Caulk Has No Lobbyist: “Are Energy Efficiency Incentives Upside Down?”
Our energy audit clients are aware of energy efficiency tax credits and often wonder why the most cost effective measures, such as air seal, do not qualify. I explained this recently to a client by saying “caulk has no lobbyist.” She told me that was a “quotable” and I needed to blog about this. Thanks, Patricia!
While reviewing my energy audit recommendations with Patricia, she asked about placing solar thermal collectors on her roof. She had an old, leaky home, which she plans to renovate and insulate. I told her solar collectors are a marginal investment and air sealing and insulating her home is a top priority. I explained that federal tax credits are available for installation of alternative energy, windows, and heating and cooling equipment but not for installation* of air seal and insulation. The energy efficiency pyramid below generally reflects our recommendations to Patricia which included air seal, insulation, and replacement of a 1949 furnace with a high efficiency furnace. We did not recommend solar thermal collectors, despite the 30% federal tax credit
Ranking within the pyramid is not absolute. For example, Virginia Powers’ assessments show that “drain water heat recovery” can produce five times greater savings per dollar installed cost than its neighbor “solar thermal.” http://gfxtechnology.com/tests.html Furthermore, a gas savings pyramid would be a bit different. For example, high efficient furnaces/boilers would be found at a lower rung than geothermal heat pumps. Paul Knight Home Energy July/Aug “The Chicago Green Bungalow Project.”
Every level of the pyramid leads to a lower carbon footprint. However let’s clarify what we mean when we say that actions at the top of pyramid are less cost effective. Typically, spending a dollar at the top of the pyramid gets a smaller carbon footprint reduction compared to the same dollar spent nearer the bottom, which gets the bigger carbon footprint reduction per dollar.
The Pyramid generally shows what energy experts know from energy modeling and studies of weatherization work. Air sealing a home is typically the biggest bang for your buck, followed by insulating un-insulated attics and walls, and by efficient heating and cooling equipment. One under-appreciated aspect of air sealing is duct sealing, typically as good as air sealing on the pyramid. Another piece that is missed in the 2008 pyramid is a professional energy audit. “Building diagnostic services” is included in the 2011 version at the base rung of the pyramid. With a diagnostic audit, homeowners can address with confidence the critical air seal locations in their home. Michael Blasnik ACI Conf 2008 “Prioritizing Energy Savings: What’s Important.”
A comparison of federal energy efficiency tax credits and the pyramid leads one to wonder if the federal government has the efficiency pyramid upside down. Diagnostic energy audits and air sealing work have no tax credits but solar panels and backyard wind turbines do.
Federal Energy Efficiency Tax Credits for Consumers, 2011
Existing Homes
(10% of cost, up to $500)
• windows and doors
• insulation
• roofs
• water heaters (non-solar)
• hi efficiency furnaces/boilers
Existing Homes & New Construction
(30% of cost with no upper limit through 2016)
• geothermal heat pumps
• solar panels
• solar water heaters
• small wind energy systems
• fuel cells
All measures listed include install cost, except insulation.
I am sure to get comments if I don’t mention the “cash for caulkers” program which was part of the ARRA federal stimulus (2009-10). The “cash for caulkers” money went to weatherization work for low income families and included initial and final energy audits; air seal, insulation, and HVAC work. Middle income households during 2009 and 2010 qualified for 30% energy efficiency tax credits up to $1500 which did not include air seal work or an energy audit. Air seal work and energy audits are still excluded.
*Insulation materials, not their install cost, are covered by tax credits. Air seal work is not covered at all.
Our energy audit clients are aware of energy efficiency tax credits and often wonder why the most cost effective measures, such as air seal, do not qualify. I explained this recently to a client by saying “caulk has no lobbyist.” She told me that was a “quotable” and I needed to blog about this. Thanks, Patricia!
While reviewing my energy audit recommendations with Patricia, she asked about placing solar thermal collectors on her roof. She had an old, leaky home, which she plans to renovate and insulate. I told her solar collectors are a marginal investment and air sealing and insulating her home is a top priority. I explained that federal tax credits are available for installation of alternative energy, windows, and heating and cooling equipment but not for installation* of air seal and insulation. The energy efficiency pyramid below generally reflects our recommendations to Patricia which included air seal, insulation, and replacement of a 1949 furnace with a high efficiency furnace. We did not recommend solar thermal collectors, despite the 30% federal tax credit
Ranking within the pyramid is not absolute. For example, Virginia Powers’ assessments show that “drain water heat recovery” can produce five times greater savings per dollar installed cost than its neighbor “solar thermal.” http://gfxtechnology.com/tests.html Furthermore, a gas savings pyramid would be a bit different. For example, high efficient furnaces/boilers would be found at a lower rung than geothermal heat pumps. Paul Knight Home Energy July/Aug “The Chicago Green Bungalow Project.”
Every level of the pyramid leads to a lower carbon footprint. However let’s clarify what we mean when we say that actions at the top of pyramid are less cost effective. Typically, spending a dollar at the top of the pyramid gets a smaller carbon footprint reduction compared to the same dollar spent nearer the bottom, which gets the bigger carbon footprint reduction per dollar.
The Pyramid generally shows what energy experts know from energy modeling and studies of weatherization work. Air sealing a home is typically the biggest bang for your buck, followed by insulating un-insulated attics and walls, and by efficient heating and cooling equipment. One under-appreciated aspect of air sealing is duct sealing, typically as good as air sealing on the pyramid. Another piece that is missed in the 2008 pyramid is a professional energy audit. “Building diagnostic services” is included in the 2011 version at the base rung of the pyramid. With a diagnostic audit, homeowners can address with confidence the critical air seal locations in their home. Michael Blasnik ACI Conf 2008 “Prioritizing Energy Savings: What’s Important.”
A comparison of federal energy efficiency tax credits and the pyramid leads one to wonder if the federal government has the efficiency pyramid upside down. Diagnostic energy audits and air sealing work have no tax credits but solar panels and backyard wind turbines do.
Federal Energy Efficiency Tax Credits for Consumers, 2011
Existing Homes
(10% of cost, up to $500)
• windows and doors
• insulation
• roofs
• water heaters (non-solar)
• hi efficiency furnaces/boilers
Existing Homes & New Construction
(30% of cost with no upper limit through 2016)
• geothermal heat pumps
• solar panels
• solar water heaters
• small wind energy systems
• fuel cells
All measures listed include install cost, except insulation.
I am sure to get comments if I don’t mention the “cash for caulkers” program which was part of the ARRA federal stimulus (2009-10). The “cash for caulkers” money went to weatherization work for low income families and included initial and final energy audits; air seal, insulation, and HVAC work. Middle income households during 2009 and 2010 qualified for 30% energy efficiency tax credits up to $1500 which did not include air seal work or an energy audit. Air seal work and energy audits are still excluded.
*Insulation materials, not their install cost, are covered by tax credits. Air seal work is not covered at all.
