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2012 International Energy Conservation Code

Upgrading new homes in Minnesota’s Climate Zone 7 to the 2012 International

Energy Conservation Code (IECC) will reduce out-of-pocket expenses for

homeowners – paying o their initial investment in a matter of months.

FOR NEW HOMES 

MinnesotClimate Zone 7

Energy Code Payback for Minnesota Single Family Homes

Break-Even Po8 M ONTH

$1 , 070. 1

2 9 %

$3, 471 . 1

Annual Energy

Reducon

2-year Profit

5-year Profit

 The added mortgage costs will be oset by monthly energy savings of $77.06, 

helping homebuyers pay o their initial investment in only eight months. After

breaking even in month eight, the home will return buyers a prot of $67 per

month—for a total return of $800 every year. This return on investment is shown

in balance sheet below.

For the average new home, the 2012 IECC will only increase construction costs by

a total of $2,704. When this amount is rolled into the average mortgage, real

costs to homebuyers will mean a down payment increase of only $540.85, and

$10.37 extra on monthly mortgage bills.

MonthMortgageIncrease

MonthlyEnergy Savings

1 $540.85 $77.06 -$463.78

2 $10.37 $77.06 -$397.09

3 $10.37 $77.06 -$330.40

4 $10.37 $77.06 -$263.70

5 $10.37 $77.06 -$197.01

6 $10.37 $77.06 -$130.32

7 $10.37 $77.06 -$63.62

8 $10.37 $77.06   $3.07

9 $10.37 $77.06 $69.76

10 $10.37 $77.06 $136.46

11 $10.37 $77.06 $203.15  

12 $10.37 $77.06 $269.85  

13 $10.37 $77.06 $336.54

14 $10.37 $77.06 $403.23

15 $10.37 $77.06 $469.93

16 $10.37 $77.06 $536.62

17 $10.37 $77.06 $603.31

18 $10.37 $77.06 $670.01

BREAK EVEN AND START EARNING $67 IN PROFIT EVERY MONTH.

CumulativeCost/Benet

For additional Incremental Cost Analysis, please visit energycodesocean.org.

 This model assumes a 2,400 square foot home. The mortgage is

conservatively set at 30 years, with 20% down and the current averag

nationwide interest rate of 4.03%. With a lower down payment—such

as 10% down—consumers will break even on their investment even

sooner.

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   R  -

Homes are the biggest investment we make—and everyone deserves a home that

meets national minimum energy eciency standards. While it’s true that

homeowners can always improve the eciency of their homes, it is far more

cost-eective to upgrade building components during construction, putting in

better windows or swapping out one grade of insulation for a better one. Here’s

what buyers get with the 2012 IECC:

For additional Incremental Cost Analysis,

please visit energycodesocean.org

 

High-efficiency Ligh

CLIMATE ZON

$ 5 0

Window Upgrades

$ 3 5 7

Hot Water Insulaon

Addional Upgrades:

Hard-Ducted Returns

$ 1 0 0

$ 1 8

Sealed & Insulated Ac Hatch $ 5 0

HVAC System Savings $ 4 0+

$8 2 0 WALL

$2 6 8 CEILING

$8 7 9 BS

Insulaon Upgrades

Whole-house Sealin

$67 profit every monthHomes built to the 2012 IECC could yield a

and $23,500 over 30 years.

2012 ENERGY CODE Payback:

$ 3 5 0

and Tesng

Programmable

$ 5 0

Thermostat

FOR NEW HOMES 

MinnesotClimate Zone 7