Money on Mandatory Home Audits to be Made Back in Energy Savings

Barrie, Canada, March 04, 2009 --(PR.com)-- “The thought of spending more money in this economy to anyone right now is scary, but our job is to enlighten instead of frighten the public about the advantages to these types of environmental solutions,” said Rogowski, President of Mer-Tech Inc., Simcoe’s leading home energy solutions company. “What the public and realtors have yet to grasp is the future returns that these types of audits can bring.”

In a letter sent by The Ontario Real Estate Association’s (OREA), they express concern that the mandatory audits will make it more difficult for first time home buyers to enter the market because of the increase cost the seller would need to incur to upgrade their homes. Specifically, if homeowners decide that energy retrofits are necessary in order to sell their home, first time home buyers, who statistically have smaller than average down payments, will not be able to pay the increased sale price.

Here is how Rogowski breaks down his solution to where the true cost savings lie:

“If the home was to be sold for $250,000 without any eco-upgrades, the fully mortgaged amount for 30 years at 5% interest would be $1,334.23 per month. If the seller was required to put in a new high efficiency furnace at a cost of $5,000.00 they would increase the sale price to $255,000. The new fully mortgage amount for 30 years at 5% would be $1,360.91 resulting in an increase of $26.68 per month.”

In this example, a high efficiency furnace is about 20% More efficient that any standard existing furnace (95% or greater vs. below 75%).

“If we take an average monthly heating bill of $150, the resulting savings would be 20% of $150 which is $30.00 per month. So the new first time home owner could actually be paying less overall per month by almost $4.00.”

Mer-Tech has recently introduced an Eco-Fix-Starter-Kit which includes all the basic tools that people can use to make their homes more energy efficient such as caulking, foam insulation, electrical power bar, low flow shower head and insulated hot water blanket. They will be demonstrating the kit at this weekend’s Barrie Spring Home Show on March 7 & 8 at the Molson Centre and welcome all contractors, homeowners, realtors and manufacturers to stop by their booth. Contact 705-794-7836 or email info@mertechenergy.com for more information.

The audits are a part of the provincial government’s overall Green initiative platform brought forward last week. It will be debated in legislature and all details will be determined in the coming weeks.

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