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EPA estimates that homeowners can typically save up to 20% of heating and cooling costs (or up to 10% of total energy costs) by air sealing their homes and adding insulation in attics, floors over crawl spaces, and accessible basement rim joists. This estimate is based on energy modeling (using REM/Rate version 11.0) of cost-effective improvements made to 'typical' existing U.S. homes with a weighted composite of characteristics. The modeled results are corroborated by the field experience of professional building science contractors who have done air sealing and insulation work for more than 20 years. Establishing a 'Typical' U.S. Existing House The Residential Energy Consumption Survey (RECS) indicates that a large block of existing U.S. housing stock was constructed between 1975 and 1985, just after the 1973 oil embargo, when there was a new increased awareness of energy use in homes. As a result, EPA based its modeling around the common construction characteristics of homes built in this era as a proxy for a 'typical' existing U.S. home. Construction characteristics for the 1975–85 era were determined based on a review of RECS data from the U.S. Department of Energy, 1997 EDS (Energy Data Sourcebook for the U.S. Residential Sector and earlier versions) data from Lawrence Berkeley National Laboratory, and other supporting data, including anecdotal experience of ENERGY STAR staff and stakeholders. Based on these sources, EPA assumed the following characteristics for a house from the 1975–85 era: * 1,500 square feet of conditioned floor area; * 14% window-to-floor-area ratio; * 20% duct leakage to the outside; * three bedrooms; and * "stick" construction (wooden studs, joists and rafters), with batt insulation in walls and blown insulation in attics. Geographic climate factors, regional construction styles (e.g., basement, crawl space or slab-on-grade), and fuel type characteristics (e.g., natural gas or electricity) were then proportionally weighted; and estimated energy use calculated for "typical" composite houses in two climates that represented a weighted average for a Northern and a Southern home. Estimating Energy Savings from Improvements Made to the 'Typical' Home For the purpose of energy estimating savings, EPA assumed that a knowledgeable homeowner or contractor could cost-effectively: * Seal air leaks throughout the house, focusing on leaks to the attic space, through the foundation, and around windows and doors. An average documented baseline value of 0.91 ACHNAT (natural air changes per hour) was used for Northern homes and 0.94 ACHNAT was used for Southern homes. Both Northern and Southern homes were estimated to be improved to a leakage level of 0.50 ACHNAT. * Add insulation to improve R-values from the average documented attic insulation values of R-15 in the North and R-13 in the South to R-38; improve basement rim joists from R-0 to R-11; and improve floors over crawl spaces from R-0 to R-11. Note: In estimating savings opportunities, EPA considered that the 1975–85 construction era coincided with the period after the 1973 oil-embargo when early residential energy conservation measures were first becoming widespread (e.g., storm windows over single-pane/clear glass windows, some caulking & sealing to reduce air leaks, increased attic insulation, etc.). EPA also assumed that original, as-built HVAC and water heating equipment was replaced in the 1990s by 1993–2000 MEC/NAECA-era equipment. Based on these projected cost-effective improvements, EPA estimates the following potential energy and utility bill savings: Location Site MMBTU¹ Savings Utility Bill Savings (2007 data²) North Total House 14% 12% Heating and cooling only 20% 19% South Total House 13% 11% Heating and cooling only 23% 20% ¹ Million British Thermal Units of energy ² From US Dept. of Energy, Energy Information Administration 2007 Short Term Outlook projected US natural gas and electricity prices. Conservatively rounding these projected energy and cost savings, and corroborating modeled results with the field experience of professional home energy contractors, EPA estimates that homeowners can typically save up to 20% of heating and cooling costs (or up to 10% of total energy costs) by air sealing their homes and adding insulation in attics, floors over crawl spaces, and accessible basement rim joists.

US Department of Energy, Renewable Energy Grant Money "HOW TO",

Federal Incentives/Policies for Renewables & Efficiency Printable Version Back U.S. Department of Energy - Loan Guarantee Program Last DSIRE Review: 10/08/2009 Incentive Type: Federal Loan Program State: Federal Eligible Efficiency Technologies: Yes; specific technologies not identified Eligible Renewable/Other Technologies: Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Hydroelectric, Renewable Transportation Fuels, Geothermal Electric, Fuel Cells, Manufacturing Facilities, Daylighting, Tidal Energy, Wave Energy, Ocean Thermal, Biodiesel Applicable Sectors: Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Agricultural, Institutional, Any non-federal entity Amount: Varies. Program focuses on projects with total project costs over $25 million. Max. Limit: None stated Terms: Full repayment is required over a period not to exceed the lesser of 30 years or 90% of the projected useful life of the physical asset to be financed Web Site: http://www.lgprogram.energy.gov Authority 1: 42 USC § 16511 et seq. Authority 2: 10 CFR 609 Summary: Innovative Technology Loan Guarantee Program: Title XVII of the federal Energy Policy Act of 2005 (EPAct 2005) authorized the U.S. Department of Energy (DOE) to issue loan guarantees for projects that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." The loan guarantee program has been authorized to offer more than $10 billion in loan guarantees for energy efficiency, renewable energy and advanced transmission and distribution projects. DOE actively promotes projects in three categories: (1) manufacturing projects, (2) stand-alone projects, and (3) large-scale integration projects that may combine multiple eligible renewable energy, energy efficiency and transmission technologies in accordance with a staged development scheme. Under the original authorization, loan guarantees were intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects. In July 2009, the U.S. DOE issued a new solicitation for projects that employ innovative energy efficiency, renewable energy, and advanced transmission and distribution technologies. Proposed projects must fit within the criteria for "New or Significantly Improved Technologies" as defined in 10 CFR 609. The solicitation provides for a total of $8.5 billion in funding and is to remain open until that amount is fully obligated. The initial due date for applicants was September 16, 2009. Temporary Loan Guarantee Program: The American Recovery and Reinvestment Act of 2009 (ARRA) (H.R. 1), enacted in February 2009, extended the authority of the DOE to issue loan guarantees and appropriated $6 billion for this program. Under this act, the DOE may enter into guarantees until September 30, 2011. The act amended EPAct 2005 by adding a new section defining eligible technologies for new loan guarantees. Eligible projects include renewable energy projects that generate electricity or thermal energy and facilities that manufacture related components, electric power transmission systems, and innovative biofuels projects. Funding for biofuels projects is limited to $500 million. Davis-Bacon wage requirements apply to any project receiving a loan guarantee. In October 2009, the U.S. DOE issued a new solicitation for traditional renewable energy generation projects. The solicitation is funded with $750 million in ARRA funding and is expected to support as much as $4 to 8 billion in lending to eligible projects. The initial deadline for submissions under this solicitation is November 23, 2009. Contact: Public Information - DOE U.S. Department of Energy 1000 Independence Avenue, SW Washington , DC 20585-0121 Phone: (202) 586-8336 E-Mail: LGProgram@hq.doe.gov Web Site: http://www.lgprogram.energy.gov