Alliant Energy introduces renewable energy rebate program

DES MOINES — Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy, filed with the Iowa Utilities Board (IUB) its proposed 2009-2013 Energy Efficiency Plan (EEP). The proposed EEP offers many of the cash rebate and energy audit programs currently offered. The proposal also includes:

  • Comprehensive, whole-house energy-efficiency cash rebate program for existing homes
  • Incentives for Leadership in Energy and Environmental Design (LEED) certification
  • Expanded energy-efficiency educational opportunities
  • New renewable programs which include financial and technical assistance to conduct feasibility studies and cash rebates to install equipment

Specifically, the Residential Renewable Energy Program covers 30% of the total cost of installed small wind and solar PV systems at a maximum amount of $30,000. The program covers 30% of the total installed cost of solar hot water systems at a maximum amount of $5,000. The Non-Residential Renewable Energy Program includes similar incentives with higher maximum rebates. The incentives for public buildings are higher than for non-public buildings.

Alliant's EEP must get final approval by the Iowa Utilities Board. I-Renew is highly supportive of utility renewable energy rebate programs.

"These programs offer Iowa residents more control over their energy usage, allowing for greater reductions in fossil fuel usage and opening up huge new economic opportunities for homebuilders, construction, heating and cooling and electrical contractors, and manufacturers," said Michelle Kenyon Brown, I-Renew Executive Director.

Background

Currently in Iowa, most utility providers offer some sort of energy efficiency program to their customers, including rebates for the purchase of energy efficient appliances, heating and cooling equipment, insulation, windows and doors. Rebates are excellent ways to reward investment in energy efficiency, and to make improvements more affordable.

With the growing interest in renewable energy and "green" technology, many people are interested in taking the next step in energy efficiency by utilizing clean energy sources like solar and wind power to increase their energy savings and reduce their dependence on fossil fuels.

The IUB is charged with the responsibility to oversee Iowa utilities' energy efficiency programs and plans. Investor-owned utilities (IOU) are required to conduct energy efficiency programs while consumer-owned utilities (municipal utilities and electric cooperatives) operate voluntary programs. Key features of all programs approved for IOUs include cost-effectiveness, inclusion of programs for all types of customers and performance standards. In a recent report, the IUB stated: "The IUB will require IOUs to estimate in their energy efficiency plans the effects of potential carbon dioxide emission standards on future avoided costs, which are used to determine the cost-effectiveness of IOU energy efficiency programs and plans."

Some utility companies claim that small renewable energy systems do not meet the cost effectiveness test, citing the high installation cost and payback period of Photovoltaic (PV) electrical generation. They fail to account for the longevity of solar equipment and many of the long term economic and societal benefits of increased solar generation, including addressing peak demand issues during the hot, sunny summer months, reduced demand on transmission lines, and emissions reductions.

Other types of small-scale renewable energy systems like small wind, solar water heating, and passive or active solar heating are even more cost effective. Some have current payback periods similar to conventional efficiency upgrades, and can make substantial reductions in fossil fuel use. For instance, water heating is typically the second largest consumer of energy in most homes. A solar water heater can reduce water-heating costs 75% in our region, and have a system life expectancy of 30+ years. According to the Union of Concerned Scientists, system payback is currently around 10 years. With rising energy prices and declining equipment costs, that payback rate will shorten, and solar hot water looks like a solid economic and environmental investment, and rebates can help reduce the up-front costs.