Heat! Upgrades and Incentives

November 7, 2011

The truck idling while the hose is stuck into the side of our house, the oil-smeared shocking bill shoved in our mailbox. We could not live through another year of oil delivery. My husband and I have been pining for a conversion for years, but have put it off because of the costs. We finally bit the bullet and did it – the new gas boiler and indirect water-heater were installed at the end of last week. We have helped our clients with their own oil-to-gas conversions and now have been through the process ourselves. If you are considering such an upgrade or upgrades in your windows or insulation, there are significant financial incentives that can help defray costs – rebates and no-interest heat loans. I hope that reading about our experience will help you in making your home more efficient and comfortable.

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our new thermostat, directing the boiler to slow down for the day

PURCHASE OF UNIT:

We bought our new boiler through National Grid. We purchased a Burnham Alpine 96% efficiency forced hot water unit. We initially were looking at other manufacturers, but buying through National Grid, where the reduced-cost options are limited to American Standard and Burnham, was the best solution for us. The cost of the unit was about $1000 less than retail, which made them far less expensive than the units we looking at, for the same efficiency.

For Massachusetts and New Hampshire, go to www.powerofaction.com and click on “Covert to Natural Gas” to find purchase options and conversion assistance if you need contractor referrals. The site also has a link to tax credit information – these have been greatly reduced for 2011 and presumably for 2012.

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our new boiler and water heater – taking the place of the oil tank

ZERO INTEREST LOAN:

The zero-interest HEAT Loan for insulation and mechanical upgrades in the home, currently offered by many regional and local lenders, is a great way to defray the costs of the upgrades while saving with reduced energy use. MassSave coordinates the process, and although the their employees are helpful with questions, there is quite a bit of homeowner coordination required for the loan process.

The call and the energy assessment report

The process starts with the homeowner making the call to National Grid/MassSave (1-800-696-8077). MassSave then sends a home auditor to perform a free Home Energy Assessment Report for the home. For us, they scheduled an auditor right away – one of us needed to be home while the auditor visited. He took about 3 hours, and had the report for us at the end of his visit. The report is an assessment of the home which includes windows, doors, insulation, air leakage, and mechanical systems. The report includes recommendations for energy-savings and contractors to complete the efficiency upgrades, although the loan process does not require that you use those companies. In addition, insulation and sealant work is offered through National Grid, so for our house, the report also included a proposal for insulation. National Grid subcontracts directly to various companies and the price to the consumer is dramatically reduced with an instant rebate. Our house needs wall insulation – the proposal was for about $4000 with an instant rebate of $2000. Two important notes are that National Grid will inspect the insulation work as part of the assessment program, and for our house, the insulation work will cause some damage to our siding that we’ll be responsible for repairing.

Getting proposals

Once we determined what energy-saving projects we wanted to take on, we needed to get proposals from subcontractors to do the work. In our case, we already had the insulation proposal from the auditor, so we needed to get window supply and installation prices, and the mechanical installation prices. The mechanical subcontractor’s proposal needed to include a heat-loss calculation and the cost of the new equipment (minus the rebate) even though the boiler was being purchase by us. All proposals, the auditor’s report and the loan application form are submitted to MassSave. They process the paperwork, and if all is acceptable, send an Intake Form to the homeowner. The homeowner brings the Intake Form to their chosen bank to use for the Heat Loan.

The Loan

Our understanding is that the loan is a zero-interest seven year loan.  If approved, the bank issues 2-party checks for each portion of the work, made out to the contractor and the homeowner. (This assures that the homeowner isn’t using the money to go to Foxwoods.) We are still mid-process for the loan – we’ve submitted our paperwork to MassSave and are waiting for the Intake Form. Ideally, we would’ve started the process in July, secured the loan in August and completed the conversion before heating season. Since we started in October, we needed to buy the boiler and hire the plumbing contractor to install it without the loan. The loan can still cover the work if it has been completed, although obviously the risk with this approach is if we don’t get the loan, we still have to pay the plumber! If we get the loan, we’ll need to cash the checks with our plumber, who will then reimburse us the amount already paid. We know our plumber well – if we didn’t, it would be important to cover these financial maneuvers contractually.

REBATES:

Available through National Grid., the 2011 Residential Efficiency Rebates are for programmable thermostats, high-efficiency heating equipment and water heaters, and combined high-efficiency boiler and water heating units. For our boiler, which is 96% efficient, we’ll get a $1500 rebate and $25 each for the new programmable thermostats (I LOVE THESE). Our indirect water heater will gain us an additional $400. We’ll need a receipt or invoice showing the installation was done by a licensed contractor and the manufacturers name and model number of the units. See www.gasnetworks.com for rebate information and forms.

Our house was built in the 1790s. Every installed technology is a marvel and a beautiful contrast to the hand-sawn timbers and rubble foundation walls. Because we have heating zones in the house now, we are able to go up the stairs without a 20 degree change in temperature. We are thrilled to find that every room is comfortable!!!

Converting to gas does give us some pause, how much better is gas than oil? Dramatically increased efficiency of the heating system helps – and we also plan to install a pellet stove on the first floor to further offset our use of gas. After last month’s power outages, a lot of us are looking to wood and pellet stoves and generators so we can be independent of the grid if needed. When we think about our home’s history, a move toward ‘off-the-grid’ would bring it back to its beginnings, although in a more technologically advanced way.

Feel free to contact me with any questions or if you want to share your own experience through the quagmire of energy incentives. I can be reached at juli@greenbridgearchitects.com or 978.518.2811. Happy heating season!

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4 Responses to “Heat! Upgrades and Incentives”

  1. Denise King Says:

    Juli- How timely your information…I’m always shocked by each oil fill bill and just learned our hot water tank has rust near the bottom, indicating a slow leak. We’ve been milking our oil burner along with regular cleanings/service for 21 years since moving in our home. Advice from our plumber – convert to a gas effecient burner and hot water tank. Thanks for sharing your research and conversion experience, it will be very helpful to us and many others.

  2. greenbridge Says:

    Thanks Denise – you can do this too! I would recommend waiting for better weather because there is some down-time.

  3. Maia Dobson Says:

    I think converting to gas is a good idea. This is such an informative post I’m wondering how much I would save if I upgrade my heater.
    boiler repair

  4. greenbridge Says:

    Hi Maia, Depending on where you live, you can often get good estimates from your energy supplier on your savings with an upgrade. We’re so happy with the new boiler and reassured knowing we are living so much more efficiently. Best wishes to you!


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