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  • 1.

    First cost only (do not include replacement or maintenance costs) .

  • 2.

    Financed as part of a 30-year mortgage at an interest rate of 7%.

  • 3.

    First cost shall be the estimated mature cost of new technologies at 5% market penetration in new homes.

  • 4.

    Cost incentives such as subsidies and tax credits shall be noted, but not included in the incremental cost for the Prototype. Such incentives must be documented in the analysis, including the nature of the incentive, the amount, who receives it, and the expected duration of the incentive.

  • 5.

    The minimum code house shall be the least energy efficient house allowed by the relevant local or state energy codes. If no energy code exists for the locality, then the Benchmark shall be used as the cost reference, but with Federal minimum standard equipment for space conditioning, water heating, lighting, and appliances.

  • 6.

    The cost of HERS ratings or other energy-related third-party certifications shall be included in the Prototype cost.

  • 7.

    Neutral cost calculations shall be performed using the “Cost Neutrality” tab of the BA Performance Analysis Spreadsheet (http://www1.eere.energy.gov/buildings/ building_america/perf_analysis.html).

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