Q: What is Project ReEnergize?
A: It is a project funded by the US 2009 American Recovery and Reinvestment Act to increase market demand for energy efficient upgrades in residential construction. The Minnesota Department of Commerce has allocated $2.5 million from the $7.65 million available to provide rebates to consumers in the remodeling market. The Builders Association of Minnesota is administering the rebate program.
Q: How much is the MN ReEnergize Rebate for?
A: The rebate for Minnesota homes is capped at $2,500 for energy efficient upgrades without attic air sealing and $4,000 for energy efficiency upgrades with attic air sealing. The MN ReEnergize Rebate may be used in addition to any tax credit, rebate or other incentive offered by any government, private or utility programs. If an atmospherically vented water heater is eligible for a rebate the $750 will be added to the $4,000 maximum allowed.
Q: What energy efficiency upgrades qualify for rebates? How much are the rebates?
A: The rebate structure and amounts were chosen by the Minnesota Department of Commerce. Capping maximum rebate amounts for households make sure that more Minnesota homeowners have access to the stimulus funding.
Q: Why aren't rebates available for heating systems?
A: The Department of Commerce changed the program parameters after the initial promotion went out. Ask your Project ReEnergize Qualified Contractor to help you find utility rebates and federal tax credits for energy efficient furnaces and boilers.
Q: How can I get a rebate?
A: Only homeowners working with a MN licensed contractor who has been qualified through the Project ReEnergize training program are eligible for the rebate. The rebates are available only for owner-occupied homes that were constructed before 2000 and are under 3,000 square feet. Only one rebate check is allowed per household. Every effort will be made to distribute the rebates throughout the state. Rebate Applications are only available from qualified licensed contractors after October 1, 2009.
Q: Why does my contractor have to be trained to offer Project ReEnergize rebates?
A: The rebate is being offered for a number of energy efficient measures including window installation and air sealing. Air sealing performed on older homes may impact the air flow in a home and change the performance of the home to save energy. Mandatory training on the effect of air flow issues is a safety precaution. Project ReEnergize requires specific training so a contractor can explain these issues with homeowners and address them according to strict safety protocols.
Q: Why does Project ReEnergize require special training for the contractor?
A: Only licensed residential contractor are required to provide state-mandated home warranties to homeowners and access to the MN Contractor Recovery Fund should it be needed. Offering rebates through qualified Project ReEnergize contractors who are properly licensed and insured according to state law allows Minnesota homeowners to receive safe and effective energy efficiency work for their homes.
The rebate is being offered for a number of energy efficient measures including window installation and attic air sealing. Attic air sealing performed on older homes will tighten up the home and may impact the performance of the home. The new Minnesota Residential Energy Code reflects the importance of doing air sealing correctly. First, the new code requires attic air sealing before any insulation is added. Second, the code requires adding combustion air, carbon monoxide detectors or specific safety testing. The Project ReEnergize protocol for attic air sealing has four mandatory steps which require specially trained crews.
- TIGHTEN THE BUILDING SHELL Identifying and filling holes ("bypasses") in the attic to tighten the house using nationally recognized curriculum and air sealing procedures.
- CONTROL MOISTURE Changing a regular bathroom fan into a continuously exhausting fan to reduce winter moisture build up on windows. This requirement is based on experience with sound/energy insulation measures performed by the Metropolitan Airport Commission.
- TEST FOR SAFETY A depressurization test is performed to make sure that water heaters and furnances/boilers don't backdraft or spill combustion products like carbon monoxide back into the newly tightened house. Rebate money has been set aside to help homeowners replace water heaters that no longer draft correctly.
- CONFIRM ENERGY SAVINGS A pre and post blower door test is performed on the home to show how much energy will be saved by tightening the house because of attic air sealing. These four steps will make sure that the federal stimulus dollars are used to give homeowners access to safe and very effective energy efficiency measures.
Q: What is attic air sealing and how does it save energy?
A: Attic air sealing is the process of finding and sealing the holes from your ceiling to your attic. These holes are called "bypasses" because heated air escapes through them. They typically occur around chimneys, vents, recessed light fixtures, soffits, and where framing members meet. So you normally can't see attic bypasses from the inside of your house. However, if your home has icicles or ice dams in the winter they are probably caused by heated air that is escaping from your house and melting snow off of your roof. Attic air sealing makes sure there is a well-defined boundary between the heated/air conditioned space in your house and the unconditioned space. If you add up all of the attic bypasses in your home they could be wasting as much or more energy than leaving a open window in your living room all winter long. Project ReEnergize "closes the window" which also boosts the effectiveness of attic insulation.
Q: Can I get a rebate if I do the work myself?
A: No. Do-it-yourself work does not qualify for Project ReEnergize rebates. There are two goals for the federal stimulus money: save energy and create jobs. Hiring a Project ReEnergize contractor is good for your home and your local economy.
Q: Why can't I use a contractor that just installs windows and doors?
A: You can if they are licensed by the State of Minnesota as a residential contractor and are a qualified Project ReEnergize contractor. Project ReEnergize contractors can provide you with all of the rebate options available, not just one. Companies that install just windows and doors do not need a state license for residential construction. Licensed residential contractors must provide you with a state-mandated 1, 2 and 10-year warranty. The Minnesota Department of Labor and Industry also regulates licensed contractors and has no jurisdiction over unlicensed work.
Q: What kind of windows are eligible for rebates?
A: Windows must have an Energy Star© rating suitable for Minnesota's climate. Eligible windows are counted by the rough opening. This means if a contractor installs a factory installed mulled windows (several joined together) or mulls the windows together on site the entire window unit placed in the rough opening would be eligible for only one window rebate (at $250 or $300 depending on whether or not air sealing is also done).
Insert windows may be eligible but insulation of sash pockets is required and the new windows must meet Energy Star© ratings suitable for Minnesota.
Windows in additions are not eligible since they already have to meet strict energy code standards. New window openings in existing walls are not eligible because they already are required to meet strict energy code standards.
Q: Are patio doors and exterior doors eligible for rebates?
A: No, only windows are eligible. Talk to your Project ReEnergize contractor about federal tax credits that are available for qualifying energy efficient doors.
Q: What if I am having an addition put on my house. How do I measure the square footage?
A: The 3,000 square feet includes the existing house's footprint; not the expanded footprint after the addition is completed. There are no limitations on the size of the addition. However, none of the work on the addition qualifies for rebates since additions already have to meet strict energy code requirements.
Q: If I take out a window to add on a room, can I count one of the new windows in the new wall of the addition as a replacement for the one I eliminated?
A: No. The new window will have to meet the stricter energy code requirement and expanding the building footprint will increase the energy usage.
Q: What is the difference between an energy efficiency rebate and an energy efficient tax credit?
A: A Project ReEnergize rebate is a direct payment (check) to a homeowner for qualifying work once the work is completed. The $1,500 federal energy efficient tax credit is available for all qualifying energy efficiency upgrades. However, you are not issued a check from the federal government. Whether or not you are getting a tax refund does not matter. What matters is your "tax liability" - which is the total amount of federal income tax you are responsible for paying. These energy efficiency tax credits are technically "non-refundable" which means you can't get more money back in tax credits than you pay in federal income taxes.
Q: Can I get a Project ReEnergize rebate, a federal tax credit and a utility rebate for the same work?
A: Yes absolutely, if you meet all of the criteria for all of the programs and apply for all three. There are no limits on collecting other program incentives for Project ReEnergize eligible upgrades. Your Project ReEnergize contractor will help you fill out your rebate application form for a Project ReEnergize rebate. However, homeowners are responsible for determining if they are eligible for other incentives. Project ReEnergize contractors have received training on the federal energy tax credits and can guide you through that process.
Q: Are the material requirements for the Project ReEnergize rebates the same as the requirements for Federal Tax Credits for Consumers?
A. Sometimes, it depends on the energy efficiency upgrade. Contact your Project ReEnergize qualified contractor for an explanation of when requirements energy efficiency upgrades are the same for each program.
Q: Are installation costs covered by the rebates?
A: The share of installation and material costs for each energy upgrade are irrelevant. The rebates are granted whenever eligible upgrades are installed and approved.
Q: Can landlords receive Project ReEnergize rebates?
A: No. The rebates are only available to homeowners for owner-occupied primary residences.
Q: Why can't I get a rebate if my house was built after 2000?
A: Minnesota passed stricter energy codes in 2000. The rebates are targeted to homes that are most inefficient because they will have the most impact on energy savings.
Q: What parts of my house are included in the square footage calculation?
A: Count the living areas of your house excluding the basement whether or not it is finished. This is measured from exterior wall to exterior wall. Do not add garages or crawlspaces to the total square footage. Crawl spaces are defined by The Minnesota State Building Code as, "Areas or rooms with less than 7 feet (2134 mm) ceiling height measured to the finished floor or grade below." If the final square footage is 3,000 or less and your house was built before 2000 and meets the ownership criteria; your house qualifies for a Project ReEnergize rebate.
Q: How will I know if the upgrades have helped?
A: All of the Project ReEnergize energy efficiency upgrades have been well proven to save energy and have been chosen by the Minnesota Department of Commerce Office of Energy Security. But lower utility bills will be your first sign that the energy efficiency upgrades have helped. If your work scope includes attic air sealing, then Project ReEnergize crews will take a before and after readings of how leaky your house was and now is.
Q: Is there an income limit for Project ReEnergize rebates?
A: No. The only limitation is the square footage of the home and whether the home is owner occupied. Homeowners living in condominiums or townhomes or other types of homeowner association arrangements must have the legal permission to make home improvements that qualify for the program.
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Please be aware that the opportunity to receive any rebate money from Project ReEnergize (the "Program") is contingent on the approval of a Rebate Application, submitted by the homeowner, in BAM's sole discretion, the completion of upgrades in accordance with the requirements of Project ReEnergize, and the availability of rebate funds at the time the Application is processed. Funds shall be distributed on a first come, first serve basis and Builders Association of Minnesota ("BAM") makes no representation or guaranty as to the availability of funds at any particular time or for any particular project.
Those interested in participating in the Program should review and be aware of Project ReEnergize's terms at the time of application. Strict compliance with all terms and guidelines of Project ReEnergize is required to be eligible to receive any funds through the Program.
Only Project ReEnergize qualified contractors who have completed the required Program training will be eligible to perform rebate work. BAM and all applicable government agencies expressly disclaim any representations or warranties, whether express or implied, with regard to the habitability, merchantability, or fitness for a particular purpose of any eligible improvements made under the Program. Homeowners shall look solely to their Contractors with regard to any warranty claims. BAM and any applicable governmental agency shall not be responsible for any mitigation responsibility, claims or damages arising from the work performed, including defect or warranty claims related to increased humidity levels in the home caused by air sealing.
