Homeowners are passing on energy rebates

Massive initial interest in a state program to help people make their homes more energy efficient could be tapering off, even as some areas of the state face the likelihood of increased home heating costs in coming years.

As of Dec. 16, nearly 19,000 Alaskans have started the multi-step Home Energy Rebate Program funded by Gov. Sarah Palin and the Legislature and managed by the Alaska Housing Finance Corp.

They've paid for certified technicians to rate their current home energy efficiency and recommend upgrades that would be eligible for a state refund, up to $10,000. But of about 200 people who had pre-audits done and hit the end of an 18-month deadline, about 152 followed through with improvements and filed their claims. Thousands more started the program but haven't wrapped it up, and the window to do so is closing daily for the flood of folks who jumped at the chance.

If this trend continues during the next several months, the program will end up with a financial cushion of funds set aside for improvements that weren't cashed in on. But it's leaving some to wonder: In a state with some of the highest energy costs in the nation, where homeowners stood to benefit significantly -- exactly what happened?

The home energy rebate program is designed for Alaskans who don't qualify for low-income weatherization assistance. Homeowners start with a pre-rating that also generates a report specifying fixes and their expected efficiency upgrades. Each upgrade has a point value attached, based on how much improvement is likely.

The homeowner, who then has 18 months in which to make improvements, shoulders the upfront repair costs -- labor and materials if done by a contractor, or just materials if done by the homeowner. A post-rating reveals how much energy efficiency was gained, and the points boost the home rating on the scale. The state reimburses costs up to $10,000, depending on how many efficiency levels are gained.

Legislators pushed $100 million to the program during the 2008 session, as oil prices continued an upward spike that would peak at an unprecedented $140 per barrel that summer. While the state treasury was flush with the upturn, Alaskans faced near-catastrophic increases in home heating fuel costs, already the highest in the nation. By August, much of the Interior was in a state of crisis as winter weather approached. Gov. Sarah Palin and lawmakers infused the program with another $60 million during a special session on energy issues, using some of the state's oil largess to offset high prices paid by its residents.

Interest was high at first, leaving many on waiting lists as AHFC embarked on a campaign to train raters. An estimated 70,000 to 75,000 homes were eligible. But applications slowed as oil prices took a dive through the winter, especially from homeowners in the Fairbanks area.