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Home Energy Magazine Online January/February 2000

trends
 in energy

Contractor Incentive Program

Table 1. Incentives for CEC Climate Zone 1*
Eligible Single-Family MeasureIncentive Amount
Basic HVAC diagnostic tune-up $75/site
Duct testing $75/site
Duct testing and sealing $200/site
Advanced HVAC diagnostic tune-up $300/site
Energy Star gas furnace $250/unit
Energy Star central heat pump $225/unit
Energy Star central air conditioner NA in this climate zone
Programmable thermostat $25/unit
Attic insulation $0.15/ft2
Wall insulation $0.14/ft2
Insulation package bonus** $0.01/ft2
High performance windows $1.00/ft2
Efficient gas water heater $30/unit
Pipe insulation $5/site
2.5 gpm showerhead $7/unit
Hardwired fluorescent fixtures $15/unit
Screw-in CFLs $2/unit
* CEC climate zone 1 covers coastal areas of Northern California.

** This bonus applies to the sum of square feet of attic insulation and wall insulation.

California homeowners can net significant savings on energy efficiency improvements, thanks to a contractor incentive program funded through 2001 by the state's public benefits trust. The program is designed to promote whole house approaches to energy efficiency, provide incentives to help contractors develop self-sustaining whole-house businesses, and improve residents' awareness of the benefits associated with energy efficiency. Incentives are available for 17 energy efficiency improvements (see Table 1), including testing and sealing duct work, insulating attics, and replacing a less efficient gas water heater with an up-to-date model.

To get any of these improvements installed at a reduced price, homeowners have to be customers of either Southern California Edison, San Diego Gas and Electric Company, or Pacific Gas and Electric, and they must use an approved contractor. The contractor bills the homeowner for the cost of the work minus a contractor incentive, the amount of which varies with the type of efficiency upgrade being installed. The homeowner pays the reduced fee, and the contractor collects the difference from the customer's utility.

The League of California Homeowners oversees contractor approval in Southern California, while the Electric and Gas Industries Association (EGIA) administers the process in Northern California. The League of California Homeowners requires contractors to meet various criteria, including having a valid license, obtaining sufficient insurance, passing a financial background check, providing six customer references and three business references, and paying a $250 fee. EGIA has a slightly less rigorous screening process and doesn't collect any fees. In both regions, contractors must complete utility trainings to participate in the program.

As of last September, 35 contractors had survived the screening process in Northern California, while roughly 100 contractors were actively involved in Southern California. "It's a good program that provides incentives for the right things and demands quality work," says Ray Hall of H&L Energy Savers, a participating contractor (see "Contractor's Marketing Success," Jan/Feb '99 p. 43). Hall ties voucher program work to work he performs for customers who are getting Energy Efficiency Mortgages (EEMs). Of the last 60 customers for whom he did EEM work, 59 received rebates on their energy-efficient improvements--rebates that ranged from $300 to $900. And in a quintessential win-win-win situation for contractors, customers, and the environment, Hall says, "With these savings, my customers are choosing to get more efficiency improvements installed."

-- Mary James  

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