Midwest Home Performance: Incentives


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Midwest Home Performance: Incentives

  1. 1. Midwest HomePerformance Call: Incentives J. Will Baker D. Jensen Adams & Glenda Abney August 10th, 2011
  2. 2. Welcome!Call goals:– Better facilitate communications across state lines and amongst programs in our region– Share lessons learned & best practices– Help HP programs take off in the Midwest!– 29 people registered, from 13 states
  3. 3. Today’s Call• Jensen Adams and Glenda Abney presentation (30 minutes)• Discussion around incentives, best practices and challenges (45 minutes)• Start w/ introductions from each call participant w/ update on their local program (1 min each)
  4. 4. Call Logistics• Please mute your lines during the presentation• Press *6• Don’t put the line on hold!• Presentation will be posted by Friday on www.mwalliance.org/
  5. 5. Incentives in Whole Home Programs• Experiences in working with and without incentives – the variety of options• Determining levels and structures• Designing the incentives to be useful in driving demand for Whole Home/HPwES programs/true efficiency improvements – Leverage Programs – Prove Value – Strengthen the Impact
  6. 6. Sample Variety of Incentives in Whole Home Programs (using St. Louis programs as examples)• St. Louis Regional Home Performance with ENERGY STAR program – no incentives• Local utility incentives for prescriptive equipment – small incentives - useful, but no large scale impact• St. Louis County SAVES – low interest loans for prescriptive/hybrid based efficiency home improvements – good incentives, true impact• Energize MO Homes – large scale grants for performance based efficiency – incentives too large, potentially not making the desired impact
  7. 7. Determining Incentive Levels and Structures • What kind of Incentive – Rebates – Loans – Grants – Direct Installs • How will the desired efficiency level be determined – Performance based – Prescriptive based • Regulations for approving fund dispersal – NEPA, SHPO – Credit scores, debt to income ratios – Utility regulations – TRC and more • Incentive Levels – Totally free funds – Provided after homeowner pays money but before full invoices – Provided after homeowner pays all money to cover full invoices – Enough to hook the interest of homeowners – Enough to make them move forward – Not too much to obscure the desired impact – home efficiency And so much more!
  8. 8. Making the Incentives Useful - Leveraging Outside the Box•Programmatically designed Joint RebatePrograms Using identical program structures•Local home repair programsMinor home repair, weatherization, lead abatement,Christmas in October, trade union philanthropy –leveraging the ability of the workforce•Healthy home initiativesasthma prevention, neurological symptoms, radon,leadhttp://www.greenandhealthyhomes.org/•Planning long termeven if initial Incentives are short term
  9. 9. Designing Incentive Programs to Prove the Value of Whole Home Programs • Where the funding comes from will dictate the discussion • Defining the desired value • Define how to meet the desired value • Broaden your options for meeting the value formula – e.g. include direct installs if need to meet TRC • Regional case studies needed for sample incentive programs proving value requirements • Remember to plan long term and to partner, partner, partner
  10. 10. Strengthening the Impact – Deep Energy Retrofits•Customer Service / AdvocatesOne-stop-shop, I.T. tools for coordination, targetedgrassroots campaigns – going beyond the basicincentive process to providing true customer service– expands beyond the early adopters to trulyengaging the audience for long term impact•Linked / Cross-market incentivesfuel-neutral measures that benefit electric and gassavings, removing silos between measures
  11. 11. D. Jensen AdamsAssociate Executive DirectorMetropolitan Energy CenterOffice: 816-531-7283www.kcenergy.orgGlenda AbneyEarthWays Center DirectorMissouri Botanical GardenOffice: 314-577-0288www.mobot.org/sustainabilityJ. Will BakerProgram AssociateMidwest Energy Efficiency AllianceOffice: 312-673-2489wbaker@mwalliance.org