Human-related climate change has elevated global temperatures and increased the number of severe weather events, putting strain on an aging power system. In response, more and more homebuyers are changing habits and looking for homes that lower their carbon footprint without blowing out their budget. ENERGY STAR-certified manufactured homes and Zero Energy Ready manufactured homes are two high-impact options for any homebuyer looking for an affordable yet energy-efficient home.
Choosing either home provides the buyer with short and long-term financial and environmental benefits thanks to features like solar-ready construction and increased insulation. This guide further explores those benefits to help homebuyers make informed purchase decisions that will meet their personal finance and green living goals.
Understanding ENERGY STAR® and Zero Energy Ready (ZER) Certifications
An ENERGY STAR-certified manufactured home is a home built to meet the U.S. Environmental Protection Agency’s (EPA) energy efficiency requirements. These homes are designed to be more energy efficient than homes built to a lesser code. The homes undergo a process of inspections and testing before they’re awarded the certification.
A Zero Energy Ready Manufactured Home (ZERMH) is a highly energy-efficient home that meets rigorous criteria set by the Department of Energy (DOE). It is carefully designed with components and building systems that work together to maximize comfort, efficiency and durability. Each home is typically 40 – 50% more energy efficient than a non-certified new home.
The key difference between these two home types is the solar-ready construction present in ZERMH. Solar-ready means the home is built to make it easier to install rooftop solar panels in the future. This reduces the complexity and cost of installing solar panels on a home at a later date. However, both homes will save the homeowners money on utilities and provide increased resale value.
Immediate Homebuyer Savings
Purchasers of ENERGY STAR-certified or ZER manufactured homes start saving money from day one. These homes feature energy-efficient construction and high-performance systems designed to lower costs immediately.
Lower Monthly Utility Bills
Heating and cooling account for roughly half of a household’s annual energy consumption. Increased insulation, low-E windows, and advanced heating and cooling systems all contribute to maintaining an ideal internal temperature while using less power. Compared to a non-certified home, ENERGY STAR® and ZER manufactured homes can save a homeowner 30% to 50% on monthly utilities. And when connected to solar panels, a household can even eliminate their electric bill completely!
“I knew that ENERGY STAR® houses were supposed to be really good, energy-efficient houses, but I didn’t realize how energy efficient. We’re coming from having to pay $300-$400 a month for the electricity bill and we come here, and we’ve not spent over $70.”
Robert Woody, Next Step Homeowner
Potential Tax Credits & Incentives
Federal and state tax credit and rebate programs are available to help reduce the cost of a new ENERGY STAR-certified or Zero Energy Ready home. Until 2032, homeowners may qualify for federal income tax credits of up to $3,200 annually, which can reduce the cost of energy-efficient home upgrades by up to 30%. Homeowners can also benefit from the Residential Clean Energy credit, which offers a 30% income tax credit for purchasing clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps, and battery storage.
To claim the credits homeowners simply need to complete an additional form with their tax return. Learn more about these programs and access the form here.
Long-Term Financial Benefits
An initial investment in your home’s energy efficiency provides returns for years to come and can result in savings that exceed any additional costs for the upgrades.
Increased Home Value
As we stated earlier, the demand for energy-efficient homes is steadily rising and is considered a necessity for a growing number of buyers. According to a National Association of Home Builders survey, more than 75% of the respondents stated that they would prefer to purchase an ENERGY STAR-certified home, and many of them are willing to pay more for it.
This demand increases the resale value of an ENERGY STAR-certified or Zero Energy Ready home, further helping to secure your return on investment.
Protection from Rising Energy Costs
Thanks to their home’s lower energy use, energy-efficient homeowners are less affected by fluctuating utility costs. This provides a layer of future-proofing against increases in energy costs, like those we’ve experienced in recent years. The average price of electricity in the U.S. went up by 6.2% in 2023 compared to 2022 rates. In 2024, the cost of electricity rose by more than 28.5% from 2019.
Installing a rooftop solar system takes these protections a step further. Rooftop solar panels can eliminate your electric bill, provide income through net metering programs and keep your home powered in the event of a blackout.
Environmental Impact as a Financial Incentive
While the primary appeal of ENERGY STAR-certified and Zero Energy Ready manufactured homes may be the financial savings, their positive environmental impact is also a valuable, though indirect, financial incentive. By using energy-efficient appliances, advanced insulation, and renewable energy options, these homes significantly reduce greenhouse gas emissions and reliance on non-renewable resources.
For homeowners, this means contributing to a greener planet while also enjoying the financial rewards of lower energy usage. As the push for stricter environmental regulations continues, owning an energy-efficient home may provide future financial benefits, like access to new tax breaks or incentives aimed at reducing carbon footprints. This makes the initial investment in an ENERGY STAR® or Zero Energy Ready home a smart, future-proof decision for both your finances and the environment.
ENERGY STAR-certified and Zero Energy Ready manufactured homeowners will see financial savings on day one. These homes are designed from the roof to the foundation to maximize heating and cooling efficiency while keeping more money in the homeowner’s pocket. The advanced comfort systems, increased insulation and numerous other features work together to immediately lower or eliminate utility bills and protect homeowners from fluctuating energy costs and blackouts that may occur in the future.
The energy efficiency and affordability of ENERGY STAR-certified and Zero Energy Ready manufactured homes make them an excellent option for new homebuyers who want to minimize their impact on the environment. Even with the energy efficiency upgrades, these homes cost less than their site-built counterparts helping buyers to make the most of their purchase dollars. Learn more about why energy-efficient manufactured homes are an ideal choice for many homebuyers here.
How to Get Started
Are you a homebuyer ready to take the next step? Start with our recommendations below!
- Connect with a HUD-certified Housing Counselor: Next Step works with national and local housing counselors to ensure our homebuyers are prepared for the purchasing process and feel confident maintaining their homes after closing. View our counseling partners here.
- Explore Mortgage Financing Options: Our lending partners have specialized knowledge and experience in manufactured home financing. These lenders can accommodate a variety of loan options, including VA, USDA, FHA, Freddie Mac CHOICEHome® and Fannie Mae MH Advantage® loans. Learn more about them here.
- Visit our Resource Library: Next Step offers a collection of tools, guides and information to any homebuyer interested in manufactured housing. Access tools like our Down Payment Seeker, TotalHome+ Calculator and much more here.