President Obama Proposes Home Star Rebate Program

President Obama has proposed a Home Star retrofit program. The Home Star proposal designed to create jobs by providing short-term incentives for residential energy efficiency improvements. The program will drive new private investment into the hard hit construction and manufacturing sectors, while saving consumers money on their energy bills. By building on state programs and existing industry capacity for the retrofits themselves as well as quality assurance, the program will be fast-acting, in addition to increasing consumer awareness of residential energy efficiency.

The bill provides $6 billion dollars of incentives to the American people, coupled with private investment, to generate an estimated three million home retrofits and tens of thousands of jobs, and to strengthen American industry.

The provisions of the proposal are:

Rebate Programs

$1000-1500 Silver Star rebates. Consumers can receive between $1000 and $1500 for each retrofit, with a benefit not exceeding $3,000 or at least 50% of total project costs (whichever is less). Eligible measures include insulation, duct sealing, water heaters, HVAC units, windows, and doors. Rebates will be targeted to the most energy efficient categories of upgrades, focusing on products primarily made in the United States. All retrofits must be installed by a certified contractor.
$3000 Gold Star rebates. Consumers interested in whole home retrofits would be eligible for up to $3000 for a comprehensive energy audit and retrofits tailored to achieve a 20% energy savings in the home. Consumers can receive additional incentives for energy savings higher than 20%. The Gold Star rebate program would build on existing whole home retrofit programs, such as EPA's Home Performance with Energy Star program and DOE's building programs.
Direct Rebates. For eligible measures, consumers are eligible for direct rebates at the point of sale. Small independent building material dealers, large national home improvement chains, merchants across the country, energy efficiency installation professionals and utility energy efficiency programs (including rural utilities) can provide the rebates directly to the consumers and be reimbursed by the federal government.

Quality Assurance and Support

Contractor certification. Contractors are required to be certified to install the retrofits.
Independent quality assurance providers: are responsible for field audits after job completion in order to ensure proper installation and measurable energy savings for consumers. States oversee the quality assurance implementation.
Financing support. Funding is included in the proposal to support State and local financing programs.

The Home Star proposal has garnered widespread support from over 500 supporters in all 50 states from the construction, manufacturing, retail sales, environmental, labor, and energy efficiency communities, and is expected to save program participants $200-500 per year in energy costs.

The U.S. Senate Committee on Energy and Natural Resources has posted a bill to create the Home Star rebate program. The draft - which names RESNET with respect to energy audits, quality assurance and software - proposes $6 billion in incentives for residential energy efficiency improvements. Certified energy raters and auditors will be used to conduct field audits after job completion to ensure proper installation and measurable energy savings. To qualify for incentives, all retrofits must be installed by certified contractors. The bill is intended to generate retrofits in 3 million homes, which creates tremendous opportunity for the entire energy efficiency industry and for RESNET member raters, auditors and providers in particular. To view the proposed legislative language click here.

Legislation is being drafted in House to authorize Home Star. The draft House legislation is based on based on REEP legislation, H.R. 1778 introduced by Congressman Peter Welch of Vermont. To view the House proposed legislation click here.

What You Can Do to Support Home Star

Home Star must be enacted by Congress. There are two organizations, Efficiency First and the Home Star Coalition that is working to develop industry and grassroots support for the proposed program. For more information on what you can do visit the Homes Star Coalition's website and Efficiency First.