Posted by Damien Cabral on Mon, May 10, 2010
On Thursday, May 6th, the House passed the Home Star Bill with a 246-161 vote! Passing the bill authorized $5.7 billion in funding over a 2-year period for energy-efficient home renovations. Many supporters estimate the bill will encourage 3 million homeowners to take part in the program and will save them over $9.2 billion in energy expenses over the next 10 years. For more details on the bill's past progression, check out our First HomeStar Bill blog post as well as our Second HomeStar Bill blog post.
Some key changes were made before the final house bill passed which include:
1) The bill will be terminated if no way to pay for it is presented.
2) Rebates will now go directly to the homeowner. In a previous version of the bill, rebates would be instant and deducted from the purchase with contractors applying to the government for the rebates.
3) A sample of all projects will be inspected to help prevent fraud.
Next Steps:
The House and Senate now need to combine their two versions in the bill and reach a compromise. To get the latest information on the HomeStar Program, be sure to subscribe to the Moonworks Blog by Email in the top right hand corner or click here to subscribe by RSS Feed.
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Posted by Damien Cabral on Thu, Mar 04, 2010
Tuesday, President Obama
proposed rebates up to $3000 to help homeowners pay for energy-efficient upgrades in their homes. While Congress has not yet passed this plan as a formal bill, it is a major initiative backed by the White House and is sure to be
fast tracked over the next month. The hope of the
Home Star program, aka Cash for Caulkers, is to make Americans' homes more energy-efficient while creating jobs during these trying times.
"I'm convinced that the country that leads in clean energy is also going to be the country that leads in the global economy. I want America to be that nation."
- President Obama
Fast Fact: Jim Cramer, of Mad Money, first coined the term "Cash for Caulkers."
So what is Cash for Caulkers all about? Some details have been changed since
Cash for Caulkers was first proposed and more changes will most likely be made for the bill is signed as law. The new plan as we know it today includes two tiers:
Silver Star Rebates: Consumers can expect $1000-$1500 in rebates for each energy-efficient upgrade with a maximum of $3000 or at least 50% of the projects cost (whichever is less). Qualifying home improvements include: insulation, duct sealing, water heaters, HVAC units, windows, and doors. A certified contractor must install the upgrades.
Gold Star Rebates: Consumers interested in a more holistic approach to energy-efficiency could receive up to $3000. This involves a comprehensive energy audit coupled with retrofits that lead to at least 20% higher efficiency. Additional funds are available for upgrades that lead to more than 20% increase in efficiencies.
How is this plan different from the existing $1500 tax credit for energy-efficient tax credits?
These incentives are instant rebates! Consumers would receive the cost savings immediately and the time of purchase, a similar process used for Cash for Clunkers. Contractors would apply for reimbursement from the federal government after the installation is complete.
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Posted by Rebecca Langley on Tue, Dec 15, 2009
The federal program of cash for caulkers would allow each household to get a 50% rebate, up to $12,000, for making energy efficient repairs and improvements to their home. While it is still uncertain how the program will be structured, many believe that it will be based on the home energy efficiency program currently in place in New York State. If so, you would hire a contractor to come into your home and conduct an energy audit to check how much energy is being wasted. The audit consists of using a giant fan to draw the outside air into the home, showing leaks in siding, windows, insulation and doors. They will also look at your appliances and determine how much energy is being exerted. Then, a checklist will be compiled of items that need to be improved, how much savings in your monthly bills you can expect and how much it will cost upfront. It is up to the homeowner to determine which of the repairs they would like to make and negotiate the price. Once the improvements are completed, paperwork is submitted by the contractor and the homeowner would receive the 50% rebate (up to $12,000).
One notable question with this program is, what if I don't have enough money to pay for the improvements outright? Currently in New York, you can opt to take out a low interest loan instead of receiving the 10% rebate. Considering the federal rebate will be much greater, financing options are a must. The financing guidelines in terms of credit, income, etc are also a concern because financial institutions have become strict in their lending requirements. Also being considered is partnering with large home improvement stores to help offset the homeowners upfront costs.
It is also important to note that due to the large amount of money being allocated to this stimulus program, fraud is a huge concern. Therefore, it is unclear if the program will cover DIY projects. In the New York State program, you must hire a contractor that is licensed through the Building Performance Institute, a third party certification program. Currently, over 27 states have programs similar to New York. Due to the fact that over half of the states have some rebate program in place, the most time efficient solution would be covering the rebates and licensing on the state level. As with the tax credits that are currently in place, there will be stringent guidelines to be sure the product is indeed energy efficient.
Moonworks supplies New England homeowners with several of these qualifying products including: energy efficient Renewal by Andersen windows and doors, cool roofing technologies, Repower Home solar hot water systems, and Ownes Corning blow-in insulation. We also hire our own installers, making quality control and professionalism a priority.
Photo Credit: Photo courtesy of Flickr member: energy.circle.