The recent TAP Webinar about the newly released Residential Retrofit Program Design Guide, generated quite a few questions. Because there was not enough time during the Webinar to respond to all of the questions that came in, organizers have compiled a list of these questions and the presenters’ answers:
Residential Retrofit Program Design Guide OverviewHost: Vermont Energy Investment Corporation Presenter: Richard Faesy, Energy Futures Group; Nikki Kuhn, VEIC; Andy Meyer, Efficiency MaineDate: May 3, 2011Description: As states and municipalities plan and roll out residential retrofit programs, a trusted "operations manual" can help save time and avoid potential pitfalls. The Residential Retrofit Program Design Guide is just such a manual, designed to provide guidance to people who plan and implement programs, and is based on decades of experience with successful retrofit programs. This Webinar introduced this guide and provided an overview of its content and structure. It focused on how programs can use it for planning and as an ongoing resource. Additionally, the Webinar profiled successful grantee residential retrofit programs.
The slides, audio, and transcript for the Webinar are now available in the archived Webcasts section of the Solution Center.
Q&A: Residential Retrofit Program Design Guide Overview Webinar
The following is a categorized list of answers to questions from the May 3, 2011 TAP Webinar on residential retrofit program design.
Design Guide and Presentation
Q: How can we access a copy of the Webinar presentation?
A: A copy of the presentation is now available in the archived Webcasts section of DOE’s Solution Center.
Q: When will we be able to access the design guide?
A: The Residential Retrofit Program Design Guide has recently been released. In addition to accessing it directly through the provided link, it is also posted under Program Resources in the Residential Buildings section of DOE’s Solution Center.
Additional Resources and Tools
Q: Are the different renewable energy (RE) support agencies willing to support the private sector as well, or do they just support state and local governments? Are government grants available to the private sector?
A: Depending on the state, there are many RE incentive programs that support homeowners and businesses. The Database of State Incentives for Renewables & Efficiency (DSIRE) provides a comprehensive listing of financial support details available by state.
Q: Where can I find information on financial assistance for institutional, commercial, and residential energy audits in my state?
A: This information, along with other incentives and policies, can be found on the DSIRE website.
Q: When it comes to energy efficiency (EE) software, have you found any good products that help identify savings needed to justify municipal/utility programs, but also comfort and health concerns that motivate the homeowners to take action? Typically, the financial return on EE projects for homeowners takes too long to justify improvements, but when the homeowner is affected by comfort issues, it becomes a better motivator.
A: You make a good point about focusing on what motivates homeowners. There are a lot of different software packages available, many of which are listed on DOE’s Building Energy Software Tools Directory. We aren’t aware of any that specifically provide this information, but are pretty certain that some do.
Q: What kind of IT/data tracking systems can a person purchase for use? Do you recommend any?
A: Some examples of available data tracking systems include products available from Performance Systems Development (Green Energy Compass), Applied Energy Group, Integral Analytics, Conservation Services Group, and others. There are also quite a few custom systems that have been developed for and used in programs, such as those by ICF International, Vermont Energy Investment Corporation, MaGrann Associates, and almost all utilities that operate residential retrofit programs. We recommend talking to others who have systems up and running to understand pros, cons, issues, effectiveness, support, pricing, etc. Combining forces with others in your region with similar programs and interests may even provide some economies of scale by sharing resources.
Workforce Development
Q: DOE is developing a publication titled Workforce Guidelines for Home Energy Upgrades, which includes standard work quality specifications and workforce competencies (knowledge, skills, and abilities for energy assessors, crew chiefs, and quality control staff) that should be mentioned in the Residential Retrofit Program Design Guide.
A: The Workforce Guidelines are an excellent resource. They are mentioned in the Design Guide and should be referenced in any energy upgrade program.
Q: Another excellent local resource for workforce development and program development may be your community colleges. In our case we have enjoyed working with many interns who bring lots of excitement and energy to our EE programs while they earn college credit, and have a chance to learn if this is a field they want to pursue.
A: The Cape Light Compact in Massachusetts provides good information on growing the potential workforce for energy upgrade programs by working with community colleges.
Q: In discussing the topic "Training and workforce development in the renewable energies sector," SEED (Sustainability Education & Economic Development) is a great resource.
A: Thank you for suggesting the resource!
Q: Finding qualified individuals that can perform the actual work is a challenge. Given the expense of training a large group, what suggestions do you have for reducing the cost to train retrofit professionals? Could BPI be accredited through a carpenters’ union?
A: Training through unions, community colleges, and other innovative approaches are all needed to build up an adequate workforce. Of course, programs need to build the demand commensurately to ensure that there is work for recent graduates. Once Efficiency Maine created demand, complaints ceased about the cost of BPI training. The program went from 30 to 100 companies with BPI-certified Building Analysts.
Marketing and Collaboration
Q: What is the best way to bring customers into the program? Is it through the program administrator marketing it, using mass media or bill inserts? Is it through the home energy auditor? Is it through the contractor?
A: Driving demand for weatherization programs is key to making them successful. The Lawrence Berkeley National Laboratory (LBNL) has published the definitive resource on the topic. We suggest that there shouldn’t be only “one way in,” but that there should be multiple avenues, including all of those that you refer to. General program marketing creates awareness and credibility for the program, which contractors and auditors can then use to get in homeowners’ doors and sell the program.
Q: Our region received funding to create an EE retrofit web portal and funding program. How should a municipality prepare to collaborate with the regional program?
A: Follow the steps outlined in the design guide to assess your market and any regional programs. Understand what they offer, their goals, how they are regulated, rewarded, etc. Then come up with a plan that takes into account the different plans, strategies, and goals as you collaborate on program design. Let programs know how they can also benefit by collaborating with you. Working together should be a two-way street and benefit both parties.
Q: Some communities have help from local/regional energy efficiency organizations in addition to utilities.
A: Yes, there are some exemplary programs that administer their energy programs for their communities instead of utilities, such as the Cape Light Compact in Massachusetts. When we spoke of “utilities” in the presentation, we could have said “program administrators,” in order to include utilities and other local/regional organizations.
Q: Are there any policies to support the Department of Housing and Urban Development (HUD) program to include a mandate for homeowners who receive government monies, such as section 8 program renters, and if not, why not?
A: We are aware of a number of programs and policies that support EE for government-funded programs. Most projects that receive federal funds need to consider EE as part of building construction, rehab, or maintenance. However, the standards are likely to be outdated in many states and could probably be updated. Some states (such as Vermont) are actively updating their standards for affordable housing projects to protect these projects from the risk of fuel inflation in the future. Energy Star’s Energy Efficient Mortgages allow the financing of cost-effective energy improvements as part of an FHA mortgage without any additional appraisal or underwriting. These funds are available every time this sort of mortgage is originated, but few people take advantage of them.
Contractors
Q: Who should set the price for work to be done by the contractors? Should the contractor who is doing the work on the home determine the appropriate price for the market? Should the program administrator set the price? What are the advantages or disadvantages of either approach?
A: There is no “right” answer to this question, as of yet. With more experience running weatherization programs in the market, we will learn more in the future. Most programs let the people in the marketplace (e.g., retrofit contractors) set their own prices. With enough certified contractors, normal supply and demand market forces should keep prices in check. However, a shortage of contractors or excessive demand will drive pricing higher. Massachusetts is now experimenting with statewide fixed pricing in order to allow auditors to predict pricing upfront so homeowners will know what a job will cost before the auditor leaves the home. Some advantages and disadvantages are presented below.
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Advantages
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Disadvantages
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Contractors
Set Pricing
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· Responds to market pressures
· Encourages contractors to enter the home performance market
· Allows contractors to price work in order to cover costs, and therefore stay in program
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· Inflated prices result from high demand or lack of competition from other contractors
· Potential consumer exploitation
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Program
Sets Pricing
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· Transparent pricing allows third-party auditors to price out the job before leaving the house
· Consumer protection
· Encourages contractor workplace efficiency to maximize margins
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· Potentially reduces contractor margins, driving some contractors out of the program
· Discourages contractors from entering program
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Q: To what extent should contractors be involved in the design of the program?
A: Contractors play a critical role in a successful program. They should be engaged throughout program design. While their input as part of an advisory panel or a working group is key, contractors should probably not have any “veto power.”
Q: How can I best market my services to utility companies and weatherization energy programs?
A: A number of residential retrofit programs that have historically relied on a single lead vendor or the utility itself are transitioning to a program design that also relies on market-based contractors to sell the program and deliver retrofit services (such as in Massachusetts, Rhode Island, and New Hampshire). Many of the more successful programs (e.g., Maine, New York, and Vermont) have built programs around market-based contractors as the program face, sales force, and installation base. Perhaps you could convince your local utility or regulators to open up your local program to engage more market-based contractors and auditors and then become one yourself.
Q: I have PE, CEM, CBCP, and CGFM. Do I need to get BPI certification? If yes, how can I get it?
A: The Building Performance Institute (BPI) has become the national standard demonstrating contractor competency with building performance. While obtaining or holding other certifications may help develop skill sets required to meet BPI standards, there are only a few that are recognized by BPI as equivalent to certain parts of the BPI certification. One of these is the certified RESNET HERS Rater certification.
Efficiency Maine
Q: Is Efficiency Maine a private company funded thru a DOE grant? If not, is this available to NGOs, community nonprofits, and private consulting firms?
A: Maine’s legislature created Efficiency Maine as a quasi-state agency to administer all non-transportation EE and RE programs in the state, regardless of fuel. The DOE grants were EECBG and Better Buildings.
Q: Where do the rebates originate in Maine? Is the funding source sustainable?
A: Efficiency Maine’s program is funded by one-time ARRA-SEP and ARRA-Better Buildings grants from DOE. We are phasing out the rebates and using a revolving loan fund for financing.
Q: How does this fit with the efforts coming out of the “Recovery Through Retrofit” program?
A: “Recovery Through Retrofit” was re-named the “Better Buildings” program. Efficiency Maine is one of this program’s grant recipients and participants.
Q: Prior to the program, did Maine have any type of home energy retrofit program(s)?
A: Yes, Maine leveraged the Environmental Protection Agency’s (EPA) Home Performance with Energy Star program in 2009. This was helpful for training contractors.
Q: Did the additional $1,000 summer rebate drive the program or did something else?
A: The $1,000 limited-time bonus on top of the standard program rebates helped spike program demand through the end of 2010.
Q: What happened to cause participation and retrofit completions to double?
A: Three things: an integrated marketing campaign (TV, radio, print, co-op marketing with Participating Energy Advisors, trade shows, outreach events, and collaboration with employers, trade associations, nonprofits, towns, and faith groups); sales training for Participating Energy Advisors; and a summertime $1,000 bonus (on top of the existing incentives) for anyone who completed an upgrade by the end of 2010.
Q: How does Efficiency Maine rate the relative importance of financial incentives vs. advertising vs. contractor skills building? When Efficiency Maine made the summer effort, do you think it was the outreach, the $1000 rebate, or both that mattered?
A: Efficiency Maine didn’t do a controlled study, but the data strongly suggests that a deadline and a strong marketing push were the primary drivers. The magnitude of the promotion bonus was not significant ($4,500 pre-promotion, and $5,500 during the promotion). Contractor sales training definitely helped, but the program saw so much demand that nearly all Participating Energy Advisors saw significant growth. There were 1,688 completions in 2010; 1,099 were submitted for rebates in the last month of the promotion.
Q: How many homeowners had energy audits performed, and how much did they cost?
A: All 4,500 homeowners in our program hired energy auditors at market rates. The typical fee is $500.
Q: How does Efficiency Maine assure compliance with Historical Preservation requirements?
A: Efficiency Maine has a Programmatic Agreement with Maine’s Historic Preservation Office detailing what measures are exempt from Section 106 Review and which need pre-approval.
Q: Where can we access Maine's marketing information and messaging to garner what helped sell uptake to homeowners?
A: Please visit the Home Energy Savings Program.
Q: Please share your best practices for post-program launch. What are the most effective methods to get residents to approach the program and ask questions, and actually make improvements/get a home performance report/energy audit?
A: We found LBNL’s report on Driving Demand to be very helpful. We focused on comfort (cold, hot, draft), convenience (ice dams, frozen pipes, wet basements) and healthy homes (back drafting, mold, mildew) stating improvements could be made and paid for by energy savings. We avoided focusing on money as the primary reason to upgrade homes.
Q: What channels are your most cost-effective for new leads?
A: PR and referrals were probably our primary lead sources. As you’ll see on Efficiency Maine’s website, we like to share testimonials.
Miscellaneous
Q: Is geothermal a viable option for heating/cooling existing homes? How do we access the data that help determine where geothermal will be most effective?
A: Geothermal heating and/or cooling is a very expensive retrofit option for existing homes. There will always be more cost-effective existing home measures that will provide a much greater return on investment, including air sealing, duct sealing, and adding more insulation. Once a home’s energy load is reduced significantly, geothermal could be considered. However, most of the time, it will not rise to the top of the list when looking at investments based on cost-effectiveness. A certified HERS Rater or BPI analyst should be able to provide the analysis that will tell you the impact on costs and savings by geographic region.
Please respond with a comment to this post with any other questions related to the information presented in this Webinar, or share your experiences on residential retrofit program design in your community. For program and project support, Technical Assistance Services are available through the Solution Center.
Content for this Blog post courtesy of Nick Lange, Vermont Energy Investment Corporation