualify, owners must earn between $23,200 and $37,120.

Susquehanna's East said consumer awareness could catch on as early as next spring when huge heating bills are still fresh in the consumer's mind. He also thinks the government incentives may accelerate the growth of the energy-efficient trend.