Cash for Caulkers could mean $1000's Federal Rebate Incentive per home
What is HOME STAR?
HOME STAR is a proposed federal program that would provide direct incentives to American homeowners who invest in improving
the energy efficiency of their homes. The basic structure of the HOME STAR program was developed by an ad hoc committee of
private sector advisors, with strong participation by Efficiency First. Silicon Valley venture capitalist
John Doerr presented the program at a meeting of President's Economic Recovery Advisory Board (PERAB) on Nov. 2, 2009, and
the plan is now under consideration by the White House.
As outlined in a memo that was formally endorsed by PERAB members on Dec. 4, HOME STAR would reimburse homeowners
for residential energy upgrades such as air sealing, insulation, new light bulbs and new appliances. Homeowners would be eligible
to receive up to $2,000 for implementing at least two upgrades from a list of qualifying measures, or up
to $3,500 for at least four qualifying measures. Higher incentives would be available to homeowners who achieve
energy savings of at least 20 percent. Weatherization projects that reduce energy consumption by
20 percent would be eligible to receive up to $4,000 in incentive money, plus $1,500 for
every additional 5 percent reduction in energy consumption. The Times also notes that all HOME STAR incentives
would be capped at 50 percent of project costs, and a percentage of projects would
be audited to ensure that the improvements perform as expected. The plan is projected to cost $23 billion over two years.
The administration didn't provide immediate details, but said it would work with Congress on crafting
legislation. Steve Nadel, director at the American Council for an Energy-Efficient Economy, who's helping write the bill,
said a homeowner could receive up to thousands of dollars in rebates.
The bottom line is that cash for caulkers would be more detailed than cash for clunkers — yet would
have the potential to do far more good. McKinsey, the consulting firm, estimates that households could reduce their energy use by 28 percent over the next decade. In terms of greenhouse gases, that would
be the equivalent of taking half of all vehicles in this country off the road.
And unlike many other climate-friendly policies, it would not cost money over the long term. Done right, cash for caulkers
would be precisely the kind of stimulus that makes the most sense: spending money now to save money later.
Stay abreast of this outstanding development in the months ahead in early 2010.
