Credit: This resource is a revised version of the EDIS IFAS fact sheet Energy Efficient Homes: Incentive Programs for Energy Efficiency (FSC3268), by Nicholas W. Taylor, Jennison Kipp Searcy, and Kathleen C. Ruppert
Energy efficiency upgrades often require substantial financial investments. For homeowners, this may mean that even though investments in energy efficiency upgrades make sound financial sense in the long run, they may not be financially feasible in the short run. To help homeowners bridge the gap between energy efficiency and project affordability while addressing other concerns—such as power plant inefficiencies, increased power demand, and environmental and health issues—utility providers, states, and the federal government provide . Many types of incentives are available to you, the “end-user,” such as rebates, loan programs, and giveaways, and they are often coupled with to further reduce the financial burden of investments on customers.
In Florida, the largest electric and gas utilities are required by law (through the Florida Energy Efficiency and Conservation Act, or FEECA) to meet energy savings goals set by the Florida Public Service Commission (PSC). Incentives are an important part of the demand-side management programs that utilities offer to achieve energy savings targets and reduce peak demands. Each year, the PSC publishes a report detailing utilities’ efficiency and conservation activities, types of incentives offered, programs’ cost effectiveness, and progress toward achieving savings targets. To learn more about energy efficiency programs and incentives offered by Florida’s utility providers, read the and access past reports at the .
Energy efficiency incentives generally fall into one of six categories: structural, mechanical, appliances, lighting, alternative/renewable energy, and load management. Table 1 briefly outlines the typical incentives that apply to specific energy efficiency upgrades, but there is one other key incentive to consider first, and that’s the energy audit.
The energy audit is not only one of the most common energy efficiency incentives offered, but it is also arguably the most valuable. Utility providers often have trained energy efficiency consultants on staff to help customers identify particular areas where energy efficiency improvements can be made. In recent years, utilities have also diversified their audit programs, offering customers a range of tools to assess their home’s efficiency and identify potential efficiency upgrades that are cost effective. For example, one Florida electric utility offers customers seven different residential audit options, ranging from free walk-through inspections to online, mail-in or phone-assisted audits to professional energy ratings. During an in-home audit, consultants will inspect many different features of the home that are often inefficient, yet which typical customers may inadvertently overlook as opportunities for saving energy. Before you make any major energy efficiency upgrades, consulta professionally trained energy efficiency expert.
Generally, a home’s structural features are the first elements to consider when identifying areas for efficiency improvements. Common structural rebates include those for adding attic insulation and shading or replacing old or inefficient windows. Making these upgrades helps to lower the demand on a home’s heating, ventilation and air conditioning (HVAC) systems, which means that the same level of indoor comfort—heating and cooling services—can be achieved with smaller, more efficient, and more economical units. In addition, these types of renovations often qualify for loan programs that target residential energy efficiency. Some structural incentives, such as giveaways of weatherstripping and caulking, target leak reduction and improvements in overall home weatherization. These small changes reduce the exchange of air between the home and the outdoors, making your conditioned space less drafty and reducing your home’s heating and air conditioning needs.
In most Florida homes, mechanical systems are the largest energy users, so they are often strong candidates for incentive programs. A home’s mechanical system primarily consists of the HVAC system components, the performance of which is affected largely by the quality and condition of a home’s windows and attic insulation. HVAC ductwork, which conveys conditioned air throughout the home, can be a major source of energy loss as any leaks will result in loss of cooled or heated air as well as infiltration of unconditioned air. For more information on HVAC systems in Florida, see the fact sheet. Most utilities offer rebates for having HVAC systems and ductwork sealed and serviced by licensed professionals. For replacement of central air conditioning systems, many utility and manufacturer rebates may apply. In addition, certain energy efficiency loan programs apply specifically to HVAC unit upgrades.
In most Florida homes, the second largest energy use is for heating water. Energy efficiency loan programs, along with utility and manufacturer rebates, have been offered for upgrading to energy efficient water heaters and other appliances. Generally, new appliances must meet a certain ENERGY STAR® level to qualify, so be sure to know the requirements of the incentive program you are pursuing, and the manufacturer information for the appliance you are considering. Finally, ask the salesperson or contractor with whom you are working to verify that you are purchasing a model that qualifies for the incentive.
Upgrading incandescent lighting to more energy efficient, low wattage lighting, such as compact fluorescent lamps (CFLs), is a relatively low cost investment, making it ineligible for many incentive programs. Often, however, you can get CFLs through giveaways, at utility buy-down programs through local vendors, or at other local energy efficiency events.
Light emitting diodes (LEDs) are another type of lighting that is part of a class of lighting called Solid State Lighting (SSL). Unlike incandescent or CFLs, LEDs are small electronic components that convert electricity into light. The cost of materials needed to make LED lighting has plummeted in the past several years. Although LEDs remain more expensive than their counterparts, their prices are steadily declining.
It is especially important to value quality over pricing when purchasing CFLs or LEDs as this is critical to receiving the proper energy efficiency return on your financial investment. The website provides information on how to choose the best bulb for your application, a savings calculator, a listing of ENERGY STAR qualified bulbs, and more.
For more information about CFLs and LEDs, see the following fact sheets:
Currently, some of the largest efficiency incentives offered are for alternative/renewable energy technologies. may apply to solar photovoltaic (PV), solar water heating, fuel cells, and other technologies. Some utility providers have implemented rebate programs to encourage the installation of solar PV panels, solar water heaters, and solar pool heaters. Before purchasing any new technology, be certain you are aware of and can meet the requirements of the particular incentive program for which you will be applying. Here are a few resources on U.S. and Florida-specific solar products, professionals and incentives to help you get started:
By managing weather-sensitive peak demand, electric utilities can reduce their operating costs and delay or offset the need to expand generation capacity. In Florida, periods of peak residential electric demand typically occur during summer months and the warmest hours of the day—late afternoon/early evening—when people are home and running their air conditioners and fans to staycool. Colder parts of the state also experience winter peaks during times of high heating demand. To “shave” these demand spikes, utilities often provide incentives for customers to reduce their consumption during peak periods and/or shift their use from peak to off-peak periods. All five investor-owned electric utilities operating in Florida offer some form of residential and/or commercial load management programs with varying features and incentive structures.
Load management programs rely on the flow of real-time information to provide signals during times of peak demand and tools that allow users to respond, reducing or shifting demand accordingly. If the customer makes the decisions about when and how to adjust use, the program is typically voluntary. When the program is structured so that the utility can override a customer’s system as needed, by overriding a programmable thermostat or turning off a pool pump, for example, this is a “direct load control” approach. An indirect load management strategy provides incentives for the use of stand-by generators or other forms of on-site generation (e.g, renewables) during peak periods. Incentives can take the form of a direct price signal (such as a time-of-use or tiered rate structure) or a monthly utility bill credit or rebate given to the customer based on their peak savings.
When choosing energy efficiency upgrades to make in your home, it is important to consider carefully which ones will be most helpful in actually reducing your energy use, and therefore your utility bills as well. To get the greatest financial benefit when making upgrades, you must know which incentive programs are available to you, the products and services to which they apply, and the specific details of each program. For the most current information regarding federal, state, and utility provider energy efficiency incentives visit the (Figure 1) and . To get the most accurate and complete information about the incentives available now in your particular area, contact your utility provider and a trusted local vendor who supplies the product or service of interest.
Isn’t it time your home started paying you back for a change?
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This document is FCS3268, one of an Energy Efficient Homes series of the Department of Family, Youth and Community Sciences, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. This material was initially prepared in June 2008 with the support of the Department of Environmental Protection, Florida Energy Office, which is now the Florida Department of Agriculture and Consumer Services, Office of Energy. This revised version was prepared June 2012 and updated June 2015 with the support of the . Any opinions, findings, conclusions, or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the sponsoring organizations. Please visit the .
Nicholas W. Taylor, Research Associate; Jennison Kipp Searcy, Resource Economist; and Kathleen C. Ruppert, Extension Scientist; Program for Resource Efficient Communities; Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611.
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