(Source: Erie Times-News)
By Lisa Thompson, Erie Times-News, Pa.
Dec. 29–If your New Year’s resolutions include replacing those drafty windows or that money-burning boiler in the basement, you might want to keep an eye on one of President Barack Obama’s latest proposals to stimulate the economy.
Nicknamed Cash for Caulkers, the program under consideration could offer homeowners a 50% rebate for the purchase and installation of energy-saving appliances or improvements in their home.
The cap for reimbursement could be as high as $12,000 per homeowner, which means a homeowner could make up to $24,000 worth of improvements at half the cost
Locally, heating and cooling contractors say they already have seen an uptick in business thanks to the $1,500 tax credit offered to homeowners who purchase energy-efficient products or systems for their homes in 2009 and 2010.
If Cash for Caulkers is approved, "it could be huge," said Marty Simonsen, of Simonsen Heating & Cooling of Erie.
Obama first mentioned the program, which is officially called Homestar, in a speech Dec. 8, saying it was meant to help homeowners cut energy costs, stimulate business for contractors and manufacturers, and reduce pollution.
His administration is now working with Congress to draft the legislation. The program as proposed is expected to cost $10 billion in its first year. It would be funded through the Troubled Asset Relief Program, or T.A.R.P..
Many details remain to be worked out, including how the rebates will be paid and who will administer the program and how to protect it from fraud.
In one scenario being contemplated, an authorized contractor would perform an energy audit on a home and make recommendations about which changes would reduce a home’s energy bill. The contractor would then purchase and install the equipment, according to cashforcaulkersinfo.org,
Items eligible for rebates could range from appliances, such as refrigerators or washing machines, to new heating or cooling systems, according to the Web site.
Simply replacing an old furnace with a new energy efficient one can reduce heating costs by 20 percent, said Sandy James, a spokeswoman for Nation Fuel Gas Distribution Corp.
Wendy Meeker of Wm. T. Spaeder Co., an Erie heating and cooling contractor, said it appears the proposal has a long way to go before it becomes reality.
"I am hopeful that amount is available for homeowners. It would be amazing if people had that kind of money to invest in their homes," she said.
Homeowners, contractors and manufacturers would all stand to gain, she said.
Marsha Marsh of Marsha Marsh Real Estate said increasing energy efficiency of a home improves the quality of life for the homeowner.
The rebate program, she said, likely won’t boost the real estate market.
Homeowners typically do not see a return on costly improvements, such as a new windows, when they sell their homes, she said.
"The bank does not care if it is a 95 percent efficient or 60 percent efficient furnace," she said.
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