Tempe-Based HercuTech Helping Developers Achieve Lucrative Energy Ratings from Inflation Reduction Act of 2022

Kendra Riley

Building sustainable housing is becoming increasingly expected of developers, and there are better incentives in place now, more than ever before, to do so. The Inflation Reduction Act of 2022 was passed in August and included in this is the promotion of energy efficient new construction. HercuTech, the manufacturer of HercuWall, has worked with energy modeling partners to learn how their system can help developers reach the new requirements for 45L tax credits. What they’ve found is that the HercuWall system will help developers get to the Energy Star $2,500/door and Zero Energy Ready $5,000/door with ease. In the build-to-rent and multifamily space where projects feature a high number of units, the tax credits from building to these codes could be game-changing for developers. 

The HercuWall high performing wall system eliminates costly and time-consuming steps to reaching these classifications.  With three steps in one—structure, insulation, and weather-resistant barrier—HercuWall is three-times stronger than 2×4 construction and results in superior insulation and energy efficiency. This paired with some additional specifications in design following the EPA and DOE program requirements will get developers to Energy Star and Zero Energy Ready in an efficient way that traditional 2×4 construction cannot. The result is more clean energy homes, while simultaneously rewarding developers for their decision to build better. 

“The era of building a project and going backwards to get it certified for energy ratings is over. It’s time for developers to plan and design their projects with specifications that get them to their desired energy rating. This is the only way to ensure they can reap the benefits of the new tax incentives outlined in the Inflation Reduction Act,” said HercuTech CEO, Jason Rhees. “We believe this is a step in the right direction and stresses the integrity of building better for all the right reasons.”

Best Energy Rating performed energy modeling to compare the performance of HercuWall against standard 2×4 wood framed walls in the Phoenix Metro area; and to determine low-cost pathways to meet the new Energy Star V3.1 and Zero Energy Ready Homes 45L tax credit requirements, using two standard build-for-rent floor plans. This is broken down to reflect that if done on a similar build-for-rent style project, taking these steps gets a developer to their desired energy rating. 

Pathway to Energy Star (ES v 3.1) $2,500/door tax credit:

  • HercuWall panelized high performance wall system
  • Cathedralized R20 spray foam or netted cellulose conditioned attic system
  • Vinyl Low-E windows and sliders
  • 15 SEER 8.5 HSPF air source heat pump air conditioning systems
  • 100% LED lighting
  • Energy Star certified kitchen appliances (dish washer and Fridge)

Pathway to Zero Energy Ready (ZERH) $5,000/door tax credit:

  • HercuWall panelized high performance wall system
  • Cathedralized R30 spray foam or netted cellulose conditioned attic system
  • Vinyl Low-E windows and sliders
  • 16 SEER 9 HSPF air source heat pump air conditioning systems
  • 100% LED lighting
  • Energy Star certified kitchen and laundry appliances
  • Energy Star certified bath and ceiling fans

“I am very excited to see panelized and prefabricated building systems like HercuWall gain traction in the market,” said Best Energy Rating Managing Partner, Mike Bestenlehner. “They offer much higher performance building systems, while simplifying construction for the contractors in a very meaningful way.” 

Taking advantage of these new programs is a win for everyone and building with HercuWall simplifies the process. Developers will enjoy the tax credits while adding clean energy projects to their portfolios. Additionally, residents experience the benefits of living in a safe, healthy, clean, energy-efficient home. HercuWall is making building better easier, and the Inflation Reduction Act is pushing these sustainable building materials and developments that have been a long-time coming. 

For more information on HercuTech or HercuWall™ visit www.hercutech.com or call 480.284.4535. 

HercuTech is an innovative building technology company that manufactures HercuWall™— an ICC-certified panelized exterior and demising wall system. These prefabricated wall panels are made of EPS foam, reinforced with a patented steel ShearStrip, laminated with a weather-resistant barrier, and followed by site integrated concrete. HercuWall™ is three times stronger than traditional wood framing, and light enough to be carried by one installer. This results in a stronger, more energy-efficient, and sustainable building solution. It is environmentally friendly and resistant to mold, moisture, insects, and natural disasters. HercuWall™ performs unlike any other building system on the market today. For more details, visit www.hercutech.com

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