Cash-for-clunkers programs to reward appliance shoppers in March

The American Recovery and Reinvestment Act of 2009 set aside $300 million to fund rebate programs encouraging consumers to upgrade their old appliances. Each state was given a slice of that pie to make its own program, and a number of states are rolling out these programs in March. For example, check out these stimulus-funded initiatives in Missouri, New York, Connecticut, Georgia, and Texas.

Renaissance Lighting earns Energy Star label

Renaissance Lighting, who I blogged about last year, has earned Energy Star qualification for its newest downlight LED fixtures. According to Renaissance, the new recessed downlight fixtures deliver at least 35 lumens per watt and meet other Energy Star requirements for efficiency, light levels, and color.

Bronx development marks milestone

The non-profit Women’s Housing and Economic Development Corp. celebrated the opening of a new milestone last week -- the largest affordable Energy Star certified building in the country, called Intervale Green. The non-profit says that the Bronx, N.Y., multi-family housing project is "thirty-three percent more energy-efficient than a standard building." The organization also has an online press kit available. The complex was built with eco-friendly materials and features energy-efficient appliances.

How will the recession hit the home channel?

Well, seems that we are officially in a recession -- and have been for about a year -- something that's not news to us in the home channel, from retail mom-and-pop hardware stores to large tract builders. But where do we go from here?

Leanne Tobias of GreenBiz.com thinks that the government can spend us out of the recession, and if the Feds are going shopping, might as well get them to buy green. I think that may be a help, sure, but compared to the billions and trillions of greenbacks being juggled and dropped all over Wall Street, I have to wonder if requiring the government to put Energy Star fridges and air conditioners in office buildings is really going to solve our problems.

Besides, what about housing?

If money is short and you always wanted to live in a hobbit-hole, there's a $5,000 option for you (photo, above right). This earth-sheltered house, designed by an artist in Wales, England, "was built with maximum regard for the environment and by reciprocation gives us a unique opportunity to live close to nature." All for about "1000-1500 man hours and £3000."

If you do not want to build-it-yourself, the optimism of the folks behind the $100K house is refreshing. This is an effort to create affordable green housing in urban Philadephia, and the brains behind the work, Nic Darling, sees reason to keep hope alive:

I may be crazy, overly optimistic or both, but I don’t think we are screwed. In fact, I think we are in one of the best positions possible at this time and place. The real estate market in Philly, while down, has remained fairly strong compared to the smoking craters that have replaced housing markets in many other parts of the country. It has been particularly good for houses selling under $300,000 and that is right in our wheelhouse. ... In addition, we have seen an increase in consumer knowledge regarding the real costs of home ownership. Maintenance, taxes and utilities have finally (we hope) become a part of a home buyer’s consideration. Rather than simply looking at the monthly payment, people are starting to consider the total expense of home ownership, and this bodes well for homes like ours. Our houses will require less maintenance, use half of the utilities (compared to a code built home) and offer a ten year tax abatement (can you say $75 a year in taxes?). They are simply less expensive homes to own. ... People also seem more and more willing to pay for green.

The 100K house may not be as elfin and fey as the 5K earth-sheltered house, but the former is LEED Platinum rated, and it features indoor plumbing and a bathroom, so it has that going for it. Which is nice.

But what about that recession? The conventional wisdom holds that luxury properties will still do well -- and my cousin, who sells and installs very high-end millwork in upstate New York, says he's doing okay. That seems to give anecdotal weight to what the conventionally wise think. To the extent that the wealthy also are looking for green products, there may well be a sweet spot there.

And if Nic Darling is on to something, there's another opportunity for affordable green housing, in addition to the high-end projects. I hope he's right.

Sierra Club to help build green homes for injured vets

The Sierra Club is partnering with Homes for Our Troops to include eco-friendly materials and processes when making new houses for severely injured vets. The partnership includes a grant from the Sierra Club Foundation of up to $1 million over the next three years. According to a press release,

The grant will be used to explore new technologies and products designed with environmental and energy conservation concerns in mind, include a higher degree of green building into its homes, and fully participate in the Energy Star Program and the LEED Program that was recently established by the US Green Building Council. These energy efficient homes will provide long-term economic and environmental benefits to these veterans and their families.

Energy-efficient appliances are selling better than traditional models

I got a press release from the NPD Group. They track sales trend data for a wide range of products, and they share info with us at Home Channel News on a pretty regular basis. This press release was on energy-efficient appliances, sales for which are doing quite well these days. I can't link to the data, which is not online, but let me quote from the press release.

Refrigerators: From April to June 2008, sales of Energy Star refrigerators increased 15 percent in dollars and 13 percent in units, versus one year ago. This is compared to the 11 percent declines non-Energy Star rated models are showing. Average selling prices of Energy Star refrigerators models have been more than double the price of regular models, but have leveled off in the last two years.

Washing Machines: Unit sales of Energy Star washing machines grew 3 percent, whereas, non-energy efficient models have declined by 12 percent in April-June 2008, compared to the same time last year. While energy efficient models garner a bigger dollar share (55%) than less efficient models, they only represent 40 percent of units sold.

Let me say that again: Green fridges, up 15 percent; non-green, down 11 percent. Green washers, up 3 percent; non-green, down 12 percent. That is impressive.

NPD didn't give me the Energy Star vs non-Energy Star comparisons for dishwashers and air conditioners, but they say that the former are up 5 percent and the latter are up a whopping 50 percent!

Thanks to NPD's Dora Brunette for help with the data.

AAMA in Translation

After I posted the AAMA's response to the proposed Department of Energy's Energy Star window standards, I had second thoughts about regurgitating the association's very dense and tech-heavy points without really explaining them. So I called the organization and spoke with AAMA technical director John Lewis. Here's what he said about each of the AAMA's points (original suggestions are in italics).

A two-stage phase-in with Stage One implemented one year after the program parameters are finalized (mid-2009); and Stage Two implemented in 2014.

The DoE's Energy Star proposal seeks a 2009, 2012, 2015 rollout. But a more realistic timetable may keep participants in the program who might otherwise drop out if the proposed, more onerous schedule is adopted.

U-factor and SHGC values be brought in line with aggressive goals as predicted by industry experts as attainable within six or seven years.

U-factor is heat flow (like R-values in insulation). SHGC is solar heat gain. Low SHGC means reflecting off energy and using less energy for air conditioning -- important in the South. High SHGC values are better in the North, where you want to absorb heat from the sun. Anyway, the Department of Energy is pushing standards so high that they would require a "triple glazing" approach. That would mean product redesigns for thicker windows. The AAMA wants to delay the adoption of those higher standards so that "compliance can be gained in a way that does not require a dramatic redesign of products" -- and to let the technology improve. In a few years, researchers may well find a way to hit the same efficiency values with a "double glazing" approach.

Alternate compliance paths coupled with realistic program parameters that maintain a consistent and clear message to the consumer via the Energy Star label.

This is a suggestion to recognize that window performance is more than just a specific particular combination of particular U-factor and SHGC values, and that other equally efficient products could have other values, such as a lower SHGC to compensate for a higher U-factor. 

Careful cost-benefit or payback analysis that evaluates decreasing demand for more expensive products, while accounting for price elasticity.

Some AAMA members say that the new requirements will raise the cost to make products. Will that make consumers less likely to buy? What's the consequence of decreasing the amount of Energy Star product in the market if the price goes out of reach?

Closer alignment of the five Energy Star zones with those provided in the IECC climate zone map, and redefinition of the Northern Zone parameters.

Best way to explain this is with maps. First, here is the proposed Energy Star climate zone map:

Next, here is the IECC's climate zone map of the United States:

Note the area circled by the AAMA in red -- the association suggests another look at parts of Idaho and eastern Oregon and Washington. 

Well, I hope that gives a better picture of the factors in play with these proposed Energy Star window ratings. Many thanks to the AAMA's John Lewis for the clarifications.

AAMA responds to new Energy Star window ratings proposal

The government's Energy Star program includes a component that rates windows, and that program is undergoing revision. I got a press release from Heather West at the American Architectural Manufacturers Association touting the AAMA's feedback to the proposed revision. The AAMA has the following goals, according to the press release:

• A two-stage phase-in with Stage One implemented one year after the program parameters are finalized (mid-2009); and Stage Two implemented in 2014;
  
• U-factor and SHGC values be brought in line with aggressive goals as predicted by industry experts as attainable within six or seven years;
  
• Alternate compliance paths coupled with realistic program parameters that maintain a consistent and clear message to the consumer via the Energy Star label;
  
• Careful cost-benefit or payback analysis that evaluates decreasing demand for more expensive products, while accounting for price elasticity;
  
• Closer alignment of the five Energy Star zones with those provided in the IECC climate zone map, and redefinition of the Northern Zone parameters.
  

Note: I updated this post here.