Energy audits... The big question for our industry.

[Nick Gromicko]

If you take away all the "fake demand" for energy audits ("Fake demand" being defined as demand artificially conjured up by government regulation or government incentive), is there left any actual consumer "real demand" for this service?

[ldapkus]

Here a some local upgrades done by Com Ed.

I registered for a BPI Building Analyst Certification Course and was notified a few days before the course was to take place, that it had been postponed due to lack of registered participants. A group of 8 participants (minimum) is needed for them (Clean Edison) to hold the class. That says a lot for this area. I've spoken to several contractors that may be interested. One is a general contractor and one is a commercial window contractor. It's hard to get people to dish out $400-$500 for a home inspection. To get them to pay that kind of money on an energy audit doesn't look too good. When you figure it will cost them thousands to do the energy upgrade and take maybe 10-15 years to recoup the investment in the upgrade, how many are actually jump on this? There are energy providers that provide free audits to their clients and municipalities that are doing energy upgrades to low income housing residences for free.
The tax incentives are minimal compared to what you invest for the upgrades and by the time you pay for them your appliances are ready for replacement due to old age and inefficiency. The initial cost of start up is about $5000 minimum, not including an IR camera which is not necessary but helpful. I think only contractors working on publicly funded projects will be making most of the money. In 3 years when we have a new administration these reforms will all be swept aside in favor of balancing the budget.

[Kevin A. Richardson]

I could not image starting a new business as an "Energy Auditor" or "Home Performance Contractor" in this market. I'm sure that there are some very successful folks who have started their businesses recently.

With that being said, I think established Inspectors have a unique position in the energy market. Marketing to someone who knows who you are and has used your services (home inspection) is a lot easier than marketing to someone who does not know who the heck you are or what you do.

On average I conduct 40 inspections a month. That's 40 "fresh/warm" leads a month in which I can market my Energy Services. Now, your not going to get their business in the first few months after they take ownership of the home they just purchased. It usually comes 6 months or a year after they move in. Plant the seed at the home inspection and pepper them with marketing material and reminders. They will come back to you!!

We have lots of inroads in this business - we just have to utilize them!

Kevin

[dbelmont]

From my perspective the degree of interest in "energy issues" across the board ,by the consumer, is directly connected to the pain they feel in paying for their energy needs. Broadly speaking it is all about money.

I find that most folks have a very short time horizon about energy. My approximation is that most can't see beyond 6 months. As long as their perception is being able to reasonably cope in that time then energy upgrades that will improve their position in the future don't make the cut.

So based on your parameters I;d say that the typical consumer is uninterested in energy issues except as they feel real pain or perceive the possibility of real pain in the short term.

[Jeremiah Anderson]

The two major utility companies in Minnesota, Xcel Energy and Center Point Energy, are offering energy audits for their customers at a substaintial discount and they add the cost of the audit onto the utility bill. The only parameter is that the customer is limited to one audit every three years.

I did a bit of checking and the customer ends up paying $25 for a standard audit or $100 for the comprehensive audit (blower door and IR Camera). I called the two utility companies and asked who does the audits and was told they use a service to subcontact them out. They would not give me the name or contact information of the service they use but offered to forward my contact information along and someone at their service would contact me.

[William Warner]

Originally Posted by janderson

The two major utility companies in Minnesota, Xcel Energy and Center Point Energy, are offering energy audits for their customers at a substaintial discount and they add the cost of the audit onto the utility bill. The only parameter is that the customer is limited to one audit every three years.

I did a bit of checking and the customer ends up paying $25 for a standard audit or $100 for the comprehensive audit (blower door and IR Camera). I called the two utility companies and asked who does the audits and was told they use a service to subcontact them out. They would not give me the name or contact information of the service they use but offered to forward my contact information along and someone at their service would contact me.

Get used to it... it's happening everywhere.
win - win for the companies involved. here it's $25 for low income families and $50 for all others... includes blower door and IR.
Our stimulus dollars putting us out of work.

[Peter C. Russell]

Originally Posted by wwarner

Get used to it... it's happening everywhere.
win - win for the companies involved. here it's $25 for low income families and $50 for all others... includes blower door and IR.
Our stimulus dollars putting us out of work.

Not if your a performance contractor!!!!

This work is keeping my business alive and two employees busy.

[William Warner]

Are you charging $50 for the initial evaluation?

These performance contractors have it in the bag with the PUC's promoting them and then letting them do the repair work.
I can tweak an IR camera and make ANY home look like it needs thousands in repairs to reduce energy costs ESPECIALLY if I wanted to get the repair work and make it look like the PUC was generally interested in assisting the end user.

Not saying you do this. But this kind of low balling will affect your bottom line also if you aren't in with the PUC's

PUC's in my opinion should stay out of it.

[Peter C. Russell]

Originally Posted by wwarner

Are you charging $50 for the initial evaluation?

These performance contractors have it in the bag with the PUC's promoting them and then letting them do the repair work.
I can tweak an IR camera and make ANY home look like it needs thousands in repairs to reduce energy costs ESPECIALLY if I wanted to get the repair work and make it look like the PUC was generally interested in assisting the end user.

Not saying you do this. But this kind of low balling will affect your bottom line also if you aren't in with the PUC's

PUC's in my opinion should stay out of it.

IR cameras are for quality control only. You need to do blower door testing pre and post construction and show performance results.

You can't fake blower door numbers.

[Jason Kaylor]

I have a feeling these types of "is energy auditing a viable business idea?" threads are going to be very similiar to the "is IR worth it?" threads we have seen in the past 3 years.

You are basically going to get three responces to these questions. 1. the respondant is doing well (probably due to funds, marketing and business skills) and admits it. 2. the respondant did not fair well (probably due to funds, marketing and business skills) or 3. the respondant is doing well (probably due to funds, marketing and business skills) and doesn't want to admit it to avoid competition.

JJ

[Peter C. Russell]

Originally Posted by jkaylor

I have a feeling these types of "is energy auditing a viable business idea?" threads are going to be very similiar to the "is IR worth it?" threads we have seen in the past 3 years.

You are basically going to get three responces to these questions. 1. the respondant is doing well (probably due to funds, marketing and business skills) and admits it. 2. the respondant did not fair well (probably due to funds, marketing and business skills) or 3. the respondant is doing well (probably due to funds, marketing and business skills) and doesn't want to admit it to avoid competition.

JJ

Absolutely correct..... except on the third remark..... not a lot of competition but a lot of skepticism.

[William Warner]

There is a viable market and successful businesses (mine included), but no $500 "certification" course or $5000 initial investment mentality will get you anywhere close to successful in this business.

[Peter C. Russell]

Originally Posted by wwarner

There is a viable market and successful businesses (mine included), but no $500 "certification" course or $5000 initial investment mentality will get you anywhere close to successful in this business.

What is the 5K investment?

[William Warner]

Originally Posted by prussell

IR cameras are for quality control only. You need to do blower door testing pre and post construction and show performance results.

You can't fake blower door numbers.

Tell that to some of the HERS raters explaining their false Energy Star rating reports today so they could "stay good" with the builders.

I know what you're saying. But as with anything else, there are some shady alliances occurring. And some of these alliances with PUC's appear suspect to me under the guise of government rebates and job creation. Just my opinion.

[William Warner]

Originally Posted by prussell

What is the 5K investment?

What some of the misinformed think is minimum needed to get in on the energy wave...