ENERGY STAR Facing an Uncertain Future
As Federal Support Wavers, EnergyLogic Stays Focused on Advocacy, Adaptation, and Optimism
Published May 12, 2025
"In the midst of chaos, there is also opportunity."
Troubling News for ENERGY STAR
This past week delivered a new round of chaos for EnergyLogic and for our builders engaged with the ENERGY STAR program. The Trump administration has signaled its intent to shut down the program entirely. This includes appliance labeling, building certification programs, and other key functions. Information is scarce at this point, but we are engaged at the highest levels to both know what’s happening and advocate for the continuance of the program.
Why This Matters
As ENERGY STAR is the only mechanism by which a builder can access the 45L tax credit, this puts us in quite a bind. On the assumption that the program is wound down by October 1st (as the administration has indicated is the target date), we will no longer be able to issue tax credits for our builders building to the ENERGY STAR or DOE Zero Energy Ready Homes programs (as the ZERH program is dependent on the ENERGY STAR program).
ENERGY STAR certified homes and apartments are designed and constructed to be more efficient, exceeding minimum energy code requirements by at least 10 percent. They must be independently verified to meet the EPA’s rigorous requirements for insulation, windows, air sealing, and HVAC systems.
Responding to the Uncertainty
We’re hip deep in figuring out what to do about this. There is a big movement to convince the administration to change course. The program is about as good as it gets for public-private partnerships, delivering an estimated $350 in energy savings to American consumers for every $1 spent on the program. Builder groups, appliance manufacturers, sustainability, and efficiency groups are all rallying to advocate for the program. However, we are adopting a worst-case scenario perspective for our planning purposes.
Industry Mobilization vs. Government Direction
The nature of the legislation that governs 45L means that only via a certified ENERGY STAR home can tax credits be achieved. Additionally, even if a private group steps up to “privatize” the program, the term ENERGY STAR is protected and owned by the Federal government. We have a hard time seeing how that gets unraveled in a positive way.
Our Commitment to Builders Amid Change
The gist for now is that we are on it and whatever happens, we’ll be working, as always, to determine the best course of action for our builder partners regarding code compliance and alternatives for above code programs. We appreciate your patience while we navigate the chaos.
To return to the quote I opened with, who knows, maybe something even better comes out of this situation. It’s hard to see that now, but we (EnergyLogic) are built upon a foundation of optimism that we are steadily making progress on our journey to better, more efficient, and more sustainable homes.
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