Obama’s Cash for Caulkers Proposal Offers up to $12,000 Per Home
Government reimbursements could entice more people to make their homes more energy efficient. (image: jladvenco.com)
Okay, the name is a little corny, but who cares when we’re talking up to $12,000 in rebates?
That’s the amount a homeowner could receive under a new program proposed by President Obama on Tuesday, reports CNN Money. “Cash for Caulkers” would reimburse homeowners for energy-efficient appliances and insulation as part of a broader plan to stimulate the economy and create jobs.
Immediate details were not provided, but the administration said it would work with Congress to craft legislation. The American Council for an Energy-Efficient Economy is helping to write the bill. This program, also known as Homestar is an evolution of a plan suggested by venture capitalist John Doerr.
While there have been many programs for tax credits for home energy efficiency, they aren’t widely used. The average American home is still inefficient in its energy use and Cash for Caulkers is an attempt to dramatically increase efficiency efforts.
The program designates money for homeowners to undertake efficiency measures, and money for companies in the renewable energy and energy-efficiency sectors.
Nadel mentioned that the plan will likely create a new program in which private certified contractors conduct energy audits and then install the necessary improvements. Large items such as refrigerators, air conditioners, washing machines, windows, and insulation would all likely be included, he added.
Consumers might be eligible for a 50 percent rebate on both the price of the equipment and its installation, up to $12,000, said Nadel. Currently, there is no income restriction on eligibility, meaning that a household could spend as much as $24,000 on upgrades and get half back. The details of how the program would work are not clear yet; the government may issue rebates to homeowners directly, homeowners may get a tax credit, or the program could be run through state offices.
The renewable business side of the plan calls for additional support from the government, which could come from loan guarantees. These loan guarantees—used to secure loans for startup companies—were actually in the original stimulus bill that was passed earlier this year, but a portion was then axed to fund Cash for Clunkers.
The $4 billion in loan guarantees left from the original bill has funded about $40 billion in loans, said a staffer on the Senate Energy Committee. Renewable businesses are hoping for another $4 billion in loan guarantees, since they have another $40 billion worth of projects that need funding.
A bill on energy-efficiency reimbursements already has supporters in the Senate.
In talking about the new program, Obama said, “We know [it] creates jobs, saves money for families, and reduces the pollution that threatens our environment. With additional resources, in areas like advanced manufacturing of wind turbines and solar panels, for instance, we can help turn good ideas into good private-sector jobs.”
Bryan Jones says: says:
Are there any certification programs in place yet? Who will do the training? Will this site keep current on training and contracting opportunities?
Josh Garrett says: says:
Thanks for the question, Ed and Diane. At this point, cash for caulkers is just an idea, so there aren’t any details available. Unfortunately, the idea was not included in the jobs bill that passed the house last month, so it won’t be put into action any time soon.
Ed & Diane Brolin says: says:
Will this rebate also include radiant heating for the home?
This Week in Heating Oil: December 18 | HeatingOil.com says: says:
[...] Obama’s “Cash for Caulkers” program will not be implemented any time soon, if at all–last Friday, the House of [...]
Cash for Caulkers Could be Modeled on NY State Program | HeatingOil.com says: says:
[...] The federal program is still in the planning stages, so any commentary on how it may turn out is only speculation at this point. What we do know is that homeowners could receive up to $12,000 in rebates for upgrading to more energy-conserving heating equipment, windows, insulation, e…. [...]
Obama Talks Benefits of Home Energy Conservation at Home Depot | HeatingOil.com says: says:
[...] Obama’s “Cash for Caulkers” proposal would reimburse homeowners for energy-efficient appliances and insulation as part of a broader plan to stimulate the economy and create jobs. The proposal includes [...]
This Week in Heating Oil: Cash for Caulkers | HeatingOil.com says: says:
[...] President Obama made an announcement that may hit closer to home. On Tuesday Obama proposed a “Cash for Caulkers” program that would offer rebates to homeowners for a variety of energy-efficiency measures, from [...]
Josh Garrett says: says:
Thanks for the question, Toni. As the post indicates, this is still just a plan in its early stages, and the details have not yet been decided. Congress will most likely have to approve the program, then it will be administered by a federal agency. As the details come clear and applications made available, we’ll be sure to report that news to you and the rest of our readers as fast as possible.
toni woj says: says:
How do I apply for the money to repair my home.
Where do I get the necessary paperwork?
Josh Garrett says: says:
Thanks for your question, Vinergy. Details about the program have not been released yet, so I’m afraid I can’t provide you an answer. But check back with us often–we will report on the details as soon as they emerge.
Vinergy says: says:
Which energy auditor certification will this program require? Will both HERS(RESNET)Raters and BPI Building Analysts be able to do the energy audits?