Rise | We've Done the Research
How Energy Inspections Are Changing the Way We Buy Homes
In February 2019, Minneapolis passed domestic energy disclosure laws intended to encourage efficiency investments and offer homebuyers and renters more data on homes and apartments. Could this be a trend across the nation?
The idea is simple. People searching for an apartment or a home in Minneapolis, and most cities, do not have access to any information regarding energy costs and properties' efficiency. Now they will have additional energy scores or ratings with which to compare homes. And they will have a checklist of prioritized improvements they can make to their houses to reduce their utility bills.
Table of Contents
What is the Residential Disclosure Ordinance?
The American Council for an Energy-Efficient Economy fights for energy disclosure policies. Residential energy ratings and disclosures help increase transparency about ongoing variable housing costs. They also help to promote decision-backed purchasing decisions. Detailing energy use also assists in efforts regarding the enhancement of policy and programs in the future. The end goal is to reduce energy consumption and outline the journey toward achieving climate and energy targets.
Truth in Sale of Housing
The Minneapolis ordinance requires additional information from homeowners and landlords. Before homes sell in Minneapolis, you have to do an inspection called Truth in Sale of Housing (TISH).
Inspectors will now have to drill a small hole in a wall to determine the insulation of homes. That is unless home sellers have evidence – such as invoices - showing they have recently had work done. While invoices offer proof of purchase, they are not good at determining where insulation might be missing.
TISH reports will likely offer an energy score and outline suggested improvements while directing buyers and sellers to finance and rebate programs. It may also include other energy consumption data, as details emerge over the next two years as they introduce the ordinance. In 1980, Minneapolis passed a residential energy code, so homes built after that do not need energy inspection. Councilmember Cam Gordon, who developed the ordinance with fellow council member Jeremy Schroeder, said cities have few opportunities to evaluate properties for energy efficiency.
Frank Jossi
Based in St. Paul, Frank Jossi is a journalist, editor and content strategist. He covers clean energy in Minnesota for Midwest Energy News and writes frequently for Finance & Commerce. His work has appeared in more than 70 local, national and international publications.
