Use SIPs for an Energy Star Home
Sustainable Building Means a Favorable Construction Loan
May 4, 2008
SIPs (Structural Insulated Panels) take the concept of modular homes construction to the next level of energy efficiency. For the homeowner aiming at getting an Energy Star home certification, green building with SIPs is the logical place to start.
What is SIP?
As the name implies, this building technology is centered on modular SIP panels. The panels are manufactured off site to the specifications worked out by the architect or building engineer using residential construction software.
The panels are used in the home's roof, walls, and floors. The panel factory makes each panel as a sandwich. The outside surfaces are OSB (Oriented Strand Board) and the core is rigid foam plastic insulation.
A similar but stronger technology is ICFs (Insulated Concrete Forms). These are hollow blocks made with Strrofoam sides. Once assembled, concrete is poured into the blocks, forming the wall.
New Home Construction Considerations
Since the panels are constructed off-site and then assembled at the new home site, layout, material cutting, and manual framing are no longer such an issue. Why is this a benefit? For one thing, the building can be dried in sooner than with traditional wood framing.
This means less time lost due to rain outs and less exposure to the elements. The sooner the home is dried in, the sooner the interior trim work can begin. There are fewer scheduling headaches for the building contractor and the owner has a better chance of pinpointing move-in day.
What do SIP and Energy Star Have to do with Each Other?
SIPs construction can be thought of as the basic building block on the road to Energy Star and LEED certification. Because the foam core panels make the home virtually airtight, the home can be be expected to be 50% more energy efficient than standard residential wood framing.
Once the home is built, it must pass a standardized efficiency test to win an Energy Star rating. This test places the home in an index called the HERS (Home Energy Star Rating System).
Basically, the test consists of a visual inspection, a door blower test (revealing the home's air tightness), and a duct blaster test (to detect any leaks in the home's ductwork). The test also takes into account appliances, and having energy efficient windows is a factor.
Energy Efficiency Tax Credits
The 2005 United States Energy Policy Act put into effect tax credits for energy efficient homes. SIPs built homes fall into this category. For residential homes, it's a whopping $2000! Tax credits are significantly better than tax deductions.
Tax credits lower the amount of taxes owed. Deductions apply to income that's subject to tax. Credits will save more in the long run.
Energy Efficient Mortgages and Construction Loans
Energy efficient mortgages (EEM) are available for green home builders, so naturally SIPs construction fits right in. The basic idea is that the lender feels comfortable lending a higher amount of money.
Since home utility bills continue to rise drastically, it's only logical that they will put an increasingly painful bite on the homeowner. But, as mentioned above, SIPs modular homes will save approximately 50% more than stick framing. Simply put, the risk factor on the loan is much lower.
Likewise, as the mortgage market tightens up, lenders will look more favorably at making construction loans for green buildings. Their investment is on a superior building technology and if they ever have to foreclose, they have a more viable asset.
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