Issues of the Environment: Incentives and rebates advancing home electrification and efficiencies in Ann Arbor and Washtenaw County
January 8, 2025
Resources
Ann Arbor Chapter of the Citizens’ Climate Lobby (Ann Arbor CCL)
Ann Arbor CCL: Building Electrification and Efficiency
Transcription
David Fair: This is 89 one WEMU. And in the New Year, we seek renewal. A part of that is more renewable energy and greater efficiencies. I’m David Fair, and this is Issues of the Environment. It’s our weekly exploration of our local environment. Ann Arbor and Washtenaw County have lofty and ambitious carbon neutrality goals. Among the measures included in the multifaceted approach to meeting those aspirations are increased generation and use of renewable energy in making existing structures more electric-friendly and more efficient. Right now, there are tax credits and incentive rebates being offered to help home and property owners head in that direction. Will it last in the new presidential administration? Well, time will tell. But right now, there is opportunity. Our guest today is Rich Fein. And Rich is the chair of efficiency and electrification for the Ann Arbor chapter of the Citizens’ Climate Lobby. And thank you so much for the time today! And Happy New Year, Rich!
Rich Fein: Thanks, David! Thanks for inviting me on! A pleasure to be on the call!
David Fair: What got you involved in the climate and energy arena?
Rich Fein: Well, that that goes way back to the early 2000s. I wanted to do something that I thought was impactful. I actually was inspired by Al Gore’s movie “An Inconvenient Truth.” And I made a promise to my kids that I would do something to help people reduce their energy usage and switch to cleaner forms of energy to help protect the planet.
David Fair: Well, I mentioned ambitious carbon neutrality goals in the area: Ann Arbor working to achieve neutrality by 2030 and Washtenaw County has set a 2035 goal. From your perspective in all that you’ve studied, do you think that’s realistic?
Rich Fein: It is definitely a challenge. I know the city and the county, especially the city right now, is working very hard. The county will be. They’re just getting their program started. It’ll be a difficult goal. I will say that with the ambitious goals of the state of Michigan to help ensure that the electricity that’s produced is clean over time, that’ll help reach those goals. But it’s a challenging goal.
David Fair: So, with the beginning of a new year, we all like to be optimistic. And from that perspective, the aspirations of A2Zero extend well beyond 2030. And as I look at the barriers to moving so far forward in such a short period of time, I am concerned that if the goals aren’t reached by January 1st of 2030, some we’ll call it a failure. But don’t you think the progress that has already been made and will be made over the next five years and beyond already make the program a success?
Rich Fein: Absolutely, David! The people at the city that are working on this program are working hard. They put together a multitude of programs. Some of them involve rebates that I’d be happy to discuss that will make investments in clean energy and energy efficiency much more affordable. And they’re also doing a fantastic job of getting the word out to people that changes need to be made. So, yes, I agree with that totally!
David Fair: Our Issues of the Environment conversation with Rich Fein of the Ann Arbor chapter of the Citizens’ Climate Lobby continues on 89 one WEMU. Well, you just mentioned one of the barriers to reaching the goals is cost. Change is expensive, and it’s going to take more than government to invest. Beyond paying taxes that help fund these initiatives, the more people that invest in renewable energy and energy efficiencies, the closer we get to where we want to be. So, you mentioned the local financial incentives. There are federal rebates being offered to Ann Arbor residents. Are they making a difference yet?
Rich Fein: I would say that they definitely are. In talking to contractors, we’re hearing that more people are interested in heat pumps, for example, than electric furnaces. People are installing more efficient water heaters. Those are the two most critical areas. And in addition to that, people are doing a better job of weatherizing their homes as well. I think that there’s an order that needs to be followed on this. The first is to get an energy audit on your home, followed by weatherization, followed then by improving the efficiency of the heating systems that you have in your home. And a lot of people are following that right now. More people are talking about it. More people are doing it.
David Fair: How can I electrify my house, make it more energy efficient, and do it without breaking the bank? Is it exactly the process you’ve just outlined?
Rich Fein: Well, those are the steps that you need to pay. The thing to be aware of is, as you electrify, there is a chance that, if you’re not careful, that your actual utility costs might go up a little bit. So, what you really need to do is make sure that before you make the investments in home heating and upgrading your home heating equipment, that you make sure that your home is properly weatherized to make sure everything is safe, that there are few drafts in the home, that the walls and the roof and the attic are properly insulated. Those are the things that you need to do first. And then, when you make an investment in a heat pump, you’ll be getting the lowest utility cost that you can on that investment. In addition to that, there are multiple incentives, as you mentioned, available from the federal government in the form of federal tax credits and, in addition to that, rebates for middle and low-income families. And the city has various rebates as well that are nearly equivalent to those that are available from the federal government.
David Fair: Have you personally gone through any portion of this process?
Rich Fein: Yes, I have, as a matter of fact, in several areas. The first thing–one of the things that I did–was I got a home energy assessment done that was actually provided complimentary by the City of Ann Arbor. So, if you’re a resident of the City of Ann Arbor, I would strongly suggest you contact the city to get a home energy assessment done. There’s no cost. In addition to that, I’ve sealed up my home. I’ve installed an electric, heat pump, hot water heater, which is more efficient than a regular water heater. It’s even more efficient than the on-demand kind. We’ve also installed two mini-splits. They’re the types of heat pumps that we’ve put into our home as well.
David Fair: And is there a difference in your household budget?
Rich Fein: It’s been hard to tell. I know that I’m saving money on the water heater. The verdict is still out on whether the mini-splits are going to be reducing our heating costs. That was something that had to be done, due to some nuances with the home heating system in the home in the first place.
David Fair: Once again, we’re talking with Rich Fein with the Ann Arbor chapter of the Citizens’ Climate Lobby on 89 one WEMU’s Issues of the Environment. There is a trend of new developments being built that are built out as electric homes and buildings. Our local, state and federal policy is going to have to be changed to expedite that transportation in the development arena. Do you believe policy should demand more of those who are developing our buildings and homes?
Rich Fein: Well, it’s too hard to impose sticks, so to speak. We have carrots, and we have sticks. It’s been hard to impose sticks and restrictions–natural gas bans, for example. Attempts to do that have been defeated around the country, especially in the courts. But the changes are taking place. The incentives are there. In the City of Ann Arbor, there have been multiple new developments that have been proposed. They’re being built now, and the overwhelming majority of them are without restrictions or without strong legislation to oppose a building with natural gas. The overwhelming majority of these new buildings are all electric, and that’s just done with the incentives that are out there and, in many cases, just the market demand, because, especially in Ann Arbor, people are wanting low-emissions buildings–buildings that are heated with all electricity.
David Fair: We’ve talked about incentives, local and otherwise, for electrification, efficiency and investment in home renewable energy products. Are there deadlines on some of these incentives where perhaps people need to consider doing it sooner rather than later?
Rich Fein: Well, there’s two types of incentives from the federal government. One of them is tax credits in which the reduction on your income tax, which is 30%. There are caps on certain investments, the rebates or the tax credits that you’ll get. The other is the federal rebates that are actually going to be administered through the state. For the tax credits, the verdict is still out on that. We’ll have to see where the administration goes for that. But the good news is that, for the rebates that are available and that are eligible for middle and lower-income families, the funds for that have already been allocated. So, they’re there. And we don’t need to worry about the political whims of a presidential administration. The money is still there. I wouldn’t necessarily wait because, even though it sounds like a big pie somewhere in the neighborhood of $100 million–
David Fair: It goes quickly, doesn’t it?
Rich Fein: Yeah, it can go quickly.
David Fair: Well, I always like to end on good news, and you just provided good news, so I’m going to end it there. But I want to thank you for taking time and sharing the information today, Rich! Much appreciated!
Rich Fein: Thank you, David! It was a pleasure again! Thanks for inviting me!
David Fair: That was Rich Fein. He is chair of efficiency and electrification for the Ann Arbor chapter of the Citizens’ Climate Lobby and our guest on Issues of the Environment. For more information on today’s topic, pay a visit to our website at wemu.org. Issues of the Environment is produced in partnership with the office of the Washtenaw County Water Resources Commissioner. And you hear it every Wednesday. I’m David Fair, and this is 89 one WEMU FM Ypsilanti. Celebrating 60 years of broadcasting from the campus of Eastern Michigan University!
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