President Obama announced March 2 details on “Homestar,” a Cash for Clunkers-like rebate program designed to entice Americans to make their houses more energy efficient. The administration hopes the incentives will boost demand for building products such as insulation, efficient windows, and roofing in the same way car sales skyrocketed last year when consumers were offered rebates for trading in their gas-guzzling autos for more fuel-friendly models.
As outlined in the proposal, dubbed “Cash for Caulkers,” homeowners could be eligible for up to $3,000 in point-of-sale rebates for purchases of efficient product upgrades or whole-house audits/retrofits. Energy efficiency contractors and suppliers would market the rebates, provide them directly to consumers, and then be reimbursed by the federal government.
Under the first level of rebates, Silver Star, consumers would be eligible for up to $1,500 for a variety of home upgrades, including adding insulation, sealing leaky ducts, and replacing inefficient water heaters, HVAC units, windows, roofing, and doors. There would be a maximum rebate of $3,000 per home.
The more comprehensive Gold Star level would provide a $3,000 rebate to consumers for a whole-house energy audit and subsequent retrofit tailored to achieve a 20% energy savings. Additional rebates would be available for savings above 20%.
Administration officials are still working with Congress on details, including how long the program will run, but the White House expects Homestar to create “tens of thousands” of jobs, cut energy bills for families by $200 to $500 per year, and reduce the nation’s dependence on oil.
In a statement, the NAHB acknowledged the program’s economic possibilities: “This has the potential to be a real shot in the arm for the home building industry,” said association chairman Bob Jones. “It will help put America back to work, and it will help families save on monthly energy bills.”
Masco Home Services president Larry Laseter, one of three manufacturers who joined Obama at the event, urged Congress to approve the program. “We applaud the efforts of the administration to introduce a jobs creations program that is truly a win-win-win,” said Laseter. “The Homestar program will put our nation’s skilled construction force back to work, benefit homeowners through comfort and energy-efficient improvements to their existing homes, and result in long term energy efficiency gains.”
The National Lumber and Building Material Dealers Association was more cautious, telling Building Products’ sister publication ProSales it will be working closely with the White House, the DOE, and Congress to help ensure the program does not put small and large independent dealers at a disadvantage versus big-box retailers. The NAHB also expressed that equal access for all will be essential to the program’s success.
Click here for full details of the Homestar program. –Jennifer Goodman
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