There is an important distinction to be drawn among and within the auditor community - those who conduct an audit and may recommend contractors to do the needed work, and integrated auditor/contractors who combine contractor and auditor skills with the expectation that they will be hired to do some of the work themselves that their audit indicates needs doing.
There are benefits to hiring each type of professional. This article is designed to help you evaluate whether an audit only or "integrated" approach will work best for you and your home.
This list is not comprehensive by any means, and it is our hope that readers will jump in with insights based on professional or personal experience or pure passion. We welcome your contributions to this discussion. In fact, we rely on them.
Here are some of the potential benefits and disadvantages of each. Please add your thoughts.
1. The Integrated Home Energy Auditor/Contractor:
An integrated home performance contractor will conduct an audit and have the skills to address many or all of the issues that arise.
Potential Benefits:
House as a System Approach. Every certified auditor will view your house as a system. It may be a comfort to know that the contractor who does the work following the audit will approach the work from that point of view as well.
In other words, unlike a specialized contractor (an HVAC contractor, say, or an insulation specialist), a home performance contractor will be able to assess when a new boiler needs to be accompanied by increased ventilation, or when beefed up insulation needs to be preceded by beefed up air sealing. A HP contractor is a big-picture kind of guy, a sort of Dostoevsky for the house.
Continuity. You will be saved the trouble of translating your audit report for a contractor, as your home performance contractor will have familiarized herself with the totality of energy issues in your house. Given the complexity and subtly of some audit findings (and the variability of audit reports) this can be a significant challenge.
Values Air Sealing. An integrated contractor recognizes the importance of air sealing, rather than looking at it as grunt work or a low-paying job - in fact, it is sometimes difficult to find a qualified contractor willing to do air sealing work.
An energy-first approach to renovation/retrofits. An integrated contractor recognizes the importance of capitalizing on opportunities to improve energy efficiency, which means that essential but unglamorous steps such as air sealing may get higher priority. A contractor hired after the audit may have little interest in such tasks.
Bird in Hand. For some homeowners, having skilled labor in the house is a giant leap closer to getting the work done.
Potential Disadvantages:
Objectivity. The audit report may reflect what the contractor likes to do/sell as a contractor (if, say, your auditor's first passion happens to be boilers), rather than provide an objective assessment of the house.
Commitment. You might not want to hire the contractor who does your audit to do retrofit work. Just because you've had an audit doesn't mean you are ready to do the work or have it done. For some homeowners, it's a nuisance to have to explain to a contractor that you think he's a great guy (or gal) but you're going to hold off on the windows, or look for a differently skilled contractor, or someone whose hair doesn't stick out that way.
2. The Home Energy Auditor-Only
Many home energy auditors are trained specifically to conduct audits. They may have been motivated to enter the field because of their passion for energy and efficiency issues, to increase the safety of dwellings, or a host of other reasons. They are not contractors, and do not expect or intend to do the work that a home energy audit may reveal necessary for your house.
Potential Benefits:
Purity. Your certified Home Energy Auditor is not trying to sell you insulation or convince you to replace your furnace. She wants your house to be safe, efficient and healthy. Her primary interest will be in energy savings, not in any specific product or service (you won't need to worry about being talked into re-insulating your entire house unless you actually need to do it, because she isn't going to profit from the job if you hire it out).
The Whole Picture. An auditor will point out all areas of concern, and won't be tempted to shy away from identifying an issue (say, roofing) that's not within his realm of expertise. Since the pure auditor's primary expertise is the audit itself.
No Conflicts. An auditor who doesn't plan on making any of the improvements himself may be able to point you in the direction of someone who does have expertise in whatever needs to be done (i.e. "You really need some insulation in the attic. I know the best insulation guy in town, he worked on my house and my mom's house, here's his number.)
You are the ROI focus. An auditor will prioritize work that needs to be done based on your needs, and the return on your investment based on energy savings, without regard to his or her desired construction schedule.
Potential Disadvantages.
Lack of continuity. There is a lot of information (and a lot of very specific information) that comes out of an audit ("some caulking here," "some foam over there"). If the person who performs the audit is not performing the work, then the homeowner must act as translator of that information. This is true of higher level outcomes, as well. An auditor's expertise may be difficult to adequately convey to a contractor unfamiliar with energy issues.
Increased dependence on a high quality actionable report. The best translation of the audit is the Audit Report. If a homeowner is looking for a contractor to do the work stemming from an audit report, the report has to be thorough and instructive.
Increased burden on homeowner. If an auditor is not performing the retrofit work, then the homeowner will need to find an appropriate contractor or go the DIY route. Either way, this adds a step (or several).
3. A Winning Proposition either way.
We are bullish about home energy audits and certified home energy auditors. While there are no doubt exceptions, in our experience they are an exceedingly competent lot. Before choosing an auditor, figure out what kind of audit customer you are. Do you intend to do some or all of the work flowing from the audit on your own? Do you already have a contractor lined up?
Once you know what you want, place that call. We're betting you'll be glad you did.
And please chime in. Let's get the conversation started.
Comments
We decided to go with the home energy only business model for Green Home. The key for us has been to find quality trade partners that we can refer the work to. We make it absolutely clear to the homeowner that "We don't have a dog in the hunt" as to whom they choose to do the recommended work. What we do ask of our trade partners is that they add value to our service. For example, an HVAC specialist we often refer work to will provide a complimentary maintenance and inspection of the home's system. What's more, they will perform an indoor air quality test with an Air Advice unit. We've found that our trade partners are ecstatic about receiving warm leads from educated customers. Since we check their work afterward the homeowner has piece of mind of a quality job done that will make an impact on comfort, energy use, and air quality.
Posted by greenhome on Oct 1, 2009 8:20pmGood discussion of the pros and cons. There isn't a right answer. A couple of quibbles, and an omission: Under the "Auditor-Only" model, you mention the ROI focus. This is effectively impossible for a truly third party auditor for the simple reason that the generally do not have a good idea of the actual prices to install the recommendations by a qualified contractor. They can give a range--but it is very different to calculate specific ROIs and prioritize that way without exact prices! [Note, in some sense, this doesn't matter. The vast majority of our customers don't priortize using an energy-savings based ROI anyway. They move forward because they want to fix a comfort issue, make their daughter's room more comfortable, beat the unbearable heat in the home office all summer, etc. ROI is only a part of the discussion.]
Second, it you got the audit-only approach and don't use a fully integrated contractor, how do you pay for the project? Most of our customers use financing. And few single-trade contractors can help put together financing for an integrated package of improvement--almost no auditors do.
Another advantage you touch on with "A Bird in the Hand" is the hassle factor. Most people do not want to take off work for an audit and then again multiple times for a parade of different contractors. A great many prefer the ability for one-stop shopping.
You do nail it on the head re: the actionable report. It is very difficult for a third party to put together an actionable workscope that can be delivered by a contractor or group of contractors. So in essense you have to pay for the audit a second time.
Very good discussion, though. I continue to be impressed with this site. For more discussion of home energy audits (and a couple of related videos, see http://www.greenhomesamerica.com/home-comfort-and-energy-assessment.html).
Keep up the great work.
Thanks,
Posted by Mike Rogers on Nov 1, 2009 2:22pmMike
I have chosen the independent certified route. I am NOT opposed to the integrated route. However, what I am opposed to is those who are not certified but have had some basic training and use the various equipment (blower door, duct blaster, etc.) to sell their "product." That is a problem we are having in our area.
A great read. Thanks for sharing
Posted by edwardfoskey on Dec 5, 2009 5:57pmI think this is a very timely and comprehensive article on the two business models that a contractor can choose to follow. I think there is a case to be made that the retrofit industry needs to be integrated with a Home Energy Retrofit Marketplace Exchange where industry players can work together.
The entire industry needs to embrace the displaced housing industry workforce by modeling after the traditional 'design build' business model. This business model would employ energy auditors in the designer's role traditionally filled by the architect and would enable scalability across the nation rapidly.
These would be 'Energy Efficient Design Build Retrofits' where the building science community could empower seasoned construction managers to reach out to consumers and sheperd them through the retrofit process professionaly.
The Home Star rebates (Gold Star's $8000) could provide much needed down payment assistance to home buyers and would help realtors and mortgage lenders reengage in the business of selling homes. Leaveraging the Energy Efficient Mortgages, actually Energy Improvement Mortgages, along with 203k purchase-rehab financing would stimulate the industry and provide a sustainable business model beyond the life of the Home Star program.
A good overview of this concept can be found at http://www.EnergyARM.com
Thanks,
Rick
Posted by Rick Westmoreland on Apr 11, 2010 12:16pmI too chose to set up our company as an independent third-party. While this is sometimes a more difficult model to pursue, I believe it offers the most overall value and integrity in terms of the actual "diagnosis". Key to this however is two-fold:
Posted by Shawn Mullins - Earthwise Engineering on Aug 24, 2010 7:04pm1. Aligning myself with QUALITY contractors who speak my language and have the same client goals in mind.
2. Following up with the contractors and remaining as an intermediary throughout the entire home performance improvement process. Our audit fees cover all consultations necessary from beginning to end. We don't nickel and dime clients on some billable hour rate. We offer a fair and very competitive price up front and then continue to deliver well after the sale.
Thanks ENERGY Circle for a great website. Like others, I am enjoying your site, and plan to visit often.
Our business model has evolved with time and demand in our market. Driven to provide value and solutions to our clients, rather than a product-driven approach, we use the integrated model. We have 3 BPI assessors on payroll, and of course, our crews.
Here (in my experience) is the primary advantage for a homeowner to choose the integrated model: Our assessor experientially knows not just what is wrong, (he came up through our ranks, technician-supervisor - assessor) and can write the report; but also explain in a 6th grade comprehension level how we will "fix" it, and how much that will cost. Every assessment includes a company proposal, with our local rebates and tax credits calculated for the client, and how long the project will take, and how soon we can start.
As others have said; "one-stop shopping"... At project completion we test-out, complete all paperwork and filing with the local rebate agencies, and track the rebates for the client. We hold their hand from test-in through rebate check in their mailbox. Full-Service Company.
Most of our clients seem to be Ms. Homeowner who develops a level of trust with Andrew, Beau, or myself as we assess their home. Chosing our company to perform the improvements appear easy for them.
Abbey converts a good % of our "FREE estimates" clients into Energy Assessments with our phone interview. Articles in Home Energy Mag has helped me over the years design our company model.
Posted by Bob on Oct 30, 2010 10:56amGood Article but... it misses a few points. When the auditor has spent his non audit time crawling attics and crawl spaces with crew doing sealing and eliminating thermal bypases, he looks at the home from an entirely different point of view and he understands the cost of doing home performace work WELL!
SUSTAINABILITY was not even touched on which rises nearly to the level of a travesty! We chose a sustainable, integrated approach for our business: We audit, do air sealing, insulation, a unique cool roof process, ventilation, ground water runoff issues, and do Solar PV and Solar hot water. We also install heat pump hot water heaters in the rare instances that they are appropriate. We also build ICF and SIP additions. We leave HVAC and GEO to trusted partners. ALL construction whether by us or by others receives a FR%EE test out and is reported to the HPWES program for quality control.
Before anyone gets to construction though, the audit comes first. First, using Green Advantage concepts We collect data relative to sun, wind, rain, other buildings, and topography so we can use that data to maximize natural features and minimize energy use. Second, we use energy modeling to bring all houses down to near net zero. Third, we present the client with a 15 year spreadsheet which superimposes modeling over energy costs annually inflated based on the CLIENT'S view of inflation.
This sheet also allows the client to see that while some steps may not per se have immediate payback that SUSTAINABLY those steps can create reductions significant enough to change the size and cost of a new heater or AC unit thus further reducing use and costs. Also, some steps which do not have payback may still reduce use enough so that renewables can then be employed to offset the resulting reduced use, allowing the home to reach near net zero. We currently have four client homes using less than $500 per year in energy, the largest of them being 3300 sq ft. Many of our other clients are incrementally reducing use, psyched that they can take steps which will eventually see them near zero!
Good thread all. Keep them coming
Posted by Sean Crane on Apr 25, 2011 2:02pm