This study provides an overview of practices for quantifying and reporting avoided energy-water costs from demand-side measures. It also summarizes the regulatory guidance for incorporating water savings into cost-effectiveness screening for energy efficiency programs.

The lack of documented value of retrofit measures is a barrier to many homeowners doing upgrades - as most appraisals do not include energy improvements in their comparables, and the home’s future sale can prevent the homeowner from earning a return on their investment via lower energy costs. Once the industry develops a process for valuing the energy improvements, it can unlock the significant potential for retrofit work through market pricing signals (energy efficient homes are worth more) and enhanced access to capital for those purchasing a more efficient home (energy efficient homes improve borrowers’ cashflow because they cost less to operate).

This guide provides background on the home improvement market in the U.S. and Canada and end users and systems in existing homes, as well as a description of energy efficiency program approaches and strategies.