Will Fund LMI HVAC Rebate for Rental Units Pilot in Kent and Sussex Counties
Wilmington – Energize Delaware announced today that the Empowerment Grant Program (EGP), funded by the Exelon Merger for Delmarva Power Customers in Delaware, is awarding $97,420 to Applied Energy Group (AEG) for the LMI HVAC Rebate for Rental Units Pilot that targets the highest energy using equipment in LMI housing to reduce energy cost and burden. AEG has partnered with Milford Housing Development Corporation (MHDC) and evaluated its LMI properties in the Delmarva Power Territory: Heritage Manor in Harrington, Park Royal in Milton, and Savannah East Apartments in Lewes. This pilot program will serve these three LMI properties in Kent and Sussex Counties, with a total of 136 units housing renters at or below 60% of the State area median income level (AMI). This program offers incentives for high efficiency HVAC replacement in these properties and includes an incentive for current HVAC equipment installation contractors to stock high efficiency equipment. The equipment incentives offered match existing Energize Delaware HVAC rebates offered to owner-occupied properties.
In homes and rental units, more than 60% of total energy use and half of the utility costs are for space heating, space cooling, and hot water. However, in rental properties, particularly low-income, a market barrier (split incentives) exists which often prevents the installation of high-efficiency HVAC units. Landlords are not motivated to purchase more costly high-efficiency equipment where renters enjoy the benefit in the form of decreased energy bills. Furthermore, there is no existing program in Delaware to provide direct incentives for high-efficiency HVAC equipment replacement in rental properties. AEG is excited for this opportunity to address this critical need in the Delaware LMI sector by working directly with the low-income rental property owners to both educate them on the benefits of installing higher-efficiency HVAC equipment
, and incentivizing the purchase of that equipment. This Empowerment Grant LMI HVAC pilot will result in an estimated renter utility bill savings of $43-$390 per year. — Bahareh Van Boekhold, Program Manager
Milford Housing Development Corporation is grateful to the Delaware Sustainable Energy Utility for funding the HVAC Rebate Pilot Program. In collaboration with Applied Energy Group, this innovative program will result in high efficiency systems for 136 affordable rental units in Kent and Sussex County. This will greatly impact the lives of Delawareans by reducing energy burden and providing safe, healthy, affordable, and efficient energy alternatives. — David W. Moore, President & CEO
“I’m extremely excited for the rollout of this pilot program,” said Gary Stockbridge, Delmarva Power region president. “As we spend more time in our homes during the pandemic and we approach the summer months, the role of energy efficient home equipment and appliances is more important than ever before. These HVAC energy efficiency upgrades have the potential to benefit both the property developer and their tenants where they need it most—in their pockets.”
Additional program details about the EGP, including program qualifications, requirements and how to submit proposals can be found at: www.empowergrantde.org. A Facebook page – @EmpowerGrantDE; and a Twitter account – @EmpowerGrantDE; are also available for public interaction and information.
About Empowerment Grant
Energize Delaware was selected to be the grant manager for $4 million in funds designated for low-income energy efficient programs for Delmarva Power customers. The funds originated from the Exelon\Delmarva Power Merger Settlement approved by the Delaware Public Service Commission. Energize Delaware will distribute the funds competitively to organizations capable of delivering energy efficiency programs to low-income customers over a three-year period. Two distinct energy efficiency programs will be funded. Large-Scale energy efficiency programs and Community-Scale programs. Additional program details, including program qualifications, requirements and how to submit proposals can be found on the EGP website: www.empowergrantde.org. A Facebook page – @EmpowerGrantDE; and a Twitter account – @EmpowerGrantDE; are also available for public interaction and information.
About Applied Energy Group
Applied Energy Group (AEG) offers utilities and government organizations the dedicated partnership, leading energy expertise, and custom-built solutions needed to address the energy grid’s life cycle challenges of today— and be empowered with creative solutions for what comes tomorrow. Since 1982, AEG has provided a comprehensive suite of solutions focused on key areas in the Demand Side Management (DSM) lifecycle, with unparalleled experience in market assessment, potential studies, program planning & design, and evaluation. AEG’s team of engineering and technical experts have partnered with diverse clients to provide R&D and emerging technology studies, and innovative solutions that meet ever-changing energy industry demands. For more information about AEG, visit http://www.appliedenergygroup.com.