Builders: Get up to a $2,000 Rebate from Xcel with New Program

Yesterday (2/23/09) I was in a training session put on by Xcel Energy in Denver aimed at training Energy Raters (aka HERS Raters) on a new program targeting builders that the company is about to roll out. It appears to be a very good program with some very decent rebates available to builders for building more energy-efficient homes. The key criteria is Energy Star -- in order to qualify for even the first level of rebates, homes must meet the minimum Energy Star for Homes Energy Rating criteria (which means among other things that the home must score a HERS Index of 85 or less.) It should be clarified that homes don't actually have to end up qualified as Energy Star to get the rebate - though most will anyway - they must simply get a Final HERS Index rating of 85 or better.

Here are the rebate amounts at each qualification level:

$350: Energy Star minimum (80 or 85 depending on climate zone) to HERS 76
$500: HERS 75 - 66
$700: HERS 65 - 56
$1,200: HERS 55 - 46
$2,000: HERS 45 or less

That's pretty good, but that's not all! Because qualifying for this rebate requires a an energy rater to be involved, which obviously costs money, Xcel is also contributing to the cost of the rating by directly paying the rater a fee of $460. This way the cost to the builder of getting the energy rating services should be significantly reduced, though it's not likely to be completely eliminated.

Criteria are simple. A home must:
1) Be in the Xcel NATURAL GAS service area in Colorado, and
2) Have undergone, or will undergo, the Thermal Bypass Checklist (TBC) after Jan. 1, 2009. That's right, if you're a builder with a house in pre-drywall condition right now, you could qualify!

To sign up, you first need to contact a participating Xcel-authorized HERS Rater-Consultant who will manage the program and do the energy rating work for builders for each house. A list of authorized Raters should be on Xcel's site soon, or you could just call Inhabit -- we're on the list!

New Solar Hot Water Rebates for Colorado Announced (Updated)

The Colorado Governor's Energy Office (GEO) and the Colorado Solar Energy Industries Association (CoSEIA) just announced that new rebates are being offered for solar hot water systems installed after Feb. 2, 2009 (i.e. ... now.) Interestingly, the statewide program is being jointly administered by the Center for Resource Conservation (CRC), the City of Boulder and Boulder County. Details can be found on the CRC site or by clicking here.

(UPDATE: commenter Jennifer has clarified that the program is adminstered by various organizations all over the state by local cities, counties, non-profits and utilities. Click the following link to find out who administers the program in your area if you live outside of Boulder County:
http://coseia.org/newsite/index.php?id=96 )

Here's the summary:

Tier 1: $1,500 Rebate
Minimum eligibility requirements: 60,000 BTU/day, based on SRCC ratings at clear day/C interval, with nominal 80 gallon minimum solar tank size.

Tier 2: $750 Rebate
Minimum eligibility requirements: 30,000 – 59,999 BTU/day, with a nominal 50 gallon minimum solar tank size.

The bad news? Well... The "Orphan Hot Water System Repair (Orphan Solar)" rebate (which was intended to fund repairs to 1970's and 1980's solar systems get homeowners to re-commission these older systems) won't be offered anymore due to budget cuts.

Who's eligible?

• Colorado Residents
• Solar thermal systems installed after February 2, 2009
• Homeowner-installed systems do not qualify for a rebate through this program (so you DIY-ers need not apply.)
  

As is usual with this sort of thing, before diving in it's wise to read the fine print and make sure what you have in mind meets the rules and regulations. If it does, Inhabit can point you to several competent and enthusiastic solar installers who will be happy to oblige your solar urge.

Another Study Dispels Myths About Green Building Cost Premiums

In December 2008 I wrote about a study that had been released which basically dispelled the myth that building green costs significantly more than building using standard building practices and materials.

Well, another article was just published in the Nashville Business Journal which not only backs up that earlier study, but takes it even further. In this newest study, sponsored by the US Green Building Council along with other real estate and architectural groups, concluded that building green costs an average of 2.5 percent more up front (which is a very similar conclusion to the December study from Good Energies which found the cost premium to be just 2 percent.) The new study also concluded, however, that the financial savings over the life of the building would easily exceed any initial higher costs by ten times or more.

Further, the latest USGBC study shows that even where a green building cost premium does exist, builders and developers can more than recover those initial costs in a variety of ways, including through:

• Significantly reduced operating expenses, particularly for energy (as much as 30% less)
• Insurance discounts due to lower risk of indoor air quality problems, reduced energy use costs, smoother operations and greater tenant satisfaction
• Higher building value, occupancy and rents - up to 3.8% higher occupancy and up to a 30% (!!) premium in dollars per square foot.
• Easier access to investment capital - not that this is so important in these booming economic times of free-flowing credit, but easier financing might appeal to some.
  
• Water conservation - Lower costs from both water consumption as well as downstream water treatment perspectives.
  
• Better employee health and productivity - from the perspective of the tenant, healthier, happier and more productive employees translate to less absentee-related costs, higher profits and less employee turnover.

The articles concludes thusly "In cases where ownership of the building is retained post-construction, it is shown that green buildings ultimately are not more expensive, but are actually less expensive in operational costs and overall worth." Amen, sister.

Given the conclusions of these studies, it's truly amazing that anybody would move forward on any construction project, whether commercial or residential, that is not built green. Read the whole article by clicking here.