Homeowners are passing on energy rebates
| Dec 23, 2009Massive 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.
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BY THE NUMBERS:
As of Dec. 16, here's how the Alaska Housing Finance Corp.'s Home Energy Rebate program is shaping up: -- Of $160 million allocated to the program, $23.6 million has been spent. -- Another $139 million has been encumbered, or set aside, to cover homeowners who have had their houses pre-rated, but need to complete upgrades and apply for rebates. -- So far, 2,313 rebates have been paid out, at an average of $6,114 each. About 1,282 people are on a waiting list to have their homes pre-rated so they can start the program. -- The average annual energy savings for people who made upgrades is $1,335. -- Together, those same people are saving an estimated 197 billion BTUs of energy and nearly 34,000 barrels of crude oil per year and have reduced energy use by 31 percent per home. -- They've also cut, cumulatively, an estimated 11,753 pounds per year of carbon dioxide being emitted into the atmosphere. |
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.
Some people followed through right away -- a couple hundred rebates have been paid out, mostly to homeowners in Fairbanks and Anchorage.
The 18-month rebate window started closing on the first applicants in mid-November. About 150 of the 200 or so people whose deadline expired then followed through and filed for rebates. AHFC spokesman Bryan Butcher said he didn't expect that high completion rate to continue, as many of the initial participants were the most committed, especially in the Fairbanks area.
"There was such a focus in that community of getting the ratings up and going," Butcher said. "Here in Southcentral, there wasn't the panic. The natural gas prices are not only considerably less expensive than fuel oil, but the 22 percent spike hadn't occurred yet."
For every pre-rating, AHFC sets aside $10,000, funds that are tied up until the homeowner either cashes in or runs out of time. As of mid-December, only $24 million of the program's $160 million had been spent. The rest is still set aside pending those deadlines.
"Once the session starts (on Jan. 19), we'll have a better snapshot for the Legislature of what percentage of people are taking advantage of it, and where we are," Butcher said. "With every week, the number of people reaching the end of their 18 months increases."
The discrepancy isn't necessarily a cause for concern, Butcher said. A number of people found that their homes already rated four stars or higher on the state's five-star scale, and that improvements wouldn't offer much financial benefit.
Butcher referenced one of a number of notes received from grateful Alaskans with efficient homes who said they appreciate the knowledge gained through the rating process.
"They have the peace of mind of knowing the house is energy efficient," he said. "There's no question the residents of the state will be more educated in energy efficiency than in any other state in the country."
Homeowners can still sign up for the rebate program online at www.akrebate.com, at least until all available funds are reserved.
Contact Rena Delbridge at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
UPDATED: This article was updated on Jan. 15, 2010, to clarify a figure in the third paragraph. Of the 200 homeowners who had a pre-audit and who hit their 18-month deadline, 152 followed through by making upgrades, conducting a post-audit, and claiming a state rebate. As of Dec. 18, 2,857 people have completed the audits and upgrades and have applied for and received rebates.
Currently, the program's funds are encumbered. Nearly 17,000 homeowners have had their initial energy rating, and AHFC has set aside enough funds to cover any rebates for which they may qualify. As the 18-month deadlines pass for each homeowner, any unused funds will roll back into the program, and AHFC will again dispatch raters to additional homeowners currently on the waitlist.
Sherrie Simmonds
Corporate Communications Officer, AHFC
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As such, I gave up on the program and have been sealing myself. If I get up enough money, I still may pay the professional. The state's program was simply PR and BS.
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Other side of the coin, we've waited so long we're probably going to the bank to do the much needed upgrades as we can't afford wait any longer. So people don't cash in? Maybe the system process is the fail point, not the applicants. People simply won't wait for the benefits and go find another way.
As for us, we don't have the money. So we could go barrow the money, save on our energy costs, and well pay interest on the upgrades. Still for the short-term this saves us nothing!
Merry Christmas!
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We've updated the story to make an early reference to the 200 people more clear - unfortunately, it wasn't explained well early on. At the time the article was published, about 200 people had done pre-audits and hit the end of their 18-month window to make improvements, have a post-audit done, and apply for a rebate. Of those 200, about 152 people followed through.
As of Dec. 31, 2009, about 19,932 people were participating in the home energy efficiency rebate program. Those people have had pre-ratings done and have applied for a rebate for the audit only from Alaska Housing Finance Corp.
As of Dec. 18, Simmonds said 2,857 people have completed the whole process - made improvements, had a post-audit, and sent in for a rebate.
That still leaves around 17,000 people who started the program with a pre-audit, but haven't finished up and applied for a rebate on improvements. And, we don't know where in the process those people are - they may have figured improvements wouldn't net enough of an efficiency increase to result in a state rebate, they may be making upgrades right now.
And of course, those 18-month windows continue to close in.