“Cash for Caulkers” is nearly here. Last month the House of Representatives passed H.R. 5019 – also known as the Home Star Energy Retrofit Act of 2010 or “Cash for Caulkers” – to kick-start construction, create jobs and cut back carbon emissions. While the bill still needs to clear the Senate, supporters predict it will pass this summer.

This is great news for homeowners and contractors alike. The bill provisions $6 billion for energy-efficient or “green” retrofits. It is expected to fund renovations for 3 million families, create 168,000 new jobs and save consumers $9.2 billion on energy bills over the next 10 years.

But in order to cash in on upcoming rebates, homeowners and contractors will need to do their homework. There are 13 types of retrofits eligible for funding. Each retrofit has unique eligibility requirements and set rebate amounts. You can read the full text here.

We made it really easy to wade through the legalese. Below is a table that breaks down the 13 retrofits of the bill, along with the requirements and rebate amount for each. In addition to the requirements we listed, each retrofit must comply with Building Performance Institute (BPI) standards or other procedures to be approved by the Secretary of Energy.

We also decided to combine these retrofits into three packages that will help homeowners get the best bang for their buck. But first, let’s review the program details.

Who is Eligible and How to Qualify?
The Home Star bill offers two rebate programs, the “Silver Star” program and “Gold Star” program. Here are details for each:

• Silver Star – Unless another amount is specified in the “Rebate Amount” column above, homeowners will receive a $1,000 rebate for each retrofit listed in our table. The maximum amount of rebates paid out will be $3,000 or 50% of the total cost, whichever is lower. For example, if a homeowner spends a total of $4,000 on eligible retrofits, they will get $2,000 or 50% back as a rebate. If they spend $8,000 on eligible retrofits, they would only receive $3,000 in rebates instead of $4,000 (which would be 50% of the cost).
• Gold Star – To qualify for the Gold Star program, homeowners must reduce their total home energy consumption by 20%. A $3,000 rebate will be rewarded for this reduction. Homeowners can receive an additional $1,000 for each additional 5% reduction, up to a total rebate of $8,000 or 50% of the total retrofit cost. Rebates may be provided for any of the retrofits listed under the Silver Star program, or for any other energy-saving measure, including: home energy management systems, high-efficiency appliances, highly reflective roofing, awnings, canopies, and similar external fenestration (window) attachments, automatic boiler water temperature controllers, energy-efficient wood products, insulated vinyl siding, and mechanical air circulation and heat exchangers in a passive-solar home.

The Home Star bill also includes rebates for do-it-yourself (DIY) homeowners that are confident in taking on the renovations themselves. DIY’ers can get up to $250 in rebates for products purchased without installation service. This rebate is limited to attic insulation, crawl space insulation and/or air-sealing retrofits.

Seal Your House Envelope and Improve Insulation
Before carrying out any serious retrofit, homeowners need to weatherize and seal their house “envelope.” The envelope includes outer walls, windows, doors, floors and the ceiling. If the house is not properly sealed and insulated, then subsequent HVAC retrofits won’t be as effective.

Common Air Leaks

In some cases, savvy do-it-yourselfers may be able to handle these projects themselves. There are plenty of books and great online resources (e.g. ACEEE.org) that provide instructions. However, you should seriously consider hiring an auditor beforehand. Special diagnostics equipment will show where air is escaping and to what extent. For example, thermal imaging devices detect areas in walls that are poorly insulated and dispersing heat. This information would be unavailable without such devices.

So how much does it cost to seal all the air leaks in a home? Prices will obviously vary based on where you live, how big your property is and the scope of the retrofit. But it will likely cost a few thousand dollars to hire a contractor for this type of renovation. In this example from the New York Times, the author spent $3,760 for insulating and sealing the envelope of his 1,200 square foot home.

How much can homeowners expect to save? The Environmental Protection Agency (EPA) estimates that homeowners can save 20% on heating and cooling costs by sealing leaks and adding insulation. In New York – one of the most expensive places to heat a home with an average annual cost of $1,513 – this would be a yearly savings of $300 just for heating.

Continuing with the example from the New York Times, the Silver Star program would provide $1,880 (50%) in rebates for their retrofit. At an annual savings rate of $300, the renovation would pay for itself in six years (or less if you include cost savings from reduced air conditioning bills).

Repair and Replace Leaky Ducts
Ducts are notoriously leaky and inefficient. They are one of the usual suspects in a crime of high utility bills, or when rooms are difficult to heat and cool. The EPA calculates that 20% of air moving through ductwork is lost due to leaks, holes and poor connections. Other sources put estimates closer to 40%. So while suffering from “leaky ducts” may sound innocuous, it can have a big impact on the efficiency and costs of heating and cooling your home.

Fortunately, duct replacement and sealing is eligible for funding under the Home Star bill. Many homeowners will want to outsource this project to a qualified HVAC contractor. Contractors have equipment to detect leaks that otherwise may not be immediately visible. They also have methods to seal ducts that are inaccessible. For example, by spraying an adhesive or sealant through the duct work.

Replacing and sealing ducts can also be a DIY project, especially when ducts can be easily accessed in an attic or basement. Leaks should be sealed with mastic sealant or metal tape (not duct tape), then insulated to reduce heat loss and to further improve efficiency. The Lawrence Berkeley National Laboratory has an excellent guide on how to seal and insulate ducts.

Upgrade Your Furnace and Water Heater
Heating is the largest energy expense in homes, according to the American Council for an Energy-Efficient Economy (ACEEE). In colder parts of the country, it makes up 30 to 50% of annual energy bills. So improving the heating efficiency of your home will have the biggest impact on lowering your energy costs. Sealing air leaks is a good start, but replacing your heating system could provide real leverage towards cost savings.

If your furnace or boiler was purchased before 1990, then it is time to consider an upgrade. Modern furnaces are much more efficient than those that are older than 20 years. You can use rebates from the Home Star bill to replace your furnace, but you will need to meet their guidelines:

Water heaters are typically the second largest energy users after home heating and cooling systems. Replacing convention oil-fired water heaters with high-efficiency gas or electric heaters can save homeowners thousands of dollars over a 10 to 15 year period. The Home Star bill includes a variety of replacement options eligible for rebates.

Ground Source Heat Pump

An alternative to furnaces and boilers are ground source heat pumps (GSHPs). Also known as geothermal heat pumps, GSHPs are one of the most efficient systems for heating and cooling buildings. According to the International Ground Source Heat Pump Association, GSHPs are 50 to 70% more efficient than other heating systems, and 20 to 40% more efficient than traditional air conditioners. They can also be used as an alternative water-heating system and save up to 50% on water-heating bills.

Ground source heat pumps are more economical than using oil or air-source heat pumps, but there is still a lot of debate over GSHPs versus natural gas. Homeowners will need carry out their own due diligence beforehand. For starters, here is an academic report that compares the two options.

Year over year, a ground source heat pump is more cost effective than natural gas. It’s the initial cost that really drives down the return on investment (ROI) and makes natural gas a more attractive option. However, there are several rebates and tax credits available that help subsidize the upfront cost.

Additional Financing Resources
With other legislation in the queue, it might take weeks or months to hear the Senate’s final decision on the Home Star bill. In the meantime, homeowners can receive funding from other sources to pay for green renovations. The federal government, state governments, local municipalities and even utility companies offer several options.

For example, homeowners can still receive a federal tax credit for 30% of the cost of energy-efficient products (up to a total credit of $1,500). This includes the purchase of central air conditioning systems (both the product and installation), electric heat pumps, furnaces and boilers, and whole-house ventilation fans. Visit the US Department of Energy Energy Savers website for more information.

Another great resource is the Database of State Incentives for Renewables and Efficiency or “DSIRE” website. This allows you to view rebates, loan and grant programs, financing options and tax credits offered in your region.

Finally, new home buyers should consider an energy-efficient mortgage or energy improvement mortgage. These mortgages allow consumers to count savings from energy bills as additional income, ultimately giving them more buying power. Home Energy Magazine has a helpful article here.

This article was originally published by Software Advice at: Cash for Caulkers – The Definitive Guide To The Home Star Energy Retrofit Act of 2010

Need more evidence that a home energy audit and other energy conserving plans are rapidly gaining popularity around the world? One of the most famous styles of homes from one of the most popular television shows in the United Kingdom is going to get a home energy audit as well, according to The Guardian.

Some energy-efficiency scientists are set to play with homes exactly the same type as the ones showed on the set of Coronation Street, which is the longest running soap opera around. As a matter of fact, these specific ones are in the opening credits of the show.

The good news is that this set of homes, built prior to World War I, was actually set to be demolished before the scientists stepped in. Instead, it will be transplanted to a lab, disassembled and then will be rebuilt under specific conditions in the lab.

All sorts of tests will be run on the house as the scientists make changes to the gas, water and electricity piping. Even some psychologists will be present to test whether certain designs, carpets or furniture make people feel warm – or perceive to be warmer – in comparison to styles.

The modern-day fad is energy-efficient homes but this project is taking an old home and gauging where it can be improved to conserve on energy. While some buyers do prefer building their own new homes, a lot of people simply can’t afford it and others prefer the quaint architecture and style of the past, which simply can’t be duplicated.

Either way, it gives a good idea of just how valuable a home energy audit can be. There are many benefits and it really shows that you don’t need to build a brand new home from scratch to start saving money on energy consumption.

The federal government is reviewing a plan that would provide cash incentives to homeowners who complete home weatherization projects. According the initial document, the government is prepared to set aside $23 billion dollars for the program, which would encourage homeowners to undertake such projects as air sealing, insulation, and installing energy-saving appliances.

The proposed name for the program is Home Star, to jive with the established ENERGY STAR program, which promotes energy efficiency. However, the media has humorously dubbed the program “Cash for Caulkers”, which is similar to the government’s now-expired “Cash for Clunkers” program, which incented people to trade in their old cars (i.e. clunkers) in favor of purchasing a new car.

Multiple Benefits

The “Caulkers” program is an extension of the government’s earlier Recovery Through Retrofit report, which laid the groundwork for a self-sustaining home energy retrofit industry. The intention of that report, as well as the “Cash for Caulkers” program, is to stimulate job creation, to decrease our impact on the environment, and to provide monthly savings to homeowners through reduced energy costs.

Good News for Homeowners, Auditors, Contractors and Manufacturers

The program is good news for homeowners, who can earn up to $4000 in rebates while increasing their home’s energy efficiency (which will save them even more money on their energy bills each month). And the $23 billion injection into the weatherization industry is good news for energy efficiency retrofit contractors, manufacturers and home energy auditors.

Create More Than 500,000 Jobs

Efficiency First, a trade organization for the energy efficiency industry estimates that the program would create more than 500,000 new jobs. As it stands now, over half of the $23 billion of the program’s budget would provide rebates for retrofit projects according to the percentage of improvement in the home’s energy efficiency. An additional $2 billion would be spent directly on home energy audits, to ensure the proposed work met the intended results. However, the amount spent on home energy audits may be significantly larger, as some audits may be funded by energy efficient mortgage lenders, and other audits would be funded by homeowners, in order to assess the best areas for improvements.

Prime Employment Opportunity

The financial boost to the energy efficiency industry creates a prime opportunity for people wanting to enter the industry. Home inspectors and remodelers should consider adding home energy audits to their roster of services in order to cash in on this growing industry. Those currently unemployed due to the economic crisis might consider starting a new career as a home energy auditor. With no pre-requisite training or knowledge required, relatively little expense and a short training cycle, you could start a rewarding new career in a growing industry that helps people as well as the environment.

Complete Training and Certification Program

Home Energy Team Institute offers a complete training program for home energy auditors. Browse the website for more information about home energy auditing and the courses offered. You can sign up online, or call 1-800-518-1877 for more information.

In October, 2009, the Federal Government released a report entitled, Recovery Through Retrofit, where it set the ground work to kick-start a self-sustaining energy efficiency retrofit industry across the United States. The report was a collaboration between various government departments, including the Department of Energy, Department of Housing and Urban Development, Environmental Protection Agency, Department of Labor, the Office of the Vice President and the Executive Office of the President.

The Recovery Through Retrofit report seeks to benefit the country in several ways; by creating jobs in the energy efficiency retrofit industry, by helping homeowners to save money on their energy bills, and by reducing our nation’s impact on the environment.

The plan intends to tap into the $80 billion in the Recovery Act allocated to projects related to the environment and reductions in energy consumption.

The recommendations in the Recovery Through Retrofit plan intend to remove barriers that have prevented the energy retrofit industry from developing. The plan will:

1. Improve the information available to homeowners so they can make more informed decisions about energy retrofit. This will include developing a national standard for measuring home energy efficiency, and developing a benchmark such as ENERGY STAR certification for existing homes that meet certain standards of energy efficiency.
2. Improve homeowners’ access to financing for energy efficient retrofits by improving access to low interest loans and energy efficient mortgages.
3. Establish national training and certification standards for energy efficiency and retrofit workers, to improve consumer confidence in the industry and provide standardization.
4. Help energy audit and retrofit businesses by providing access to technical training as well as business training, in order to help businesses thrive even after stimulus money has been exhausted.

For more information about the Recovery Through Retrofit plan, read the document here: http://www.whitehouse.gov/assets/documents/Recovery_Through_Retrofit_Final_Report.pdf

The government’s firm commitment to establishing a self-sustained energy efficiency industry is good news for anyone in the energy assessment and retrofit industry, and anyone entering it now. The plan will create hundreds of thousands of jobs for Americans, helping the economic recovery for our country.

In the current economic downturn, many Americans are looking to start a new career or a new business.

Even if you don’t have any experience with energy assessments or retrofits, you can get into the industry as a home energy auditor quickly by completing your classroom training and passing the required certification exams. You can get certified in a matter of a couple of months, and be on your way to a new career.

The Home Energy Team Institute offers complete training and certification by both RESNET and BPI, the two organizations that set the standards for energy efficiency in the US. You will receive classroom instruction to learn the theory behind energy efficiency and how to conduct a home energy audit, as well as practical training for using diagnostic equipment such as the blower door, duct blaster and infrared camera.

Visit www.HomeEnergyTeamInstitute.com for more information, or call 1-800-518-1877.