March 2010 Feature
Incentive to Upgrade
States Prepare Efficiency Programs for Consumers, Dealers

The federal government has made energy efficiency a focus of its domestic policy by way of the American Recovery and Reinvestment Act (ARRA) stimulus bill, providing an opportunity for energy retailers to take advantage with existing services they offer and potentially tackling new areas of home heating and cooling.

Much of the funding that the government set aside for efficiency was passed down to states to craft their own programs, so the details vary depending on the individual state. However, most states are using the money to provide grants and rebates for heating and cooling equipment upgrades or services related to performing home energy audits.

There are also programs being developed that would encourage training in fields related to energy efficiency that heating oil and propane dealers could use to bring their workforce up to date on the latest standards and evolving technology in the industry.

While businesses may be able to use some of the grants for training or their own building updates, retailers should make certain their customers know of the numerous rebates available, in order to encourage home audits or upgrades.

With the federal funds provided by the government limited, many of the programs that offer rebates or incentives for equipment and services are limited and will only run while funding remains. Trade organizations such as the New England Fuel Institute (NEFI), state association and local energy offices should be contacted by dealers looking for the latest information on programs available in their region or see www.energy.gov/recovery for updates on what stimulus programs may be available.

New Hampshire
Funding for New Hampshire comes from the Energy Efficiency and Conservation Block Grant (EECBG) program, which was created in 2007 with the passage of the Energy Investment and Securities Act (EISA).

The program was created to provide states, counties and units of local government with grant funds to reduce fossil fuel emissions, reduce total energy use, and improve energy efficiency.. Although EISA proposed to appropriate $2 billion per year to the EECBG program through 2012, the program recently received its first funding allocation through the ARRA.

New Hampshire has been designated to receive $17.3 million for its various programs. There are nine categories for the programs under EECBG, with many that fuel dealers can take advantage of, including lighting upgrades, building energy efficiency measures, building energy audits, energy studies and energy planning, renewable energy, and other innovative projects and exceptional projects.

Equipment rebates include solar, oil and gas upgrades. Solar equipment has a rebate of $750 for qualified units, while the oil and gas system rebates depend on the upgrade’s efficiency.
Oil furnaces with an AFUE greater than 85 percent are eligible for a $300 rebate, and those with an electronically commutated motor (ECM) are eligible for $400. The rebate rises to $500 for oil boilers with an AFUE greater than 85 percent that doubles for $1,000 for units with an AFUE above 90 percent. Indoor reset controls are eligible for a $100 rebate.

The equipment rebate program will officially launch in April. See www.nh.gov/oep for more information as the program nears.

A first-time homebuyer’s energy efficiency program will be using roughly $1.5 million of stimulus money in the form of low or no-interest loans to encourage residents to make their new homes more efficient.

Homeowners could receive as much as $15,000 to perform the upgrades, which would allow about 80 projects. Receiving the loan would also not interfere with additional money that may be available from the newly expanded New Hampshire Weatherization Assistance Program (WAP) and its efficiency upgrade grants.

The state will be hosting a meeting for those interested in learning more about the first-time homebuyer and other residential efficiency programs on March 17 at the Office of Energy and Planning in Concord. Contact Laura Richardson at laura.richardson@nh.gov for more information or to RSVP.

Maine
Like several other states, a major portion of ARRA funding in Maine has been set aside for incentives for residents to have home energy audits performed. The state is offering $3,000 to the first 4,000 homes as incentives for approved energy efficiency projects.

Some of the improvements eligible for the funding are high-efficiency heating and domestic hot water equipment, solar water heating systems, programmable thermostats and other controls, insulation and energy efficiency windows.

To learn about educational opportunities for becoming solar and energy auditing certified, as well as how to be approved by the state as an efficiency contractor, go to www.efficiencymaine.com.

Pennsylvania
Nearly $12 million in stimulus funding is being set aside in Pennsylvania for a rebate program that will upgrade non-electric space and water heating equipment, though the specifics have not yet been released.

However, more than $250 million is going toward the expansion of the state’s weatherization program, which provides an opportunity for local vendors to aid in energy efficiency installations. The Weatherization Assistance Program (WAP) is using $20 million to “rapidly” train nearly 1,000 workers in the field.

In addition to weatherization tactics, the training is expected to include home energy auditing, combustion analysis and retrofitting and more advanced diagnostics.

ARRA funding will also be used to provide $6 million for a program that will help the state identify and train workers for jobs in the energy efficiency field. The training programs have not yet been established, but the latest information on the “green jobs” initiative can be found at www.paworkforce.state.pa.us.

Rhode Island
The state’s equipment rebate program is expected to begin in mid-March, with approximately $1 million in funds and will allocate 73 percent of the funds to rebates on Energy Star heating equipment and 7 percent of the funds to Energy Star kitchen appliances.

Planned rebates are currently $1,300 for combined high-efficiency boiler and water heating systems and $300 on indirect water heater, which may in some cases be combined with local utility rebate/discount programs.

Since there are limited funds available, rebates will be on a first-come, first-serve basis while funds last.

For information on the program, contact Charlie Hawkins at the Office of Energy Resources at chawkins@energy.ri.gov or by phone at (401) 574-9124.

Renewable fuel systems are also eligible for a rebate program in Rhode Island, with solar photovoltaic and solar space and water heating units available for the funds. Some of those upgrades may also be able to be combined with federal rebate programs available for solar equipment installation.

The state will also be launching a program in late March that will aid residents who receive oil and propane with weatherization services, though details have not yet been released. For more information on the program, including applications and additional details, see www.energy.ri.gov.

Vermont
While the state does have an equipment rebate program, few Oilheat systems are currently eligible for the program. Residents are currently about to receive a $100 rebate for purchasing an Energy Star-rated forced hot air furnace with an ECM. There are also contractor incentives for installing high- efficiency equipment.

A portion of the ARRA money will be going toward the state’s Weatherization Assistance Program (WAP), however, which could provide home energy providers with expanded training or business opportunities in home energy audits or upgrades. The state expects to spend nearly $17 million over three years for weatherization training and grants.

In addition, there are currently existing programs that could encourage more whole home audits. Efficiency Vermont offers up to $2,500 to residents to improve their energy efficiency based on recommendations from qualified home energy auditors. Some residents may also qualify for free weatherization services from the WAP.

To learn more about the rebates available through Efficiency Vermont, see www.efficiencyvermont.com. To see the newest programs available and more about the WAP incentives, go to www.recovery.vermont.gov.

Massachusetts
Massachusetts offers a variety of incentives to residents for upgrading to high-efficiency equipment, as well as some for businesses performing the work.

Residents can receive a rebate of 75 percent up to $2,000 for improvements made on recommendations from a home energy audit. They can also receive a $100 rebate for installing a qualified outdoor reset control.

The state also offers some free training and tuition reimbursement on select programs for gaining energy efficiency certification, as well as incentives for businesses that install Energy Star or other high-efficiency equipment. More on the incentives for residents and businesses can be found at www.masssave.com.

Connecticut
The funding for energy efficiency projects in Connecticut are limited for home energy retailers to take advantage of, but there are some programs that could be useful for those who work on government and commercial jobs or installing solar equipment.

Stimulus funding provided extensions to several renewable fuel programs already set up in the state. There are currently rebates available for residential and commercials upgrades for the installation of closed-loop ground source heat pump systems, solar thermal system to heat domestic hot water and solar photovoltaic systems in commercial and residential applications.
These programs have already been in place since before the ARRA, so some of their funding has already been used. For more information on them, including the amount of funding remaining, see www.ctcleanenergy.com.

Connecticut’s State Energy Efficient Appliance Rebate Program (SEEARP), which began earlier than most other state programs, is an equipment upgrade rebate for consumers that did not include home heating systems. However, for dealers who also install air conditioning units, they can tell customers about $50-$500 in rebates available for certain Energy Star-rated models.
The funding will be available through April 30 and the program will be reevaluated at that time and may be extended. For details on this rebate program and other government and commercial opportunities in the state, see www.ct.gov/opm.