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Residential Energy Conservation Program - Terms and Conditions

Info for: ResidentialCommercialEducationCommunityContractorsEconomic Development

Borrower Eligibility

1. The HG&E Residential Energy Conservation Assistance program is available to residential customers for owner-occupied properties.

2. Prior to the start of work, Applicants must receive approval from HG&E of this application in order to be eligible. Assistance is not granted to tenants renting or leasing the property.

3. Applicant's accounts must be in good standing with HG&E, (6- 12 month history of satisfactory payments) and there shall be no Municipal tax liens on the property. For homeowners with no prior HG&E billing history, Applicant may submit a letter of credit from their previous utility provider.

4. Applicant’s building must receive gas or electric service from HG&E. In the case of heating, water heating and cooling equipment installations, the Applicant must purchase the required fuel from HG&E.

Term & Level of Assistance

1. The maximum term for the assistance is 36 months for projects up to $2,000, 60 months for projects between $2,001 and $10,000, and 120 months for Solar PV $10,000.

2. The maximum assistance for a project is as follows:

  • Single family (owner occupied): $5,000
  • Multi-family (owner occupied): $10,000 (up to $5,000 / unit)
  • Solar - Photovoltaic (PV): $10,000
     **Note: a multi-family property for purposes of this program is considered a property with 4 or fewer apartment units. 

3. Applicants who previously took advantage of the Residential Energy Conservation Program (RECP) are eligible under the following conditions:

a. If the previous RECP balance is completely paid off, then the assistance levels listed above shall apply.
b. If there is an outstanding balance on the previous RECP assistance, the new assistance will be limited to the levels listed above minus the current balance.
c. The $10,000 limit for Solar PV shall be the maximum level of assistance offered to a single customer at any time. Any existing or new energy efficient assistance shall reduce the Solar PV assistance, with the final amount not to exceed $10,000.

4. Any new assistance will be billed as a separate line item on the Applicant's HG&E bill.

General Conditions

1. Assistance is granted at 0% interest.

2. Applicants are required to pay a $100 dollar administrative fee to participate in the program. This fee will appear on the same HG&E bill as the first Assistance Program re-payment.

3. HG&E will bill Assistance payments on the existing HG&E customer bill, and the HG&E prompt payment discount does not apply to Assistance repayment.

4. HG&E will only grant assistance for products installed no more than 90 days before the receipt of this assistance application by HG&E. All work must be completed within 12 months of application.

5. The Applicant must sign an agreement that allows for a municipal lien to be placed on the property.

6. Customers who participate in the Residential Energy Conservation Program will not be eligible for other HG&E incentive programs (excluding the First Time Home Buyers incentive and Energy Star Rebates).

7. Program benefits do not apply to new home or building construction.

8. The total amount of assistance granted to customers in any year may be limited by HG&E.

9. Applicant must provide evidence of equipment installation including a dated receipt/invoice, copies of Energy Star Ratings, and Proof of Installation Form.

10. Energy Audits are required for select projects. Free residential energy audits are available through MuniHELPS by calling (888) 335-7203. Please note, HG&E reserves the right to waive the energy audit requirement, at its discretion.

11. Siding and roof replacements are not covered under this program.

12. Assistance for Solar-PV is only granted to customers who provide documentation that they shall own such system.

13. Due to the current natural gas moratorium, HG&E cannot accommodate conversions to natural gas from alternate fuel sources.

Installation Information

1. HG&E is not responsible for the repair or service of any equipment installed under this program.

2. The Applicant is responsible for obtaining pricing, selecting a contractor, coordinating contractor scheduling and making payments to the contractor.

3. In most cases, the contractor will obtain the required City or County permits for you. However, it is the customer's responsibility to ensure that the City or County inspection conditions are met. Payments will not be paid for installations made by installers who do not possess the required licenses or permits for the installation.

4. At HG&E's option, the completed installation may be inspected by HG&E personnel or its representative to ensure compliance with the terms of this program.

Payment

1. Payment will be processed once Applicant submits a signed contract and all other documentation and approvals required. A check will be mailed to Applicant in approximately 3 weeks of the receipt of all required documents.

2. Progress payments will not be made.

The following table outlines eligible equipment:

HEATING & COOLING

Equipment Type Requirements
Central Air Conditioning (2) SEER 14.5 or greater
Gas Fired Warm Air Furnace (2) AFUE Rating >95%
Gas Fired Steam Boilers (2) AFUE Rating >82%
Gas Fired Hot Water Boilers (2) AFUE Rating >90%
Mini-split/Ducted Air Source Heat Pumps (2) SEER > 16
Mini-Split/Ductless Heat Pump (2) SEER > 18
Programmable and/or Wi-Fi Thermostat  

DOMESTIC HOT WATER

Equipment Type Requirements
Electric Hot Water Heaters (2) Energy Factor of 2.0 or higher
Gas Storage Water Heaters (2) Energy Factor of 0.67 or higher
Indirect Water Heater (1,2) Attached to a Gas Fired Boiler
Solar Hot Water Heater (up to $5,000) SEF > 1.8 for electric back-up
SEF > 1.2 for gas back-up

BUILDING SHELL

Item Requirements
Attic insulation (1) Final R-value shall not exceed R60 (should be between R49-R60, no lower than R38)
Wall insulation (1) Final R-value shall not exceed R15 (must be between R13-R15)
Floor insulation (1) Final R-value shall not exceed R30 (must be between R25-R30)
Basement insulation (1) Below grade wall should not exceed R25 (must be between R20-R25)
Heating & Hot Water Piping Insulation (1)
Rim Joist Insulation (1)
Replacement Windows (1) Energy Star Rated and U- Factor of .30 or less
Replacement Doors (1) Current Energy Star Rated, U-Factors Levels.

RENEWABLE ENERGY

Solar Photovoltaic (PV) Up to $10,000  -  Note that solar financial assistance is available in addition to assistance for energy efficient home improvements, but maximum outstanding assistance granted to a customer is capped at a total of $10,000.
1. Items requiring an energy audit.
2. If replacing equipment, prior equipment manufacturer/model and proposed equipment manufacturer/model is required to be submitted with application.
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