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TVA, Clayton, Industry Group Launch Energy Efficiency Initiative For Manufactured Housing

January 13, 2012

KNOXVILLE, Tenn. — The Tennessee Valley Authority, Clayton Homes and the manufactured housing industry’s Systems Building Research Alliance are working to stimulate the region’s market for energy efficient, factory-built homes that can save homeowners money on power costs.

Supported by an energy efficiency cash incentive of $1,450 per home from TVA, Clayton Homes has announced that all manufactured homes it builds in the TVA region will qualify for the Energy Star label as a standard option.

TVA pays the incentive directly to producers of new manufactured homes to offset additional costs of building Energy Star homes, which feature efficient heating and cooling systems, lighting and appliances, and high-performance windows, insulation systems and construction systems to reduce leaks and drafts.

 Clayton Homes, based in Maryville, Tenn., is the nation’s No. 1 retailer of modular and manufactured homes and holds approximately 75 percent of the manufactured home market in the region. 

“We are counting on aggressive growth in energy efficiency to meet TVA’s goal of a cleaner energy future for the Tennessee Valley,” said Bob Balzar, vice president of TVA Energy Efficiency and Demand Response. “I applaud Clayton Homes for its willingness to support both energy efficiency and manufactured home buyers.  SBRA also deserves credit. Its advocacy and support is instrumental to the success of this effort.”

While manufactured home builders selling homes in the TVA region receive the incentives, the real beneficiaries are consumers. Energy Star homes lower electric bills by $70 per month on average, providing thousands of dollars in savings over the life of a home. Energy Star manufactured homes also are more comfortable, quieter, require less maintenance and have a higher resale value.

Since 2002, only about 150 Energy Star-qualified manufactured homes have been located in Tennessee. Under the new program, Clayton Homes projects an additional 2,200 Energy Star homes to be sited in the TVA region in 2012.

 “We are excited to partner with TVA in bringing the best housing values to market,” said Lance Hull, vice president of sales and marketing for Clayton Homes. “Today’s homebuyer is more aware of energy costs than perhaps ever before. We share TVA’s commitment to provide energy savings for the benefit of our mutual customers and we will lead the housing industry in providing affordable energy saving solutions for all homebuyers in the region.”

SBRA, the research arm for the factory-built housing industry and the U.S. Environmental Protection Agency’s national quality assurance oversight agent for the manufactured and modular home Energy Star programs, helped TVA and Clayton identify ways to grow the program and will help manage it.

“The challenge was to set the efficiency bar high at Energy Star levels, but reach buyers that normally cannot afford the added cost but derive the greatest benefit from the energy savings,” said Emanuel Levy, SBRA executive director. “Working with Clayton and other manufacturers, TVA has crafted a program set to achieve this goal. This is a landmark program and a model for other utilities seeking to fundamentally change homebuilding practices.”

Launched in 1992, Energy Star is jointly operated by EPA and the U.S. Department of Energy. Energy Star is a high-visibility brand recognized by consumers and business owners across the nation as an independent and credible mark of superior energy performance.

Only electrically-heated homes with a heat pump are eligible for TVA incentives. The manufacturer must also meet stringent thermal envelope requirements and install other energy efficiency features. The rebate offsets most of the extra cost.

For more information, please visit or For more about SBRA, visit             

The Tennessee Valley Authority, a corporation owned by the U.S. government, provides electricity for business customers and distribution utilities that serve 9 million people in parts of seven southeastern states at prices below the national average. TVA, which receives no taxpayer money and makes no profits, also provides flood control, navigation and land management for the Tennessee River system and assists utilities and state and local governments with economic development.


Media Contact

Mike Bradley, Knoxville, (865) 632-8600
TVA Media Relations, Knoxville, (865) 632-6000

TVA Newsroom

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