As the price of homes continues to rise, California homebuyers are turning to energy-efficient homes for their new home. California has become one of the most energy-efficient states in the country, and many incentives exist to make these homes a reality for new homeowners. In this article, we’ll cover the costs of energy-efficient upgrades, Sales tax holidays, and Net-zero homes. But there’s a lot more to energy efficiency than just saving money on electricity bills.
Building codes don’t address energy efficiency
While building codes are not as exciting as clean technology or controversial as carbon pricing, they remain one of the most important tools in the fight against climate change. But in the current Ontario code update, the changes are minimal, with few changes in energy efficiency and carbon emissions. As a result, consumers aren’t getting the benefits they deserve. While the update has many positive aspects, it fails to address the most pressing needs of consumers and builders alike.
Enforcing building codes is critical for long-term affordability and consumer protection. Inefficient buildings are not only costly, they also are inconvenient for renters and homeowners. Energy bills are mostly paid by developers and contractors, not by homeowners and tenants. Furthermore, carbon prices are set to triple by 2030, and the global market for fossil fuels is prone to fluctuations. The cost of energy is growing at an alarming pace.
Cost of energy-efficient upgrades
The Energy Upgrade California program provides rebates for various home improvement projects. A typical package can save up to $5,000. To qualify for a rebate, a homeowner must make certain energy-efficient improvements to the home. The state has passed several laws aimed at lowering the cost of energy-efficient upgrades. One example is the California Building Code, which requires that all new buildings meet minimum energy-efficiency standards. Other legislation aimed at making upgrades more affordable for low-income homeowners was passed.
While many energy-efficient upgrades for California homes reduce the cost of electricity, not all of them save money. In fact, some improvements can actually increase electricity usage. While lighting upgrades can save homeowners money, they can’t achieve net zero energy. Moreover, the “rebound effect” may lead consumers to use more energy after purchasing an energy-efficient appliance, such as an electric car. Some people shy away from the more expensive upgrades, but these improvements can add substantial value to the property.
Sales tax holidays
While sales tax holidays for energy-efficient homes in California sound like a good idea, they aren’t a good idea at all. Unlike targeted tax breaks, these holiday periods generally benefit the rich, not the poor. There are some other better options for tax relief, such as low-income sales tax credits or earned income tax credits, which benefit the poor and middle class. In addition, sales tax holidays are not limited to state residents, but rather are extended to anyone living within state borders, including tourists and those who live near the border.
State lawmakers decide when and how often sales tax holidays are offered. Some states have annual sales tax holidays, while others have to renew them every year. For example, Louisiana used to offer a 0% sales tax holiday but changed to a discounted rate of 3% in 2016. Some states also have limits on how much can be purchased during the tax-free period, so consumers should be sure to shop smart. Remember that sales tax holidays don’t mean you won’t have to pay any taxes at all – they’re just a way to get a discount on the things you need most.
Net-zero homes
According to the National Association of Home Builders, nearly half of California new-home buyers would prioritize buying an energy-efficient home over another type. In the survey, new homeowner was asked whether they would be willing to save at least $1,000 annually on utilities and other costs associated with owning a home. Of course, looks and amenities are important, but energy efficiency is often taken for granted. And that’s not surprising, as a recent study found that fewer than one-third of new-home buyers consider its importance.
While California homebuyers have a growing number of options when it comes to buying a new home, many aren’t willing to pay the extra money to build a new energy-efficient home. In the Central Valley, temperatures were predicted to reach 108 degrees Tuesday. The state has become increasingly concerned about climate change and has been pushing new home construction toward net-zero energy by 2020. The state’s first energy-efficient homes are expected to be finished in Q2 2018, and there is a growing trend toward building more energy-efficient homes.
