What's Up with the Energy Credits?

OKEMOS, Mich., Nov. 13 /PRNewswire/ -- The following statement is being issued today by CLEAResult Consulting Great Lakes to educate consumers on the variety of incentive programs for implementing energy efficiency measures.

We've been reading and hearing in the news lately about the energy credits, protecting the environment, and saving on utility bills. But a staggering number of people are not aware of numerous and beneficial programs designed by the utility companies that will actually put cash back in your wallet.

With the climate shifting toward winter in our state and winter winds and snow just around the corner, consumers' thoughts are drifting toward ways of making homes warmer without escalating energy bills. Homeowners are thinking about additional insulation, putting plastic coverings over old windows, caulking, and even replacing old furnaces. And what will all of this cost? Will the energy savings be enough to off-set the expense?

A year ago this month, Governor Granholm signed into law Public Act 295 of 2008. The purpose of the act, known as the "Clean, Renewable, and Efficient Energy Act," is to do what its name says.

However, there is more to the law, and as utility companies design their compliance plans, there is something in it for utility customers. It's called the Energy Optimization (EO) plan. For example, many utilities are providing cost-saving measures up front in the form of compact fluorescent lights (CFLs), pipe wrap, low-flow aerators, and setback thermostats. For a small service fee, a homeowner can schedule an on-site energy survey or opt for a more comprehensive audit and receive many of these items at no additional charge. A variety of utilities are offering instant rebates to help off-set the cost of the audits. Additionally, implementing the recommendations made by the surveyor/auditor could result in rebates and incentives that will help cover part of the expense and the homeowner may still be eligible for federal tax credits on top of the rebates and incentives.

Almost everyone is eligible for at least one of the programs. Program eligibility depends on your primary heating source in some cases. Included are residential HVAC, low-income, multifamily, residential audit and weatherization, new construction, commercial and industrial, educational, and pilot programs. Incentives and rebates will be paid out as long as the current year's funding holds out. And the programs are on-going with renewed funding at the start of each calendar year.

The standards for energy efficiency are the Energy Star standards, with recognition by the National Fenestration Rating Council (NFRC) for windows and the American Society Testing Measurement (ASTM) for insulation. Additional restrictions and requirements could apply and programs can vary among utilities. In certain programs, in order to be eligible for the incentives and rebates, the installed measures must exceed the Energy Star standards.

And just for the sake of reinforcement, programs exist for multifamily dwellings (landlords) and commercial and industrial buildings. One program is designed to reduce residential energy use with the installation of energy efficiency in the units and common areas. Since the reduced energy usage in the common areas benefits the residents of the apartments, it is included in the program even though the program costs and savings related to the commercial accounts will be considered commercial.

Commercial and industrial (C&I) programs include a prescriptive program that offers rebates on lighting and energy saving appliances and equipment. Another program provides incentives for innovative and unique energy-efficient equipment and controls, while yet another C&I program provides design assistance and custom incentives to C&I customers to overcome customer/market barriers to designing and building high performance facilities.

Some of the areas covered under various plans include (but are not limited to) air sealing, insulation, window replacement, heat pumps, water heaters, furnaces, refrigerator recycling, central air conditioning, and air conditioner recycling. There are also time limitations for starting and completing the work. So, if you're planning on acting on any recommendations, the time would be now. Not only will you not lose out on any opportunities to "cash in," but you'll be saving energy and lowering your utility bills sooner. And remember that incentives and rebates are paid out as long as the funding is available. If you wait too long, you could lose out.

The important message here is for utility customers to be aware that there is help available toward lowering utility bills, becoming Energy Star compliant, and more energy conscious. If your furnace or air conditioning systems is more than 10 years old, or you're fed up with watching your curtains billowing in the wind coming through your old windows, or your ceiling is icing up because you have no insulation remaining in your attic, or your energy bills are just too high, there are measures you can take to correct the problem, lower your energy bills, and use less energy and get some cash to help cover your expenses. That's a win-win situation for you, the state, and the environment. Contact your utility company (gas, electric, and water) for more information and to see if you qualify for one of the programs.

SOURCE CLEAResult Consulting Great Lakes