 Hello there. We're out camping. It's early in the morning. My family's not up yet, but I wanted to record a quick video on valuing energy use at resale because we believe it is the single most important policy key to driving electrification and efficiency upgrades. We've had several clients sell their homes after doing upgrades, and they received zero extra money for the upgrades, and they had spent substantial amounts of money, tens of thousands of dollars. That's not scalable. Everything in life comes down to economics at the end, and so we think a lot about cost and value, and we all know this intuitively. If the price of something is greater than the value, it doesn't sell. If we want to upgrade a broad swath of homes, and particularly if we want to electrify them, we need to create a lot more value. We could lower price, but that's not a viable option. We've attempted that for literally my entire lifetime with efficiency programs, and it hasn't scaled. It's a good way to go out of business. Ask me how I know this. I did that personally as an insulation contractor. The couple of ways we need to increase value. One is to make it so that people want to buy this stuff in the first place, so we solve problems that they care about, that they want to pay for, but the other piece and the really important piece for true scale is going to be increasing resale value. Resale value needs to be based on real numbers. Here's W2. You don't need an appraiser to verify your W2. That is a trusted metric. It's a hard metric. Once they're published, they're not particularly easy to change. We need the equivalent of a W2 for home energy use, and that's pretty simple. It's just how much energy the house uses, which is verifiable with bills. Is it perfect? No. There's gonna be tons of educations. Stop it with the edge cases. What we're looking at is a broad swath in the middle. That's what we need to do. If you can just compare houses, so this is a report. This is a blog entry that I had on it, but this is a report that we came up with. This is total shoestring. The budget on this thing was zero, so if you see problems with it, chill, unless you want to spend money to fix it. This is based on Department of Energy Building Performance Database, and it's 9,000 homes across the US. What we need to be able to do is compare the energy use of any home against its comps. Similar in size, similar in climate tone, and see what it's using. I threw this in here for a model of my old house if we had electrified it. You can see it's a low EUI. EUI is energy use intensity. That's usage per square foot per year. Electric houses tend to perform better on this because it's looking at site energy. If there's a heat pump, it's pulling a lot of the energy that it uses from the air outside the house. It's not being piped or wired in. We routinely see our retrofit projects that are electrifications get into the 20s on EUI. This is the quartiles. You can see that we're in the lowest quartile doing that sort of thing. This house is currently in the 90 range, so big move. Then we show you different ways to look at this. Here's the buckets in EUI values of 10, ranges of 10. Then you can see energy use. It's pretty scattered. It really is, but scattered doesn't really matter at the end of the day. Underwriters are used to looking at scattered data and making a call. We just need to get the data there because asset stuff, that's really scattered too. They're fake metrics. Banks don't lend against fake metrics. You can't go in my partner did this a while ago and it cracked me up. You can't go in with a deposit slip that says a lot or anything like that. It needs to be verifiable numbers if banks are actually going to listen and lend against it. We need hard verifiable numbers that are repeatable. We think that energy use is really that metric. Again, it's not perfect and there's plenty of edge cases. It's a top-level metric. Think of going to look at a car. You may be looking for a car that gets more than 30 miles per gallon. That's only one small piece of the equation in what you're buying. This is a top-level metric. If you want to know more, you're going to be able to dig deeper. This is very high level. Let's take a look at some numbers. Again, this is not perfect by any means, but modeled at 2200 square feet, which is what my old house was, 13,000 kilowatt hours a year, a little tiny bit of gas. These numbers I'm not super pleased with where they landed. There's some issues in the calculator, but let's just say that they are right because this could totally be right for California for a house that has solar. So if a house costs 144 bucks a month and its comps costs 384, that creates a huge delta of value. Realistically, this is going to be more in the 50 to $100 per month range, but this can easily create value differences between $5,000 and $30,000. That's enough to get a substantial chunk of the cost of a project back at Resale because right now we can't scale that. If you're not going to stay in the house for a long time and on average, Americans stay for seven years, if you can't get that money back, it's a waste of money, and if people don't see the value in buying it up front, they're not going to do it, and if they don't get the value on the other side, we're really kind of harming them. We're hurting their retirement plans. So this is something to think about and be aware of, and we just need a good data set to work with, and right now there really isn't one. We're developing one with HVAC 2.0. We collect energy use as part of what we do, but if we can get a decent data set that banks trust, we don't need appraisers. We'll have hard, verifiable data. That's what we need. So when you see us talk about this and fight for this, this is why. As someone who's in the trenches doing electrifications, teaching other people how to do this, finding ways to do it economically, and the single biggest thing that policy makers can do is to get energy use disclosed at time of sale. That's it. That's free. I'm not going to say it's easy, but it certainly doesn't cost a ton of money, and it could have a massive effect on the market. So please consider that, and hopefully this begins to make the case. I know it's a little bit on the complicated side, but this really needs to happen, folks. If you want to see electrification happen and you want us to have any prayer of getting there by 2050, we need to be disclosing energy use at resell. Thanks for watching. I'm Nate Adams, sometimes known as Nate the House Whisperer. Have a great day.