Mon
Feb 8 2010
06:32:pm

I have a TVA "Energy Right" home auditor headed this way Wednesday morning. For $150, he will conduct a 1 1/2 to 2 hour inspection of my home, then produce a slate of recommended energy improvements in priority order. If I chose to undertake any of his recommendations (I know we need duct cleaning and sealing, although only the sealing qualifies as an "improvement"), within 90 days of the audit and using one of TVA's recommended contractors, TVA will offer a "cash incentive" to reimburse 50% of my costs ($500 maximum). Details here: http://www.tva.gov/ee/in_home_eval.htm

This incentive is over and above any energy efficiency improvements I may undertake that qualify for IRS tax credits to reimburse 30% of my costs ($1,500 maximum) through December 2010. Details here: http://www.irs.gov/newsroom/article/0,,id=206871,00.html

Anybody have any personal experience with the TVA program? Wonder why I need to use TVA's recommended contractor? Think I should get a second quote from someone not on their list (I'm inclined)?

89
vote
WhitesCreek's picture

Keep us posted on this. I'm

Keep us posted on this. I'm very curious as to how this will work.

Tess's picture

I am on the same page

I need a new heat pump, but have used an independent contractor for years. My understanding is that if you pay KUB for the audit, you can get the money back if you use one of their four or five listed contractors to do the work needed. You can also get back up to $600 on the cost of big ticket items.

Tamara, I think I will get an estimate from one of them and an estimate from my familiar guy and then make the decision.

In either case, the IRS tax credit is there is you meet their guidelines (14 or 15 SEER heatpump replacement).

Tamara Shepherd's picture

More details...

Actually, Tess, I began this inquiry by calling KUB just today and they told me that they no longer conduct home energy audits. It was KUB who instructed me to contact TVA (at 866-441-1430).

When I later went to that TVA site I linked above, I saw at the bottom of that page a second link "for more information." You'll see by following it that many local electric companies listed there are now referring their local customers to the same TVA phone number, so apparently all those companies have ceased conducting their own audits, too (unless maybe they never had conducted them).

Steve, my home is ten years old, so I asked the same question of the TVA interviewer who helped me. She said that her home was also ten years old and she was glad she had an energy audit done on it. She was advised that her first priority should be to seal ductwork, too, and to add insulation.

As to the duct sealing, she paid the TVA contractor $600-ish to clean and seal the ducts, half of which she got back, although she didn't mention how large/small her home is. The auditor showed her how her ductwork had been sealed only with duct tape at construction and pointed out how it had worn out over time. The service she purchased was to have some kind of spray foam applied? She maintains her home is warmer since? I didn't inquire about her insulation upgrade.

About that $150 fee: I *think* the interviewer told me that if I chose to use one of TVA's contractors for improvements, the fee will also be reimbursed. I just re-read details of the program at their site, though, and I'm not certain. Here's what it says:

Schedule an in-home energy evaluation by a TVA-certified evaluator. Some power companies may charge an in-home evaluation fee. If the homeowner makes recommended improvements this fee will be reimbursed.

Since our power company doesn't conduct this kind of audit, and since TVA instead levies this fee to KUB customers, do you read that to mean that the TVA fee may be reimbursed?

I'll verify for certain tomorrow and report back.

reform4's picture

Thanks, Tamara

That will be good information.

Tess's picture

Heat pump replacement

I just read where the TVA program only offers $250 reimbursement for heat pump replacement if you use one of their approved contractors. That doesn't seem worth the trouble. I may just forge ahead on my own with the HP replacement and collect the $1500 tax credit. Does anybody have any brand recommendations for a SEER 14 or 15 heat pump? I know you pay the premium amount for, say, a Trane label when there are other brands that may be the same quality but may be less expensive.

Tamara Shepherd's picture

Go for both "refunds?"

Tess, this site (U S Dept of Energy on heat pumps) may be helpful:

http://www.energysavers.gov/your_home/space_heating_cooling/index.cfm/my...

About that skimpy TVA reimbursement for this particular improvement, you did realize you can apply for BOTH the TVA reimbursement AND the tax credit (the latter applicable only to the amount you pay after TVA's reimbursement, Linda says)?

Also, I *think* the IRS is allowing a purchase of this sort made this spring, before a certain date, to be applied to either your 2009 or your 2010 tax return? I didn't double-check that at the IRS link I posted previously, but you may want to?

I'm a tightwad, so I'd go for BOTH the TVA reimbursement AND the tax credit!

Tess's picture

No, I'm the biggest tightwad!

Thanks for the link, Tamara. I will study the situation some more.

R. Neal's picture

Yes, pretty sure you can

Yes, pretty sure you can still get the $250 TVA rebate, which is actually a state stimulus fund program, and still get the federal tax credits.

Previously:

http://www.knoxviews.com/node/12564

smalc's picture

Got an insert with my LCUB bill this month...

Yes, you only get a $250 rebate with the heat pump, but you can finance the purchase through TVA as well. Maybe that's the reason for the low rebate. Not sure on the interest rate but you can go up to 10 years.
I may do the evaluation to look into a new HP. I have a AC/furnace now (not a HP), and while the furnace is fine the AC is on its last legs.

A question for everyone who is getting the duct sealing recommendations, what kind of ducts do you have? Sheet metal, fiberglass, flexible?

reform4's picture

Newer Houses?

My house is only 8 years old, with double-glazed windows, good insulation (I think), no chimney, insulated ducts, decent SEER heat pump, and a solar water heater. I wonder if the survey would be any good, or just a waste of time for the TVA staffer.

sugarfatpie's picture

Its probably worth your time.

There always seems to be some hole somewhere that half your heating bill is going through.

I think I'll sign up for this, though I don't relish the idea of polyurethane foam getting into my duct work (out gassing of toxins).

A

bizgrrl's picture

I'd be intested to know your

I'd be intested to know your thoughts after the audit. I've always wondered if these types of audits were a gimmick. $150 to tell you to spend money sealing your duct work. Is this what they tell everybody? Will they be doing actual tests to determine where leaks are and where heat is escaping? I'm not very trusting of TVA especially.

Factchecker's picture

We did it and I should have

We did it and I should have blogged about it. The cost of the audit is a no-brainer, because you can get your $150 fee back by buying a $150 HVAC tune-up and submitting it for reimbursement, aside from the rebates. The approved list is a fairly comprehensive list of major contractors in the area. I don't think you'll have a hard time finding one you like.

No, they won't check for leaks during the audit. That would cost a lot more and is a much bigger undertaking. Our auditor was very knowledgeable, though, and I was quite impressed. He is not a TVA employee, but a contractor who seemed to know his stuff. He's called back a couple of times (including yesterday) to remind us the 90 days is up and that we need to make sure we've filed everything. I had forgotten about the 90 days, but they're flexible about extending it. They really want people to take advantage of this and make improvements that can result in lowering TVA's power load so they don't have to buy $$$ outside power. This is the kind of stuff California started in the '70s to keep from building new power plants. California utilities learned way back then that negawatts are cheaper than megawatts. TVA is finally getting to that point.

We probably won't make major repairs now. Too expensive at the moment.

Tamara Shepherd's picture

Yes, fee is also refundable

...you can get your $150 fee back by buying a $150 HVAC tune-up and submitting it for reimbursement, aside from the rebates.

Right, FC. I phoned TVA back this morn to confirm for Steve and me that the $150 fee is also refundable and they said "yes," provided I spend $150 or more.

As to my concern that the TVA-approved contractors might be overpriced, I should have explained that I already had a quote from a duct cleaning/sealing company NOT on TVA's list to perform that service for $410.

I was a bit concerned, then, when my TVA interviewer told me she spent $600-ish for the same service, using a TVA-approved contractor (although I don't know if maybe her home was larger than mine).

Still, provided these TVA-approved contractors aren't MORE THAN DOUBLE what I can pay some non-approved contractor, it's looking like I'll come out ahead using TVA's folks and applying for their 50% rebates.

Thanks for the feedback, FC. I'm optimistic this will be a smart move for us, too--especially given these IRS tax credits through the end of the year.

Tess's picture

Thanks!

Very helpful, Tamara. KUB should take their link down for the energy audit, IMO. I appreciate the info since I am in the market for a heat pump.

R. Neal's picture

On a somewhat related note,

On a somewhat related note, here's a cool graphic depicting the Conservation Pyramid, progressing from easy, inexpensive things to more complex and expensive.

Source:

http://www.mnpower.com/powerofone/one_home/

Linda Rust's picture

TVA Energy Right

I just received my reimbursement for $650 from the TVA Energy Right program about a week ago. It was a surprisingly hassle-free experience.

Due to what is now referred to by my family as "the Possum Incident" of last September, I had to replace insulation and repair duct work in my crawlspace. I was advised by a contractor that I'd contacted (who was on TVA's list) about the TVA program and called to have an energy audit done. I got an appointment within a week or so. The auditor came to my house in late October and spent about an hour or two from crawlspace to attic then issued me some recommendations. I also got a cool book to help me think more about energy efficiency. Fortunately all of the duct work and insulation repair, that I needed to do anyway, was covered under the program. If I spent at least $1000 doing the recommended repairs, using contractors from their list, and filed the appropriate paperwork documenting such, I'd get the $150 back from the cost of the audit plus up to 50% ($500) for the work done.

I had two excellent contractors - A1 Certified to do the duct repair and Archie's to do the insulation. Not only did they get the work done in a short period of time (in their busiest season no less), they were very professional and pleasant to deal with. They gave me detailed invoices and signed the paperwork that TVA had given me. These, in turn, I faxed to the TVA program administrators. After the work was complete, the auditor returned and signed off on everything. He put in for my reimbursement and I received it earlier than he predicted. No hassle!

In the end, I had my crawlspace and basement covered in a dense urethane foam to create a conditioned crawlspace (I don't want anything coming in my crawlspace ever again), the duct work repaired, a programmable thermostat installed, the HVAC unit serviced (they caught a problem early that would have cost me a new compressor if I had not had it repaired), door insulated, an insulated "box" built for the attic stair access, and my dryer vent relocated to make it more of a straight-shot. I also had my ductwork cleaned out ($300) that was NOT covered under the program, but worth it to me anyway.

All in all, I spent about $2200, but received $500 from TVA for the work. The insulation work I had done will also count for 2010 taxes (what wasn't covered under the TVA program). I plan to add some attic insulation in the next few months as well.

Since the work has been completed, I've noticed less drafts in my house, I can set the thermostat lower and feel warmer, and when everyone was lamenting over their high KUB bills last month, mine went DOWN. By about $25 (almost 15%). I spent some of my refund on some plumbing repairs (Lyons Plumbing), so I am feeling quite happy with my house these days!

I recommend to anyone considering repairs like these, do it through the TVA Energy Right program. It is well worth it.

Factchecker's picture

Wow, that's a textbook

Wow, that's a textbook testimonial, Linda. The only real recommendation we got was to replace our 10 SEER A/C unit with an 18 SEER or better unit. Since it wouldn't be needed for a few months, we would need to rush to spend a few thousand now in order to get the TVA rebate within the approximate 90 day period. Cooling our house costs about $300 a year now. Is it worth it to upgrade? I don't know.

Our auditor did state that energy efficient windows have poor payback. What I'm really itching to do is to get about 2kW of solar panels. I'm thinking it will cost ~$10k. TVA Green Power producers will pay back $1k and there's 30% you can take off federal taxes. That's $6k net cost. The buyback of power from TVA is about $50 per month, or $600/year. So you get 10% return, which is pretty darn good these days, even without compounding. Payoff in 10 years sounds pretty decent too.

Tamara Shepherd's picture

Solar panels

I appreciated Linda's detail, too.

Yeah, FC, it's solar panels that interest me, as well. That payback/payoff you outline looks attractive. However, the initial costs for panels/installation are dropping steadily. Will the $10K cost you estimate drop substantially in just another year or two? If so, how might that skew the return on investment we expect? I dunno...

In any event, I've been reading that homes receiving strong sunlight from the south are the best candidates for the panels--and I can fry eggs on the south side of my roof!

Tomorrow, I want to really press this auditor for info on solar upgrades. I'll report back in the aft or evening.

Factchecker's picture

All concerns I have as well,

All concerns I have as well, Tamara. Looking forward to whatever you learn.

...and I can fry eggs on the south side of my roof!

Us too--just not on days like today!

Linda Rust's picture

TVA

I probably should have added that my house was built in 1930 and most recently renovated close to ten years ago. Let me brag again - my total KUB bill (electric, water, waste water) was less than $175 in December for about 1200 sf (and a teenager!!).

I'm wondering, with a conditoned crawlspace, if I'll see a savings in the summer too?

Tamara Shepherd's picture

Attic first

Linda, my Energy Right auditor is sitting here with me now (we rescheduled for later in the afternoon) and he says "no," that the conditioned crawlspace will cause you to reap only a wintertime benefit in terms of energy savings (although it will help keep summertime humidity down).

I have no geothermal barrier in my crawlspace, either, but Ian advises more insulation in the attic first (as he advised you, I understand), because we can reap a year-round benefit there.

I've learned a few things this aft. More later.

Linda Rust's picture

Attic Insulation

Is next on my list!

Thanks for the info, Tamara (and Ian).

smalc's picture

An alert for Turbotax users,

Just finished using Turbotax, online version. It never asked directly if I had any energy efficiency improvement credits to claim. I had to go into a module "not typically used" and past a recommendation to skip a section because it was "not commonly used."

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