Overview of Home Overview of Home Performance with Energy Performance with Energy

STAR (HPwES)STAR (HPwES)

Leif MagnusonLeif MagnusonU.S. EPA Region IXU.S. EPA Region IX

Nevada Home Energy Retrofit ForumNevada Home Energy Retrofit ForumMay 3, 2010May 3, 2010

OutlineOutline

• Why do a Home Energy Retrofit?• What is a Home Energy Retrofit?• What is Home Performance with

Energy STAR and How Does it Work?

Why Home Retrofits? Cost per Ton of Carbon Abatement

–“The Firepower of the Lowly Caulk Gun” Wall Street Journal

–http://online.wsj.com/article/SB123629700922046051.html

–Data from McKinsey: Pathways to a Low carbon Economy https://solutions.mckinsey.com/ClimateDesk/default.aspx

–Data from McKinsey: Pathways to a Low carbon Economy https://solutions.mckinsey.com/ClimateDesk/default.aspx

View to the south of Yucca Mountain crest showing coring activities

Picture of a tour group entering the North Portal of Yucca Mountain

Help homeowners Help homeowners maintain their most maintain their most

valuable assetvaluable asset

• Comfort• Durability• Indoor Air Quality• Resale potential• Hedge against future

energy cost increases

–Warm Air Leaks Out

–Cold Air Leaks In

What is a Whole House Energy Retrofit?

What is Home Performance What is Home Performance with ENERGY STAR (HPwES) with ENERGY STAR (HPwES)

and How Does it Work?and How Does it Work?

• Whole-house energy assessment• A network of qualified contractors to

improve home performance• Independent review of contractors work

• Whole-house energy inspection- Energy specialist trained in building science

• Diagnose why performance is poor- Completed before work

• Summary report- Findings- Recommendations- Estimated costs and

savings

Comprehensive Energy AuditComprehensive Energy Audit

Present Results and ProposalPresent Results and Proposal–These

improvements will reduce your annual

energy costs by 20%.

–Hmmm? I can be more

comfortable and save money.

Install ImprovementsInstall Improvements

Post-work Performance TestsPost-work Performance Tests

• Test if ventilation meets standards• Test that gas and oil burning

appliances vent properly• Test how much performance has

improved

Protects the consumer and contractor

HPwES Summary CertificateHPwES Summary CertificateDocuments the improvementsDocuments the improvements

On the Web at http://www.energystar.gov/ia/home_improvement/HPwES_Sponsor_Guide.pdf

HPwES Program Sponsors HPwES Program Sponsors • Program sponsors monitor the quality of work

performed by all participating contractors under a quality assurance plan. This plan will explain:

• Reporting process• Job report review process• Customer feedback mechanism• On-site inspection protocols• Conflict resolution mechanism• Record keeping and tracking

Locally Sponsored ProgramsLocally Sponsored Programs

Starting a ProgramStarting a Program

• Program sponsor– Public utility, state or local government– Organization designated by state to administer EE

• Long-term planning and funding• A network of specially-trained contractors • Incentives and financing• Marketing plan to raise consumer awareness

Program ComponentsProgram Components

–Supply

–QA/QC

–Demand

Program ComponentsProgram Components

Supply– Identify, recruit, train, certify, mentor

participants– Create training standards / define

qualifications for program participation– Enable companies to differentiate

themselves in the marketplace– Give them tools and

resources to be profitable

Program ComponentsProgram Components

Demand– Educate homeowners – about energy usage, the

program, and the process– Identify and overcome barriers to purchase

• Cost of initial audit• Lower total costs via rebates• Enable homeowners to

finance cost-effective solutions

–deliver on –the promise

Program ComponentsProgram Components

Quality– Essential to program success– Provide tools and training to do good work

• Software• Forms, processes that work for the participants

– Trust but verify• 100% file checks• Minimum 5% field checks• Higher field checks for certain participants/program

elements

23 eere.energy.gov

Overview of HPwES Programs

Home Performance with Energy Star (HPwES) programs have been established across the U.S. using various methods of program delivery.

Three Example HPwES Programs

NYSERDAState-chartered NGO in NY, established 2001

Budget: $5 million (2006)Jobs completed: 4,105 (2008)Total Savings: 3,366 MWh, 112,300 MMBtu (2006)

Energy Trust of Oregon

State-chartered NGO in OR, established 2006

Budget: $22.5 million (entire program 2009)1

Jobs completed: 1,040 (2008)Total Savings: 410 MWh, 8200 MMBtu (2008)

Austin EnergyMunicipal Utility in Austin, TX, established 2004

Budget: $1.65 million (2008)Jobs completed: 2,654 (2008)Total Savings: 5,241 MWh (2008)

1 Oregon budget is entire Home Energy Solutions Program for existing homes. http://www.energytrust.org/library/financials/2009_Budget.pdf

24 eere.energy.gov

NYSERDA » Program Delivery

• Homeowner directly contacts contractor

• NYSERDA provides a user-friendly, clickable map of New York on the website, where customers can find a list of participating contractors, contact information and websites

• Performed by participating contractor

• Includes blower door test and combustion safety analysis

• Cost – market price• Software – TREAT

output is submitted to NYSERDA

• All improvements are performed by participating contractor

• Contractor performs test out with diagnostic equipment to verify energy savings and reports to NYSERDA

• Reported to program implementer which serve as account managers & technical support

• Performed by program implementer referred to as Quality Assurance Declaration of Completion

• 600 performed in 2008, 15% of total jobs

NYSERDA is the largest and longest running HPwES Program, and the Energy $mart program was established first in 1998. A commitment to market transformation and statewide infrastructure and incentives building has driven program growth.

Job Initiation Audit Improvements Quality Assurance

NYSERDA’s mission is to transform the contractor infrastructure in NY by facilitating training and certification. NYSERDA has created a state-wide suite of efficiency programs including HPwES, ENERGY STAR new homes, assisted HPwES, & renewable energy to

drive consumer action.

25 eere.energy.gov

NYSERDA » Program Elements

Incentives• Homeowners:

• ENERGY STAR Financing: unsecured loan up to $20,000 (terms of 3, 5, 7 or 10 years); available to owner-occupied 1- or 2-family homes. (NYSERDA buys down the interest rate of the loan.)

OR• 10% of the cost of eligible energy efficiency

improvements, up to a maximum incentive of $3,000,

• Contractors: • Reimbursements on training and equipment• Free TREAT software• Early buy-in cash incentive• 5% rebate for reporting audit• 2% bonus up to $400 for referrals to other BPI

contractors• Cash awards ranging from $25 to $130 for every

installed eligible ENERGY STAR product

Marketing• TV, cable, and print advertising• Successful co-op advertising

program• Regional and local specific

marketing• Cross promotion with other

NYSERDA programs, marketing of ENERGY STAR brand

Contractor Training and Requirements

• BPI Building Analyst Certification • BPI Home Performance Contractor

Accreditation • Completion of 24 jobs, or $180,000

in work, each year beginning in second year

• Utilize local community college for training

Available ResourcesAvailable Resources• Online Marketing Toolkit

– Advertising templates– Sales Book Template– Bill Analysis Tool – Business development resources

• Forms• Guidance• Graphics/videos• Logo usage

• Promotional Banner Stands• Promotional Video• Web site Templates• Contractor Business Development

Guide

ENERGY STAR Logo – Brand AwarenessENERGY STAR Logo – Brand Awareness

More than 75% awareness, 80% influence and ~ 80% loyalty among purchasers (likeliness to recommend).

Awareness of ENERGY STAR

0%

10%

20%

30%

40%

50%

60%

70%

80%

2000 2001 2002 2003 2004 2005 2006 2007 2008

Unaided Awareness Aided Awareness

Conclusion - Home Performance with ENERGY STAR

Is more than a marketing campaign. It is a program model for building a network of specially trained contractors that can fulfill the promise of whole-house improvements that reduce energy use by 20% to 30% and solve comfort and indoor air quality issues.

http://www.energystar.govhttp://www.energystar.gov

Leif MagnusonLeif MagnusonU.S. EPA Region IXU.S. EPA Region IX

Nevada Home Energy Retrofit ForumNevada Home Energy Retrofit ForumMay 3, 2010May 3, 2010

ARRA: Activity for Residential ARRA: Activity for Residential RetrofitsRetrofits

January 19, 2010January 19, 20103030

New Retrofit Programs / Pilots

Existing Retrofit Programs / Initiatives

Enabling Activities for Residential Retrofit(financing, rebates, training, revolving loan funds, outreach etc.)

Grants Available for Residential Energy Efficiency

Recent Funding OpportunityRecent Funding Opportunity• Retrofit Ramp-up Program

– $390 million for states, cities, counties and tribes to launch large-scale, “whole-neighborhood” building retrofit programs

– Seeking innovative financial and marketing strategies– Will serve as model programs for other communities

Austin, Texas – $10 millionBoulder County, Colorado – $25 millionCamden, New Jersey – $5 millionChicago Metropolitan Agency for Planning – $25 millionGreater Cincinnati Energy Alliance, Ohio – $17 millionGreensboro, North Carolina – $5 millionIndianapolis, Indiana – $10 millionKansas City, Missouri – $20 millionLos Angeles County, California – $30 millionLowell, Massachusetts – $5 millionState of Maine – $30 millionState of Maryland – $20 millionState of Michigan – $30 million

State of Missouri – $5 millionOmaha, Nebraska – $10 million State of New Hampshire – $10 millionNew York State Research and Development Authority – $40 millionPhiladelphia, Pennsylvania – $25 millionPhoenix, Arizona – $25 millionPortland, Oregon – $20 millionSan Antonio, Texas – $10 millionSeattle, Washington – $20 millionSoutheast Energy Efficiency Alliance – $20 millionToledo-Lucas County Port Authority, Ohio – $15 millionWisconsin Energy Conservation Corporation – $20 million

Current Funding OpportunityCurrent Funding Opportunity

Current Funding Opportunity (cont.)Current Funding Opportunity (cont.)Area of Interest 1 – Strengthening Building Retrofit Markets that will assist states in developing approaches for retrofitting buildings in the nation’s residential and commercial sectors. Area of Interest 2 – Stimulating Energy Efficiency Action that will assist states in generating the necessary policy and program frameworks to support investment in cost-effective energy efficiency for the long-term.

For Area of Interest 1 - DOE is seeking applications for the development of programs and strategies to retrofit residential and/or commercial properties in markets with little or no retrofit activity and/or to increase the market penetration of existing whole-building retrofits.For Area of Interest 2 - DOE is seeking applications from states and groups of states to achieve an annual minimum target electricity savings of 1 percent through energy efficiency

Area of Interest 1: 10 awards anticipated nationwideArea of Interest 2: 8 awards anticipated nationwide

Area of Interest 1: $2 Million - $5 Million per state (no single state will be awarded more than $5 million…Area of Interest 2: $250,000 - $700,000 (no single state will be awarded more than $700,000…