Efficiency program aims for savings without sacrificing comfort

Wednesday, September 29, 2010
(Michael Pommier/Tribune)

With the winter months coming, it may be time to think about ways to keep the warm air in the house and the cold air out. To provide funding for that very task is the purpose of the Efficiency Kansas Program.

Created in November 2009, the Efficiency Kansas Program is a low-cost loan program that helps residents make energy-efficiency improvements to their homes. According to Kansas Energy Office Energy Efficiency Programs Manager Ryan Freed, the program begins with an energy audit of the home. Through the program residents will be connected with a list of Efficiency Kansas qualified energy auditors who will diagnose how their house uses, or loses, energy. The auditor will then provide a custom plan to make the home more energy efficient.

"By requiring the energy audit we give the customer real information about their home instead of trying to base it off of the various advertisements that they see," Freed said. "They are provided a customized energy plan, that tells them exactly how their house is using energy, how to save energy, and what the real financial impact of that savings is going to be on their home."

Freed added that the Kansas Energy Office also has a program in place where, for a limited time, homeowners may be able to get an energy audit completed for a up-front cost of $100.

The program was created by the Kansas Energy Office by using $37 million in federal funds through the American Recovery and Reinvestment Act. The program was created as a revolving loan fund so it can continue after the original funding has been exhausted. Freed said another reason that idea of the revolving loan program was chosen was because it gives the most opportunity for economic growth to the Kansas economy.

"We created a revolving loan program because we wanted to create a long-term economic benefit to Kansas, and provide an opportunity for businesses and careers to be created rather than just a short-term quick impact," he said.

So far, in just one year, the program has shown an impact. According to Freed, less than 10 energy auditors were available in Kansas prior to the programs creation, now there are more than 70.

Efficiency Kansas gives homeowners access to low-cost financing through participating lenders or utilities to turn the auditor's energy-efficiency recommendations into reality. According to Freed, no-interest loans are given to the lenders and utilities which are then passed onto the customer at an interest rate of no more than four percent.

"Partner lenders usually charge right at four percent, partner utilities are a little bit different since they are not a financial institution ... they typically just charge an administrative fee," he said.

The budget impact of the loans to the homeowners are expected to balance out with the savings, according to Freed. He said that one requirement for participating in the program is that the project must be able to pay for itself in savings.

"We're not going to finance a project unless the savings are able to cover the cost of the improvements," he said.

In a time when many residents are searching for ways to save money, Freed said this program identifies ways to cut energy costs without sacrificing comfort.

"There is no doubt that people want to save money and people want to be comfortable in their home," he said. "People don't have to sacrifice comfort for savings."

For more information on the Efficiency Kansas Program, visit www.efficiencykansas.com or call (877) 448-3185.