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       The EPA Energy Star
         Homes program
 Michael Berry, ICF International
 Diana Duffy, National Grid/KeySpan
 Raphael Herz, Massachusetts Technology Collaborative


Massachusetts New Homes with ENERGY STAR®
Welcome
The Boston Society of Architects is a Registered Provider with The
American Institute of Architects Continuing Education Systems.
Credit earned on completion of this program will be reported to
CES Records for AIA members. Certificates of Completion for
non-AIA members are available on request.

This program is registered with the AIA/CES for continuing
professional education. As such, it does not include content that
may be deemed or construed to be an approval or endorsement by
the AIA of any material of construction or any method or manner of
handling, using, distributing, or dealing in any material or product.
Questions related to specific materials, methods, and services will
be addressed at the conclusion of this presentation.

                                                                        2
Learning Objectives

• Understanding requirements of the
  Massachusetts New Homes with
  ENERGY STAR® Homes program
• Awareness of incentives available
  through by building to ENERGY STAR®
  Homes standards
• Awareness of other energy efficiency
  and renewable energy systems and
  rebates available for such systems     3
Massachusetts New Homes with ENERGY STAR®




                         ENERGY STAR® Homes

                         A Lifetime of Value, Comfort, and Healthier Living


                                                  Presenter Name:
                                                   Michael Berry


   The sponsors of the Massachusetts New Homes with ENERGY STAR are Bay State Gas, Berkshire Gas, Cape Light
   Compact, GasNetworks, KeySpan Energy Delivery, Massachusetts National Grid/KeySpan, New England Gas, NSTAR
                          Massachusetts Technology Collaborative, Technology Collaborative, National Grid, New
   Electric, Gas, NSTAR Electric, NSTAR Gas, UNITIL, and Western Massachusetts Electric.
   England NSTAR Gas, and Western Massachusetts Electric.
Sponsored By

 The sponsors of the Massachusetts New Homes
   with ENERGY STAR is the Joint Management
   Committee (JMC):
      Bay State Gas, Berkshire Gas, Cape Light
        Compact, GasNetworks, Massachusetts
          Technology Collaborative, National
      Grid/KeySpan, New England Gas, NSTAR
          Electric, NSTAR Gas, and Western
                Massachusetts Electric.


Massachusetts New Homes with ENERGY STAR®
Agenda

 •   What is ENERGY STAR?
 •   What are ENERGY STAR Qualified Homes?
 •   Why Should you Build ENERGY STAR?
 •   Eligibility Requirements.
 •   Homebuilder Program Support.
 •   Getting Started.
 •   Questions.



Massachusetts New Homes with ENERGY STAR®
What is ENERGY STAR?

          Trusted government symbol
          that makes it easy for consumers
         to identify energy-efficient products




Massachusetts New Homes with ENERGY STAR®
What is ENERGY STAR?

          Commercial                        Consumer
           Buildings                        Electronics

                                                    Office
    Windows
                                                  Equipment

 Appliances
                                                   Residential
                                                    Lighting
      HVAC


        Exit Signs                             Insulation
                              Homes

Massachusetts New Homes with ENERGY STAR®
What are ENERGY STAR
              Qualified Homes?




Massachusetts New Homes with ENERGY STAR®
What are ENERGY STAR
                    Qualified Homes?

 • Voluntary Program Established by the U.S.
   Environmental Protection Agency and the U.S.
   Department of Energy.

 • Meets National Specifications Established by the
   EPA.
     – Must achieve a rating of 85 or lower on the Home Energy
       Rating System (HERS) Index
     – Must pass the Thermal Bypass Inspection Checklist
       (TBC).


Massachusetts New Homes with ENERGY STAR®
What are ENERGY STAR
               Qualified Homes?




Massachusetts New Homes with ENERGY STAR®
What are ENERGY STAR
               Qualified Homes?

 • Each ENERGY STAR home is tested, certified
   and labeled by an independent HERS rating
   company.
     – Must follow Residential System Network (RESNET)
       testing procedures and guidelines.


 • A HERS Rater/Rating Provider uses software to
   model the home’s energy performance based on
   plan analysis and on-site testing to calculate a
   HERS Index. (REMRate)

Massachusetts New Homes with ENERGY STAR®
What are ENERGY STAR
               Qualified Homes?

 • The ENERGY STAR is applied to
   EVERY qualified home: (the same
   identifying mark of ENERGY
   STAR appliances & products)
     – Provides an easy way for buyers
       to recognize energy-efficient
       homes
     – Documents the home’s energy
       and comfort performance
     – Confirms that a third-party quality
       control/quality assurance has
       been done.

Massachusetts New Homes with ENERGY STAR®
What are ENERGY STAR
               Qualified Homes?

 • The ENERGY STAR
   certificate is provided for
   EVERY qualified home:
     – Official documentation of
       home’s energy performance
     – Confirms a third-party quality
       control
     – Can be included in closing kits
       and passed on to future
       homeowners



Massachusetts New Homes with ENERGY STAR®
Why Should You Build ENERGY
         STAR Qualified Homes?




Massachusetts New Homes with ENERGY STAR®
Brand Awareness

  91%         90% 89% 88% 87% 87%
                                  86% 85%                                                Tremendous Influence
              23%                                    17%                                 Great Deal of Influence
                                    28%    25%             23%                           Some Influence
  35%                    31%                                      24%   71%
                                                                        20%
                                                                              57% 54%
                                                     32%                      10%        7%
              36%
                                           34%             33%                                     46%
                                    32%                           33%                              6%
  30%                    34%                                                  16%                        37%
                                                                        25%              17%
                                                                                                          3%
                                                                                                   13%
                                                                                                          8%

                                                     38%
              31%                   28%    28%             30%    28%         31%        30%
  26%                    24%                                            26%                        27%   26%



  GH Seal      AHA        FDA       USDE    Cons.    ADA   USDA   BBB    UL    USDA     JD Power   USP    NSF
                                           Reports                            Organic


 Source: Fairfield Research, May 2003




Massachusetts New Homes with ENERGY STAR®
Why ENERGY STAR?

 • Rising energy costs.

 • Every homebuilder claims to build an “energy efficient”
   home
     – What exactly does this mean to the homebuyer?

 • Are your buyers’ expectations becoming higher or lower?

 • How can you strategically maximize your competitive
   position in the marketplace?


Massachusetts New Homes with ENERGY STAR®
Why ENERGY STAR?

 • Provides homebuilders with:
     – Decreased callbacks
     – Increased customer satisfaction
     – Assurance of quality contractor performance
     – Verification that actual purchased equipment was
       installed
     – Enhanced product differentiation
     – Credible mark identifying home as being verified
       by a third-party to exceed local code energy
       efficiency requirements by at least 15%.

Massachusetts New Homes with ENERGY STAR®
Why ENERGY STAR?

 • Provides homebuyers with:
     –   Construction that exceeds code (15% better)
     –   Greater quality and durability
     –   Increased comfort
     –   Better construction
     –   Improved indoor air quality (IAQ)
     –   Reduced noise
     –   Lower utility bills and maintenance costs




Massachusetts New Homes with ENERGY STAR®
Massachusetts New Homes with
            ENERGY STAR




Massachusetts New Homes with ENERGY STAR®
Assistance for Homebuilders

 • Financial incentives from program sponsors
 • Technical assistance and training
 • Marketing assistance and resources



 • BEST OF ALL PROGRAM PARTICIPATION IS….



                           FREE!

Massachusetts New Homes with ENERGY STAR®
Financial Incentives
                                               Single-Family Incentives

 Package                              Eligibility Requirements                               Incentive Amount1
 Code Plus                            •    Air Seal (6 ACH CFM 50)                                    $325
                                      •    Duct Seal (8% Leakage 2)

 ENERGY STAR I                        •    HERS Index of 85 to 66                                     $750
                                      •    Meet ENERGY STAR
                                           guidelines3
 ENERGY STAR II                       •    HERS Index of ≤65                                         $1,250
                                      •    Meet ENERGY STAR guidelines3

NOTES:
1
  Incentive amounts are subject to change.
2
  Duct leakage rate is % of floor area leakage to outdoors tested at 25 Pascal pressure.
3
  Bath fan rated for continuous use, ≤1.5 Sones and controlled by a 24-hour programmable timer or equivalent mechanical
ventilation system is required to insure healthy indoor air quality and proper moisture management




Massachusetts New Homes with ENERGY STAR®
Financial Incentives
                                                Multi-Family Incentives

 Package                              Eligibility Requirements                               Incentive Amount1
 Code Plus                            •    Air Seal (6 ACH CFM 50)                                    $225
                                      •    Duct Seal (8% Leakage 2)

 ENERGY STAR I                        •    HERS Index of 85 to 66                                     $650
                                      •    Meet ENERGY STAR guidelines3


 ENERGY STAR II                       •    HERS Index of ≤65                                         $1,150
                                      •    Meet ENERGY STAR guidelines3


NOTES:
1
  Incentive amounts are subject to change.
2
  Duct leakage rate is % of floor area leakage to outdoors tested at 25 Pascal pressure.
3
  Bath fan rated for continuous use, ≤1.5 Sones and controlled by a 24-hour programmable timer or equivalent mechanical
ventilation system is required to insure healthy indoor air quality and proper moisture management




Massachusetts New Homes with ENERGY STAR®
Financial Incentives


                Equipment /
 Package                                 Eligibility Requirements            Incentive
                Appliances
 ENERGY STAR    ENERGY STAR              Must be installed in low-income     $100 per
 Appliances     qualified refrigerator   housing                             package
                and dishwasher

 Heating and    SEER 14 and EER of       Home must be located in NSTAR or    $300 per
 Cooling        11.5                     National Grid’s service territory   qualifying unit
 (COOL SMART)   -or-
                HSPF of 8.2




Massachusetts New Homes with ENERGY STAR®
Financial Incentives

 • Gas Efficiency for gas heated homes
      – Available through GasNetworks at www.gasnetworks.com
  Equipment                                          Rebate
  High Efficiency Furnace AFUE 92% or greater         $100
  High Efficiency Furnace with ECM 92% or greater     $400
  High Efficiency Hot Water Boilers 85% or greater    $500
  High Efficiency Hot Water Boilers 90% or greater    $1000
  High Efficiency Indirect Water Heater/
                                                      $300
  On-Demand Tankless Water Heaters 82% or greater
  ENERGY STAR® Thermostats                           $25 (≤2)




Massachusetts New Homes with ENERGY STAR®
Financial Incentives

 • Renewable energy systems in affordable housing
      – Application available through Massachusetts New Homes
        with ENERGY STAR
                             Single-Unit
                                                      Multi-Unit Grid Tied
                              Grid Tied

                             Affordable    20%-49% Affordable    50%-100% Affordable
 Base Incentive              $7.00/watt        $6.00/watt              $7.00/watt
 Possible Addition to Base
 Green Buildings
                             $1.00/watt        $1.00/watt              $1.00/watt
    (LEED/CHPS)




Massachusetts New Homes with ENERGY STAR®
Technical Assistance
 • Plan Reviews
     – To help homebuilders select the most cost-effective upgrades to
       meet the guidelines for ENERGY STAR or exceed local
       residential energy code standards.
 • Site Visits and Diagnostic Testing
     – To verify the home is built to the agreed specifications and will
       earn the ENERGY STAR
 • Guidance and Support
     – Including help identifying additional incentives and Federal Tax
       Credits available to homebuilders for eligible energy-efficient
       technologies
 • Technical Training
     – Including workshops and in-field training about cost-effective,
       energy-efficient construction practices.
Massachusetts New Homes with ENERGY STAR®
Marketing Assistance

 • Consumer Web site
     – Drive homebuyers to ENERGY STAR communities and
       homebuilder partner Web sites
 • Free Real Estate Listings
     – For your ENERGY STAR qualified homes on
       www.energystarhomes.com
 • Marketing Staff Support
     – To successfully integrate ENERGY STAR into corporate
       messaging
 • Marketing Materials
     – Access to the national ENERGY STAR marketing and sales
       tools

Massachusetts New Homes with ENERGY STAR®
Massachusetts New Homes with
              ENERGY STAR
        Eligibility Requirements




Massachusetts New Homes with ENERGY STAR®
Home Eligibility Requirements

 • Separately metered, new residential
   construction or total gut rehab
 • Single-family detached or attached construction,
   OR multi-family attached construction permitted
   under the residential code
 • Electrical service provided by an electric utility
   sponsor (some exceptions apply for in gas utility
   sponsor territories)
 • Construction must be “completed” by December
   31, 2009

Massachusetts New Homes with ENERGY STAR®
How to Get Started



    Call 1-800-628-8413 to confirm incentives
      are available for your project or visit our
                     website at
                  www.energystarhomes.com




Massachusetts New Homes with ENERGY STAR®
Thanks to the Sponsors

 •   Bay State Gas                  •   National Grid/KeySpan
 •   Berkshire Gas                  •   New England Gas
 •   Cape Light Compact             •   NSTAR Electric and Gas
 •   GasNetworks                    •   Western Massachusetts
 •   Massachusetts                      Electric
     Technology Collaborative




Massachusetts New Homes with ENERGY STAR®
Gas Efficiency for
ENERGY STAR Homes MA
National Grid/KeySpan




                        33
34
Gas Networks
MA Consortium of Gas Utilities



    www.gasnetworks.com

    Rebates on gas saving controls and
      efficient equipment
    Training, education and workshops
    Link to further gas saving resources

                                           35
ENERGY STAR Gas Sponsors
    promote efficiency

 Rebates & Incentives
   On gas saving controls and equipment

 Additional Support
 Rater’s Fees: saving builders additional costs
 Promoting thermal efficiency in all new homes
 Collaborate with electric utility and efficiency
   sponsors
                                                    36
Requirements for gas
homes:
•   home must be a gas-heated home
•   meter must be a “residential” meter
•   constructed within stated time frames




                                            37
Gas Efficiency incentives
ENERGY STAR Homes MA

How to boost your home’s
performance via gas efficient
installations – and get $$ for
the equipment installed.


                                 38
ENERGY STAR
programmable thermostats
 EPA reports energy savings for every year
 No mercury compared to dial models
 Easy to purchase and install
 $25.00 rebate, max 2


MYTH: Instant Savings
    REALITY: Smart Programming is key
                                             39
High Efficiency Heating Equipment
Furnaces, Steam and
      Hot Water Boilers
Up to 50% of home energy cost
Rebates tied to efficiency
Rebates from $100 - $1000

MYTH: Too complicated to install
REALITY: Experienced contractors in MA
                                         40
High Efficiency Water Heating

Indirect & on-demand models
Rebates linked to efficiency

$300 Rebate


MYTH:      Can’t supply enough hot water

      REALITY: proper sizing is key
                                           41
ENERGY STAR Gas Sponsors
  potential gas rebate to builder




           $1,325.00
 Plus…$350 - $750 per project for raters’
    fees. This, in addition to your
    performance-based rebate.
                                            42
National Grid/KeySpan
       Solar Thermal Program

15% up to $1500
   per home.

For gas customers in
    MASS, NH, NY.



                               43
National Grid/KeySpan
       Solar Thermal Program
Simple Steps to participate
  1 – Locate solar installers – www.sebane.org

 2 – Installer submits application & quote to
     reserve funds
 3 – After review/inspection, rebate to customer

For questions:
  solar@keyspanenergy.com
                                                   44
KeySpan/National Grid
                      15% up to $1500.00




 Federal Tax Credit
      2008:
30% off costs, max
    $ 2,000.00


                                              45
Resources to
get
started
Solar incentives by state
     - www.dsire.org
Basics of SHW
     - www.eere.energy.gov

Federal Tax Credits
    - www.energystar.gov/taxcredits


                                      46
Thank you

       Diana Duffy
dduffy@keyspanenergy.com




                           47
Raphael Herz
Manager, Green Affordable
    Housing Initiative



                            48
MTC and the Trust
• Massachusetts Technology Collaborative (MTC)
  administers the Renewable Energy Trust, created in
  1997 by the Legislature to:
   – increase supply & demand for electricity from clean
     sources, and
   – promote development of a vibrant Massachusetts
     renewable energy industry.

• Over $250 million in awards; $40+ MM in FY2007
• Support for over 1300 clean energy projects,
  companies, and related activities.
   – Over 450 solar electric projects installed; ~5 megaWatts
   – Plus wind, small hydro, fuel cells, biomass, landfill gas
• 175+ cities and towns with installations
                                                             49
Some Towns Aren’t Eligible for Funds
• Source of funds is a surcharge             $25 million/yr
• Only customers in investor-owned utility service territories:




                                                                  50
Eligible Renewable Technologies
 Initiatives support commercially available technologies that use
 at least 25% of electricity onsite:

   Small Renewables Initiative   Large Onsite Renewables Initiative

Solar PV                         Solar PV         Biomass
Wind                             Wind             Fuel Cells
Hydro                            Hydro




                                                                51
Next up:
     PV Technology Basics
•   Why Solar photovoltaics (PV)?
•   How PV works
•   “Grid-tied” and “net-metering”
•   Good solar sites
                  Thanks to Terry Dupuis, Solar Works Inc. for the slides




Then
• Rebate programs
                                                                52
Solar Electric Energy

• In one hour, the sun
  sends energy to this
  planet to meet all of
  our energy needs for
  an entire year

• Solar Photovoltaic
  (PV) cells convert
  some sunlight energy
  into electricity



 • Combine with NE’s high traditional electricity costs…
                                                     53
Converting Sunlight to Electricity

• Photons strike silicon
  sandwiches, dislodge
  electrons
• Electrons freed by solar
  energy travel an electrical
  circuit
• Creates Direct Current
  (DC) electricity
• Has to be inverted to 60
  Hz AC – household power


                                      54
Utility-Connected PV Systems
             means “Grid-Tied”

• PV systems parallel the electric utility service – house
  usually runs on both solar and utility electricity

• PV Power will either:
   – supply home electrical needs, and/or
   – flow to the grid when PV power exceeds household
     demand.




                                                     55
Net Metering Changes Everything

• Sun shining – your home draws power from
  the array; at night, utility supplies power.
• When making more power than using, electric
  meter “spins” backwards– “netting” power
• “Net metering” effectively sells excess PV
  electricity to the
  utility - and at
  retail prices
  (it’s the law)



                                             56
Decent PV Installation Characteristics

• Lots of Sunlight – minimize shading
  from trees, roof elements, other
  buildings during solar window: 9AM-
  3PM
• Newly covered, structurally sound, roof
  facing near south
• ~40° Roof pitch
  or PV system
  pitch (flat roofs OK, too)
                                      57
No Shade on Panels!




                      58
A Tough Roof




               59
Urban Flat Roof, Tilted Mounting




2.6 kW; 20¢/kWh energy cost; $800/yr annually avoided   60
Ground-Mounted Solar Array




                         61
Two Rebate Programs
• Affordable ENERGY STAR
  Solar-Powered Homes Program
  – Building affordable (deed-restricted) housing?
  – Get rebates underwrite 75% - 80% of PV system

• Commonwealth Solar
  – New Program
    as of January



                                              62
Affordable Solar-Powered
   ENERGY STAR® Homes
           Program
• Partnership with Joint Management
  Committee (JMC) and the Massachusetts
  New Homes with ENERGY STAR® Program
• Roughly $400,000 in incentives left of
  $1,500,000 program
• Homebuilder must build to ENERGY STAR®
  standards to apply for incentives for
  renewable energy systems
• Affordable (deed-restricted) housing
• 33 homes powered by clean energy today!63
Affordable Solar-Powered
   ENERGY STAR® Homes
           Program
• Incentives:
  – Base of $6/watt if less than 50% of the units are
    deed-restricted affordable, or
  – Base of $7/watt if more than 50% of the units are
    deed-restricted affordable
  – Green Building Adder: $1/watt for LEED-H
• Obligation: PV installation must automatically
  report to the MTC Production Tracking
  System for useful life of system (typically
  about 20 years)
• 1-800-628-8413                              64
65
66
Commonwealth Solar:
    More Clean Energy and Jobs
• Executive Administration Goal
  – Achieve the Governor’s 250 MW by 2017 goal
  – 4 Year Target: 27 MW by end of 2011



• Make it easy…
  – Non-competitive, rolling rebate application
    process for all solar projects
  – Continuous, predictable PV incentives thru 2011
  – Ample Funding Available!
                                                67
Commonwealth Solar Funding

• $68 million over ~4 years
  – $40 million from the Renewable Energy Trust
  – $28 million from Div. of Energy Resources

• Minimum Reservations
  – $16 million through 2011 for state and municipal
    buildings, including schools
  – $8 million thru 20111 for residences, including
    low and moderate-income households.
  – 1st funding block:$8.5 million, of which $1
    million reserved for residences.
                                                  68
Commonwealth Solar
         Residential Benefits

Cost Coverage        20% to 60% of
                     typical residential PV
                     System
Estimated payback    8 to 18 years
Return on Investment 4.3% to 13.7%
System size          cap at 5.0 kW

+ Special incentives for
  moderate-income households            69
PV System Costs 2001 - 2007

Systems Rebated by MTC        578
Average Installed Cost     $37,795
Average Capacity (watts)     3890
Average $/watt cost          $9.73
Average Total Award         $9,935
Average Award - $/watt       $2.56

                                 70
Commonwealth Solar
Initial Residential Incentive Levels




           -- So, what’s the rebate???
                                       71
Calculating PV Rebate - 1

• Is it in a Municipal Lighting Plant district?

• Does the residence have adequate:
   – Roof Space?
   – Structural Roof Strength
   – Access to sunlight

• Or can it be ground-mounted?


                                                  72
Calculating PV Rebate - 2

• Determine PV Incentive (Total $ & $/watt)
• Start with Base Incentive ($2/watt)
• Are you using inverter or panels made in
  Massachusetts?
  – YES: Add $0.25/watt




                                          73
Calculating PV Rebate - 3
Does the residence meet the Moderate Home
Value criteria?
 County                            Moderate
                                   Home Value
 Berkshire, Franklin, Hampden,     ≤ $300,000
 and Hampshire
 Bristol, Suffolk, and Worcester   ≤ $350,000
 Barnstable, Duke, Essex,          ≤ $400,000
 Middlesex, Nantucket, Norfolk,
 and Plymouth


 YES:     Add $1.25 per watt                    74
Calculating PV Rebate - 3
Does the Property Owner meet the Moderate
Income criteria?

 Household Income Criteria       Rebate Adder

 Less than or equal to $76,296   Add $2 per
 (MA median household income)    watt
 Between $76,296 and $91,552     Add $1 per
 (up to 120 of MA median         watt
 household income)


                                              75
Sample Rebate Calculation

Total System Size (watts)       3600
Base Incentive ($/watt)         $2.00
MA Company Components           $0.25
Moderate Home Value             $1.25
Moderate Household Income       $1.00

Rebate ($)                  $16,200
Rebate ($/watt dc)‫‏‬           $4.50

                                  76
Small Hydro and Small Wind
      System Costs 2001 - 2007

                            Hydro     Wind
Number of Systems                 2        99
Average Installed Cost      $89,981   $36,531
Average Capacity (watts)‫‏‬      50.1      5.96
Average $/watt cost           $1.77     $6.13
Average Total Award         $28,000   $21,598
Average Award - $/watt        $0.55     $3.62

                                             77
For more information…

• Commonwealth Solar:
      http://www.masstech.org/solar

• MTC Affordable Housing website:
      http://www.masstech.org/
        renewableenergy/afford_housing.htm

• Green Affordable Housing
  Raphael Herz at MTC:
     (508) 870-0312 x1205
     herz@masstech.org

                                             78
Clean Energy.
It’s Real. It’s Here.
    It’s Working.




                        79
Thank You
This concludes The American Institute of
Architects Continuing Education Systems
                Program



   QUESTIONS?



                                           80
For more information…

• For a copy of this presentation visit:
   http://www.masstech.org/
     renewableenergy/afford_housing.htm
• Michael Berry, ICF International:
      774.212.2785 - mberry@icfi.com
• Diana Duffy, KeySpan:
      dduffy@keyspanenergy.com
• Raphael Herz, MTC
      508.870.0312x1205 - herz@masstech.org

                                              81

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Energy Star Homes

  • 1. W27 1:00 - 2:30 pm The EPA Energy Star Homes program Michael Berry, ICF International Diana Duffy, National Grid/KeySpan Raphael Herz, Massachusetts Technology Collaborative Massachusetts New Homes with ENERGY STAR®
  • 2. Welcome The Boston Society of Architects is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-AIA members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation. 2
  • 3. Learning Objectives • Understanding requirements of the Massachusetts New Homes with ENERGY STAR® Homes program • Awareness of incentives available through by building to ENERGY STAR® Homes standards • Awareness of other energy efficiency and renewable energy systems and rebates available for such systems 3
  • 4. Massachusetts New Homes with ENERGY STAR® ENERGY STAR® Homes A Lifetime of Value, Comfort, and Healthier Living Presenter Name: Michael Berry The sponsors of the Massachusetts New Homes with ENERGY STAR are Bay State Gas, Berkshire Gas, Cape Light Compact, GasNetworks, KeySpan Energy Delivery, Massachusetts National Grid/KeySpan, New England Gas, NSTAR Massachusetts Technology Collaborative, Technology Collaborative, National Grid, New Electric, Gas, NSTAR Electric, NSTAR Gas, UNITIL, and Western Massachusetts Electric. England NSTAR Gas, and Western Massachusetts Electric.
  • 5. Sponsored By The sponsors of the Massachusetts New Homes with ENERGY STAR is the Joint Management Committee (JMC): Bay State Gas, Berkshire Gas, Cape Light Compact, GasNetworks, Massachusetts Technology Collaborative, National Grid/KeySpan, New England Gas, NSTAR Electric, NSTAR Gas, and Western Massachusetts Electric. Massachusetts New Homes with ENERGY STAR®
  • 6. Agenda • What is ENERGY STAR? • What are ENERGY STAR Qualified Homes? • Why Should you Build ENERGY STAR? • Eligibility Requirements. • Homebuilder Program Support. • Getting Started. • Questions. Massachusetts New Homes with ENERGY STAR®
  • 7. What is ENERGY STAR? Trusted government symbol that makes it easy for consumers to identify energy-efficient products Massachusetts New Homes with ENERGY STAR®
  • 8. What is ENERGY STAR? Commercial Consumer Buildings Electronics Office Windows Equipment Appliances Residential Lighting HVAC Exit Signs Insulation Homes Massachusetts New Homes with ENERGY STAR®
  • 9. What are ENERGY STAR Qualified Homes? Massachusetts New Homes with ENERGY STAR®
  • 10. What are ENERGY STAR Qualified Homes? • Voluntary Program Established by the U.S. Environmental Protection Agency and the U.S. Department of Energy. • Meets National Specifications Established by the EPA. – Must achieve a rating of 85 or lower on the Home Energy Rating System (HERS) Index – Must pass the Thermal Bypass Inspection Checklist (TBC). Massachusetts New Homes with ENERGY STAR®
  • 11. What are ENERGY STAR Qualified Homes? Massachusetts New Homes with ENERGY STAR®
  • 12. What are ENERGY STAR Qualified Homes? • Each ENERGY STAR home is tested, certified and labeled by an independent HERS rating company. – Must follow Residential System Network (RESNET) testing procedures and guidelines. • A HERS Rater/Rating Provider uses software to model the home’s energy performance based on plan analysis and on-site testing to calculate a HERS Index. (REMRate) Massachusetts New Homes with ENERGY STAR®
  • 13. What are ENERGY STAR Qualified Homes? • The ENERGY STAR is applied to EVERY qualified home: (the same identifying mark of ENERGY STAR appliances & products) – Provides an easy way for buyers to recognize energy-efficient homes – Documents the home’s energy and comfort performance – Confirms that a third-party quality control/quality assurance has been done. Massachusetts New Homes with ENERGY STAR®
  • 14. What are ENERGY STAR Qualified Homes? • The ENERGY STAR certificate is provided for EVERY qualified home: – Official documentation of home’s energy performance – Confirms a third-party quality control – Can be included in closing kits and passed on to future homeowners Massachusetts New Homes with ENERGY STAR®
  • 15. Why Should You Build ENERGY STAR Qualified Homes? Massachusetts New Homes with ENERGY STAR®
  • 16. Brand Awareness 91% 90% 89% 88% 87% 87% 86% 85% Tremendous Influence 23% 17% Great Deal of Influence 28% 25% 23% Some Influence 35% 31% 24% 71% 20% 57% 54% 32% 10% 7% 36% 34% 33% 46% 32% 33% 6% 30% 34% 16% 37% 25% 17% 3% 13% 8% 38% 31% 28% 28% 30% 28% 31% 30% 26% 24% 26% 27% 26% GH Seal AHA FDA USDE Cons. ADA USDA BBB UL USDA JD Power USP NSF Reports Organic Source: Fairfield Research, May 2003 Massachusetts New Homes with ENERGY STAR®
  • 17. Why ENERGY STAR? • Rising energy costs. • Every homebuilder claims to build an “energy efficient” home – What exactly does this mean to the homebuyer? • Are your buyers’ expectations becoming higher or lower? • How can you strategically maximize your competitive position in the marketplace? Massachusetts New Homes with ENERGY STAR®
  • 18. Why ENERGY STAR? • Provides homebuilders with: – Decreased callbacks – Increased customer satisfaction – Assurance of quality contractor performance – Verification that actual purchased equipment was installed – Enhanced product differentiation – Credible mark identifying home as being verified by a third-party to exceed local code energy efficiency requirements by at least 15%. Massachusetts New Homes with ENERGY STAR®
  • 19. Why ENERGY STAR? • Provides homebuyers with: – Construction that exceeds code (15% better) – Greater quality and durability – Increased comfort – Better construction – Improved indoor air quality (IAQ) – Reduced noise – Lower utility bills and maintenance costs Massachusetts New Homes with ENERGY STAR®
  • 20. Massachusetts New Homes with ENERGY STAR Massachusetts New Homes with ENERGY STAR®
  • 21. Assistance for Homebuilders • Financial incentives from program sponsors • Technical assistance and training • Marketing assistance and resources • BEST OF ALL PROGRAM PARTICIPATION IS…. FREE! Massachusetts New Homes with ENERGY STAR®
  • 22. Financial Incentives Single-Family Incentives Package Eligibility Requirements Incentive Amount1 Code Plus • Air Seal (6 ACH CFM 50) $325 • Duct Seal (8% Leakage 2) ENERGY STAR I • HERS Index of 85 to 66 $750 • Meet ENERGY STAR guidelines3 ENERGY STAR II • HERS Index of ≤65 $1,250 • Meet ENERGY STAR guidelines3 NOTES: 1 Incentive amounts are subject to change. 2 Duct leakage rate is % of floor area leakage to outdoors tested at 25 Pascal pressure. 3 Bath fan rated for continuous use, ≤1.5 Sones and controlled by a 24-hour programmable timer or equivalent mechanical ventilation system is required to insure healthy indoor air quality and proper moisture management Massachusetts New Homes with ENERGY STAR®
  • 23. Financial Incentives Multi-Family Incentives Package Eligibility Requirements Incentive Amount1 Code Plus • Air Seal (6 ACH CFM 50) $225 • Duct Seal (8% Leakage 2) ENERGY STAR I • HERS Index of 85 to 66 $650 • Meet ENERGY STAR guidelines3 ENERGY STAR II • HERS Index of ≤65 $1,150 • Meet ENERGY STAR guidelines3 NOTES: 1 Incentive amounts are subject to change. 2 Duct leakage rate is % of floor area leakage to outdoors tested at 25 Pascal pressure. 3 Bath fan rated for continuous use, ≤1.5 Sones and controlled by a 24-hour programmable timer or equivalent mechanical ventilation system is required to insure healthy indoor air quality and proper moisture management Massachusetts New Homes with ENERGY STAR®
  • 24. Financial Incentives Equipment / Package Eligibility Requirements Incentive Appliances ENERGY STAR ENERGY STAR Must be installed in low-income $100 per Appliances qualified refrigerator housing package and dishwasher Heating and SEER 14 and EER of Home must be located in NSTAR or $300 per Cooling 11.5 National Grid’s service territory qualifying unit (COOL SMART) -or- HSPF of 8.2 Massachusetts New Homes with ENERGY STAR®
  • 25. Financial Incentives • Gas Efficiency for gas heated homes – Available through GasNetworks at www.gasnetworks.com Equipment Rebate High Efficiency Furnace AFUE 92% or greater $100 High Efficiency Furnace with ECM 92% or greater $400 High Efficiency Hot Water Boilers 85% or greater $500 High Efficiency Hot Water Boilers 90% or greater $1000 High Efficiency Indirect Water Heater/ $300 On-Demand Tankless Water Heaters 82% or greater ENERGY STAR® Thermostats $25 (≤2) Massachusetts New Homes with ENERGY STAR®
  • 26. Financial Incentives • Renewable energy systems in affordable housing – Application available through Massachusetts New Homes with ENERGY STAR Single-Unit Multi-Unit Grid Tied Grid Tied Affordable 20%-49% Affordable 50%-100% Affordable Base Incentive $7.00/watt $6.00/watt $7.00/watt Possible Addition to Base Green Buildings $1.00/watt $1.00/watt $1.00/watt (LEED/CHPS) Massachusetts New Homes with ENERGY STAR®
  • 27. Technical Assistance • Plan Reviews – To help homebuilders select the most cost-effective upgrades to meet the guidelines for ENERGY STAR or exceed local residential energy code standards. • Site Visits and Diagnostic Testing – To verify the home is built to the agreed specifications and will earn the ENERGY STAR • Guidance and Support – Including help identifying additional incentives and Federal Tax Credits available to homebuilders for eligible energy-efficient technologies • Technical Training – Including workshops and in-field training about cost-effective, energy-efficient construction practices. Massachusetts New Homes with ENERGY STAR®
  • 28. Marketing Assistance • Consumer Web site – Drive homebuyers to ENERGY STAR communities and homebuilder partner Web sites • Free Real Estate Listings – For your ENERGY STAR qualified homes on www.energystarhomes.com • Marketing Staff Support – To successfully integrate ENERGY STAR into corporate messaging • Marketing Materials – Access to the national ENERGY STAR marketing and sales tools Massachusetts New Homes with ENERGY STAR®
  • 29. Massachusetts New Homes with ENERGY STAR Eligibility Requirements Massachusetts New Homes with ENERGY STAR®
  • 30. Home Eligibility Requirements • Separately metered, new residential construction or total gut rehab • Single-family detached or attached construction, OR multi-family attached construction permitted under the residential code • Electrical service provided by an electric utility sponsor (some exceptions apply for in gas utility sponsor territories) • Construction must be “completed” by December 31, 2009 Massachusetts New Homes with ENERGY STAR®
  • 31. How to Get Started Call 1-800-628-8413 to confirm incentives are available for your project or visit our website at www.energystarhomes.com Massachusetts New Homes with ENERGY STAR®
  • 32. Thanks to the Sponsors • Bay State Gas • National Grid/KeySpan • Berkshire Gas • New England Gas • Cape Light Compact • NSTAR Electric and Gas • GasNetworks • Western Massachusetts • Massachusetts Electric Technology Collaborative Massachusetts New Homes with ENERGY STAR®
  • 33. Gas Efficiency for ENERGY STAR Homes MA National Grid/KeySpan 33
  • 34. 34
  • 35. Gas Networks MA Consortium of Gas Utilities www.gasnetworks.com Rebates on gas saving controls and efficient equipment Training, education and workshops Link to further gas saving resources 35
  • 36. ENERGY STAR Gas Sponsors promote efficiency Rebates & Incentives On gas saving controls and equipment Additional Support Rater’s Fees: saving builders additional costs Promoting thermal efficiency in all new homes Collaborate with electric utility and efficiency sponsors 36
  • 37. Requirements for gas homes: • home must be a gas-heated home • meter must be a “residential” meter • constructed within stated time frames 37
  • 38. Gas Efficiency incentives ENERGY STAR Homes MA How to boost your home’s performance via gas efficient installations – and get $$ for the equipment installed. 38
  • 39. ENERGY STAR programmable thermostats EPA reports energy savings for every year No mercury compared to dial models Easy to purchase and install $25.00 rebate, max 2 MYTH: Instant Savings REALITY: Smart Programming is key 39
  • 40. High Efficiency Heating Equipment Furnaces, Steam and Hot Water Boilers Up to 50% of home energy cost Rebates tied to efficiency Rebates from $100 - $1000 MYTH: Too complicated to install REALITY: Experienced contractors in MA 40
  • 41. High Efficiency Water Heating Indirect & on-demand models Rebates linked to efficiency $300 Rebate MYTH: Can’t supply enough hot water REALITY: proper sizing is key 41
  • 42. ENERGY STAR Gas Sponsors potential gas rebate to builder $1,325.00 Plus…$350 - $750 per project for raters’ fees. This, in addition to your performance-based rebate. 42
  • 43. National Grid/KeySpan Solar Thermal Program 15% up to $1500 per home. For gas customers in MASS, NH, NY. 43
  • 44. National Grid/KeySpan Solar Thermal Program Simple Steps to participate 1 – Locate solar installers – www.sebane.org 2 – Installer submits application & quote to reserve funds 3 – After review/inspection, rebate to customer For questions: solar@keyspanenergy.com 44
  • 45. KeySpan/National Grid 15% up to $1500.00 Federal Tax Credit 2008: 30% off costs, max $ 2,000.00 45
  • 46. Resources to get started Solar incentives by state - www.dsire.org Basics of SHW - www.eere.energy.gov Federal Tax Credits - www.energystar.gov/taxcredits 46
  • 47. Thank you Diana Duffy dduffy@keyspanenergy.com 47
  • 48. Raphael Herz Manager, Green Affordable Housing Initiative 48
  • 49. MTC and the Trust • Massachusetts Technology Collaborative (MTC) administers the Renewable Energy Trust, created in 1997 by the Legislature to: – increase supply & demand for electricity from clean sources, and – promote development of a vibrant Massachusetts renewable energy industry. • Over $250 million in awards; $40+ MM in FY2007 • Support for over 1300 clean energy projects, companies, and related activities. – Over 450 solar electric projects installed; ~5 megaWatts – Plus wind, small hydro, fuel cells, biomass, landfill gas • 175+ cities and towns with installations 49
  • 50. Some Towns Aren’t Eligible for Funds • Source of funds is a surcharge $25 million/yr • Only customers in investor-owned utility service territories: 50
  • 51. Eligible Renewable Technologies Initiatives support commercially available technologies that use at least 25% of electricity onsite: Small Renewables Initiative Large Onsite Renewables Initiative Solar PV Solar PV Biomass Wind Wind Fuel Cells Hydro Hydro 51
  • 52. Next up: PV Technology Basics • Why Solar photovoltaics (PV)? • How PV works • “Grid-tied” and “net-metering” • Good solar sites Thanks to Terry Dupuis, Solar Works Inc. for the slides Then • Rebate programs 52
  • 53. Solar Electric Energy • In one hour, the sun sends energy to this planet to meet all of our energy needs for an entire year • Solar Photovoltaic (PV) cells convert some sunlight energy into electricity • Combine with NE’s high traditional electricity costs… 53
  • 54. Converting Sunlight to Electricity • Photons strike silicon sandwiches, dislodge electrons • Electrons freed by solar energy travel an electrical circuit • Creates Direct Current (DC) electricity • Has to be inverted to 60 Hz AC – household power 54
  • 55. Utility-Connected PV Systems means “Grid-Tied” • PV systems parallel the electric utility service – house usually runs on both solar and utility electricity • PV Power will either: – supply home electrical needs, and/or – flow to the grid when PV power exceeds household demand. 55
  • 56. Net Metering Changes Everything • Sun shining – your home draws power from the array; at night, utility supplies power. • When making more power than using, electric meter “spins” backwards– “netting” power • “Net metering” effectively sells excess PV electricity to the utility - and at retail prices (it’s the law) 56
  • 57. Decent PV Installation Characteristics • Lots of Sunlight – minimize shading from trees, roof elements, other buildings during solar window: 9AM- 3PM • Newly covered, structurally sound, roof facing near south • ~40° Roof pitch or PV system pitch (flat roofs OK, too) 57
  • 58. No Shade on Panels! 58
  • 60. Urban Flat Roof, Tilted Mounting 2.6 kW; 20¢/kWh energy cost; $800/yr annually avoided 60
  • 62. Two Rebate Programs • Affordable ENERGY STAR Solar-Powered Homes Program – Building affordable (deed-restricted) housing? – Get rebates underwrite 75% - 80% of PV system • Commonwealth Solar – New Program as of January 62
  • 63. Affordable Solar-Powered ENERGY STAR® Homes Program • Partnership with Joint Management Committee (JMC) and the Massachusetts New Homes with ENERGY STAR® Program • Roughly $400,000 in incentives left of $1,500,000 program • Homebuilder must build to ENERGY STAR® standards to apply for incentives for renewable energy systems • Affordable (deed-restricted) housing • 33 homes powered by clean energy today!63
  • 64. Affordable Solar-Powered ENERGY STAR® Homes Program • Incentives: – Base of $6/watt if less than 50% of the units are deed-restricted affordable, or – Base of $7/watt if more than 50% of the units are deed-restricted affordable – Green Building Adder: $1/watt for LEED-H • Obligation: PV installation must automatically report to the MTC Production Tracking System for useful life of system (typically about 20 years) • 1-800-628-8413 64
  • 65. 65
  • 66. 66
  • 67. Commonwealth Solar: More Clean Energy and Jobs • Executive Administration Goal – Achieve the Governor’s 250 MW by 2017 goal – 4 Year Target: 27 MW by end of 2011 • Make it easy… – Non-competitive, rolling rebate application process for all solar projects – Continuous, predictable PV incentives thru 2011 – Ample Funding Available! 67
  • 68. Commonwealth Solar Funding • $68 million over ~4 years – $40 million from the Renewable Energy Trust – $28 million from Div. of Energy Resources • Minimum Reservations – $16 million through 2011 for state and municipal buildings, including schools – $8 million thru 20111 for residences, including low and moderate-income households. – 1st funding block:$8.5 million, of which $1 million reserved for residences. 68
  • 69. Commonwealth Solar Residential Benefits Cost Coverage 20% to 60% of typical residential PV System Estimated payback 8 to 18 years Return on Investment 4.3% to 13.7% System size cap at 5.0 kW + Special incentives for moderate-income households 69
  • 70. PV System Costs 2001 - 2007 Systems Rebated by MTC 578 Average Installed Cost $37,795 Average Capacity (watts) 3890 Average $/watt cost $9.73 Average Total Award $9,935 Average Award - $/watt $2.56 70
  • 71. Commonwealth Solar Initial Residential Incentive Levels -- So, what’s the rebate??? 71
  • 72. Calculating PV Rebate - 1 • Is it in a Municipal Lighting Plant district? • Does the residence have adequate: – Roof Space? – Structural Roof Strength – Access to sunlight • Or can it be ground-mounted? 72
  • 73. Calculating PV Rebate - 2 • Determine PV Incentive (Total $ & $/watt) • Start with Base Incentive ($2/watt) • Are you using inverter or panels made in Massachusetts? – YES: Add $0.25/watt 73
  • 74. Calculating PV Rebate - 3 Does the residence meet the Moderate Home Value criteria? County Moderate Home Value Berkshire, Franklin, Hampden, ≤ $300,000 and Hampshire Bristol, Suffolk, and Worcester ≤ $350,000 Barnstable, Duke, Essex, ≤ $400,000 Middlesex, Nantucket, Norfolk, and Plymouth YES: Add $1.25 per watt 74
  • 75. Calculating PV Rebate - 3 Does the Property Owner meet the Moderate Income criteria? Household Income Criteria Rebate Adder Less than or equal to $76,296 Add $2 per (MA median household income) watt Between $76,296 and $91,552 Add $1 per (up to 120 of MA median watt household income) 75
  • 76. Sample Rebate Calculation Total System Size (watts) 3600 Base Incentive ($/watt) $2.00 MA Company Components $0.25 Moderate Home Value $1.25 Moderate Household Income $1.00 Rebate ($) $16,200 Rebate ($/watt dc)‫‏‬ $4.50 76
  • 77. Small Hydro and Small Wind System Costs 2001 - 2007 Hydro Wind Number of Systems 2 99 Average Installed Cost $89,981 $36,531 Average Capacity (watts)‫‏‬ 50.1 5.96 Average $/watt cost $1.77 $6.13 Average Total Award $28,000 $21,598 Average Award - $/watt $0.55 $3.62 77
  • 78. For more information… • Commonwealth Solar: http://www.masstech.org/solar • MTC Affordable Housing website: http://www.masstech.org/ renewableenergy/afford_housing.htm • Green Affordable Housing Raphael Herz at MTC: (508) 870-0312 x1205 herz@masstech.org 78
  • 79. Clean Energy. It’s Real. It’s Here. It’s Working. 79
  • 80. Thank You This concludes The American Institute of Architects Continuing Education Systems Program QUESTIONS? 80
  • 81. For more information… • For a copy of this presentation visit: http://www.masstech.org/ renewableenergy/afford_housing.htm • Michael Berry, ICF International: 774.212.2785 - mberry@icfi.com • Diana Duffy, KeySpan: dduffy@keyspanenergy.com • Raphael Herz, MTC 508.870.0312x1205 - herz@masstech.org 81