Carrots and Sticks: A Comprehensive Business Model for Successful Achievement of Energy Efficiency Resource Standards

by Shana Fong on April 20, 2011
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A new study titled, “Carrots and Sticks: A Comprehensive Business Model for the Successful Achievement of Energy Efficiency Resource Standards” was recently released by the Lawrence Berkley National Laboratory (LBNL). Utility companies and policymakers have different opinions the issues within the energy efficiency industry and resource standards. This study looks into a comprehensive business model that attempts to merge the utilities business and financial interests with state public policy goals.

The report was based off of findings of the Arizona Energy Efficiency Standard (EES), which requires Arizona investor-owned utilities to achieve 22% total energy savings by the year 2020. The report takes a deeper look into the comprehensive business model and what could come with the achievement of the EES.

Check out the full report here: http://eetd.lbl.gov/EA/EMP/reports/lbnl-4399e.pdf

The Need For Market-Based Clean Energy Solutions

by Shana Fong on January 31, 2011
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In a recent post on Switchboard, staff blog of the Natural Resources Defense Council, the NRDC’s Dr. David Goldstein delivers a realistic assessment of how government policies can fail to promote innovation and job creation in the green technology sector. “Research alone isn’t enough in the real world,” Goldstein writes. “We have plenty of job-creating new technology production opportunities that are going begging because of market failures,” he adds, emphasizing the need for practical, market-based solutions:

Green technologies are languishing because of a vicious circle in the economy: consumers have a hard time identifying products that truly are better for the environment, and find it difficult or unnecessarily expensive to buy them even if they can find what they want. This leads to frustration, and the frustration leads to the mirror image of the problem among manufacturers and retailers: if consumers are not expressing their desire for green purchases in the market (even if it is because they can’t find or identify them), then it makes no sense to produce or stock them.

Goldstein then makes a strong argument in favor of government incentives for home energy retrofit measures:

For home remodels, imagine how competitive home energy retrofit contracting would become if there were financial incentives for the first homes to make savings? (Such incentives passed the House of Representatives with bipartisan support in the form of the Retrofit Energy Efficiency Program (REEP) which was part of the Waxman-Markey climate protection bill last session.) How much easier would it be to retrofit your home for energy savings if your bank allowed you to borrow the money for the retrofit at the same interest rate as your existing mortgage, and to do it even if your loan is underwater?

Performance-based incentives and standards provide the economic motivation for innovation in many areas where it is blocked in the real-world economy. Places that have relied more heavily on environmental protection have seen greater job creation and more economic growth than those that have not.

This is a true win/win: a cleaner environment and the only known way to encourage innovation and growth on a national scale.

Read the full post at www.switchboard.nrdc.org/blogs/dgoldstein/innovation_as_the_basis_for_am.html

Source: Efficiency First

HUD PowerSaver Pilot Loan Program

by Shana Fong on January 14, 2011
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The Lawrence Berkley National Lab (LBNL) has just released a financing Policy brief on the creation of a pilot loan program for home energy improvements put together by the US Department of Housing and Urban Development (HUD), planned for introduction in early 2011.The PowerSaver loan program is a new, energy-focused variant of the Title I Property Improvement Loan Insurance Program (Title I Program). The PowerSaver pilot will provide lender insurance for secured and unsecured loans up to $25,000 to single family homeowners. These loans will specifically target residential energy efficiency and renewable energy improvements. HUD estimates the two-year pilot will fund approximately 24,000 loans worth up to $300 million; the program is not capped. The Federal Housing Administration (FHA), HUD’s mortgage insurance unit, will provide up to $25 million in grants as incentives to participating lenders. FHA is seeking lenders in communities with existing programs for promoting residential energy upgrades.

More info on the program is available through HUD: FHA PowerSaver

Important Updates to Federal Tax Credits for Energy Efficient Upgrades

by Shana Fong on January 10, 2011
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The tax credits known as 25C are extended through 2011, but at a significantly reduced value and with changes made to some of the qualifying equipment standards. The new tax credits begin on January 1, 2011 and last through December 31, 2011. The main difference is an eligible homeowner can claim 10% of the costs for the installation of qualified energy efficient improvements, capped at $500.

Under the new law the max a homeowner could claim on equipment is:

  • $300 for a qualified central air conditioner and heat pump (HVAC and hot water equipments)
  • $150 for a qualified furnace or hot water boiler
  • $50 for any advanced main air circulating fan.
  • $300 for Qualified hot water heaters

The new law will also increase the qualifying standards for hot water boilers, including natural gas, propane, oil furnaces, and oil boilers to 95% AFUE. The qualifying standards for natural gas furnaces and propane furnace remain at 95% AFUE.

The qualifying standard for central air conditioners and heat pumps, which were modified by the Stimulus bill in 2009, are not changed.

The major difference is the new law reinstates the lifetime credit caps of 2005. This means any homeowner who has claimed more than $500 in 25C tax credits since January 1, 2005, is disqualified from any further credits.

Another major question is whether someone can still get the $1,500 tax credit who signs a contract for work before Dec 31,2010 even if the actual work isn’t done until 2011. The work must be completed by December 31, 2010 in order to qualify for the $1,500 cap. If the qualifying improvements are completed before January 1, 2011, then you may still claim the $1,500 cap.

To read the Tax Provision of 2009 ending Dec 31, 2010, click here to be redirected to the IRS page.

To read the Original Tax Provision of 2005, click here to be redirected to the IRS page.

“This information is provided to you as a courtesy by Recurve and should not be considered tax or accounting advice. You are urged to consult an accountant or tax attorney if you wish to have certainty about your tax claims.”

New Incentives for Home Energy Upgrades in San Francisco

by Shana Fong on December 22, 2010
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San Francisco is now offering residents up to $2000 for home energy improvements. Coupled with incentives from PG&E, that means you could qualify for up to $6,000 total. The program, called San Francisco Home Improvement and Performance Program (SFHip), works similarly to PG&E’s program – first, you have to get an energy audit; then you work with a qualified contractor to make the upgrades and demonstrate that you achieved 15% or more in energy savings.

The first 50 homes will receive double the incentive (normally $1,000), and the program is only open to 433 homes total.

More on the program details here.

Energy efficient federal tax credits extended for a year

by Shana Fong on December 21, 2010
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A few days ago, Congress and President Obama passed legislation that extends federal tax credits for energy-saving upgrades another year. The tax credits were set to expire at the end of 2010 but have been extended until December 31, 2011. However, the incentive has been reduced to 10%, up to $500.

Included are provisions limiting window incentives to $200, oil and gas furnace and boiler incentives to $150-200, and water heater and wood heating system incentives to $300. As part of the legislation, Congress tightening the specifications for oil furnaces and boilers and gas boilers to 95% efficiency, up from the 90% efficiency in current credit.

VP Biden Announces Home Energy Score Program

by Shana Fong on November 12, 2010
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With the new Home Energy Score, consumers will find out how their home compares with others and how much money they could save by adding insulation, sealing air leaks or doing other upgrades. Ten U.S. communities will test the score, similar to a miles-per-gallon label for cars, before it’s rolled out nationally next summer.

“Together, these programs will grow the home retrofit industry and help middle-class families save money and energy,” says Vice President Biden

The program is designed to encourage homeowners to make energy-saving upgrades and to jump-start the industry for home energy retrofits, Biden said in a statement. It will also include financing for homeowners (up to $25,000) and software that will let energy contractors give consumers the home efficiency equivalent of miles per gallon for cars.

Sources:
CNET
USA Today

6 Easy Weekend Winterization Projects

by Shana Fong on October 18, 2010
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Winter is just around the corner – time to think about how you can button up your house to make sure it’s comfortable without costing you a fortune in energy bills. The Daily Green has put together a great list of easy weekend projects to help you winterize your home.

  1. Dodge the Draft(s)
    According to the U.S. Department of Energy, drafts can waste 5% to 30% of your energy use. Start simple and adopt that old Great Depression fixture — the draft snake, which you can easily make yourself. Just place a rolled bath towel under a drafty door, or make a more attractive DIY draft snake.
  2. Change Furnace Filters
    Yes it’s easy to forget, but it’s important to replace or clean furnace filters once a month during the heating season. Dirty filters restrict airflow and increase energy demand. Here’s a worry-saving tip: mark a monthly check on your calendar.
    Better, consider switching to a permanent filter, which will reduce waste and hassle. Did you know that disposable fiberglass filters trap a measly 10 to 40% of debris? Electostatic filters trap around 88%, and are much better at controlling the bacteria, mold, viruses and pollen that cause illness and irritation.
  3. Run Fans in Reverse
    Most people think of fans only when they want to be cool, but many ceiling units come with a handy switch that reverses the direction of the blades. Counterclockwise rotation produces cooling breezes while switching to clockwise makes it warmer: air pooled near the ceiling is circulated back into the living space – cutting your heating costs as much as 10%!
  4. Turn Down Your Water Heater
    While many conventional water heaters are set to 140 degrees F by installers, most households don’t need that much steam, and end up paying for it — in dollars and the occasional scalding burn. Lowering the temperature to 120 degrees F (or lower) would reduce your water heating costs by 6% to 10%.
  5. Give Your Heating System a Tune-Up
    You probably already know that cars need periodic tune-ups in order to run their best. Well the same is true for heating equipment. Keeping your furnace clean, lubricated and properly adjusted will reduce energy use, saving up to 5% of heating costs.
    If your entire furnace is in need of replacement, it will cost a lot more — but replacing an inefficient burner for a modern machine will save you every month through the heating season. Be sure to take advantage of federal tax credits for new furnaces, which can cover 30% of the cost, up to $1,500.
  6. Mind That Thermostat
    It’s easy to forget to turn down the heat when you leave the building, but doing so is one of the surest ways to save money. Most households shell out 50 to 70% of their energy budgets on heating and cooling, so why pay for what no one uses?
    For every degree you lower the thermostat during heating season, you’ll save between 1 and 3% of your heating bill. Make it easier with a programmable thermostat; they are widely available for as little as $50, and the average family will save $180 a year with one.

For even higher impact on your home’s comfort and energy bills, contact Recurve so we can provide expertise on projects such as:

  • Air sealing – simple leaks can sap home energy efficiency by 5% to 30% a year, according to the U.S. Department of Energy.
  • Insulation – it may not seem sexy, but insulation is one of the best ways to save energy and money at home.
  • Duct sealing – studies show 10% to 30% of heated (or cooled) air in an average system escapes from ducts. Properly sealing ducts can save the average home up to $140 annually, according to the American Solar Energy Society.
  • Upgrade to an efficient furnace – if your furnace is old, you could save a lot of money in the long run (and improve your home’s value) by upgrading to a new unit.

Stay Warm & Save Money This Fall/Winter

by Shana Fong on September 27, 2010
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Fall is the perfect time to start prepping your house for winter. The U.S. Department of Energy suggests these 5 steps to ensure that your home stays comfortable this winter without costing you an arm and a leg:

  1. Look for rebates from your utility or state. Recurve has put together a handy resource for available incentives on our website.
  2. Get an energy audit. In order to know how to save energy, you have to first find out where you are losing energy – and money.
  3. Have your heating system serviced. Keep your system operating efficiently, and don’t forget to replace your furnace filter once a month or as needed.
  4. Find and seal your air leaks. This includes less obvious gaps such as recessed lights and unfinished spaces behind cupboards and closets.
  5. Check your insulation and add more as needed. Insulation is often the most cost-effective energy improvement you can make in your home.

SF Offering More Efficiency Rebates

by Shana Fong on September 7, 2010
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The city of San Francisco has started to offer up to $2,000 in incentives for energy efficiency improvements. According to the San Francisco Business Times, the program is funded by a $3.2 billion program from the American Recovery and Reinvestment Act. California was awarded $49.6 million from that for its Energy Efficiency Conservation and Block Grant Program. San Francisco got $7.7 million, which is enough to fund 400 energy efficiency upgrades, said Raymond Manion, energy specialist at the San Francisco Department of the Environment.

These rebates can be used on top of the latest incentives from PG&E (up to $3,500). And combined with federal rebates and the Cash for Appliances program, homeowners can get a total of up to $8,000 for making their home more energy-wise. Sounds like a win-win situation for everyone!

Contact Recurve today at 877.303.0979 to get started. Hurry though – these funds are extremely limited. Cash for Appliances is 60% gone and tax credits expire this year.

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