The Sprouting of More Green for Homeowners
by Michelle on April 14th, 2009
For most of us, weatherization is something we only think about as winter approaches and we head off to our local hardware store to buy caulk, weather-stripping and plastic for our windows. But this Earth Day, there are more reasons than ever to consider weatherizing your home this spring.
With funding for energy efficient improvements a key component to the President’s stimulus plan and a growing pot of funding from local utilities to incent homeowners to reduce energy usage, now couldn’t be a better time to save money on your utility bills and to reduce your carbon footprint.
The Department of Energy is set to soon award billions of dollars to state government agencies and local jurisdictions for energy projects – in my home state, Illinois, the State will receive over $100 million and the City of Chicago will receive tens of millions more. Moreover, our local utilities, ComEd and Peoples Gas, will spend more than $100 million collectively on energy conservation programs, including a significant boost in spend for homeowners’ efforts. In addition, Federal Energy Tax Credits are available for many types of energy saving upgrades.
The combined benefits can be huge. For example, in Chicago, if a homeowner decided to insulate their attic and seal around their window, doors, and vents, and switch to a high efficiency furnace, the combined costs likely would amount to $5,000 for a typical homeowner. The owner, however, would be eligible for $1,100 in rebates from the local gas utility and another $1,000 in federal tax credits. So, the net cost would be only $2,900 (even before receiving other rebates, likely from the stimulus funding); but the potential savings would be upwards of $400-500 annually on their utility bills.
If the homeowner was a participant in our Homeowners Energy Conservation Loan Program, we’d throw-in another $500 voucher towards a new ENERGY STAR rated refrigerator. In total, the rebates, tax credits and voucher would equal 50% or half of the cost of all the measures – while the homeowner gets to keep all of the savings and take satisfaction from knowing the environment is better-off and neighbors have been employed for a worthy cause.
Tags: community development, Energy Tax Credits, green banking, home affordability and stability plan, home ownership, ShoreBank, triple bottom line
