- General Program Information
- Getting Started
- Cash Incentives and Insulation Requirements from Energy Trust
- Energy Trust Inspections
- Oregon Department of Energy Business Energy Tax Credit
- “Do-it-Yourself” Participants
To get started or for questions, call 1-866-368-7878
1. General Program Information
Brief program description:
Multifamily Home Energy Solutions offers property investors with five units or more the opportunity to reduce the costs of a typical weatherization project by up to 50 percent. We offer application assistance for cash incentives from Energy Trust of Oregon, Inc., as well as business energy tax credits from the Oregon Department of Energy. We help simplify the application process by handling all paperwork for the applicant and by offering practical technical and financial advice – all at no cost to the participant or to you.
Who is eligible to participate?
Any multifamily property with five units or more in Oregon is eligible for either tax credits, cash incentives or both. Please call if you have a question about a property’s eligibility.
What is the definition of multifamily under the Home Energy Solutions program?
Multifamily is defined as a complex of five units and larger. (For example, a complex of five adjoining duplex structures will be considered a multifamily property of ten units.) Single, duplex, triplex and quadruplex properties are served separately under Home Energy Solutions. If you have a single-family property, please contact Energy Trust at 1-866-368-7878 to get started.
What are the primary program features?
Multifamily Home Energy Solutions features cash incentives from Energy Trust bundled with Oregon Department of Energy Business Energy Tax Credits. Incentives are offered for insulation, replacement windows, HVAC, exterior doors, electric hot water heaters, common area lighting and washing machines (See Section 3 for a full listing of cash incentives). The program also offers free compact fluorescent light bulbs, free showerheads, free faucet aerators and hot water heater tank turndowns.
What is Energy Trust of Oregon?
Energy Trust of Oregon, Inc. is an independent nonprofit organization dedicated to energy efficiency and renewable energy development. Its mission is to change how Oregonians produce and use energy by investing in efficient technologies and renewable resources that develop new sources of clean energy, help Oregonians lower their energy bills, stimulate the economy, and protect the environment. Energy Trust is the primary funding source for cash incentives and program administration costs.
Who administers this program?
Multifamily Home Energy Solutions is administered by Conservation Services Group (CSG).
Where does the money for this program come from?
Energy Trust of Oregon receives a portion of the public purpose funds collected from the customers of Pacific Power, Portland General Electric, NW Natural and Cascade Natural Gas.
How do contractors sign up as an Energy Trust trade ally?
Contractors may view enrollment procedures or may call Noëlle Saint-Cyr, Trade Ally Coordinator, at 503-523-4837.
What are the benefits of becoming a trade ally?
Benefits include referrals, co-op marketing opportunities, training and technical assistance, among others. Please contact Noëlle Saint-Cyr at 503-523-4837 for more information.
2. Getting Started
May a contractor bring a job directly to the Multifamily Home Energy Solutions program?
Yes. If the customer is prepared to accept the contractor’s full package bid, it may be submitted to the Multifamily Program to begin the process.
How does a customer get started?
A customer should contact Energy Trust of Oregon at 1-866-368-7878 to get started. Customers will be enrolled over the phone. Those who qualify for the program will be called back by an account representative from the Multifamily Program. The customer will then need to obtain an accepted contractor’s bid for the project.
What are the contractor bid requirements?
Contractors are asked to adhere to the Energy Trust Specification Manual. The Multifamily Program does not require multiple contractor bids. Listed below are the items required on a contractor bid:
- Cost per measure
- Square footage of windows and insulation
- Window manufacturer
- Window quantity
- Existing and proposed R value for insulation
- Existing and proposed U value for windows
- Owner’s name and contact information
- Site address
- Number of units
- Number of buildings
How are incentives allocated?
Customers must pre-apply for incentives and tax credits. Pre-application is made by submitting the contractor bid to the Multifamily Program, then signing the pre-application paperwork completed and provided by the program. Incentive funds will be allocated on a first-come, first-served basis after the project is complete.
What is the application process?
The contractor or customer submits a copy of the accepted contractor bid to the Multifamily Program. The bid should be sent to:
Multifamily Home Energy Solutions
1400 SW 5th Avenue, Suite 830
Portland, OR 97201
Or fax the bid to 1-866-516-7592.
Multifamily Program staff will fill out the pre-application paperwork for the customer, including the cash incentive and estimated tax credit amount pledged by the program.
Multifamily Program staff will mail or fax the completed
pre-application paperwork to the owner who
reviews and signs it. The owner returns
the signed pre-application to the Multifamily Program. This
functions as a formal commitment of funds.
The preliminary application will generally
be processed within two business days after
all required information has been submitted
by the project owner.
On average, a customer will be paid a cash
incentive within four weeks from the submission
of a completion certification. A final invoice
from the contractor is needed to complete
this certification. Tax credits are
taken when taxes are filed for the year
in which the project is completed.
3. Cash Incentives and Insulation Requirements from Energy Trust
Current Energy Trust cash incentives, measure and insulation requirements for window incentives.
What if a customer wants to install insulation?
Customers may be eligible for incentives and tax credits for ceiling, floor and wall insulation. In order to receive the incentives, ceiling insulation must be brought up to R-38, floors must be brought up to R-25 or cavity-filled, and wall cavities must be filled. A bid can be completed and signed with the required information and sent to the Multifamily Program.
When two or more insulation opportunities are present (for example R-0 floors and R-8 attic), must the customer install both insulation measures to receive incentives on replacement windows?
We strongly encourage the customer to accept the full package. If the contractor cannot make the sale with two insulation measures, then a one-measure job may apply for incentives. The insulation must be installed where R-0 is existing. In the case where a customer has R-0 in both the attic and the floor and both measures are cost effective, then both measures would be required.
What if a customer knows insulation is needed but doesn’t want to install?
Energy Trust requires that in order take advantage of window incentives, insulation measures must be completed if needed. Insulation levels can be determined by measuring the insulation R-values to determine if the ceiling insulation levels are less than R-19 or if the floor insulation is less than R-11. In these cases insulation would be required for window incentives.
What if a customer doesn’t know what the existing insulation levels are?
There are three options for dealing with this situation. They are listed below in order of preferred use:
- If available, an old energy audit from Pacific Power, Portland General Electric, NW Natural or Cascade Natural Gas will be accepted. –or-
- A contractor may measure the existing insulation
levels. –or-
- A request may be made to the Multifamily Program to schedule an “insulation check.”
If a multifamily complex has no major insulation opportunities, can the customer/ contractor propose a window only job?
Yes. An insulation check will be required to verify that no insulation measures can be installed.
Can customers install only insulation measures?
Yes. There are no restrictions on numbers of measures required for the insulation measures since these are more cost effective than replacement windows.
4. Energy Trust Inspections
Will jobs be inspected?
Yes. Every job will have an on-site inspection of up to 100 percent of the units. An inspection can occur after installation of at least 70 percent of the eligible measures. Property owners are required to provide 24 hour notice of entry to all tenants.
What installation specifications will contractors need to use?
Contractors are asked to adhere to the Energy Trust Specification Manual.
How do I schedule an inspection?
When you are close to completion, please us to schedule inspection dates. An inspection may be scheduled any time after 70 percent of the job has been completed.
5. Oregon Department of Energy Business Energy Tax Credit
What is the Business Energy Tax Credit?
The Oregon Department of Energy offers the Business Energy Tax Credit (BETC) to those who invest in energy conservation, recycling, renewable energy resources and less-polluting transportation fuels. The tax credit is 35 percent of the eligible project costs – the incremental cost of the system or equipment that's beyond standard practice.
What measures are eligible for the Business Energy Tax Credit?
The tax credit is available for all Energy Trust program features except showerheads, faucet aerators and hot water heater tank turn downs. Tax credits are also available for many appliances, including, refrigerators, dishwashers, horizontal access clothes washers and high efficiency lighting fixtures. For specific models that qualify, visit the Oregon Department of Energy Web site: http://egov.oregon.gov/ENERGY/.
When may the customer take the tax credit?
Tax credits are taken over five years: ten percent in the first and second years and five percent each year thereafter. If the full tax credit can’t be used in the first year, the unused credit can carry forward up to eight years. Those with eligible project costs of $20,000 or less may take the tax credit in one year.
How does the customer apply for the Business Energy Tax Credit?
The Multifamily Program will fill out all of the paperwork. You must apply for the tax credit BEFORE starting a project. See the Getting Started section for more information. There is a review fee collected by the Oregon Department of Energy. It is equal to ¾ of one percent of the eligible project cost.
Pass-Through Option
What is the Business Energy Tax Credit pass-through option?
The pass-through option allows a project owner to transfer their Business Energy Tax Credit to a partner for a lump-sum cash payment. A project owner may be a public entity or non-profit organization with no tax liability or a business with tax liability that chooses to use the pass-through option.
Does the pass-through partner have to be someone the owner knows or is in business with?
No. A pass-through partner is called a “partner” only because they have agreed to purchase a tax credit. No other relationship needs to be established to conduct the transaction.
When should an owner look for a pass-through partner?
The Oregon Department of Energy recommends that project owners find their pass-through partners before beginning their project, although project owners may begin projects without an identified pass-through partner.
How does the owner find a pass-through partner to sell their tax credit?
Project owners working with a building contractor, energy services company or equipment vendor may find that those businesses will agree to be pass-through partners. An owner can also approach large companies or financial institutions in the community. Project owners can use multiple partners who divide the credit appropriately.
What if the owner can’t locate a pass-through partner?
If an owner can not locate a pass-through partner, the pass through application should still be submitted. Upon project completion the Oregon Department of Energy may be able to match project owners with partners. However, the Oregon Department of Energy does not guarantee pass-through partners for any project owners. For more information about pass-through partner availability visit: http://egov.oregon.gov/ENERGY/CONS/BUS/tax/PTPavailability.shtml
What are the current pass-through option rates?
The pass-through option rate for a five-year Business Energy Tax Credit is 25.5 percent. The pass-through option rate for a one-year Business Energy Tax Credit (those with eligible costs of $20,000 or less) is 30.5 percent. The Oregon Department of Energy sets the pass-through option rates.
What happens when an owner finds a pass-through partner?
When a project owner identifies a pass-through partner and completes the pass-through option application, the Department of Energy strongly recommends that a project owner and a pass-through partner consult their tax and legal advisers for a formal agreement between the two parties.
Loans
Are loans available to participants?
Yes, participants may apply for an Energy Loan from the Oregon Department of Energy. Energy Loans generally have favorable rates and can be used for weatherization projects. For more information contact Hal Sims at the Oregon Department of Energy or review information at: http://egov.oregon.gov/ENERGY/LOANS/index.shtml.
6. Do-It-Yourself Participants
Can do-it-yourself customers participate in Multifamily Home Energy Solutions?
Yes. Do-it yourself installations by owners are eligible to participate. If a customer is interested in self installing energy conservation measures please contact us to assure compliance with program requirements.
Photos at top: Duct sealing at a Portland-area home; a heat pump; installing new windows at Rachel Anne Apartments in Gresham