Energy costs are on a lot of minds in Maine these days, and for good reason. Oil prices are dangerously high and electricity costs are an issue for many businesses. While oil prices are determined globally, and our electricity rates generally rise and fall in response to natural gas prices, there are lots of ways Maine homeowners and businesses can reduce their energy costs.
Thousands of Maine businesses have reduced their energy costs by 20 or 30 percent with more efficient lighting, compressors, motors, appliances and other equipment. That’s like getting a 20- or 30-percent discount on energy prices, and every dollar saved helps the bottom line.
For example, Formtek is a manufacturer in Pittsfield that builds machines for sheet metal fabrication. It paid $55,000 to install energy-efficient lighting fixtures throughout their facility, which was two-thirds of the project cost. Efficiency Maine paid for the other third, and provided much-needed technical assistance too.
Formtek is now saving $25,000 on its electricity bills every year, Maine companies employing Maine people did the installation, and the new lighting makes Formtek’s workers safer and more productive, too.
This is just one example. Former state economist Charles Colgan wrote that “perhaps the single most effective action to enhance Maine’s business climate and economic competitiveness is to aggressively increase the energy efficiency of Maine’s economy.” I recently served on the board of directors of the Maine State Chamber of Commerce. In its report “Making Maine Work,” the Chamber said increasing energy efficiency should be an immediate priority.
In addition to helping businesses, Efficiency Maine also helps homeowners reduce electric and heating bills. Last year the programs helped thousands of homeowners save an average of $1,400 each (or 40 percent) on their annual heating oil bills through highly successful home energy-efficiency improvements. The reduction in oil bills was equivalent to buying oil for just $1.15 a gallon, a real bargain.
Maine businesses, homeowners, schools and other institutions are saving money with energy efficiency in large part because they are partnering with Efficiency Maine, Maine’s one-stop efficiency shop.
Efficiency Maine makes energy-efficiency investments happen by increasing public awareness, providing the technical and financial assistance needed, and keeping a list of qualified contractors. Consumers don’t see it as directly, but Efficiency Maine is helping transform markets so that energy-efficient choices can become more widespread and affordable on their own.
In 2009, the Legislature established the Efficiency Maine Trust to consolidate the state’s energy-efficiency efforts and make Efficiency Maine an independent entity that is focused squarely on specific energy savings targets. The trust has an independent board (which I sit on) and is overseen by the Public Utilities Commission. The trust “supplies” electricity savings with a tiny portion of ratepayer funds, similar to the way utilities supply electricity and transmission lines using ratepayer funds.
Efficiency Maine has a small staff, most of whom are not state employees. They deliver most of their services through private contractors who win competitive bids, and the actual work installing energy-efficient equipment is done by an expanding field of completely independent businesses — electricians, insulation installers, engineers and others.
For every $1 invested with the help of Efficiency Maine, businesses and homeowners save $2-$4, and independent studies have demonstrated that they are making efficiency investments that they wouldn’t otherwise make on their own.
Last year, the trust alone helped homeowners and businesses save $450 million on their electricity and oil bills over the coming years. And, in doing so, those energy consumers paid Maine companies and workers, instead of sending those dollars out of state to buy fuels, improving the economy and increasing energy independence.
Furthermore, electricity saved through Efficiency Maine cost only 3 cents/kwh, less than half the price of buying a kilowatt-hour from the power grid. (That was the lowest Efficiency Maine has ever achieved.)
Although it is disappointing that Maine continues to have the lowest per capita rate of investment in energy efficiency in New England, I’m pleased that the Efficiency Maine has been able to achieve such enormous savings at such a low cost. The trust’s first full year in operation was its best ever by any measure.
Taking greater control over Maine’s energy future is a daunting, long-term challenge. It requires a steady effort over time. Maximizing savings through energy efficiency should continue to be one of Maine’s most important energy policies.
I encourage all Maine people and businesses to contact Efficiency Maine so we can work together to reduce energy costs, and encourage policymakers to sustain and build on our success so far.
John Rohman is the former CEO of WBRC Architects and Engineers and a former mayor of Bangor. He sits on the board of the Efficiency Maine Trust.
First, you have an energy audit done by a reputable professional…they run between $500-$800.
Second, you review the long list of recommendations for re-insulating your home; replacing inefficient appliances; replacing windows and doors. You calculate the costs and prioritize them and calculate the cost of disrupting your lifestyle–foamed insulation in Basements or plaster walls requires moving out of your house for a week and waiting until the foam cures and toxic gases are given off.
Third, you realize that the government makes it very difficult for a knowledgeable homeowner to perform either the audit or upgrades. You have to hire licensed and approved contractors to do the work, otherwise you won’t get the tax credits.
Fourth, you realize that all this money is ‘upfront’ while the savings are gradual and accumulate over the years; and if you borrow the money, you have to add the interest costs; if you take the money out of savings you lose not only the money, but the interest it would make. You also realize that your tax credits won’t arrive until next year or later; and they are only credits.
Fifth, you start to game the system and take the audit recommendations and research out the big gains and that usually means major conversions of your heating system, for example, like taking out the oil furnace and putting in natural gas, which in turns leads to replacing the inefficient electric appliances like the dryer and stove. Again more disruption, and if they find any asbestos in your basement that has to be removed first and that’s a very expensive undertaking no matter how well it is sealed up…..should you leave the oil tank in place since it was built into the house? Should you now spray insulate the basement on recommendation of the auditor? and where does all the stuff stored there go while the spraying is done and who moves it and at what cost?
Sixth, you hear about solar grants and then find out they were all taken the first day of the program and by ‘insiders’ affiliated with Efficiency Maine. disGUSTAcrats at work.
Seventh, you buy clear tape and plastic sheets and do the leaky windows. a cheap fix?
Eight, you finally realize your historic unique house whose mortgage you just paid off, was devalued by the audit. Does this lower the tax assessment? What about selling it and building a new LEED compliant ‘small house’, and the potential buyer asks if you’ve had an energy audit done…Do you lie or show them the audit and the estimate of $45,000 in upgrades; which in turn results in them asking to take that off the asking price?
Ninth, you decide to switch to natural gas at about $3,000 and rely on radiant wood heating with an eye to replacing the new wood stove with a gas fired one.
Tenth, you open a window, welcome the cold fresh air, turn on the mattress heater, and go to sleep thinking about all the money you saved.
Alice: Nice work. All this pragmatic advice and it didn’t cost the ratepayers a dime. EM forgets to mention that 64% of their total funding in 2011 came from the now expired ARRA Grants which is taxpayer money. They also forget to mention that $20 million of their funding came from the Systems Benefit Charge and RGGI Auctions which are added into our electric rates. So the few who got connected for free money benefit at expense of all the other ratepayers. Start a consulting business Alice. You will save people a lot of money.
suggest people go to the EFFICIENCY MAINE at http://www.efficiencymaine.com and review the steps to take to qualify for for either a rebate or a PACE loan. Avg. cost of an improvement is about $8,000.
oka,y every rate payer is paying 3 cents a kwh for Efficiency Maine. less than half of power cost?
Think of real savings with your insulated home and slash your electric bill in half when Efficiency Maine goes away.
Even with some pitfalls, this type of energy conservation is the way to go. Just think if we’d directed the 100s of millions of our tax dollars that has been given free to the wind industry into projects like these. How many 1000s of Maine homes could have been improved by local tradesmen in every community.