Financing Energy Efficiency

  • More than half the houses in the U.S. were built before 1970. (Photo courtesy of the National Renewable Energy Laborator)

Reducing your carbon footprint
by using less energy can cost
money. Efficient cars, energy
efficient homes, and energy-saving
appliances all take money. That’s
why some states are testing whether
homeowners would be willing
to borrow money to upgrade their
homes and, in turn, save a few
bucks in energy costs. In one
state, the plan is to get private
banks and credit unions to finance
energy efficiency. Peter Payette reports:

Transcript

Reducing your carbon footprint
by using less energy can cost
money. Efficient cars, energy
efficient homes, and energy-saving
appliances all take money. That’s
why some states are testing whether
homeowners would be willing
to borrow money to upgrade their
homes and, in turn, save a few
bucks in energy costs. In one
state, the plan is to get private
banks and credit unions to finance
energy efficiency. Peter Payette reports:

When you hear green building, you might think of a fancy new house with solar panels. But most homes are not new, so reducing the amount of energy communities use means doing something about old houses.

Max Strickland owns a business in Michigan that certifies green homes and buildings. He says more than half the houses in the U.S. were built before 1970.

“We had very little energy code requirements previous to that.”

But upgrades cost money that many homes owners don’t always have. And a lot of people saw whatever equity they had in their house disappear during the past couple of years.

Now, the State of Michigan is trying to help people find the money to make their homes more energy efficient. The program is called Michigan Saves. The state launched the pilot project in a rural area of the state. The pilot is a collaboration of a local credit union, an electric cooperative and a building supply company.
Borrowers will have their new payment tacked onto their monthly utility bill.

Trevor Williams is with Brown Lumber, the building supply company involved in the pilot. Williams says it’s likely most of the improvements will be in heating costs. He says to begin with, home owners will be encouraged to have an energy audit.

“The audit it would say things that need to be done, the top three things that are recommended. Furnace replacement, ceiling ducts and weatherizing the house those going to be the three most common items.”

But homeowners can also borrow money for new energy efficient appliances like refrigerators and hot water heaters. Sometimes loans like this are promoted as immediately paying for themselves. That is, it’s suggested the money you save on your utility bills will fully cover your new payment. That’s not necessarily the case.

Marc McKeller is with Members Credit Union which is financing the project. He says after a few years, people will be able to break even on the costs. Government tax incentives and other rebates will help that happen. But McKellar says people shouldn’t expect to take out a loan, retrofit their house and not have more to pay each month.

“The only way it could be was if a government was to give zero percent loans out and that they received tremendous rebates from the utilities and that they received a tremendous government credit.”


But, McKellar says it’s still a good deal. The interest rate for project’s loans will be a little bit better because the state is backing the loans.

And tight credit means not many banks are loaning people money to make their house energy efficient and not many people are putting money into a home that’s lost value because of the housing market bust. That’s one of the reasons they need to run a pilot project.

“They’re trying to determine through this study, how do you get a consumer to actually do this and what are the benefits?”

The directors of Michigan Saves hope to roll out a statewide program later this year. So far no banks have agreed to participate but there are other credit unions interested in the concept.

For The Environment Report, I’m Peter Payette.

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Greenovation: Eco-Certified

  • When doing home improvement projects, WaterSense, EnergyStar, GREENGUARD, and FSC certifications are some to keep an eye out for. (Photo by Michelle Miller-Freeck, courtesy of FEMA)

When you’re planning a home
improvement project, you can
be overwhelmed with decisions
about the right materials, the
right quality, and the right
design. Trying to keep it eco-
friendly on top of everything
else just adds to the confusion.
Lester Graham reports it can be
as simple as finding a label:

Transcript

When you’re planning a home
improvement project, you can
be overwhelmed with decisions
about the right materials, the
right quality, and the right
design. Trying to keep it eco-
friendly on top of everything
else just adds to the confusion.
Lester Graham reports it can be
as simple as finding a label:

Julia Weinert and her boyfriend like the idea of making their place nice, but even something as simple as painting causes concerns.

JW: “We want to support environmentally friendly options and we just don’t want to be smelling it for three days out and have to be running the fans. We just want it to be convenient and we think it would be an easy thing to do.”

LG: “Well, you’re in luck. We’re at the local Home Depot and we just happen to have Greenovation.TV’s Matt Grocoff here. Matt, you’ve got some advice for her.”

MG: “And it’s really, really simple. When you’re trying to find a paint that’s healthy for you or another product, you shouldn’t have to be a chemist when you go to the store. There’s a really simple thing you can look for. Just look for the simple GREENGUARD label. GREENGUARD is an independent organization that lets you know with a simple label that that product is safe for you.”

So, none of the really strong paint smells that mean polluting chemicals are being released. GREENGUARD Environmental Institute sets indoor air standards for products and buildings. Julia and I sniffed a can of paint WITH the GREENGUARD label, and then one without.

LG: “I’ll let you sniff first.”

JW: Okay. Oh! Yeah! Oh my gosh! That is ridiculous. I mean, it smells so much stronger than this one. You can’t even smell that one compared to this one.”

A gallon of paint with the GREENGUARD label DOES cost a few dollars more, maybe as much as ten bucks.

Matt then herded us to another part of the store, the plumbing section, where Julia and I were confronted by all kinds of shiny chrome and brass faucets.

JW: “There’s a whole wall, a whole aisle of faucets here and I just don’t know which ones to look for.”

LG: “So, Matt. You got any fancy labels here?”

MG: “Absolutely. Again, if you’re looking for that eco-friendly option, a way to save yourself some money and some water, it’s simple. Just look for the WaterSense label. The EPA does EnergyStar labels for appliances. The EPA also does WaterSense label for plumbing fixtures.”

WaterSense means the fixture – whether a faucet, shower head or toilet – will use less water but still works well.

As we wandered over to the lumber section of the store, Matt told us the last label he wanted to show us is the most ignored label – and it might just be the most important one.

MG: “FSC stands for the Forest Stewardship Council. And what that means is they’ve made a commitment that they’re not going to be tearing down forest and clear-cutting them in order for you to build some bookshelves in your home. This is one of the biggest causes of greenhouse gases is that we don’t have these forests capturing this carbon any more. Instead of having to have a PhD in forest management, you can just simply look for a piece of wood that has an FSC label on it.”

So, labels. Julia says, works for her.

JW: “It’s going to be great, taking my boyfriend around the store and showing him all these cool things I can get to make our home improvements a little more cheap and environmentally-friendly.”

LG: “Alright remind me, go over this again. What am I supposed to be looking for?”

MG: “It’s very simple. If you’re looking for paint, look for GREENGUARD. For plumbing, WaterSense. For lumber, FSC, Forest Stewardship Council certified.”

LG: “That’s Matt Grocoff, Greenovation.TV. Thanks again, Matt.

MG: “Lester, it’s always a pleasure. Thank you.”

For The Environemnt Report, I’m Lester Graham.

Related Links

Testing the Smart Grid

  • A smart grid diagram from the US Department of Energy. (Photo courtesy of the US Departmen of Energy)

Some electric companies are working
to put smart meters on our homes.
They want to change how we use
electricity hour by hour. Eventually,
power companies will charge more
when demand for electricity is highest.
Mark Brush reports on a new study
that looks at how people are responding:

Transcript

Some electric companies are working
to put smart meters on our homes.
They want to change how we use
electricity hour by hour. Eventually,
power companies will charge more
when demand for electricity is highest.
Mark Brush reports on a new study
that looks at how people are responding:

Connecticut Light and Power tested the smart grid on about 3,000 of it’s customers. Half of them residential and half of them business customers.

They found that people did respond to high rates during high periods of demand – such as from noon to eight pm.

Jessica Cain is with Connecticut Light & Power. She says there seems to be a limit to how much they’ll change. For example, doing laundry late at night seemed to be a non-starter.

“Doing your laundry after 8pm would be a barrier. And we heard that from customers, both from a residential customer side and then from a business customer side. We heard that changing their business hours outside of that twelve to eight window would be very difficult.”

The power company found the most energy was saved when the utility itself used the smart meter to shutdown things like air conditioners during periods of high demand.

The customers said they liked the “set it and forget it” approach – so long as they could override the system if they needed to.

For The Environment Report, I’m Mark Brush.

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No Solar in My Suburb

  • There are some state laws that say homeowners' associations can't stop the construction of solar panels. (Photo courtesy of Standard Renewable Energy)

More people are putting up solar
panels on their houses. But in
some places around the country,
solar panels are getting blocked
by homeowners’ associations. Mark
Brush has more:

Transcript

More people are putting up solar
panels on their houses. But in
some places around the country,
solar panels are getting blocked
by homeowners’ associations. Mark
Brush has more:

It comes down to aesthetics for a lot of these associations. They have rules about how tall your grass can be, when trash cans can be set out, and what color your house can be.

Sometimes these associations just don’t like solar panels, or they worry they’ll be sued by neighbors.

Raymond Walker is a lawyer for Standard Renewable Energy. It’s a fast growing solar installation company in Texas. He says these restrictive rules can cost jobs and money.

“It doesn’t seem at first blush like it ought to be a big problem, in fact, you know, it seems like it might be sort of a silly issue, but we lost about $500,00 in installation money in 2008 because of this, and we’re projecting that we’ll lose about two million dollars this year.”

There are some state laws that say homeowners’ associations can’t stop the construction of solar panels, and now some legislators want to see a federal law passed.

For The Environment Report, I’m Mark Brush.

Related Links

Wind Turbines and Property Values

  • An author of the report says they accounted for the housing bubble burst, and they still found that being close to a wind turbine did not affect how quickly a home sells. (Photo courtesy of the National Renewable Energy Laboratory)

A new study finds living near
a wind turbine does not have
a noticeable impact on the
value of your home. Rebecca
Williams has more:

Transcript

A new study finds living near
a wind turbine does not have
a noticeable impact on the
value of your home. Rebecca
Williams has more:

Researchers looked at the sale prices of almost 7500 homes around the country over eleven years. The homes were as close as 800 feet to a turbine or as far as 10 miles away.

Ryan Wiser is a scientist at the Lawrence Berkeley National Laboratory. He’s an author of the report. He says being near a wind turbine did not have a widespread impact on property values.

“There may be still some sense that the aesthetics of a place has been impacted either positively or negatively and that may affect one’s impression of value, even if it doesn’t affect actual home sales prices.”

Wiser says they accounted for the housing bubble burst, and they still found that being close to a wind turbine did not affect how quickly a home sells.

For The Environment Report, I’m Rebecca Williams.

Related Links

Greenovation: The Re-Use Store

  • The ReStore sells everything from building supplies to power tools to toilets and sinks. (Photo courtesy of the Habitat for Humanity of Huron County, Michigan)

Home improvement projects cost
a lot of money. Some environmentalists
have found a way to save some money,
conserve resources, and help other
people get into homes. Lester Graham
reports:

Transcript

Home improvement projects cost
a lot of money. Some environmentalists
have found a way to save some money,
conserve resources, and help other
people get into homes. Lester Graham
reports:

It seems like my friend Matt Grocoff with Greenovation TV is always working on a home improvement project. Not too long ago, he asked me to go with him to his favorite store. So we headed down the road where all the big box home improvement stores are in his hometown of Ann Arbor, Michigan, but that’s not where we ended up.

MG: “Just about anything I need, my first stop is always a re-use center. My favorite is, of course, the Habitat for Humanity ReStore. Today I’ve gotta find a– a, uh– what do you call them? A sander, a hand sander, a belt sander?”

Matt turned to Jackie Hermann who manages this ReStore. And she pulled a case from the shelf in back.

JH: “This absolutely beautiful Porter Cable professional random orbit sander with dust collection.”

MG: “This is gorgeous. This is exactly what I need. And how much is this?”

LG: “Looks like it’s never been used.”

MG: “Almost new condition. $35.00. And it’s used material that’s not going to a landfill or sitting in somebody’s basement not being used. And here I get to use it and save money. This is another one of the things where we can debunk the myth that going green costs more.”

Okay, so Matt got a good deal and it extends the useful life of a pretty good tool. But the idea is to raise money for Habitat for Humanity to help get people into homes, so I had to ask Jackie about that.

LG: “How much of that money actually goes to Habitat for Humanity and building houses for folks?”

JH: “We have a 12% administrative overhead, so 88-cents on every dollar into a habitat home.”

There are about 600 of these ReStores across the nation. The administrative overhead varies a bit from store to store, but the money raised at each store goes to homes in that store’s local area.

Jackie says, for her area, that’s meant a bit of a shift for Habitat for Humanity. You might have heard, in Michigan there are a lot of foreclosures.

JH: “We’re not building brand-new as much. We are buying foreclosed houses that are already existing in blighted neighborhoods, and we are rehabbing them and making it livable and improving the neighborhood.”

LG: “You’re recycling houses.”

JH: “We are! We’re recycling houses also. So, when Lowe’s, for instance, donated a large quantity of items, we kept a bunch aside for construction. They come and they look though and say what they can use, and then those items are set aside for them. And then as they need them, they use them.”

And anything left over is sold in the ReStore. It’s donations that make ReStore work. It might be overstock from places like Lowe’s or from local contractors. It could be people who are moving or retiring or just don’t need an appliance any longer. They might have extra cabinets, or carpeting, or a perfectly good sink they don’t need.

JH: “The proverbial kitchen sink. Lots and lots and lots of toilets. Light fixtures, flooring, doors, windows, fasteners.”

MG: “Lester, let me show you some of the stuff they’ve got here. My wife and I spent months looking for a really high-quality, affordable, high-efficiency, front-loading washer. This is a front-loading washer and dryer. (taps on appliance) In fact, this is the same model that we bought. We paid $600 for ours. Here, at the ReStore, it’s $200. And Jackie, how do we know that this works?”

JH: “Everything’s been tested. And, it’s guaranteed for two to three months – I’m really not picky about that.”

Some things are used, some are new. It all works.

Matt Grocoff with Greenovation.TV says it keeps stuff out of the landfill, it means perfectly good building materials and appliances for home improvement projects, saves resources, and raises money to help people get into a home.

MG: “It’s a win-win across the board.”

For The Environment Report, I’m Lester Graham.

Related Links

New Regs for Old Homes

  • The rules the EPA is proposing would apply to homes built before 1978. (Photo source: Daniel Schwen at Wikimedia Commons)

Renovating old homes or apartments can
mean scraping or sanding lead paint.
That lead paint dust can settle where
children play. That can put them at risk
for learning disabilities. Shawn Allee reports why the government’s
tightening rules on home renovation:

Transcript

Renovating old homes or apartments can
mean scraping or sanding lead paint.
That lead paint dust can settle where
children play. That can put them at risk
for learning disabilities. Shawn Allee reports why the government’s
tightening rules on home renovation:

The Environmental Protection Agency just finished rules about home renovation and lead paint, but children’s advocacy groups said they weren’t strong enough.

Anita Weinberg is with Lead-Safe Illinois. She says some rehab contractors are trained on how to handle lead paint safely, but only some property owners are required to hire them. Weinberg says the rules didn’t apply if there were no kids in that unit at the time.


“That’s perfectly fine, but tomorrow you turn around and sell your home to a family with children. And the work that was done, if it wasn’t done safely, there’s certainly the possibility there’s still going to be a lead hazards in that home.”

So, now the EPA’s proposing, if you hire a rehab contractor at all, that contractor must be trained to handle lead paint – regardless of whether children live there now or not.

The rules would apply to homes built before 1978.

For The Environment Report, I’m Shawn Allee.

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Recovery Through Retrofit

  • One of the main goals of the “Recovery through Retrofit” plan is to find ways to help people pay for energy efficient improvements. (Photo courtesy of the EPA)

The White House has released a plan that
intends to get more people to make their
homes and apartments more energy
efficient. Mark Brush reports:

Transcript

The White House has released a plan that
intends to get more people to make their
homes and apartments more energy
efficient. Mark Brush reports:

One of the main goals of the “Recovery through Retrofit” plan is to find ways to help people pay for energy efficient improvements. Some of these improvements can cost a bundle.

But, the White House says, there are ways to help. Christine Glunz is a spokesperson for The White House Council on Environmental Quality:

“We want to provide American homeowners with the opportunity to get this energy efficiency done, and get the retrofit done, without having to bear a major financial burden immediately.”

Glunz says the Obama Administration is pushing for new financing options. One they support is a local government loan program that is paid back through property taxes.

In addition to financing, the plan calls for an energy label for homes and apartments. It’s sort of like an Energy Star label, so renters and home buyers can figure out how efficient a building is.

The plan also calls for more trained workers to perform energy retrofits.

For The Environment Report, I’m Mark Brush.

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Red Tape Behind Green Living

  • For simple weatherizing - insulation, weather stripping, windows - the tax credits apply to 30% of the cost of materials, not the labor. (Photo courtesy of the National Renewable Energy Laboratory)

Tax credits for making your home
more energy efficient got a lot
of early buzz. The promise of up
to 1500-dollars back for insulation
and windows or efficient furnaces
led to a flurry of advertising.
Tamara Keith looks
into what might be stopping people
from taking advantage of the tax
credits:

Transcript

Tax credits for making your home
more energy efficient got a lot
of early buzz. The promise of up
to 1500-dollars back for insulation
and windows or efficient furnaces
led to a flurry of advertising.
Tamara Keith looks
into what might be stopping people
from taking advantage of the tax
credits:

My husband and I recently bought an older house that could no doubt use
some weatherizing. So, I called up Reuven Walder at EcoBeco.

(sound of door opening, people saying hello)

He’s a home energy auditor. He identifies ways to make a home more
efficient.

“I joke around, I consider myself an energy efficiency social worker.”

And he’s been getting a lot of calls lately from people like me – looking
to take advantage of the tax credits.

“Let’s look around the house and you can point out some things that are
of concern to you.”

Walder has all these cool tools, like an infrared camera that can see where
the insulation isn’t doing its job. He finds plenty of trouble spots,
including one in the attic.

“And if you put your hand in this little pocket here you can feel nice
cool air.”

That’s not supposed to happen.

“I’ll be honest with you. When I find these kinds of things, it makes my
day, because we get to fix them.”

Well, not all the time. Walder says only about a third of the homeowners he
works with actually follow through on his recommendations.

“I have talked to numerous homeowners and their primary reason for not
doing it is money.”

He says the tax credits are a great shot in the arm, but, for many people,
it’s just not enough. Part of the problem is, for simple weatherizing –
insulation, weather stripping, windows – the tax credits apply to 30% of
the cost of materials, not the labor. And labor is actually the most
expensive part.

“Our economy is just so slow right now that people are just hesitant to
spend any amount of money because, regardless of the incentive, they’re
still going to have to spend a lot of money to make the improvement. It’s
not going to cover a significant portion of the cost.”

At this point, federal officials don’t know how many people have been
inspired by the stimulus package to do work on their homes. They won’t know
until everyone files their taxes in April.

“It’s definitely driving additional business.”

Matt Golden is president of Efficiency First – the national association for
the home performance retrofitting industry. But he isn’t totally sold on
the way the stimulus package is distributing the tax credits.

“The biggest incentives are for the most expensive fanciest equipment and
as you move towards the most cost effective stuff, you get much smaller,
incremental incentives.”

So, there’s big money for solar panels and geothermal heating systems. And
if you want to put in a tank-less hot water heater or a super efficient
furnace, here labor costs can be counted towards tax credits. Golden says
the smallest credits go to insulation and other simple steps.

“It’s actually kind of an impediment to the type of retrofitting projects
that have the biggest return on investment, bang for the buck and create
the most jobs.”

In my house, Walder estimates we need almost $6,000 worth of work. But,
because not all of it qualifies, I’ll only get $600 of it back from the
government – but we won’t see the money until tax season.

I’ll admit – it’s a lot more money with a lot less of a tax benefit than I
was expecting, and that’s probably what’s giving some homeowners pause.

For The Environment Report, I’m Tamara Keith.

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Recycling Your Roof

  • Several states are studying how the material holds up for asphalt roads, but for now most of the singles are mixed in asphalt used for parking lots. (Photo courtesy of the National Renewable Energy Laboratory)

It’s estimated, every year, somewhere
between seven and eleven-million tons
of old asphalt shingles end up in landfills.
Some states are short on landfill space.
Lester Graham reports, they’re now
encouraging grinding up and recycling
the old shingles:

Transcript

It’s estimated, every year, somewhere
between seven and eleven-million tons
of old asphalt shingles end up in landfills.
Some states are short on landfill space.
Lester Graham reports, they’re now
encouraging grinding up and recycling
the old shingles:

Two-thirds of American homes have asphalt shingle roofs. They last twelve to twenty years before they need to be replaced.

Since most of the material in asphalt shingles is the same stuff used in asphalt pavement, that’s where they’re going.

(sound of machinery)

New businesses are popping up across the nation that take the shingles.

Chris Edwards is co-owner of Ideal Recycling in Southfield, Michigan. He says roofers can dump old shingles at his place cheaper than taking it to the landfill.

“And then they can also sell it to their customers that they are recycling and it’s green. So it does help the contractors quite a bit.”

Several states are studying how the material holds up for asphalt roads, but for now most of the singles are mixed in asphalt used for parking lots.

For The Environment Report, I’m Lester Graham.

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