There’s a pot of money to make homes efficient

ANCHORAGE — The Alaska Housing Finance Corporation has allocated $73 million for private homeowners through the Home Energy Rebate Program and there is plenty more to go around.

The program gives rebates of up to $10,000 for work done to improve the energy star rating of owner-occupied homes. All homeowners are eligible for the program, unlike the $200 million Weatherization Assistance Program targeted at lower-income homes.

To start the process, homeowners schedule a certified energy surveyor to rate their home through the AHFC. This “As-Is” energy rating is sent to the AHFC, and the homeowner is reimbursed for the rating. The rating becomes the basis for an improvement options report. The report details what the homeowner can do to improve the efficiency of the home and the estimated cost and energy rating increase from each project.

Owners then chose what projects from the list they wish to complete, pay the upfront costs and get another energy rating after completion. The second report is submitted along with the receipts for the work done.

To qualify for a rebate, the rating must improve by at least one step. The rebate is determined by the improvement of the second energy rating over the first on a scale from one to five steps. A one-step improvement is worth a rebate of up to $4,000, and the maximum five-step improvement is worth up to $10,000.

The AHFC will only refund the actual expenses from the projects on the improvement options report. If a homeowner spends $2,000 and improves the rating by one step, he or she will only receive a rebate for $2,000. Additionally, the AHFC will not refund more than the maximum rebate amount for a given improvement. If a new heating system costs $10,000 and improves the energy rating by three steps, the owner will only get the $7,000 maximum rebate for a three-step improvement.

“The rebate is an incentive program,” said Cary Bolling, energy specialist for AHFC. “The average rebate is running at about $6,000, and people are putting out about $10,000 on average. However, the average savings on energy costs is about $1,350 per year per home, so it quickly makes up the difference.”

The average savings are based on data collected from a sample of 200 homes. All told, the 200 homes have already saved about 17 billion BTUs, according to Bolling. Expanded out for yearly averages, each home heated by electricity will save an estimated 700 kilowatts per year. Homes heated by gas or oil will save 780 cubic feet of natural gas, 440 gallons of No. 1 oil or 660 gallons of No. 2 oil annually. With this, the carbon dioxide emission from each home will be reduced by 12,000 pounds per year.

“These are happy numbers,” said Bolling, “but they are very initial and will probably change as we get more houses in the sample.”

Currently, Bolling estimates about 10,000 people have had the first rating completed. Of these, 7,719 have completed improvements or shown intent to participate in the program. The $73 million in play has gone out as rebates or is there for the people who have shown interest. Homeowners have 18 months after turning in the first rating to complete the renovations, or the money reserved for them is released back into the general fund.

The Legislature approved funding totaling $160 million, and this program that began in June of 2008 will continue until the funds run out.

For more information on how to apply, go to www.akrebate.com or call 1-877-AKREBATE.