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Energy Conservation for Ohioans Linked Deposit Program

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Overview

• What is ECO-Link?

• Participation & Benefits to Homeowners

• Lender Participation

• Contractor Participation

• Eligible Products

• Conclusion

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What is ECO-Link?

• The Energy Conservation for Ohioans (ECO-Link) program is the Ohio Treasury’s newest linked deposit initiative

• Provides an incentive for homeowners to complete energy efficient projects in their homes

• Homeowners receive a 3% interest rate reduction on qualifying bank loans for five or seven years when completing weatherization projects or installing Energy Star rated products in their homes

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Homeowner Participation:

• Ohio residents who are owners of an existing single family home

• Ohio residents who secure a qualifying bank loan with an eligible state depository bank

• Ohio residents using Building Performance Institute (BPI) or Residential Energy Service Network (RESNET) raters certified to perform home energy audits and installations

• Ohio residents purchasing and installing qualifying ENERGY STAR certified products and renewable energy products

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Homeowner Process Steps:

1. Homeowner receives pre-approval for a qualifying loan with an eligible bank

2. Homeowner receives a home audit or quote from a contractor

3. Homeowner and Lender submit the audit or quote and ECO-Link application to the Treasury

4. Treasury notifies the Lender upon approval of the application

5. Homeowner works with the contractor to complete the energy efficient improvements

6. Treasury will place a certificate of deposit with the bank who will lower the Homeowner’s interest rate by 3% for the life of the five or seven (if loan amount is greater than $25,000) year loan

7. Once complete, the Homeowner submits a certificate of project completion to the Lender

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Homeowner Benefits:• ECO-Link allows homeowners to finance the cost of projects at a rate of

3% below the market rate for five or seven (if loan amount is greater than $25,000) years

  • The average Ohio homeowner spends between $200-$300 per month on

standard utility bills. Weatherization projects in homes with energy efficient products save between 10-30% on these types of bills 

• Many of the energy efficient improvements are eligible for federal tax credits and additional rebates

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What’s the difference between ECO-Link & Traditional Financing Methods?

Interest

Average Loan Approved at 6.79%*

Average Rate After Reduction 3.79%*

*as of 11/10/10

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Traditional Financing

$13,980 loan60months to pay off

18.00% interest rate$355.00monthly payment

$21,300.01 total payment

$13,980 loan60months to pay off

3.79% interest rate$256.14monthly payment

$15,368.41 total payment

$98.86 Monthly Savings$1,186.32 Annual Savings$5,931.59 Total Savings using ECO-Link

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Lender Participation:

• Banks must be a qualifying state depository bank

• Bank must agree to provide a 3% interest rate reduction for five or seven years on home equity or installment loans to qualifying customers

• Rate reduction will be eligible on up to $50,000

• Typically lines of credit are NOT eligible for the rate reduction

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Key Bank

U.S. Bank

Huntington Bank

The Cortland Savings & Banking Company

First Citizens National Bank

First National Bank of Pandora

First National Bank of Bellevue

Fort Jennings State Bank

Greenville Federal Bank

Consumers National Bank

Old Fort Banking Company The Republic Banking Company The St. Henry Bank Liberty National Bank Lake National Park National Bank Century National Bank Security National Bank United Bank Richland Bank First-Knox National Bank

Current Bank Partners

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Contractor Participation:• Home energy auditors can join our list of certified home raters by

submitting their BPI or RESNET certification to ecolink@tos.ohio.gov or fax 614-485-6901

• Auditors will be added to the program’s list of participating partners and new business will be directed to them

through banks and the Treasury

• ECO-Link will provide flexible financing to customers allowing contractors to complete more deals and increase their customer base

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Tax Credit Savings for Eligible Products (Weatherization)

Product Category

Product Type Tax Credit Specification Tax Credit

Exterior Windows and Skylights

*Important Change:

Before June 1, 2009: Must meet ENERGY STAR criteria After June 1, 2009: U factor <= 0.30 SHGC <= 0.30

30% of cost, up to $1,500

Storm Windows Meets IECC1 in combination with the exterior window over which it is installed, for the applicable climate zone

30% of cost, up to $1,500

Exterior Doors U factor <= 0.30 SHGC <= 0.30

30% of cost, up to $1,500

Windows & Doors

Storm Doors In combination with a wood door assigned a default U-factor by the IECC1, and does not exceed the default U-factor requirement assigned to such combination by the IECC

30% of cost, up to $1,500

Roofing Metal Roofs, Asphalt Roofs

ENERGY STAR qualified 30% of cost, up to $1,500

Insulation Insulation Meets 2009 IECC & Amendments 30% of cost, up to $1,500

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Tax Credit Savings for Eligible Products (Weatherization)Product Category

Product Type Tax Credit Specification Tax Credit

Central A/C Split Systems: EER >=13 SEER >= 16 Package systems: EER >= 12 SEER >= 14

30% of cost, up to $1,500

Air Source Heat Pumps

Split Systems: HSPF >= 8.5 EER >= 12.5 SEER >= 15 Package systems: HSPF >= 8 , EER >= 12, SEER >= 14

30% of cost, up to $1,500

Natural Gas or Propane Furnace

AFUE >= 95 30% of cost, up to $1,500

Oil Furnace AFUE >= 90 30% of cost, up to $1,500

Gas, Propane, or Oil Hot Water Boiler

AFUE >= 90 30% of cost, up to $1,500

HVAC

Advanced Main Air Circulating Fan

No more than 2% of furnace total energy use. 30% of cost, up to $1,500

Gas, Oil, Propane Water Heater

Energy Factor >= 0.82 or a thermal efficiency of at least 90%.

30% of cost, up to $1,500 Water Heaters

Electric Heat Pump Water Heater

Same criteria as ENERGY STAR: Energy Factor >= 2.0 30% of cost, up to $1,500

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Tax Credit Savings for Eligible Products (Renewable)Product Category

Product Type Tax Credit Specification Tax Credit

Biomass Stove Biomass Stove Stove which burns biomass fuel5 to heat a home or heat water. Thermal efficiency rating of at least 75% as measured using a lower heating value.

30% of cost, up to $1,500

Geo-Thermal Heat Pump

Geo-Thermal Heat Pump

Same criteria as ENERGY STAR:

Closed Loop: EER >= 14.1 COP >= 3.3 Open Loop: EER >= 16.2 COP >= 3.6 Direct Expansion: EER >= 15 COP >= 3.5

30% of the cost

Solar Water Heating

At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.

The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.

The system must be certified by the Solar Rating and Certification Corporation (SRCC).

30% of cost Solar Energy Systems

Photovoltaic Systems

Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

30% of cost

Small Wind Energy Systems

Residential Small Wind Turbines

Has nameplate capacity of not more than 100 kilowatts. 30% of cost

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Conclusion

• ECO-Link is designed to provide reduced rate financing through partnering banks for Ohioans completing “whole home” weatherization and energy efficient improvements in their homes.

• Homeowners receive financing through our partner banks in the form of Home Equity loans or Installment loans.

• Weatherization projects generally save 10-30% on energy bills and qualifying purchases are eligible for federal tax credits.

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Contact Information

Jonathan StoneEconomic Development Manager

Department of Economic Development forThe Ohio Treasurer of State Kevin L. Boyce

Phone: 614-466-6546 Toll Free: 1-800-228-1102

Email: jonathan.stone@tos.ohio.gov

ECO-Link Website: ecolink.ohio.gov

Ohio Treasury Website: www.ohiotreasurer.com