Home Energy Labels in Oregon
Home Energy Labels in Oregon is one of the first and best evaluated implementations of the U.S. Department of Energy’s (DOE’s) Home Energy ScoreTM. The Home Energy ScoreTM was developed to provide homeowners, buyers and renters with credible and directly comparable details about a home’s energy consumption. The ultimate goal was for homeowners to implement energy efficiency renovations. During the six months between July and December 2023, 464 participating households carried out home upgrades that saved 840,974 kWh per year, or 1,812 kWh per home per year. They undertook energy efficiency upgrades eleven times as often as non-participating households, and they claimed an upgrade incentive twelve times as often. An increase in consumer knowledge about energy efficiency, provided through assessor interaction and scorecard information, was a leading factor in the increase in upgrades. Designated a Landmark case study in 2024 by our building energy panel.
Background
Note: To minimize site maintenance costs, all case studies on this site are written in the past tense, even if they are ongoing as is the case with this particular program.
Buying a home is one of the biggest purchasing decisions people make. And at the time of selling or buying a new home, homeowners are particularly receptive to investing in upgrades.
The State of Oregon and City of Portland had already implemented a variety of utility incentive/tax credit programs. While these implementations were somewhat successful, the Oregon Department of Energy (ODOE) and Portland wanted to do more to increase energy efficiency. At the time, Oregon had not yet approved any energy labeling programs. And while there were energy labelling programs elsewhere for new homes, there were none for existing homes – and they represented most of the housing stock. The organizers wanted a program targeting existing homes. ODOE convened a stakeholder panel to discuss implementation, secure commitment, and then determine administrative rules.
The panel recommended adopting the DOE’s Home Energy ScoreTM. The Home Energy ScoreTM had been developed by the DOE and its national laboratories in 2011 to provide homeowners, buyers and renters with credible and directly comparable details about a home’s energy consumption.
The area contained many older homes that pre-dated strict building energy codes. Home energy labeling was seen as a method of helping residents value energy efficiency features more, leading to energy efficiency upgrades.
Portland was the first city in Oregon to make the home energy score mandatory. Upon the successful implementation in Portland, the state of Oregon partnered with Earth Advantage to adopt a statewide program. After this partnership three other cities joined in with the mandatory scoring policy.
Earth Advantage was a national DOE Home Energy Score Partner and a certified Quality Assurance provider. It supported the implementation of Home Energy ScoreTM programs across the United States, including the ones described in this case study.
Setting Objectives
The ultimate goal was for homeowners to implement energy efficiency renovations. The initial goal was to increase consumer knowledge about energy efficient upgrades and their impacts on energy use.
Getting Informed
An academic study of a ten-year-old home energy labeling program in Austin, Texas, found that labelling increased both the perceived value of energy-efficient homes and participation in energy efficiency programs. Other research had corroborated this and noted that labeling programs provided a range of other benefits as well – to homeowners, realtors, finance companies, local municipalities and other organizations.
In the original development of Oregon’s scoring system, focus groups conducted in multiple markets showed that potential buyers and sellers preferred a 1-10 scale to a A-F scale. Further studies found the Home Energy Score’s 1-to-10 scale to be intuitive to users that might not be well versed in the program or energy features.
Prioritizing Audiences
When scoring was first introduced in Oregon, only four cities (Portland, Milwaukie, Hillsboro, and Bend) had mandatory scoring policies. Given the limited number of assessors, these locations were prioritized.
Delivering the Program
Oregon launched its Home Energy Score program in 2017. Individual municipalities, including Portland, Milwaukie, Hillsboro and Bend stipulated that sellers of single-family homes had to provide a Home Energy Score and Report at the time of listing and include these in real-estate ads.
Consumer Offering
The Home Energy ScoreTM rated a home’s energy efficiency and provided recommendations for saving money while improving energy efficiency and comfort. Trained Home Energy Assessors conducted home visits (Home Visits), which considered over 70 data points about the home’s foundation, insulation, walls, windows, heating, cooling and hot water systems
Priced at $125, the home visits with accompanying Home Energy Scores were easily affordable for most home sellers. They were free for low-income home sellers, which reduced concerns about the impacts on low-income residents. (Overcoming Specific Barriers) By 2022, over 35,000 homes had received scores.
Because the program used the U.S. DOE’s Home Energy ScoreTM as the model for its own energy scores, borrowers could use the reports as documentation when applying to federal lending program to cover energy efficiency upgrades. Borrowers could also increase their debt-to-income ratio for HomeStyle Energy and other Federal Housing Administration loan products that took into account that higher energy efficiency meant lower operating costs. (Financial Incentives; Overcoming Specific Barriers)
Information Flow
Once assessors conducted the home visits, the information gathered was sent to the ODOE electronically. After processing these data, the program generated scores and sent consumers their virtual scorecards, which included the Home Energy Score, information regarding energy use, and a list of suggested home upgrades. (Feedback; Vivid, Personalized, Credible, Empowering Communication)
Incentives from the Energy Trust of Oregon Oregon’s home rating program was complemented by an incentive program from the Energy Trust of Oregon that paid for specific energy efficiency upgrades. (Financial Incentives; Overcoming Specific Barriers) This provided financial incentives for carrying out the renovations recommended in the Home Energy Reports and two ways of measuring the impacts on home energy use.
- A survey of 81,780 homeowners, of which 4,853 had received a Home Energy Score and 76,927 had not. Participants self-reported their electricity and gas use during the past six months.
- Information provided by homeowners when claiming their incentives
Overcoming Stakeholder Concerns
Participating municipalities and their local real estate communities were initially concerned that there might not be enough assessors to be able to handle their work in a timely manner and that the Home Energy Scores might disrupt their sales, but the Home Energy Assessments were usually scheduled within two days and had seldom had any negative effects on home sales. This was accomplished by having a strong assessor training program, and by working actively to support lenders, appraisers, and realtors. The ODOE also facilitated a user group of municipalities involved in the program, to help them share insights and best practices.
Another initial concern was possible backlash from homeowners about allowing the assessors into their homes, since home visits were an integral piece of the program. However, this did not end up being a point of concern from participating homeowners.
Assessor Training
The assessors’ training included a combination of mentoring from experienced assessors and a simulation training from the ODOE. By 2024, over 200 assessors had completed the training and about 65 had been actively meeting market demand. Many of them were weatherization contractors or home inspectors. In addition, all assessors were licensed and bonded with the State.
Earth advantage was responsible for training the assessors and monitoring quality control.
Overcoming Barriers
The following Table shows the key barriers and how they were overcome.
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Barrier
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How it was addressed
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· The invisibility of energy makes it difficult for users to be aware of their use, see opportunities for improvement, and prioritize acting
· Difficult for buyers to assess a building’s energy and water use
· Inertia
· Energy efficiency is a low priority
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· Requiring the Home Energy Score and Report at the time of listing a home for sale
· Including these in real-estate ads
· Incentives for carrying out complementary energy-efficiency upgrades
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· Money required to make improvements
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· Incentives
· Better financing options became available with the Home Energy Score
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Future Directions
Looking forward, ODOE was interested in expanding into the home rental space.
Financing the Program
Individual cities relied on the Energy Trust of Oregon for financing and incentive opportunities for customers. The Trust worked with organizations and individuals to provide monetary incentives and tax credits for implementing renewable energy programs.
Measuring Achievements
The Energy Trust of Oregon conducted a survey of 81,780 homeowners, of which 4,853 had received a Home Energy Score and 76,927 had not. Participants self-reported their electricity and gas use during the past six months.
The Energy Trust of Oregon also tracked the number of households claiming incentives through its incentive program. At step eight of the claim procedure, these households had to check a box indicating completion of the upgrades being claimed.
Results
Impacts – Individual Participants
Energy Use
Prior to participating in the program, 105 households had claimed energy incentives for upgrades that were saving 61,422 kWh of electricity and 3,184 therms of gas from upgrades conducted during the prior 36 months based on incentives claimed from the Energy Trust incentive program. That’s an average of 585 kWh of electricity and 30.3 therms of gas per home. Converting the therms to kWh and combining the two, that is equivalent to a total of 1,473 kWh of energy per year, and these savings were due to upgrades conducted over 36 months.
After getting the Home Energy Reports and carrying out additional upgrades during the six-month evaluation period July 2023-Dec 2023, 172 homes claimed incentives for upgrades that saved an additional 308,928 kWh per year on gas and electricity. Converting the therms to kWh and combining the two, that is equivalent to a combined additional 308,927 kWh per year, 1,796 kWh per year per home, and these savings were due to upgrades conducted over only six months.
The previous cohort of participants received their Home Energy Reports between Jan 2023-June 2023, inclusive. They were still making energy efficiency improvements to their homes during the time period of July 2023-Dec 2023. In all, 292 of these households claimed incentives for improvements, saving an additional 207,459 kWh and 11,078 therms per year. Converting the therms to kWh and combining the two, that is equivalent to a combined additional 532,046 kWh per year, 1,822 kWh per year per home, and these savings were due to upgrades conducted over six months. Combining the two cohorts, that’s 464 households saving an additional 840,973 kWh per year – an average of 1,812.4 kWh per year per home, due to upgrades conducted over 6 months.
Adoption of Upgrades
Households that received a Home Energy Label were 11 times more likely on average than non-participating homes to have undertaken energy efficiency upgrades, based on having claimed at least one energy efficiency incentive from the Energy Trust incentive program (11.4% vs 1.0%).
After receiving their reports, participating households were also 12 times more likely than before to have claimed an incentive for carrying out at least one upgrade. During the 36 months before getting their Home Energy Reports, 105 households claimed at least one energy efficiency incentive from the Energy Trust incentive program – that’s an average of just 2.9 homes per month. In just 12 months after getting their reports, 464 households claimed at least one energy efficiency incentive from the Energy Trust incentive program - that’s an average of 38.6 per month.
Impacts – Overall
Energy Use
Prior to participating in the program, 105 households had claimed energy incentives for upgrades saving 61,422 kWh of electricity and 3,184 therms of gas, from upgrades conducted during the prior 36 months based on incentives claimed from the Energy Trust incentive program. Converting the therms to kWh and combining the two, that is equivalent to saving a total of 154,714 kWh per year, and these savings were due to upgrades conducted over 36 months.
After getting the Home Energy Reports and carrying out additional upgrades during the six-month evaluation period July 2023-Dec 2023, 172 homes claimed incentives for upgrades that saved an additional 105,907 kWh per year and an additional 6,929 therms per year. Converting the therms to kWh and combining the two, that is equivalent to a combined additional 308,927 kWh per year, and these savings were due to upgrades conducted over 6 months.
The previous cohort of participants received their Home Energy Reports between Jan 2023-June 2023, inclusive. They were still making energy efficiency improvements to their homes during the time period of July 2023-Dec 2023. In all, 292 of these households claimed incentives for improvements, saving an additional 207,459 kWh and 11,078 therms per year. Converting the therms to kWh and combining the two, that is equivalent to a combined additional 532,046 kWh per year, and these savings were due to upgrades conducted over 6 months.
Combining the two cohorts, that’s 464 households saving an additional 840,973 kWh per year, due to upgrades conducted over 6 months.
Adoption of Upgrades
Households that received a Home Energy Report were 11 times more likely on average than non-participating homes to have undertaken energy efficiency upgrades, based on having claimed at least one energy efficiency incentive from the Energy Trust incentive program (11.4% vs 1.0%).
After receiving their reports, participating households were also 12 times more likely than before to have claimed an incentive for carrying out at least one upgrade. During the 36 months before getting their Home Energy Reports, 105 households claimed at least one energy efficiency incentive from the Energy Trust incentive program – that’s an average of just 2.9 homes per month. In just 12 months after getting their reports, 464 households claimed at least one energy efficiency incentive from the Energy Trust incentive program - that’s an average of 38.6 per month.
Additional Benefits
In addition to these savings, the resulting database of over 20,000 Home Energy Scores in the Portland real-estate market, provides unprecedented transparency, insight and data about residential energy performance, carbon emissions and the potential market size and impacts of alternative improvements.
Within the first two years of implementation, this database had already proven useful for the following activities.
- Portland staff identified and monitored opportunities to reduce energy and carbon use in the city’s homes and tracked ‘real-time’ progress against its goals.
- The Energy Trust of Oregon designed residential incentives to promote the specific technologies that would make the greatest difference, and engage audiences previously underserved by its programs and incentives.
- The Portland Clean Energy Community Benefits Fund (PCEF) staff, grant committee and proposing organizations used the data to identify energy efficiency opportunities and funding proposal designs.
- The Community Energy Project examined the relative energy cost impacts on low-income households to design more attractive and helpful elements for low-income households.
- Academic researchers and national labs identified specific retrofit opportunities and their geographic density. They also started monitoring whether Home Energy Scores affected sale prices and property valuations.
- Portland General Electric identified opportunities to upgrade homes in its North Portland Demand Response Test Bed with smart thermostats, heat pump water heaters and HVAC equipment installations.
Contacts
Roger Kainu
Analyst and Regional Solutions Representative
550 Capitol St. NE | Salem, OR 97301
P: 503-580-7469 P (In Oregon): 800-221-8035
Notes
- Since the program’s beginning, it worked to increase its accessibility. For example, it worked to develop access to energy scoring that is fully remote. This was to offset the cost of travel for the assessors, particularly for low-income homes that would have to pay the travel costs. Nearly half of Oregonians who fell below the federal poverty line were energy-burdened, resulting in over 6% of income spent on energy.
- The approach could be adapted to encourage consumers to remain conscious of water waste, landfill waste, or energy waste via transportation.
Lessons Learned
- More assessors were needed to allow more communities to participate in the program.
- Framing the incentives as financial was effective in incentivizing clients.
- The home rental market proved to be a viable next step in the program’s implementation.
Reports
Authors and Landmark Designation
This case study was written by Jay Kassirer and Kathryn Ann Stong in 2024 and 2025, based on information provided in the above reports, and correspondence with Roger Kainu. The program described in this case study was designated by our Building Energy panel in 2024.
Designation as a Landmark (best practice) case study through our peer selection process recognizes programs and social marketing approaches considered to be among the most successful in the world. They are nominated both by our peer-selection panels and by Tools of Change staff, and are then scored by the selection panels based on impact, innovation, replicability and adaptability.
The Building Energy panel that designated this program consisted of:
- Arien Korteland, BC Hydro
- Kady Kowan, Sustainability Studio
- Sea Rotmann, Sustainable Energy Advice Ltd.
- Lester Sapitula, Pacific Gas and Electric Company
- Reuven Sussman, American Council for an Energy-Efficient Economy
