Today I heard on the radio that some local governments were going to require home sellers to disclose to buyers how much it cost to heat and cool a home. While this seemed strange at first, I thought it made perfect sense given increasing electricity and natural gas prices.

Think about it, the high price of gasoline and diesel (I recently paid$4.50 a gallon) has made me think about retiring my old Mercedes diesel for a model with significantly better mileage than the 17 miles per gallon I get in the Washington DC area
 
It should be very easy for a local utility to pull annual electricity, natural gas, or fuel oil bills for use by a prospective buyer. Sellers might have to agree to pay the electricity and natural gas for six months as an incentive for buyers in a soft housing market.

Minimum Energy Conservation Measures
We could also flip this issue on it's head and ask, what has the seller done to reduce the heating and cooling costs of the home. Typical items or measures might include:

• Installing adequate insulation in the attic and sides of the house,
• Energy efficient windows,
• Ceiling fans to recirculate air in winter and summer, and
• A high efficiency air conditioning or heating system.

Let's face it though, many homes have these measures in place. As a home buyer, I would demand or at least expect that these measures and deduct from the list price to bring the home up to this minimum standard. 

What features would attract buyers?
The more important question might center on what energy measures might enhance the home's value in a buyer's eyes?

The first is solar panels or tiles on the roof that generate electricity. This could possibly reduce my cooling bill by up to 30 percent.

The second thing was Smart Metering in the house. A smart meter can turn off energy hungry appliances at critical times during the summer when the electric grid is stressed.

In places like Sacramento, California, just adjusting the thermostat by one degree Fahrenheit translates into 40 megawatts energy savings for the Sacramento Municipal Utility District's (SMUD) customers. This is important because it is very expensive to produce that extra 40 megawatts of power. In fact, SMUD's General Manager Jan Schori mentioned at an energy conference that SMUD needs 400 megawatts of peaking power for just 40 hours in an entire year to meet that critical period during the summer. The cost to get that extra 400 megawatts drives up every one's electricity bill for the year.

I'd like to hear your thoughts on how the cost to heat and cool a home will affect home prices.