Understanding Home Energy Ratings

July 8, 2026 at 8:00am in Community, Energy

Whether you are a prospective homebuyer scrolling through property listings or a current homeowner evaluating utility bills, you’ve likely heard about home energy ratings. But what is an energy rating, who sets the standard and how and when should you get an energy rating for your own home?

Kevin, an Energy Specialist I in AHFC’s department of Research and Rural Development, gives an overview:

What is a home energy rating?

“A home energy rating is a standardized assessment of a property's energy efficiency, operating costs and thermal performance,” Kevin explains.

Here are the main terms you should know:

BEES/PUR101 – Standard rating for new construction. The Alaska Housing Building Energy Efficiency Standard was established by the State of Alaska to promote the construction of energy efficient buildings. It sets building energy use standards for thermal resistance, air leakage, moisture protection and ventilation. A minimum 5-Star energy rating is required for homes that began construction on or after January 1, 1992, if AHFC or other state financial assistance is used in the purchase of the home loan.
As-Is Rating – Measures an existing home in its current condition.
Post Rating – Measures an existing home after upgrades are completed.
Rating from Plans – Predicts efficiency before construction begins.
AkWarm - An energy modeling software made exclusively for Alaska. All ratings in Alaska use AkWarm, which is designed to calculate the efficiency of your home by taking into account details about the residence such as annual energy use, ventilation, heating efficiency, shell components of the house and overall construction details.

What is the energy rater looking for and measuring?

Raters take into account a long list of details about the house. They measure the area of different shell components (parts of the house), including:

Walls
Ceilings
Insulation levels
Windows
Garages
Crawl spaces
Attics

All of these details are entered into AkWarm to determine a general insulation level for the building envelope.

An energy rater will also perform various tests:

A blower door test determines how tight the construction of the house is and whether appliances are operating safely. During a blower door test, an energy rater will depressurize a house to find out how much air is leaking into the structure.
A Combustion Appliance Zone (CAZ) test ensures there is no threat of back drafting carbon monoxide into the home.
Testing different fans around the house makes sure that ventilation standards are met.
They should also check for gas leaks, insulation quality and general upkeep and maintenance around the house.

“While a big part of what the energy rater is doing is calculating the energy efficiency of a home, their top priority is to make sure that your house is safe and comfortable to live in.” - Kevin, Energy Specialist I, AHFC

Why might a homeowner hire an energy rater?

According to Kevin, there are three common situations that prompt Alaskans to hire an energy rater.

Improving the energy efficiency and comfort of your existing home: An energy rater may be able to help you with drafty rooms, stagnant air, ice damming and improving indoor air quality. An energy rater will also be able to diagnose solutions that could make the house more energy efficient. As energy prices continue to climb in Alaska, this is of the utmost importance.
Buying a newly constructed home: Homeowners purchasing a newly constructed house right now will want to hire an energy rater so that they can qualify for the New Home Construction Rebate. In order to qualify, a house must have its foundation poured after January 1, 2025 and meet a 5-Star Plus energy rating standard. Find out more about the New Home Construction Rebate. Hiring an energy rater to do a rating on your new construction will also help ensure that your house will remain eligible for AHFC financing for the life of the house.
Buying an existing home: Homeowners purchasing an existing home will want to hire an energy rater to help them qualify for the Energy Efficiency Interest Rate Reduction. Not only can an energy rating help lower your interest rate, but an energy rating on an existing house can also help the new owner prioritize the most cost effective renovations to make to a new home.

“In order to qualify for the EEIRR, a new homebuyer must first get an As-Is energy rating,” Kevin explained. “In this rating, there will be an Improvement Options Report that will list all of the upgrades a rater would recommend to improve the energy efficiency of the newly purchased home. The buyer must then make energy efficient upgrades to their house and have the work tested in a Post energy rating. If new homeowners can improve the efficiency of their home (as measured by AkWarm), they can lower the interest rate on the first $250,000 of their loan.”

“These are my favorite stories because completing all three steps of this program is a lot of work. It’s rewarding to hear homeowners realize that the upgrades they completed not only make their home more comfortable but also lower their mortgage costs and increase their homes’ long-term efficiency.”

Learn more about Energy Efficiency Rate Reduction.

How can Alaskans find an energy rater?

View a list of AHFC-approved energy raters.

“I always recommend that people call a few different raters to make sure they find the best person for their situation,” Kevin says. “We list energy raters by community on our website, but sometimes because of busy schedules, it’s smart to call raters from other areas to see if they are willing to travel.”

“AHFC strives to provide Alaskans access to safe, quality, and affordable housing. Energy ratings assist in this mission by helping to make your home safer, more comfortable and more affordable to own in Alaska’s challenging climate.”

Need a home energy rating? View a list of certified professionals across Alaska.

To learn more about energy efficiency and find AHFC resources for homeowners, property owners and building professionals, visit ahfc.us/efficiency.

Learn about the “Energy Efficiency Equation” from Alex Twogood, a certified energy rater in Fairbanks.

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