Home Energy Information Ordinance

Sample Vermont Home Energy Profile, page 1

Sample Vermont Home Energy Profile, page 1

The City of Montpelier requires sellers of residential real estate to disclose the estimated energy use of the home at the time of sale. Sellers are required to provide a Vermont Home Energy Profile (VHEP) when listing a home for sale. The profile provides key home energy insights for residents, sellers, realtors, and appraisers.

The purpose of the ordinance is to provide information to homebuyers about residential building energy performance. This information is designed to protect consumers, to enable more knowledgeable decisions about the full costs of operating homes and to motivate investments in home improvements that lower energy bills, reduce carbon emissions, increase comfort, safety and health for homeowners.

  • Homeowners can identify energy- and cost-saving recommendations for home improvements, and receive a better valuation of existing energy efficiency features and improvements in the real estate market when selling their home.

  • Prospective homebuyers will gain more information about the operational costs of owning the houses under their consideration and receive a better valuation of existing energy efficiency features and improvements. This information can also be used in negotiating a mortgage rate.

  • Real estate professionals will be better informed on how energy efficient a home is, enabling them to more confidently market energy efficiency features.

The VHEP provides more transparency to homeowners, prospective buyers, and real estate professionals on the estimated energy use and costs of a home. This is similar to getting the miles per gallon (MPG) when looking at different cars in the market.


Why do we need it?

Have you noticed the general lack of energy information available for homes compared to what is readily available for a miles-per-gallon (MPG) stickers for vehicles, ENERGY STAR ratings for efficient appliances, and nutrition labels for food? The average consumer has limited access to comprehensive information on the energy performance of their home. Historically, home energy information has been invisible in real estate listings and home sales. The City aims to change this by giving potential owners a sense of home energy performance and costs, by providing an intuitive and free tool to generate energy information and recommendations unique to each home.


When does it take effect?

The ordinance went into effect in May 2021. Enforcement of the ordinance (including penalties for non-compliance) went into effect July 1, 2022.


The VHEP is available to any Vermont resident, whether they are selling their home or not, as a free tool for understanding more about their potential for energy savings. This information is designed to enable more knowledgeable decisions about the full costs of operating homes and to motivate investments in home improvements that lower bills, reduce carbon emissions, and increase home comfort, safety, and health.

Can anyone create a Home Energy Profile?


How do I create my Home Energy Profile?

This no-cost, easy-to-use tool can create your custom profile in four steps! You create your VHEP simply by going to https://www.clearlyenergy.com/vermont and 

  1. registering a login

  2. claiming your home

  3. reviewing and (optionally) editing your home features

  4. creating a profile (see below for an example). A homeowner can expect to spend 10-20 minutes filling out the tool to accurately generate a home energy profile.

Follow our Step By Step Guide.

 
 

To generate the profile, the tool combines automated energy modeling capabilities from ClearlyEnergy with data from publicly-available tax assessor databases and the Home Energy Labeling Information eXchange (HELIX) – a secure database that stores home energy labels, certifications, and solar PV data. The VHEP displays projected annual energy usage and costs, energy highlights, recommended measures, and includes the option to supplement with utility bills and information about in-home assets to refine the cost estimate.


What to expect when selling your home

Once a homeowner or authorized person completes the VHEP, the data is stored in the HELIX database. When a home is listed for sale, a copy of the profile should be provided to all licensed agents working on the seller’s behalf, to all prospective buyers, and to the buyer at closing. At the closing, the buyer and the seller both sign a certification stating that the VHEP has been provided by the seller to the buyer. This certification is then filed with the Montpelier City Clerk.


Need help or support completing the VHEP?

If you run into problems with the VHEP website or need help completing the Profile, there are a number of options for support:

  • Click the “Help and Support” orange button in the top right corner of the VHEP website and a technical support specialist will respond to your inquiry.

  • Call Efficiency Vermont at (888) 921-5990, Monday through Friday 8am-5pm.

  • If you have a question specific to Montpelier and the City’s implementation of the ordinance, please contact Chris Lumbra, the Sustainability and Facilities Coordinator: clumbra@montpelier-vt.org.


History of the Ordinance

Montpelier’s Home Energy Labeling Timeline:

  • November 2018 Energy Efficiency Charter amendment passed a public vote in Montpelier

  • May 2019 Charter Amendment pertaining to Home Energy Labeling passed the legislature

  • July 2019 Listening Session with Real Estate Professionals

  • August 2019 Public Hearing on Home Energy Labeling

  • February 2020 Listening Session with Real Estate Professionals

  • August 2020 Ordinance language reviewed by City’s Attorney

  • October 2020 Focus Group Testing and Feedback

  • March 2021 First City Council and Public Hearing of Draft Ordinance

  • May 2021 City Council Passes Ordinance

  • July 2022 Compliance with ordinance required and enforced


Additional Resources


Does this ordinance apply to "for sale by owner" homes?

Yes. The homeowner is responsible for ensuring the Vermont Home Energy Profile (VHEP) is included in any online listings and at open houses hosted by the owner. All required listings include any printed advertisement, internet posting, or publicly displayed sign, including but not limited to NEREN MLS, Picket Fence Preview, Redfin, Zillow, Trulia and other third-party listing services. The only exemptions will be made for a building sold through a foreclosure, trustee, deed-in-lieu, or any pre-foreclosure sale.

What if someone lies on the form?

To ensure accountability, the name of the person who fills out the information for the VHEP is included in the report. In addition, the person claiming a home agrees to the following:

  • They are the utility account holder or have the authority to act on behalf of the account holder.

  • They will not provide incorrect information.

  • They will comply with the Terms of Use.

In addition, the homeowner signs off on the information included in a listing. If the buyer finds information misrepresented, they could take legal action against the seller.

What about the variability of energy prices?

The VHEP captures the estimated energy costs at the time the report is generated. It is true that energy prices may vary and the actual cost of energy may differ slightly from the estimated costs.

Will I need a separate energy visit before I list my house for sale?

No, Energy Estimator does not require an in-person assessment. This tool is used to streamline the process and make it as easy as possible for homeowners.

What if my expected annual energy cost is not what I expected it to be?

Different owners may use the same house very differently. The VHEP is intended to assess a home based on its physical features, like insulation levels, HVAC systems, and hot water systems, rather than the home’s energy usage. The cost estimate and energy score use standardized conditions like thermostat temperature and occupancy. It’s possible that you may not operate your house under the standardized conditions. This estimated cost may be different than your actual energy bills, which are based on your household’s energy consumption behavior (e.g. thermostat temperature, number of occupants, etc.).

Asset scores apply the same set of behavioral assumptions to the home regardless of the current occupants. Applying a common set of assumptions and evaluating only the physical assets protects resident privacy, allows comparison of different homes, and produces a durable score that remains valid through a change of ownership of the home. The only way to change a home’s asset-based score is to change the home's energy-related systems (HVAC, hot water, envelope, etc.).

You also have the option of entering your annual energy bill information (in either dollars or units of energy) to provide a basis for an estimated annual energy cost. The Energy Estimator will still adjust these values for standardized conditions.

For how long is my home’s profile valid?

Printed and electronic VHEP reports are valid for two (2) years from the assessment date to ensure the reports reflect current and accurate information since fuel prices change regularly. Following the expiration date, a seller listing a home publicly for sale is required to have the Vermont Home Energy Profile reissued. VHEP reports are void and invalid after an alteration or remodel of the home that affects the heated square footage, the quality and type of windows, insulation, HVAC equipment, or other changes that are reasonably expected to impact the Vermont Home Energy Profile and associated estimates of energy use. Other changes can include remodeling a basement or attic space. These changes require a new Vermont Home Energy Profile to be obtained prior to publicly listing the covered building for sale.

Do I have to pay for a VHEP?

No. There is no cost to the homeowner in Montpelier to complete a VHEP report.

What if I have a high estimated energy cost?

By including the VHEP in the listing, prospective buyers can make better informed decisions, but having a higher estimated cost of operation does not necessarily mean buyers will be deterred from your home. Studies around the country have shown that homes that provide standardized energy information, like VHEP, sell faster than homes without this information (source). Homebuyers like having energy information, similar to having miles-per-gallon information when buying a car. In addition, providing energy information with recommendations influences new homeowners’ decisions about energy renovations.

What is included in the Vermont Home Energy Profile (VHEP)?

  • Home characteristics (address, age, sq. ft.)

  • Estimated annual energy use and relative home efficiency 

  • Estimated annual energy cost 

  • Breakout of total energy use (ex. electricity, heating fuel) 

  • Energy highlights, certifications and features 

  • Next steps to lower energy costs 

  • Resources for assisting homeowners with energy improvements

What if I have already completed an energy audit with an energy score?

You are still required to complete the VHEP using Energy Estimator. Energy Estimator will pull certification and energy rating information from HELIX and include this in the profile to recognize the work you have already done.

How are the results verified?

If a label is generated using home energy information provided by a qualified professional, the label will display the words “Professionally Verified” to show that the label creator has professional knowledge of home energy features. 

If the label was generated with homeowner inputs, the label will display the words “Homeowner Verified” showing the owner completed inputs to the best of their knowledge. When a homeowner first enters the information into the tool to create a label, they will need to attest that the information they are entering is correct to the best of their knowledge. 

In a third scenario, a label can be generated using publicly available data from the City’s tax assessor database, unmodified by a homeowner or professional. In this case the label will show “Unverified Estimate” to show that the estimate is based on data that has not been verified by someone familiar with the home’s current energy features.

Are there resources available to help me lower my estimated energy cost for my home?

Yes! Efficiency Vermont has several resources available to help Montpelier residents complete home energy improvements. In fact, your profile will provide recommended next steps for improving the efficiency of your home, including contacting Efficiency Vermont. Consider checking out Efficiency Vermont’s Home Performance with ENERGY STAR program.

What does ClearlyEnergy do with my data? Will it be sold?

None of your data will be sold. The data automatically pulled into the VHEP is publicly accessible data from the City Assessor’s property information cards. Any edited features by the homeowner are stored within Energy Estimator, but are not shared. Energy Estimator shares the VHEP with HELIX, which then shares the VHEP with parties such as MLS, which is subject to privacy restrictions. HELIX does not store any Personally Identifiable Information (PII) such as customer name, actual utility usage, or cost data, except in cases where the customer has supplied this information and agreed to share the data.

Is the VHEP required for multifamily/apartment buildings?

The Montpelier ordinance requires the VHEP for all residential buildings. Commercial, retail, and industrial buildings are not required to file the VHEP at time of sale.

Frequently Asked Questions