U.S. President Barack Obama yesterday laid out the details of his new HOMESTAR program, nicknamed "Cash for Caulkers," which would provide on-the-spot government rebates to homeowners who make their homes more energy-efficient by installing new windows, doors, insulation and other materials from an approved list.
Obama, who previewed the program during his first State of the Union address in January, urged Congress to adopt the program, saying it would revitalize the U.S. construction industry, help small businesses, and support U.S. manufacturing as well as reducing energy consumption, lessening our dependence on fossil fuels and lowering utility bills for many Americans.
"So these are companies ready to take on new customers . . . workers eager to do new installations and renovations; factories ready to produce new building supplies. All we've got to do is create the incentives to make it happen," Obama said during his remarks at Savannah Technical College in Georgia, where he also noted that the construction industry is currently struggling with unemployment of nearly 25 percent.
"Here's how it would work," Obama said. "We'd identify the kinds of building supplies and systems that would save folks energy over time. And here's one of the best things about energy efficiency . . . a lot of these materials are made right here in America.
"If a homeowner decides to do work on his or her house -- to put in new windows, to replace a heating unit, to insulate an attic, to redo a roof -- the homeowner would be eligible for a rebate from the store or the contractor for 50 percent of the cost of each upgrade up to $1,500," he said. "Now, if you decided to retrofit your whole house to greatly reduce your energy use, you'd be eligible for a rebate of up to $3,000.
"Now, these are big incentives," Obama continued. "And you'd get these rebates instantly from the hardware store or the contractor. So if you went to Lowe's or Home Depot or wherever you went, right there when you paid at the cash register you'd get that money. You wouldn't have to mail in a long form, wait for a check to arrive months later."
The new program would resemble both the "Energy Star" program that promotes the purchase of energy-efficient appliances and last year's "Cash for Clunkers" program, which was designed to boost auto sales and increase fuel efficiency on U.S. roads by providing an economic incentive for consumers to replace old, low-mileage vehicles with new, fuel-efficient models. The program is expected to cost about $6 billion, which would provide economic incentives, in the form of instant cash rebates, for as many as 3 million homeowners to do energy-saving renovations.
But don't rush down to Home Depot just yet. The proposal is still working its way through Congress, which must authorize funding before the program can be set up and any money can change hands.
Comments
This is a fantastic program and I can’t wait to put it to use. Changing out lights to compact fluorescents is a great start, but I had trouble getting the right ones for me. This article has some helpful info on how to get CFLs that look great too. http://thegreenertruth.com/2010/03/the-problem-with-light-bulbs-a-compact-fluorescent-solution/
One thing of note that I haven’t seen covered very much in the media is that there is a quality assurance program and training, certification and accreditation requirements for contractors in the Home Star proposal.
The highest incentive levels require the work to be done by folks who have gone through Building Performance Institute (www.bpi.org) certifications. The idea is to protect homeowners and the investment of taxpayer dollars by making sure quality work is being done.
I should admit that 1) BPI is one of my clients and 2) I’ve had the whole-home retrofit done on my own house, so I’m a big supporter.
I have been vigorously opposed to the stimulus. But my opposition is based on the absence of programs like this. I hate to have government spend, but this would put people to work, reduce energy bill (leaving people more cash in their pockets) and reduce dependence on foreign oil (a national security issue). As well, aditional oil on the market means reduced energy prices for the rest of us (again more money in the consumer’s pocket). I wish the went one step further and gave significant rebates to switch residences and businesses over to solar power.
I’m surprised that renters have not screamed in outrage.
IT’s about time. I insulated my basement with a high efficient energy saving green product called P2000 Insulation 2 years ago. No rebates were available then but my oil useage went from 1600 gals per year to 700!! And its made in the USA. This is a product worth it and I hope they pass this so others will wake up, save money and the planet =)
In March of this year I replaced my HVAC with a 16 SEER system. These should be savings on the electric bill; any money from my fellow tax payers would be great.