FAQs - Energize Delaware

Homes that perform with ENERGY STAR^® can save their owners money, improve comfort, and contribute to better family health and safety — all while providing durability and maximum energy efficiency to the home. Below you’ll find Frequently Asked Questions from homeowners about the Energize Delaware Home Performance Program.

Created by the federal government, Home Performance uses a whole-house approach to make a home more energy-efficient, thus lowering its energy consumption. Each participating contractor has staff certified by the Building Performance Institute (BPI) who will use advanced diagnostic equipment to test the home and identify optimal energy efficiency improvements. Only contractors with BPI-certified staff can participate in the Program.  This brochure can help you understand what to expect during the process.

The Home Energy Audit is the first step toward improving your home’s energy efficiency and reducing energy bills. A BPI-certified contractor will test and evaluate your home (including but not limited to the heating and cooling equipment, insulation levels, air infiltration, appliances, and lighting) using advanced diagnostic equipment and building science principles to determine which areas would benefit from energy efficiency and health and safety-related improvements.

Specifically, the contractor tests for air-leakage using a blower door and infrared scan, conducts a series of combustion-related tests, and looks for opportunities to improve the home’s insulation, heating and cooling system, windows, appliances, and lighting. The contractor will then explain to you what improvements can be made, and what they will cost.  This video will show you what happens during a typical audit, and you may also view a sample audit report.

The cost of the audit will vary by contractor, with a range of $0 to $450, however if you decide to proceed with the recommendations, a portion of the audit fee (up to $250) is refundable at the end of your project.  The work must be completed within six months of the date the initial audit was performed, and the installed measure(s) cost must be equal to or greater than $500.  Home energy loans can help you pay for the improvements.

Energy efficiency upgrades will improve the comfort of your home while making sure the occupants are living in a safe environment — thereby protecting your most important investment, your home, and its treasured occupants, your family. As a result of the improvements, you will reduce your energy usage every month.

The applicant must be the registered owner of a separately metered, detached or attached single-family Delaware residence where the product/equipment is installed. Attached units are duplexes, condominiums, and townhouses. New construction, multi-family units and commercial properties are not eligible for rebates under this program. Rebate payments will only be made to the owner of record.  Contractors must submit a rebate reservation request to reserve your rebate prior to the work starting.  You must install qualified measures and/or equipment through an approved Home Performance participating contractor.

Several towns in Delaware, Bellefonte, Arden, Viola and Slaughter Beach offer supplemental rebates on top of Energize Delaware's rebates through the Energy Efficiency and Conservation Block Grant Program.  Information on the supplemental rebates can be found on each town's website, as there are unique applications that must be submitted.  Please contact township officials if you have questions regarding the supplemental rebates.

It makes sense to contact several contractors to inquire about the cost of the audit and to ask for references for similar work.  You may ask for recommendations from friends and neighbors as well.  

Yes!  We strongly encourage you to accompany your contractor during the energy audit and to ask questions. Your participation will help you when discussing the audit findings, your contractor’s recommendations and how you can reduce energy use.  All contractors must adhere to strict quality assurance standards and provide high levels of customer service.

Once your energy audit is complete and you receive the contractor’s recommendations, it is your decision whether to move forward with the improvements. But remember, these improvements can improve the energy efficiency, indoor air quality, and comfort of your home, while reducing your energy usage. Therefore, you and your family can greatly benefit from moving forward with the recommended improvements at the time the contractor makes them.  Your contractor will need to submit a rebate reservation request to ensure rebate funds remain available. 

The improvements and the time to complete them will vary. Once you have received a confirmation of your rebate reservation, you may proceed with the work knowing your rebate has been reserved.  To complete the contracted improvements to your home, your contractor may have to visit your home on multiple days. At a minimum, it is strongly recommended that you meet with the contractor at the beginning of each day before work begins, and at the end of the day to review progress and to help you better understand the impact the work will have on your home. Be aware that the normal routine of your household may be disrupted while the contractor performs the improvements.

Contractor will usually charge a fee for the home energy audit, (ranging from $0 to $450) which can vary by contractor. You will also pay to install the improvements you agree to as part of the contract. Those costs depend on your home (including size, age, etc.), the recommended improvements, and those you choose to install. Homeowners can receive incentives help offset some of the costs of improvements and even a portion of the energy audit. 

If you decide to proceed, the audit fee (up to $250) is refundable at the completion of your project.  The work must be completed within six months of the date the initial audit was performed, and the installed measure(s) cost must be equal to or greater than $500.

Energize Delaware now offers financing to customers with attractive rates and terms. Your contractor must be approved to offer financing, so look for the "Financing Partner" icon on the participating contractor list.

BPI-certified contractors perform critical combustion safety-related tests before and after performing energy improvements to the home. Inspecting and testing combustion appliances — such as heating equipment, ovens, and water heaters for proper performance and carbon monoxide emissions — helps ensure safe, efficient operation and prevent dangerous combustion gases from being introduced into the home. Such tests are critical when tightening up the home to make it more energy-efficient and comfortable.

Depending on your home, typical improvements may include sealing gaps, cracks, and other leaks that let outside air into a home; adding insulation; and sealing, insulating, or replacing air ducts that run through attics or crawlspaces. You can refer to these savings examples as well.  Improvements may also include repairing or replacing old or poorly functioning heating and cooling systems and appliances. Installing ENERGY STAR qualified lighting is another commonly performed, cost-effective improvement.

There is no application for the homeowner to fill out.  Your contractor will submit the required paperwork on your behalf, including the rebate reservation request.  If you choose to apply for an Energize Delaware home energy loan, you will need to complete an application for that part.  Your contractor will also submit a rebate reservation in order to confirm the rebates you may be eligible for.

Due to federal funding requirements, rebate assignments to contractors are not permitted.

The program reserves the right to conduct random on-site visits to verify that the improvements have been installed as stated in the rebate application.

Rebates paid through the Home Performance program may have tax liability implications.   The Department of Energy requires Energize Delaware to issue a 1099 for rebates received.   The issuance of the 1099 does not change the tax liability implications; please contact your tax advisor for more information.

Home Performance currently does not offer rebates on the installation of renewable energy measures nor rebates based upon the energy savings achieved from installing a renewable energy measure. Please note that Geothermal Heat Pumps are classified as a renewable energy measure and are likewise not eligible for Energize Delaware rebates.  Qualified measures that are eligible for rebates are listed on the incentive table below or can be downloaded here.  Delaware homeowners may be eligible for renewable energy rebates through the state's Delaware's Green Energy Fund.

Home Performance participants may be eligible to receive financing for a renewable installation(s) as long as the applicant is financing the installation of at least one Home Performance qualifying measure with a minimum cost of $500.  If seeking financing for a renewable installation(s), the project must meet all eligibility requirements of Delaware's Green Energy Fund Program.

Yes, if the applicant is the registered owner of a non-primary residence (e.g. second home, vacation home, etc.) they may participate in the program subject to all terms and conditions.

In a situation in which a personal or family trust is established, the applicant must be either an individual or beneficiary of the trust.  The applicant must be listed as the owner, either as trustee or co-trustee, on the Property Tax Information in the county in which the property is located.  If all of these conditions are met, then the applicant may participate in the Program subject to all terms and conditions.

A program representative will be happy to help you.  Call us at 877-624-4448 select option 1.

The rebate reservation system will begin on September 1, 2011.  Existing jobs in the pipeline will fall into one of the following two categories:

• Completed Jobs:  You must complete and submit all required application documents for each project as you normally would by September 10, 2011, or;
• Jobs in Progress:  Audits must have been completed by August 31, 2011 to be eligible for a rebate reservation.  You just request a rebate reservation by September 10, 2011 which includes:

1. An online rebate application;
2. A Beacon audit report;
3. A signed contract with a detailed scope of work; and
4. A signed Energize Delaware Terms and Conditions form.

Yes, projects in the above categories are eligible for the current level of rebates.

To make a reservation, you must submit all the required documentation for completed jobs or jobs in progress by September 10, 2011.  You and your customer can expect to receive a rebate confirmation email with two weeks after you have submitted your completed reservation request.

The rebate reservation system is being implemented to provide a way to accurately manage expectations regarding available rebate funding for projects.

You will have 90 days from the date of your rebate reservation confirmation to complete work and submit all final documentation.

After September 10, 2011, the program and rebate funding obligations will be reviewed to determine next steps.  Future programming decisions will be communicated to the contractors as soon as possible.  Any applications submitted for a rebate reservation after September 10, 2011 will be subject to new program guidelines.

The Home Performance program is currently being reviewed and we are awaiting information about future rebate levels.  Decisions affecting the program are expected to be made and announced later month.

At this time it is uncertain whether there will be rebates for any audits conducted on homes after August 31, 2011.

If improvement measures are removed from the work scope the applicant can proceed with the understanding that their final rebate value will likely be less.  Additional measures added to the work scope after approval will not be eligible for an increased rebate at this time.

Participants who have already reserved EECBG funding through their tow for completed or in-progress projects are still eligible to receive their EECBG program rebates.  In order to receive the EECBG rebate and the HPwES rebate at the current level, contractors are required to submit a rebate reservation request with complete documentation, as outlined above, by September 10, 2011.

No, due to federal funding requirements, rebate assignment to contractors cannot be allowed on applications approved for a rebate reservation.

The rebate reservation confirmation email to homeowners will include the project ID number.  Contractors or customers can call 877-624-4448 (option 1) to ask about the status of their rebate or other questions.

Homeowners will continue to receive their rebate checks approximately 6-8 weeks after all final documentation has been received and approved.

No, not at this time.

Rebates for clothes washers, gas water heaters, dishwashers and room air conditioners ended on August 31, 2010.   Applications must have been postmarked by September 30, 2010 to be eligible. Refrigerator rebates ended January 1, 2010.  Available funding for the Program has been exhausted and no additional rebates will be paid.

The Appliance Rebate Program surpassed expectations, with more than 15,000 rebates paid; as well as generating significant savings – more than $366,000 per year, and almost 4 million pounds worth of carbon dioxide emissions.

Energize Delaware launched the Home Performance with ENERGY STAR® Program in September 2010 which provides a comprehensive energy audit of your home conducted by a BPI-certified contractor.  The energy audit report includes recommended energy-saving improvements specific to your home along with associated energy savings as well as generous rebates up to $8,250. Discounted CFL's are also available in local Delaware stores.

Home Performance (HPwES) uses a whole-house approach to make any size or style of home more energy efficient, lowering usage by at least 20% or more. Each HPwES participating contractor is certified through the Building Performance Institute (BPI), a national resource for building science technology that sets standards for assessing and improving home energy efficiency. BPI-certified contractors use advanced diagnostic equipment to test the home and identify energy efficiency improvements.   Several organizations in our area provide BPI Training.  Please refer to the program overview developed for contractors as an additional resource.

The contractor tests and evaluates the home (including but not limited to the heating and cooling equipment, insulation levels, infiltration, appliances, and lighting) using advanced diagnostic equipment and building science principles to determine which areas of the home can benefit from energy efficiency and health and safety-related improvements.

Specifically, the contractor tests for air leakage using a blower door, duct leakage testing, conducts a series of combustion-related tests, and will look for opportunities to improve the home’s insulation, heating and cooling system, windows, appliances, and lighting. The contractor will then explain to the homeowner what improvements can be made, as well as the costs. The energy audit and the presentation of recommendations to the homeowner is a comprehensive process that separates the Home Performance contractor from other home improvement contractors — and drives sales!

Home, improvements often include sealing gaps, cracks, and other leaks that let outside air into the home; adding insulation, sealing, repairing and insulating air ducts that run through attics or crawlspaces; and repairing or replacing old or poorly functioning heating and cooling systems and appliances. Installing ENERGY STAR qualified lighting in the home is also a highly cost-effective and a recommended improvement.

Contractors perform critical combustion safety-related tests before and after performing energy improvements to the home. Inspecting and testing combustion appliances — such as heating equipment, ovens, and water heaters for proper performance and carbon monoxide emissions — helps ensure safe and efficient operation and prevent dangerous combustion gases from being introduced into the home.

This program will help you expand your service offerings to customers. It’s a great way to build your business as the market for energy efficiency services continues to grow!  A BPI-certified contractor is a recognized home energy and comfort expert. What’s more, you can develop new opportunities for your business by using building science technology to solve problems and provide your customers with a more comfortable, safe, and durable home — while reducing their energy consumption.  You may also apply to become an approved financing partner in order to offer home energy loans to your customers.

We will promote the program on the website and provide a list of approved contractors.  Only these contractors may participate in the Home Performance Program.  In addition, we may promote the program through an advertising campaign and outreach at public events to help build awareness.  A program overview is available for you to print and distribute to your customers, as well as this What to Expect brochure.

Submit the Home Performance participation agreement. If you have specific questions, please contact a Program Account Manager at 888-316-8033.  In order to be approved to offer financing, you must submit an application to AFC First.

A contractor must have a full-time employee who is certified by the Building Performance Institute (BPI) as a Building Analyst Professional. The training consists of in-class lectures and discussions as well as on-site testing. There are several organizations which offer training classes, as listed on BPI's Training Affiliate Search Tool, and the typical cost ranges from $1,000-$1,500; certification fees are usually $500-$600.  Upon completion, attendees will be able to:

• Understand the fundamentals of building science and the whole-house, performance-based approach to energy efficiency.
• Identify and understand building performance problems including ice dams, mold, mildew, and indoor air quality issues.
• Analyze building and duct air leakage using blower door and infrared technology.
• Conduct tests that are very important to homeowner health and safety and learn how to install energy efficiency measures.

Yes, you will need to complete a new participation agreement for the Home Performance Program.

Yes they can, as long as they first have an energy audit done by a participating HPwES contractor.  Effective January 1, 2011 an energy audit is now required in order to receive a heating and cooling equipment rebate.  For HVAC firms that have participated in the Heating and Cooling Rebate Program in 2010 and are new to the Home Performance Program, you may either become a certified BPI firm by attending training, or choose to partner with a firm already approved to provide energy audits.  By partnering with a firm that can provide the energy audit, your company will be listed on the Home Performance participating contractor list.

The rebate reservation system provides a way to accurately manage expectations regarding available rebate funding for projects.  Read more on the rebate reservation page and the FAQs.

Once you have been approved as a participating contractor, you may apply to AFC First to become approved to offer home energy loans to your customers.  You will be listed on the as a "Financing Partner" on the Find a Contractor page to help customers easily identify those contractors who offer financing.

No, due to federal funding requirements, rebate assignment to contractors cannot be allowed on applications.

Yes, homes built prior to 1963 are required to submit a National Historical Preservation Act form.  Instructions can be found on the front of the form.

HPwES currently does not offer rebates on the installation of renewable energy measures nor rebates based upon the energy savings achieved from installing a renewable energy measure. Please note that Geothermal Heat Pumps are classified as a renewable energy measure and are likewise not eligible for rebates.  Qualified measures that are eligible for rebates are listed on the incentive table or can be downloaded here.  Homeowners may be eligible for renewable energy rebates through the state's Delaware's Green Energy Fund.

Home Performance participants may be eligible to receive financing for a renewable installation(s) as long as the applicant is financing the installation of at least one Home Performance qualifying measure with a minimum cost of $500.  If seeking financing for a renewable installation(s), the project must meet all eligibility requirements of Delaware's Green Energy Fund Program.

The rebate reservation system will begin on September 1, 2011.  Existing jobs in the pipeline will fall into one of the following two categories:

• Completed Jobs:  You must complete and submit all required application documents for each project as you normally would by September 10, 2011, or;
• Jobs in Progress:  Audits must have been completed by August 31, 2011 to be eligible for a rebate reservation.  You just request a rebate reservation by September 10, 2011 which includes:

1. An online rebate application;
2. A Beacon audit report;
3. A signed contract with a detailed scope of work; and
4. A signed Energize Delaware Terms and Conditions form.

Yes, projects in the above categories are eligible for the current level of rebates.

To make a reservation, you must submit all the required documentation for completed jobs or jobs in progress by September 10, 2011.  You and your customer can expect to receive a rebate confirmation email with two weeks after you have submitted your completed reservation request.

The rebate reservation system is being implemented to provide a way to accurately manage expectations regarding available rebate funding for projects.

You will have 90 days from the date of your rebate reservation confirmation to complete work and submit all final documentation.

After September 10, 2011, the program and rebate funding obligations will be reviewed to determine next steps.  Future programming decisions will be communicated to the contractors as soon as possible.  Any applications submitted for a rebate reservation after September 10, 2011 will be subject to new program guidelines.

The Home Performance program is currently being reviewed and we are awaiting information about future rebate levels.  Decisions affecting the program are expected to be made and announced later month.

At this time it is uncertain whether there will be rebates for any audits conducted on homes after August 31, 2011.

If improvement measures are removed from the work scope the applicant can proceed with the understanding that their final rebate value will likely be less.  Additional measures added to the work scope after approval will not be eligible for an increased rebate at this time.

Participants who have already reserved EECBG funding through their tow for completed or in-progress projects are still eligible to receive their EECBG program rebates.  In order to receive the EECBG rebate and the HPwES rebate at the current level, contractors are required to submit a rebate reservation request with complete documentation, as outlined above, by September 10, 2011.

No, due to federal funding requirements, rebate assignment to contractors cannot be allowed on applications approved for a rebate reservation.

The rebate reservation confirmation email to homeowners will include the project ID number.  Contractors or customers can call 877-624-4448 (option 1) to ask about the status of their rebate or other questions.

Homeowners will continue to receive their rebate checks approximately 6-8 weeks after all final documentation has been received and approved.

No, not at this time.

The state Department of Natural Resources and Environmental Control (DNREC) and the Home Builders Association of Delaware are working together to launch a program that will be implemented through the SEU to provide direct incentives to homebuyers who purchase energy-efficient homes built to high standards certified by a trusted third party like the National Association of Home Builders’ Green Building Standard or Leadership in Energy & Environmental Design (LEED) standards. Incentives that range from $3,000 – $6,000 will be available to consumers who want to cut energy bills, but are constrained by the daunting costs of buying a new home.

The program is anticipated to leverage nearly $20 million in private construction and generate 15-40 percent energy savings on new homes. The “Green for Green” rebate will be offered to homebuyers working with Delaware builders who have registered and qualify for the program. A new website, www.degreen4green.com has been created that includes additional program details for homebuyers and builders.

To qualify for a rebate, a home must be certified by third-party inspection to meet the Silver Level or higher standards of the National Association of Home Builders (NAHB) National Green Building Standard (NGBS) or LEED-H (Leadership in Energy & Environmental Design for Homes), and follow the guidelines of the Delaware Green for Green Program.

You will need to consult with your builder to determine which green features should be added to your new home in order to meet the minimum criteria.  If the buyer and builder agree, the builder can complete the application on the buyer’s behalf and secure verification that the project qualifies.

The Department of Natural Resources and Environmental Control (DNREC) will then approve the project and pre-approve the homebuyer for the rebate and ensure proof of funds to complete the project. Construction can then begin and federal stimulus dollars will be reserved for 180 days. Energize Delaware will be notified about 30 days in advance of closing to prepare the rebate check and a final inspection of the home is conducted to confirm that it meets the program’s criteria. Funds are issued in the form of a check payable to the home purchaser at closing for NAHB certified homes.  LEED for Homes funds will be paid within 30 days of receipt of the LEED-H certification, which typically occurs after occupancy.

If you are planning on purchasing a green home, the resources at these NAHB and USGBC websites may be helpful.

Funded by the American Recovery and Reinvestment Act through the U.S. Department of Energy at a level of $300,000, the rebates distributed by the SEU’s Energize Delaware will fund energy upgrades for approximately 80 homes throughout the state. The program’s duration will be determined by available funds and the level of participation.

The standard requires that a qualified, independent third party inspect the project and verify that all green design or construction practices that the builder claims toward a green certification are actually incorporated into the project.

Three levels of rebates are being offered: $3,000 for a NGBS Silver-certified home; $5,000 for NGBS Gold-certified home; and $6,000 for NGBS Emerald-certified home. LEED certified homes of Silver or greater qualify for a $5,000 rebate.

Building to LEED-H or to the NGBS Silver or Gold standard will produce significant energy savings for homeowners. According to the NAHB Research Center, based on an average monthly electric bill of $131.23, a Delaware homeowner of a Silver-certified home can expect to conservatively save about $39.37 per month or about 16 percent.  A Gold-certified home homeowner can save about $65.62, or about 36 percent on an average monthly electric bill.

Any builder is eligible for Green certification, as long as they comply with all practices necessary to achieve Silver certification or above in the National Green Building Standard or LEED for Homes program. Note that to qualify, a new home must be located in a county or municipality’s designated growth zone. DNREC will make that determination when a builder registers his or her individual subdivisions with the Green4Green program.

This program is only available for new construction homes prior to settlement.  For existing homes planning energy efficient upgrades, refer to the Home Performance with ENERGY STAR Program for available rebates.  ? ?

Funds are issued in the form of a check payable to the home purchaser at closing for NAHB certified homes.  LEED for Homes funds will be paid within 30 days of receipt of the LEED H certification, which typically occurs after occupancy.

Once the program launches, builders will be able to submit their company for approval to be listed in an online directory. When the application has been approved, a participation agreement will indicate your agreement to the program rules. You may submit a grant application on behalf of each individual buyer who you have under contract for a new green home.

A builder may submit a grant application for an unlimited number of pending contracts as long as each contract meets the grant requirements.  Grant funding is limited and is available on a first-come, first-serve basis.

Grants will be awarded to homebuyers at settlement whose new construction homes meet one of two different certification programs: the National Green Building Standard Program and the LEED for Residential Program. 

For additional information about the National Green Building Standard Program, visit nahbgreen.org.  For additional information on the LEED for Residential Program, visit usgbc.org.

Your questions can be submitted to the Delaware Green Building Council of the Home Builders Association of Delaware at info@hbade.org.

We encourage you to explore the Energize Delaware website for more money-saving tips for all seasons.  If you need more information, give us a call at 877-624-4448, or submit your questions by email.  Don't forget to sign up for e-mail alerts to receive the latest program launch information.

The Efficiency Plus Business program responds to Delaware’s unique energy efficiency opportunities for businesses to help them reduce energy costs.

Due to the large number of applications received recently, the Efficiency Plus Business Program is near the end of its rebate funding.  As a result, we will stop accepting rebate applications on September 10, 2011.

All jobs must have scopes of work signed by the contractor and customer by August 31, 2011 and jobs must be completed and rebates applied for by September 10, 2011.  All required documentation must accompany the application by the deadline to be eligible for a rebate.  Supporting documentation sent via U.S. mail must be post marked by September 10, 2011.

The Efficiency Plus Business Program will continue as a financing program and has funding available for loans at a 1.99% interest rate.  Please contact a representative at 877-624-4448 (Option 3) or email us at energizedelaware@saic.com for more information about loans or other program inquiries.

The SEU is uniquely positioned to leverage federal, state and local sources of revenue, as well as program resources, for greater impact and benefit to Delawareans. Two of the most important features of the SEU are that it is "fuel neutral" and it can implement programs on a statewide basis.

1. Fuel neutrality is important because utilities can only address efficiency measures for the commodity they sell or distribute.  Also, utilities do not deliver fuel oil or propane, which are very important fuels in Delaware.  This limits the customers' options, and it is likely that cost-effective opportunities would be left on the table.
    
2. Statewide implementation is important because it reduces confusion among customers and contractors. In a very large part of the state, customers have more than one utility provider, and they may also have a separate distributor providing oil or propane.  So, the SEU can offer a comprehensive approach to efficiency and to avoid gaps or overlaps in program coverage.

The program is open to all Delaware commercial and industrial customers.  It is also open to all non-profit, institution and government energy users who are not participating in the Energize Delaware Performance Contracting program.

That program was discontinued effective June 1, 2010.

No, they are separate programs.  Only certain non-profits, state and institutions qualify for the Performance Contracting program.  All other non-residential energy users may take advantage of Efficiency Plus Business rebates and financing offers.

Yes, you need to apply and wait for pre-approval to be eligible for your financing project.

You will only have to pay prevailing wage if you are financing your equipment through our program.

Yes, you may use any contractor to install your measures.  A list of Program Allies is provided to help get you started.

This program is available for any state, municipal or local government owned facility as well as large non-profit institutions, universities, school districts and hospitals.

Typically, Performance Contracting makes sense if the following criteria are met:

• Your annual utility bills are in excess of $100,000
• No large-scale lighting efficiency upgrade has been performed
• The facility is not scheduled for closure or major remodeling within the next five years
• Recent energy audits have identified significant energy conservation opportunities
• The equipment in your facility is nearing the end of its useful life, or has high maintenance and repair costs.

Performance contracting is a contractual and financing method by which facility owners (Agencies) can undertake comprehensive energy efficiency retrofits and infrastructure improvements with minimal risk and financial exposure.  Performance contracts are then used to bundle multiple energy conservation measures (ECMs) into a single project, using the energy savings of measures with short paybacks to subsidize those with longer paybacks.  Minimum savings, which pay for the implementation of the project, are guaranteed by Energy Services Companies (ESCOs) over the contract period.

Performance contracting has become a widely accepted and reliable way to make energy improvements.  ESCOs use industry-standard practices, proven energy-saving technologies and have excellent track records for satisfying their customers.  Since project savings are guaranteed, ESCOs have a financial incentive to make sure these are achieved throughout the contract term.  It uses a comprehensive approach to optimize facility performance by evaluating all energy using systems.  With a performance contract, multiple energy efficiency projects throughout the facility are combined, rather than doing one project at a time.

Performance contracting allows operating budget funds that would be spent on energy bills to be invested into facility improvements.  You will benefit from energy and cost reductions, lower long-term operating costs and contribute to Delaware’s sustainable energy future.

They perform a comprehensive Investment Grade Audit of existing facility conditions which is used to identify possible energy efficiency measures.  A Technical Audit Report will detail existing conditions and energy consumption, proposes energy conservation measures (ECMs) and associated energy savings, measurement and verification (M&V) methods, and cash flow including cost of M&V, cost of ECMs and guaranteed savings.

The ESCO provides complete turn-key services, developing the engineering designs and specifications necessary to implement the projects, managing the project through installation, and providing annual reports on savings achieved throughout the contract period.  They also provide a performance guarantee; a contractual commitment to the owner that project implementation will result in a specified reduction in energy (and/or water use) over a set period of years.  This guarantee, when translated into dollars based on existing and projected utility rates, will offset annual debt service on the project financing.  If in a given year the guaranteed reduction in energy use is not achieved due to an ESCO-attributable performance failure, the ESCO will reimburse the owner the resulting dollar savings shortfall.

To ensure savings, the ESCO will provide monitoring and verification (M&V) of installed energy measures.   M&V activities include assessing that equipment is performing to specifications and performing calculations of the project’s actual energy savings.  The cost of M&V services are capitalized into the overall project cost.  Ongoing M&V of savings protects an owner from savings degradation as a result of deteriorating or failing equipment performance.   In addition, ESCOs will provide staff training in operating and maintaining equipment, and in some cases, maintenance services.

• Building Envelope (insulation, windows, etc.)
• Lighting Systems
• Heating, Ventilating and Air-Conditioning Systems
• Water Using Systems
• Central Plant Equipment (chillers, boilers, pumps, air-compressors)
• Domestic Water Equipment
• Energy Management Systems
• Other Facility Specific Energy Using Systems
• Opportunities for use of Renewables (CHP, Solar PV, Solar/Thermal, Geothermal, etc.)

Energize Delaware has pre-qualified a pool of Energy Service Companies (ESCOs) who may provide services associated with the Performance Contracting Program.  Steps in the process as outlined below.  For a more detailed explanation of the process, please review the Program Guidebook.

• The facility owner (Agency) executes a Letter of Intent with the SEU, indicating interest in participating in the Performance Contracting Program.
• The Agency selects an ESCO directly from pool, or can work with the SEU to select an ESCO through a Letter of Interest and RFP process.
• The Agency signs an Investment Grade Audit (IGA) Agreement with the selected ESCO.
• The ESCO performs an IGA for the Agency's facilities.
• The ESCO provides the Agency and SEU the Technical Audit Report which will include:
  • A description of existing facility equipment and operating conditions
  • Baseline energy consumption and cost
  • Analysis methods, calculations, data inputs, and all technical and economic assumptions
  • Energy conservation measures (ECMs) including scope of work, associated energy savings, expected life, payback, life cycle cost, environmental impact and measurement and verification (M&V) methods
  • Construction schedule
  • Cash flow including cost of M&V, project management fees, guaranteed maximum cost of ECMs and fixed minimum guaranteed annual energy savings
• The Agency and SEU will review and accept Technical Audit Report
• The Agency and ESCO negotiate and sign the Guaranteed Energy Savings Agreement (GESA).
• The SEU provides funding for Project, and a Construction Funding Agreement and other financing agreements are executed by the SEU, the ESCO and the Agency.
• The ESCO implements the Project
• The Agency and SEU accept the Project
• Guaranteed Energy Savings contract period begins
• The ESCO provides yearly savings and verification reports to the Agency and SEU in accordance with the GESA.

The list of pre-qualified ESCOs can be found on the Approved Energy Services Companies page.

You may contact a program representative at 302-504-3077.

Delaware's Sustainable Energy Utility (SEU) is a nonprofit organization created by the state of Delaware to foster a sustainable energy future for the state through conservation, efficiencies and the use of renewable energy sources, like solar, wind and geothermal. Its model is the first of its kind to be established in the U.S.

Energize Delaware is the program banner of Delaware's Sustainable Energy Utility. Through the Energize Delaware web site and programs, residents and businesses in the state will have a single point of contact for education, resources and programs that include low and no-cost steps to save thousands on energy bills, boost the economy and improve the environment through new, clean energy sources.

The SEU does not supply electricity, natural gas or other fuels. Unlike a utility program that is available only to their consumers, the SEU is the first comprehensive effort of its kind to enlist all Delawareans to take collective action. The program is designed to help residents and businesses save both money and energy, create new jobs, and help the environment. It is not attached to a single market and includes businesses, residential consumers and all fuel types.

The design of funding is self sustaining using federal funding through the American Recovery and Reinvestment Act (ARRA), proceeds from the Regional Greenhouse Gas Initiative, portions of the sales of Renewable Energy Credits, tax-exempt bonds and other funding sources that may develop as the program grows. No new state taxpayer money will be used.

We have ambitious goals, including the reduction of energy waste by 30% by 2015 for each participant, a 33% reduction in CO2 emissions by 2020, and the creation of hundreds of in-state “green” jobs for Delaware.

Energize Delaware programs will include education and assistance in residential and business renewable energy. The goal is to have 300 MW of renewable energy by 2019.

Yes! Small steps can add up to big savings.  We’ve probably all heard how efficient compact florescent bulbs (CFL) are (the twisty bulbs). Using 5 CFL bulbs in areas of home where you use lights the most, you can save $70 each year. That equates to over $26 million each year if every household in Delaware made that switch!  

Energy efficiency is an easy, and often a low- or no-cost way to save on household bills.   Energize Delaware offers rebate programs for both your home and your business!

Q.   The temperature varies dramatically from room to room, especially during weather extremes.  Is this normal? What can be done?

This is definitely not normal and should be fixed.  Not only are you and your family uncomfortable, you are likely paying way too much in monthly energy bills.  The temperature should not vary more than three degrees between rooms and floors.  An energy audit can help you identify the culprits and fix it quickly.

If you have a multi-story home, you are fighting against the natural buoyancy of warm air rising from the lower floors of your house. Hot air rises to the second floor and gains even more heat from the attic - particularly if it is not insulated well.

Many homes also have recessed can lights that when uninsulated can be huge sources of drafts and heat in the summer. Sealing these holes that lead to your attic will help enormously, but may not solve the problem entirely.

You can have a whole-house energy assessment done of your entire home's energy use and air leakage. The audit will include a heat load calculation to determine whether there is adequate airflow to each room.  If heating and cooling systems are the wrong size for your home, you may not be getting the airflow you need.  Unsealed and poorly configured ductwork may also be the culprit.  An energy audit will uncover all of these issues and determine which solutions will work for you.

Q.  We often have drafts coming from our windows and doors, which are sometimes very cold or warm to the touch, depending on the season. What are the best ways to prevent air from getting in and out through my windows and doors?

Leaks and drafts from windows and doors are actually easier to fix because they're easy to see and feel.  But the hidden leaks are tougher to spot and can represent a bigger problem. Did you know that if you added up all the leaks and cracks in the average home it would be like leaving a window open 24/7 all year round?  Properly sealing and insulating your house can save up to 20 percent on your heating and cooling costs.

Sealing your hidden leaks with caulk, spray foam or weather stripping can go a long way toward addressing the problem and making your home more comfortable. One thing to be aware of -- sealing the leaks too tightly. A certain amount of fresh air is important for indoor air quality. One way to be certain is to consult a professional to identify and measure your home's leaks to make sure they're sealed properly. 

If you prefer to do the sealing yourself, you can feel around baseboards, windows, doors, light switches and electrical sockets for air leaks. Air can escape or enter anywhere that two different building materials meet. You can also walk around your house with incense to see if the smoke blows in when you pass windows or doorways.

Q.  I own a home with very old air conditioners and other appliances. It seems like upgrading to energy-efficient ones would make a big dent in my utility bills. I see you had an appliance rebate program before, but why not anymore?

Before it ended last summer, the appliance rebate program helped thousands of Delawareans replace old, inefficient appliances and make a difference -- for the environment and for their wallet. All told, nearly 16,000 rebates were processed for appliances that will collectively save residents more than $366,000 a year and cut almost 4 million pounds of CO2emissions. 

Energize Delaware's programs are now shifting to higher rebates through our Home Performance with ENERGY STAR program - which a whole-home approach to energy efficiency that can save up to 50 percent on energy costs. Rather than focus on a single project like replacing equipment or adding insulation, the new program is more comprehensive, combining the bigger savings that occur through multiple, coordinated improvements throughout a house.

The largest rebates are provided for the deepest savings and are based on computer software simulation that can predict how much savings a homeowner can gain by making upgrades and changes throughout their house.

Q.  I have an old, inefficient furnace that “heats” my home.  Is buying a new furnace the best way to go? Is that going to solve my problem?  Are there rebates for replacing a furnace?

Energize Delaware does provide rebates for certain oil and gas furnaces, but it's important to remember that one piece of equipment may not solve the entire problem. That's why we recommend you consider additional ways to make your home energy efficient.  

Before you get started, you should know your home's energy-saving potential. Consider hiring a professional to conduct an energy audit of your home, which will uncover problem areas you may not be aware of. The audit can also present opportunities for you to invest in multiple efficiency upgrades to significantly increase your home's energy efficiency. That's what our Home Performance program is all about, and it includes rebates for taking on larger-scale projects. 

Q.   I don't have the money to insulate both my attic AND my basement - which will be the best investment?

The answer depends on a number of factors such as how much insulation exists in each of those locations currently, what leakage is occurring in each area (and other areas), the efficiency levels of your HVAC appliances, and how many of the energy-saving opportunities that are found in your home you actually intend to address.

Anecdotally, yes, in our climate zone the insulation on the ceiling level is often of greater importance than basement insulation.  But you want to know what the effect will be on your home, not the average home.

To really find how best to maximize your energy savings, consider participating in Energize Delaware's Home Performance with ENERGY STAR Program.  It starts with a comprehensive home energy assessment conducted by a BPI certified energy auditor. The energy audit and analysis of your home not only includes performing diagnostic leakage and health and safety testing, but  also results in the development of an energy model representing your home - a computerized simulation of your home's energy efficiency features today.  Then each possible improvement can be input to determine which has the best payback.  This is a part of the process of tailoring improvements to your home to make the most of your money and address all of your issues, financial, comfort and otherwise.

In addition to greater comfort and long-term savings, we currently have rebates for energy efficiency improvements.  Take a look, and consult with one or more of our Home Performance participating contractors to learn more about how you can benefit from the Program.

Q.   What do I do with energy-saving bulbs when they do burn out?  I understand they contain mercury and should not be put in the regular garbage.

Try the Delaware Recycling Center, or large retailers such as Home Depot (most places that sell CFLs now take them back). The Delaware Solid Waste Authority also holds household waste collection days throughout the state.

A great resource for recycling anything, including CFLs, is Earth911.com.  Just put in your zip code and what you want to recycle (e.g. CFLs) and you'll get a list of places to recycle the item.

Q.   I'm interested in knowing what savings I can reasonably expect from sealing the ducts in my home.  My home is a 14 yr old, 1600 sq ft ranch home, approx. 50' x 28, with a conditioned crawl space. I have ENERGY STAR windows and doors and an air source heat pump and gas furnace. The annual kWhs averages 4500 annually.

It's difficult to say but I can tell you how to find out.  A home energy assessment is designed to do just that.  The auditor will survey your home for a complete list of opportunities and conduct diagnostic testing.  They will utilize a computerized model of your home's energy efficiency features.  They can swap out your current features with more energy efficiency features.  For example: additional insulation in basements/crawl spaces, attics and walls;  reduction of building leakage, new windows, doors, heat pump or water heaters...

The model will tell them which investments will net the best gains and fastest payback for you. They can also diagnose issues where you are uncomfortable in particular rooms in your home.  The Home Performance with ENERGY STAR Program includes a list of auditors with BPI certification and rebates  - these can sometimes be combined with federal tax credits.  It's a great time to find out how to save on energy and to make the investments that not only pay back in the future, but provide rebates and credit now.  Financing is also available.

Q.   I love gardening - veggies, flowers & plants.  I have a lot of container plants/flowers and they need more frequent watering. I installed a rain water collection system in 2007 and since that time, I have not had to use the hose line, fresh water, to water ANYTHING outside. Outside of my savings on my water bill, are there any rebates available to me? Thank you for your help! 

Thanks for contacting us and thanks for being a responsible steward of the environment. Saving water around your home is commendable and also forward thinking. While water prices in the U.S. are still relatively inexpensive in most places, there are many experts that predict water shortages in the coming years that will cause an increase in focus on water conservation.

Energize Delaware has incentives to help.  The Home Performance with ENERGY STAR Program offers energy audits to help you identify all the ways to save energy around your home and which ones will pay back the fastest, including rebates on heating and cooling equipment.

Thanks again for your focus on conserving our precious energy and water resources.

Q.   We are replacing our A/C unit and would like to know if there are now minimum federal and/or state requirements for central cooling equipment? My 40 year-old central A/C unit died, and I want to compare the costs of installation and operation for a 13 SEER unit vs. a 15 SEER unit. Is the higher initial cost of the more efficient unit justified over a 10 year period? Also, it's my understanding that there is a federal rebate available for the higher SEER unit that would help reduce the cost. Does Delaware offer any incentive for installing higher efficiency heating and cooling equipment, either in the form of rebates or tax credits, and what are the equipment requirements?

You are approaching the cost/benefit equation correctly. Comparing the increased cost of the higher efficiency unit to the lifetime energy savings plus any available rebates or incentives will tell you whether your investment should pay for itself.

There are number of calculators available online to estimate the savings. It's important to note that these are broad estimates based on a number of factors, many of which are noted on the disclaimers at the bottom of the page.

The best place to find available rebates and incentives is the Database of State Incentives for Renewables & Efficiency at dsireusa.org. Energize Delaware offers rebates through the Home Performance Program.  

When it comes to equipment efficiency, it's important to know that quality installation is as important as the SEER rating on the nameplate. According to published studies, up to 40 percent of the efficiency associated with a given SEER level can be lost to poor design and installation practices such as oversized system, leaky ducts, and improper system charge and air flow.

Look for installers that perform something called a Manual J Load Calculation to determine what size system you need. Ask them how they are verifying the refrigerant charge and the air flow of your system and if they are leaving any documentation that this has been done with you after the job completes. If your ducts are accessible or if you are adding new ducts ask them to seal the ducts, and if they run through unconditioned spaces like attics or crawl spaces they also should be insulated.

Please continuing reading the question below which provides additional information on federal tax credits.

Q. We are replacing our A/C unit and would like to know if there are now minimum federal and/or state requirements for central cooling equipment?

In January 2006 the federal government required that all new air conditioning equipment sold have a minimum efficiency level of 13 SEER (Seasonal Energy Efficiency Ratio).  The higher the SEER, the more efficient the unit will be and you should experience lower energy bills.  There are federal tax credits available for higher efficiency models which can help offset the increased cost.  The ENERGY STAR website provides a list of the models that qualify for the tax credit and other frequently asked questions.  The tax credits are reduced for 2011, but still may apply to you.

Q. How important is attic ventilation?  I have no soffits on my home, so there is no soffit ventilation.  I do have two gable vents and an attic fan.  The attic is very hot in the summer, and air does not seem to move much; however, I have not seen any moisture problems.  So, do I really need to worry about attic ventilation?  An energy auditor said that ventilation is not so important as long as I have the attic properly air sealed.  Is this true? 

Attic ventilation is important in order to avoid moisture problems. As long as there are gable vents and a functioning fan, you shouldn't have any problems. So your auditor is correct for your situation. But, it's very important to have good sealing and properly installed insulation between the living space and the attic so that the warm or cool air in the top floor stays where it belongs. Hopefully, the auditor ran a blower door test to detect leaks on the top floor. If he didn't, take a closer look at some typical leakage locations such as:

• The attic hatch - if you have a ceiling hatch to the attic, it should be treated just as an exterior door, with tight weather stripping and insulation above. Attic hatches with pull down stairs are often difficult to insulate on the top side - consider building a box above the hatch out of foam insulation board. There are also pre-fabricated solutions you can buy on the internet.
• If you have a door and walk up stairs to the attic, follow the same principles of tight weather stripping and a solid, insulated door. Also make sure the attic stairway walls are insulated.
• If your home has recessed lights (also known as can lights), look into retrofitting them with insulated, air-sealed cans from the manufacturer.
• Check around any pipe and wire penetrations for holes that can be sealed with fireproof caulk. If you can see light through the penetration they are definitely big enough.

If you have air leaks to the attic, moisture from the home can move into the attic and become trapped there leading to mold - a serious health and durability threat. Look at any bath fans on the top floor to make sure they are venting outside of the home and not into the attic. If you have bathrooms without ventilation, take care of this as a priority.

If you want to move the hot air through your attic, consider an exhaust fan that operates on a humidity and/or temperature sensor. That way you're not wasting energy venting the attic heat when you don't need to during the non-summer months. You can even buy solar powered attic fans that can be mounted on your roof and operate without energy costs. However, as your auditor indicated, this is more in the category of deeper savings than low hanging fruit though.

In our climate zone, ENERGY STAR says you should have insulation of R38. If the attic is accessible you can do it yourself. Read the manufacturer's instructions carefully as poorly installed insulation can be ineffective and a waste of your money and time.

Q. My energy bills were really high this past winter and I want to plan ahead and do more to lower my energy use. I've heard about energy audits, but I am not sure about what they involve or who to contact. Where do I start?

You are doing the right thing by researching ways to reduce energy consumption in your home. Energize Delaware is here to help you get started by providing simple steps you can take now to cut your energy consumption, as well as information on options for energy audits.

First, take a look around your home to assess your home's efficiency with these leading energy wasting culprits. There are a number of ways you can act now and start saving by focusing on a few key areas, including sealing cracks and leaks, insulation, heating and cooling equipment and lighting.

1. Check your home for air leaks. The potential savings from plugging cracks and other leaks range from 5 to 30 percent per year.  High-risk areas for air leaks include electrical outlets, window frames, baseboards and weather stripping around doors.   Your local home improvement store is a great resource for the right materials to do it yourself. 

2. Inspect your heating and cooling equipment. When not performing well, it can make conditions inside your house uncomfortable and cost you money. For example, dirty coils make your air conditioner work harder - driving up energy costs and reducing the life of the unit. Likewise, airflow problems can reduce your unit's efficiency by 15 percent. If your equipment is more than 15 years old, you might consider replacing it with more modern, energy-efficient units. Your local HVAC contractor can help you tune up your equipment for the best performance. 

3. Look around at the lighting in your home. Consider switching from incandescent to compact fluorescent bulbs (CFLs), especially in high-use areas.  

4. Check to make sure you have proper insulation.  Major heat loss can occur in your home through inadequate insulation. Attics and exterior walls are particularly important areas to ensure proper insulation.  ENERGY STAR has a helpful do-it-yourself guide.  A more comprehensive energy audit is available through the Home Performance with ENERGY STAR Program.

Make sure to take advantage of federal tax credits available for many energy-efficient upgrades including insulation, heating and cooling systems, renewable energy systems and more.

You can take things to the next step with an energy audit:

• Do-it-Yourself Audits - The ENERGY STAR Home Energy Yardstick will help you compare your home's energy usage to similar homes across the country.  You will need to enter some basic information about your home, such as age, square footage, number of occupants, etc.  It also is helpful to enter your last 12 months of energy bills.  If you don't have that information, contact your utility for a 12-month summary.
   
• Home Performance with ENERGY STAR - If you are looking for specific recommendations, consider contacting a professional auditor who will use a variety of techniques and equipment to survey your home.  They can help you find hidden problems and significantly save on your energy bills. Once the evaluation is complete, you will receive a report that recommends improvements you can do yourself or hire a contractor to do. Prices for audits will vary, so please contact multiple contractors for pricing options.  This video will help you understand what to expect during a home energy audit. 

Finally, after you have identified where your home is losing energy, set your savings priorities by asking yourself some key questions:

• How much money do you spend on energy?
• Where are your greatest energy losses?
• What is your budget and how much time do you have to spend on maintenance and repair?
• How long will it take for an investment in energy efficiency to pay for itself in energy cost savings?
• Do the home improvements provide additional benefits such as comfort, air quality, and noise reduction that are important to you?
• Can you do the job yourself or will you need to hire a contractor?

Once you prioritize your energy needs, you can develop an efficiency plan, which will guide your efforts to make smart purchases and home improvements.

Q.  At night, my husband turns down the heat to 60 degrees, which is fine with me. But when I get up in the morning, I am cold and turn the thermostat up to 68 degrees. But then he turns it back down to 65. Then, he turns it up (if he remembers) later on. His theory is that we would waste money if we turn the thermostat up more than a couple of degrees at a time. Is that true?

This is a great question and reflects a common “tug of war” in many Delaware homes during the winter months.

The kind of home heating system you have will determine whether turning up the thermostat more than a couple of degrees will result in wasted energy and money.

For instance, if you have a heat pump, and you set the thermostat back and then up several degrees to catch up, the heat pump may switch from standard mode to emergency backup. In this emergency backup mode the heater uses direct electric heat, one of the most expensive sources and it could cost you more money. 

If you do not have a heat pump, turning down the heat saves money. When the heater comes on to catch up to a higher temperature, it generally works more efficiently over a longer, singular period of time and uses less energy in the process of heating up the ducts. 

You can compensate for this by purchasing a special "adaptive recovery" thermostat made especially for your heat pump. These thermostats "learn" your patterns and attempt to slowly bring up the heat level rather than use the emergency recovery features. For example, if you were programmed to bring the heat up at 6 AM from 60 to 68 it would start the work earlier - perhaps at 4 AM - rather than trying to do it all at once.  It is important to note that thermostat should be compatible with your heat pump and must have a set program so it can learn your patterns and anticipate your needs. Manually adjusting temperature generally uses emergency backup - and more energy.

Q.  Is passive solar energy a sensible approach in northern New Castle county?  I am looking to build a new home using ICF (Insulated Concrete Blocks that form a super-insulated wall).  I am considering the passive solar aspects and want to know if this is a practical approach in Delaware's climate?

Yes, passive solar works in our climate and I'd say it's a practical approach in any climate zone.  Depending on your design you may or may not be able to fully heat your home through passive solar but you can surely make a large impact. 

Once upon a time builders took the sun into account when designing and orienting buildings.  If you look at the old farm houses that anchor many of our suburban neighborhoods (because they used to be farms) you'll see that they face the south; with the majority of glass in the building facing this direction.  Back in the days where you had to chop wood for every BTU of heat you house consumed, you had a vested interest in getting as much free heat as possible.  Then we discovered cheap fossil fuels and decided that it was more important for our homes to face the street than the sun.  Now once again - what's old is new again - and passive solar is all the rage.

The point is that passive solar isn't a yes or no proposition but more of a range.  You'll hear of high tech homes with features like double envelopes to let the winter sun's heat in and use the same convection cycles to let the summer heat out. The American Solar Energy Society sponsors annual tours of solar homes around the country.  This year they are on October 2nd.  There are usually some great examples of "super" passive homes on our local Delaware tours. 

But there are also some "typical looking" homes that dramatically decrease their need for heat and cooling by designing the home with some simple features: such as long south facing walls and shorter east/west walls, maximizing glazing on the south and minimizing it on other sides, and using small top floor north side windows with upward openings to ventilate the home in the summer.  The concept is simple, because the sun takes a low arch in the southern sky during the winter, maximizing southern window area helps heat the home in the winter.  During the summer the sun's angle is much higher in the sky so small well placed overhangs on the southern windows will keep the summer sun from penetrating.  Minimizing the glass on the east and west sides keeps the morning and afternoon summer sun from adding too much heat. 

Even homes that are not designed to be "passive" can compensate somewhat by adding shading, and planting the right kind of trees on each side: deciduous on the east and west, evergreen on the north, little to none on the south. 

When you're building a new home you have a tremendous opportunity to have a heating and cooling bill that's half, or less than the average home.  Find an architect who knows how to make passive solar trade offs. If your builder doesn't want to talk to you about simple things like facing your home toward the south, I recommend that you face the door and walk away.