Stimulus Savings and Ohio Rebate Program

If you haven’t already heard the news — with the passage of the federal stimulus bill there’s money available to help many Americans weatherize homes and make energy efficiency improvements. But how can you connect with these resources? We're here to help you understand and utilize the American Recovery and Reinvestment Act of 2009.

Investing in a few basic measures to secure a home from outside elements could provide major benefits. The U.S. Department of Energy (DOE) says weatherization — the process of sealing air leaks and properly insulating a home — can reduce heating bills by up to 32 percent, resulting in an average energy savings of $358 per year.

As a result of the stimulus package, DOE’s Weatherization Assistance Program is expanding with a goal of weatherizing one million homes per year. In the past, only households that earned up to 150 percent of the national poverty level were eligible to participate. The stimulus bill extends eligibility to those with incomes below 200 percent of the national poverty level. For a family of four, that’s an income limit of $44,100.

Program participants receive a professional energy consultation with an analysis of energy bills, a blower-door test to locate air leaks and advice on how to be more efficient. Outside professionals, (not employees of The Energy Cooperative) then arrive to make energy upgrades like insulating walls and roofs, sealing air leaks, and installing more efficient heating and cooling systems. The process to weatherize a home through the program usually takes two days with an average cost of $2,500. Since some homes have different needs, the stimulus bill allows up to $6,500 to be spent on each home.

For members not eligible for federally funded programs, the stimulus plan provides a homeowner efficiency tax credit of up to $1,500, or 30 percent, of the cost for new energy upgrades, including weatherization activities as well as installation of efficient heating, ventilation, and air conditioning systems. Efficiency tax credits were already available for 2009, but carried a $500 limit (with additional caps for certain types of upgrades) and only covered up to 10 percent of a member’s investment.

Tax credits directly lower a member’s federal income taxes, and are generally more valuable than tax deductions because they reduce taxes owed dollar-for-dollar. In contrast, a tax deduction, like a home mortgage or charitable gift, lowers taxable income and may only offer small savings. For example, a $1,500 tax deduction for someone in the 25 percent tax bracket would lower taxes owed by $350; a $1,500 tax credit for energy efficiency efforts will lower taxes owed by $1,500!

Ohio's HWAP
Ohio’s Home Weatherization Assistance Program is a federally funded low-income residential energy efficiency program. Services include attic, wall and basement insulation; blower-door-guided air leakage reduction; heating system repairs or replacements; and health and safety testing and inspections. All measures are provided based upon an on-site energy audit and on cost-effective guidelines. Individualized client education also is an important component of the program.

Increased Funding
Through the 2009 American Recovery and Reinvestment Act (aka Stimulus package), the funding provided for HWAP to help low-income families weatherize their homes has increased from $500M to $5B – that’s ten times the previous funding amount!

Qualifications
Households at or below 200 percent of the Federal poverty guidelines qualify for this no-cost program.

Persons in Family* Poverty Income Level 200 Percent

1	$10,830	$21,660
2	$14,570	$29,140
3	$18,310	$36,620
4	$22,050	$44,100
5	$25,790	$51,580
6	$29,530	$59,060
7	$33,270	$66,540
8	$37,010	$74,020

*For families more than 8, add $7,480 for ea. extra person.

Submission of HWAP Applications
In the State of Ohio, weatherization funding is managed by the Ohio Energy Office, which is part of the Ohio Department of Development. However, actual applications for funding need to be submitted by homeowners through authorized weatherization providers. A map with a hyperlink by county can be found on the ODOD website.

Thanks to the American Recovery and Reinvestment Act, the State of Ohio is offering rebates that save you money on your utility bill. For a limited time only, Ohio residential consumers are eligible for a rebate on qualified ENERGY STAR® appliances and water heaters. For more information visit www.OhioApplianceRebate.com

Appliance Type Rebate
Refrigerator ..........................$100
Dishwasher ............................$100
Clothes Washer......................$150
High-efficiency gas
storage water heater ..............$100
Electric heat pump
water heater ..........................$250.

Please Note: Program dates are subject to change based on consumer response and availability of funds. Rebates are limited and will only be honored for purchase made within specified time periods, or until funds are depleted on a first come, first served basis.