FOR NEW HOMES IN

SOUTH DAKOTA
2009 INTERNATIONAL ENERGY CONSERVATION CODE
One of the major barriers to energy code adoption across the country is the concern that new Mortgage Monthly Cumulative
codes will add to the purchase price and potential buyers will not be able to afford the homes Month
Increase Energy Savings Cost/Benefit
they want. In South Dakota, upgrading homes to the 2009 International Energy Conservation
Code will actually reduce out-of-pocket expenses for homeowners – paying off their initial 1 $258.72 $33.75 $224.97
investment in a matter of months. 2 $5.59 $33.75 $196.81
For the average new home, BCAP estimates the costs of the new code will add a total of 3 $5.59 $33.75 $168.65
$1,294 in construction costs—an increase of only 0.5%. When this amount is rolled into the 4 $5.59 $33.75 $140.49
average mortgage, real costs to homebuyers will mean a down payment increase of $258.72, 5 $5.59 $33.75 $112.33
and $5.59 extra on monthly mortgage bills.
6 $5.59 $33.75 $84.17
These added mortgage costs will be offset, however, by monthly energy savings of $33.75, 7 $5.59 $33.75 $56.01
helping homebuyers pay off their initial investment in only nine months. After breaking even
in month nine, the home will return buyers a profit of $28 per month—for a total return of 8 $5.59 $33.75 $27.85
$336 every year. This return on investment is graphed below and presented as a balance 9 $5.59 $33.75 $0.31 Break Even
sheet at right. 10 $5.59 $33.75 $28.47
Energy Code Payback for South Dakota Single Family Homes 11 $5.59 $33.75 $56.63

$28 profit every month

12 $5.59 $33.75 $84.79
13 $5.59 $33.75 $112.95
$100
Cumulative Benefit 14 $5.59 $33.75 $141.11
Monthly Benefit:   +$28
Profit after Year 1:  +$85 15 $5.59 $33.75 $169.27
16 $5.59 $33.75 $197.43
0
Monthly Energy 17 $5.59 $33.75 $225.59
Savings: $34
18 $5.59 $33.75 $253.75
-$100
Monthly Mortgage
Increase: $6
This model assumes an average sale price of $267,451 for a
-$200 2,400 square foot home. The mortgage is conservatively set at
Down Payment 30 years, with 20% down and the current average nationwide
Increase: $259 interest rate of 5.05%. With a lower down payment—such as
10% down—consumers will break even on their investment
-$300 even sooner.
Month 1 2 3 4 5 6 7 8 9 10 11 12
 FOR NEW HOMES IN
SOUTH DAKOTA
2009 INTERNATIONAL ENERGY CONSERVATION CODE
Homes are the biggest investment we make—and everyone deserves a home that meets national minimum energy efficiency standards. While it’s true
that homeowners can always improve the efficiency of their homes, it is far more cost-effective to upgrade building components during construction,
putting in better windows or swapping out one grade of insulation for a better one. Here’s what buyers get with the 2009 IECC:

Lighting: $50

Window Upgrades
Payback Period Climate Zone 6: $141
9 months

2-year Profit
2 $422.71
Duct Sealing and
Testing: $350

Annual Energy Reduction Insulation Upgrades

18-21% Climate Zone 5: $610
Climate Zone 6: $774

5-year Profit
5 $1,436.47
Climate Zone 5
insulation
r-value: 19 a 20 frame wall
r-value: 30 a 38 ceiling
Climate Zone 6
u-factor: .4 a .35 window
insulation
r-value: 19 a 20 frame wall
For the full Incremental Cost Analysis study, please visit bcap-ocean.org r-value: 38 a 49 ceiling