Energy Efficient Homes and Utility Bills
Lower Utility Bills
Energy efficient home technologies and appliances can represent many years
of cost savings on energy bills. Unfortunately, their initial up front costs can be somewhat higher than conventional products. This initial cost barrier can keep many consumers from considering the use of green building technologies and ENERGY STAR® appliances. Fortunately, both government and the private sector realize it is in their best interest for consumers to now be installing these items. There are multiple rebates and low interest loan programs in place for consumers who decide to make their homes energy efficient.
Federal Government
The federal government has several programs to encourage energy efficiency and renewable energy through its various departments. Below is a quick listing of initial resources and how to contact them.
Fannie Mae Corporation
Fannie Mae provides conventional mortgages up to $227,150 for energy efficient mortgages. They also provide residential loans for energy efficiency upgrades, including solar water & space heating systems and PV of up to $15,500. Website address: www.fanniemae.com
Federal Home Mortgage Loan Corp (Freddie Mac)
Freddie Mac provides conventional mortgages of up to $227,150 for energy efficiency mortgages that meet certain criteria. Website address: www.freddiemac.com
U.S. Department of Agriculture
The USDA's Rural Housing Service, Rural Business-Cooperative Service, Rural Utility Service provides assistance up to $300,000 (average) covering solar thermal systems and PV. Website address: www.usda.gov
U.S. Department of Energy
DOE provides several programs, including the Federal Energy Management Program (FEMP), Energy Savings Performance Contracts, State Energy Conservation and Weatherization Assistance. The amount of funding and eligibility under these programs varies. They typically cover energy-efficient features and equipment, solar thermal systems, and PV systems. Website address: www.doe.gov
U.S. Department of Housing and Urban Development
HUD programs cover energy efficiency mortgages (EEMs) for FHA 203(b) and (k) insurance programs, etc.; special HOME, HOPE VI, and Title I programs for energy efficiency and solar systems (with limits). Energy-efficient features; solar water and space heating; PV; EEMs to 10% above base loan amount. Website address: www.hud.gov
U.S. Department of Veterans Affairs
The VA Home Mortgage Loan Program provides loans of up to $203,000 to qualified borrowers for energy-efficient features and appliances; solar water and space heating; PV; EEMs to 10% above base loan amount. Website address: www.va.gov/vas/loan/lenders.htm
U.S. Environmental Protection Agency
EPA's Energy Star-Rated Home and Energy Star-Rated Building programs provide funding at levels guided by Fannie Mae and Freddie Mac limits. Eligible expenses are for energy-efficient features making homes more efficient than code; solar thermal water and space heating; PV (10-year payback or less required). Website address: epa.gov
U.S. Small Business Administration
The SBA offers several programs, such as the 7(a) Std Small Bus Loan, 7(a)-12 Energy Loan Program, 7(m), etc. These programs provide up to $750,000 guarantee (7(a)) for financing energy-efficient features; renewable energy systems, including solar, wind, hydropower, biomass. Website address: sba.gov
The U.S. Senate and the House of Representatives are currently debating an energy bill specifically aimed at encouraging energy efficiency. The Energy Tax Incentive Act of 2003, would grant tax credits of between $1,500 and $2,000 for energy efficient new home construction or for energy efficient renovations to older homes. The bill would also reinstate a $2,000 tax credit for the installation of solar panels.
Taxpayers should also note that rebates given by utilities on energy efficient homes and appliances are tax exempt under federal IRS law.
Rebates
Recent restructuring legislation in Texas and the subsequent Public Utility Commission (PUC) decisions now require distribution utilities to show that at least 10% of their growth in demand is covered through energy efficiency savings. This means that these utilities must provide programs that result in a reduction in energy consumption and energy cost for the customers. The PUC has initiated a standard offer program that is administered by the utilities.
This type of program makes energy efficiency services and products available to residential and small commercial customers through independent contractors such as appliance stores, air conditioning and heating contractors and insulation manufacturers.
Unfortunately, unlike other states' utilities with similar programs, distribution utilities in Texas do not offer details about such programs to their customers. Thus, residential electric customers should watch for energy efficiency offers from service providers such as heating/cooling/insulation contractors and, in some cases, community action agencies. Some utilities will provide lists of contractors that provide these services if the customer asks.
In contrast, the municipal utilities and the state utility cooperatives (coops) are directly offering significant residential energy efficiency programs. As an example, Austin Energy www.austinenergy.com features rebates for energy-efficient central air conditioning and appliances, and free thermostats and installation for customers who agree to have their central air conditioners cycled off briefly during peak demand. The City Public Service Company of San Antonio www.citypublicservice.com/ has rebates for energy-efficient clothes washers, while College Station Public Utilities http://pud.ci.college-station.tx.us has rebates for heating/cooling system replacements. Many of the state's other municipal utilities and electric cooperatives offer residential energy efficiency programs ranging from energy audits to rebates for energy-efficient heating/cooling systems. One such example is bluebonnet Electric www.bluebon.net, which services a large swath of central Texas. Customers should check with their municipal utility or co-op for more information.
Low Interest Loans
The federal government has a loan program for new energy homes. This program can be seen at the Energy Efficiency Mortgage Site. Additionally, many of the city owned utilities and all of the Texas Coops offer low-interest loans for various aspects of home energy efficiency.
Austin Energy offers low-interest loans for home energy efficiency improvements as does City Public Service Company of San Antonio and College Station Public Utilities.
Texas Electric Cooperatives, Inc., the non-profit state organization representing the state coops has several members programs that offer low-interest loans for both construction and appliance financing
EC Home
EC Home is a program offered through electric cooperatives in conjunction with the National Rural Utilities Cooperative Finance Corporation (CFC). EC Home is a home mortgage financing program that gives participating co-ops the ability to offer rural consumers a broad range of home mortgage products for new home construction, purchase of an existing home or a home equity loan. In addition, the program also offers member-consumers assistance in buying and selling a home.
EC Home Improvement
A sister program to EC Home, EC Home Improvement takes co-op involvement inside the home to help consumers make improvements. The program allows homeowners to borrow funds at competitive rates for various energy efficiency-related home improvement projects like installing more efficient water heaters and air-conditioning systems or replacing old wiring systems with newer models.
Local Coops can be contacted directly about these various programs and consumers can check out the associations website at www.texas-ec.org
Another site of additional interest is www.dsireusa.org that offers a comprehensive listing of all federal state and local programs to help both residential and commercial consumers.
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