Adopting the 2018 International Energy Conservation Code Can Save New Homeowners Hundreds of Dollars a Year

According to analysis by the Department of Energy (DOE) Pacific Northwest National Laboratory (PNNL), the average new home built to requirements in the 2018 IECC will save residents of most states hundreds or even thousands of dollars a year in energy bills over homes built to the currently adopted energy code.

On average, any increase in cost is recouped in the first year. When wrapped into a down payment and financing, the annual cost increase is dwarfed by the annual energy savings—indicating that following code requirements can play an important role in improving housing affordability.

The map below provides annual energy cost savings for the average new home along with other important data and an infographic that can be downloaded. Data for all states are available on the accompanying fact sheet. Data current as of October 2020.

IECC Benefits Map

Click your state to see how much you can save by adopting the 2018 IECC.

2018
2015
2012
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IECC Benefits
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Analysis assumptions:

  • Mortgage interest rate (fixed rate) 5% annual rate
  • Loan fees 0.7%, initial, % of mortgage amount
  • Loan term 30 years
  • Down payment 10%
  • Nominal Discount rate 5%
  • Inflation rate 2.52%
  • Marginal federal income tax 12%
  • Property tax 1.5%

Note: While a state may have adopted an energy code, it may not be applicable in all local jurisdictions. Consult codeadoptions.iccsafe.org for information on state and local adoptions.