Incremental Cost Analysis

One of the major barriers to energy code adoption is the concern that the cost of upgrading to the latest model energy code would be prohibitive. To address this issue, BCAP undertook a study to quantify the incremental construction cost of upgrading to the 2012 IECC in states and cities where such an analysis was feasible.

Please also see the 2009 IECC Incremental Cost Analysis.

The True Cost of Building a New Home

Moving from current practice to the 2012 IECC for new homes would result in a weighted average incremental cost of $1,494 - 2,201 per new home in the areas in for which we've completed our analysis (subject to change). The annual energy savings per home would be $296 - 392 on average.

When amortized over a thirty year, 20 percent down payment loan, and including energy savings, the homeowner would realize net savings within one to two years, on average. For examples of how the cost is rolled into a mortgage, please see one of BCAP's Incremental Cost Fact Sheets.

To access an individual fact sheet, click on one of the states listed below:

State Incremental Cost Range Annual Energy Savings Payback
Arizona | CZ 2 | CZ 3 | CZ 4 | CZ 5 $798-2,870 $185-418 7-48 mo.
Idaho | CZ 5 | CZ 6  $1,350-1,892 $207-267 22-25 mo.
Illinois | CZ 4 | CZ 5 $958-1,775 $326-370 7-13 mo.
Pennsylvania | CZ 4 | CZ 5 | CZ 6 $1,403-3,375 $276-650 6-29 mo.
Tennessee | CZ 3 | CZ 4 $2,080-2,451 $270-707 10-41 mo.
Utah | CZ 5 | CZ 6 $1,926-3,081 $250-532 10-21 mo.
Virginia | CZ 4 $1,452-2,303 $196-368 15-52 mo.
City Incremental Cost Range Annual Energy Savings Payback
Dallas, TX | Fact Sheet $2,358-2,440 $271-277 33-37 mo.
Denver, CO | Fact Sheet $1,412 $205-221 16-17 mo.
Houston, TX | Fact Sheet $1,623 $252 7-22 mo.
Kansas City, MO | Fact Sheet $1,460-2,293 $516-544 7-11 mo.
Philadelphia, PA $1,456-1,837 $194-205 30-45 mo.
Salt Lake City, UT $1,926-2,215 $347-361 17-22 mo.
San Antonio, TX | Fact Sheet $939 $248 11 mo.
Total Range $798-3,375 $185-707 6-52 mo.

We believe these cost estimates are conservative and represent an upper bound on incremental cost, as they utilize only traditional building techniques and do not take advantage of certain technologies or performance trade-offs that would lower these costs further and improve energy performance. 

For more detailed cost data on all of the states listed above, as well as information on the methodology used, please review BCAP's complete incremental cost analysis model and report for its 2009 study.

Similar Incremental Cost Analyses

2009 IECC — BCAP conducted a 2009 IECC Incremental Cost Analysis for 28 states.

Washington State — The Northwest Energy Efficiency Alliance (NEEA) has conducted a similar analysis of cost and savings estimates to update to the 2009 Washington State Energy Code (Residential and Non-Residential reports).

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