Digital Verdure

“Cash for Caulkers” is a federal program, currently making its way through Congress, that will provide homeowners with incentives for investing in energy efficiency.

Like “Cash for Clunkers”, its auto industry cousin, the program aims to stimulate consumer spending on energy efficient products with point-of-purchase rebates.

“Cash for Caulkers” will offer rebates on a lot more than just caulk, though. Dozens of products and services, from new light bulbs to professionally installed insulation, will be eligible for rebates through HOME STAR, the program’s official name.

Individual homeowners could receive more than $10,000 in rebates to cover up to half the cost of projects. All told, as much as $23 billion over two years could become available.

How will “Cash for Caulkers” a/k/a HOME STAR work?

According to the latest dispatch from advocates, homeowners will have two options when taking advantage of HOME STAR incentives.

Silver Star Option

Offers homeowners up to $1,000 rebate for each of the following qualified projects, capped at $4,000 for any 5 projects, so long as the Federal incentive does not exceed 50% of the homeowner’s contribution.

GOLD STAR OPTION 

Offers homeowners a $4,000 rebate on certified contractor services that reduce energy use by 20%, plus $1,500 for each incremental 5% reduction. There is no cap, but the Federal incentive cannot exceed 50% of the homeowner’s contribution.

Services must be scoped and performed by a certified contractor and the reduction must be verified by an independent auditor.

Typical Engagement

1. Energy Assessment

2. Retrofit
   
    Fundamentals
    -Weatherization
    -Insulation
   
    Major Systems
    -Heating/Cooling
    -Water Heating

The typical GOLD STAR engagement will kick off with a comprehensive home energy assessment, setting an energy usage baseline, and then moving into “low-hanging fruit” or the less expensive projects that deliver immediate results, like weatherization and insulation. Homeowners may choose to progress onto major systems, like replacing HVAC and water heating equipment, depending on their budget and reduction goals.

The GOLD STAR option offers a lot more flexibility to homeowners and contractors by taking a whole house approach. Homeowners will work with certified contractors to develop a customized energy assessment and a set of projects that makes sense for their budget and reduction goals.

The whole house approach has been proven to deliver targeted reductions in smaller-scale programs across the nation with Home Performance with EnergyStar.  A new Home Performance industry is forming to stimulate and meet demand from HOME STAR and follow-on programs.

When will HOME STAR incentives become available?

HOME STAR is not yet available to homeowners – the details are still being hashed out on Capitol Hill – but policy analysts expect the program to kick off in March.

President Obama is leading the charge to pass HOME STAR into law. Here is at a Home Depot last month, letting us know why he thinks insulation is “sexy”.