Home Energy Rebate Option

Louisiana Department of Natural Resources Technology Assessment Division
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Participants in the HERO Program cannot participate in any other portions of ERHL Programs.

The Louisiana Home Energy Rebate Option (HERO) offers an actual cash payment for Louisiana residents who make energy improvements to existing homes. HERO is a component of the Home Energy Loan Program of the Louisiana Department of Natural Resources (DNR).

The amount of the cash payment depends on the level of energy savings, called the Energy Efficiency Premium. The cash payment is 20% of the Energy Efficiency Premium up to a maximum of $2,000. The Energy Efficiency premium is determined by a home energy rating that is required on all homes participating in the program.

HERO is available to any Louisiana homeowner. Applications for HERO are made by contacting a Louisiana Home Energy Rater by clicking on the list located at the bottom of this page titled "Certified Home Energy Raters". Information and step-by-step instructions are also available at the bottom of this page by clicking on "Instructions and Eligibility".

Eligibility Requirements for Cash Payment

Existing Homes - For an existing home to qualify for HERO, it must have its level of energy efficiency improved by at least 30 percent. This corresponds to an improvement of at least six points on Louisiana's Rating Scale. Application for Existing Homes participating in HERO must be made before any improvements are made to the home.

Determining the Energy Efficiency Premium

On an existing home, the Energy Efficiency Premium is the lesser of the cost of improvements or the present value of the energy saved by energy improvements made to the home over their useful lives. Again, the greater the energy improvements made to the home, the larger the Energy Efficiency Premium

Home Energy Ratings

A home energy rating lets one compare the energy efficiency of their home to other homes, estimate future energy bills, and evaluate improvements that will save money. It is a standard measure of home energy efficiency. According to national standards, the energy efficiency of a home is measured on a 500-point index. Homes rated at 100 points are deemed to meet the requirements of the 2004 International Energy Conservation Code (IECC). Homes rated at 0 points, are "net zero", or generate as much energy as they consume annually. To qualify for HERO, the home must be 30 percent more efficient than the base house as tested, or must rate 30 points less than the original house (prior to improvements) on the rating scale.

In Louisiana, the Home Energy Rating system is administered by Energy Rated Homes of Louisiana (ERHL), a section of the Louisiana Department of Natural Resources. All ratings are performed by private sector Energy Raters. These experts are trained and certified to submit the required documentation to ERHL for participation in the HERO Program. Included in a rating is a detailed computer analysis and on-site inspection of the home. The on-site inspection includes testing the home for air infiltration and duct leakage using an instrument called a blower door. As of October 1, 2006, Energy raters also utilize a Duct Blaster to comply with current 2006 RESNET (Residential Energy Services Network) Standards.

For individuals purchasing an existing home, a Home Energy Rating can also be used to qualify the home for an Energy Efficient Mortgage (EEM). With an EEM, homebuyers may be able to borrow additional funds to make energy improvements at the time of purchase. The additional funds are included in their mortgage. The reduction in energy costs from the funded improvements is generally larger than the increase in mortgage payment. This means an average utility cost savings of approximately $300 to $600 annually for the homeowners.

A list of Home Energy Raters can be obtained by clicking on Certified Home Energy Raters located at the bottom of this page. A rating generally costs between $300 and $600, depending on the size, and complexity of the home. The Rater you select will be able to assess the cost and time issues for your particular project.

To be eligible for any rating or home rebate, the home must first meet the qualifying criteria listed under the Eligibility Requirements for Cash Payment section above.

Other Information

• Instructions and Eligibility

• Certified Home Energy Raters

• Builder's Guide to Energy Efficient Homes in Louisiana

Savings from the HERO program: The following are the savings in: Trillions of Btu saved Cumulative tons of CO2 emissions Cumulative pounds (lbs.) of sulfur oxide (SOx) emissions Cumulative pounds (lbs.) of nitrous oxide (NOx) emissions Please click on the following link for the graphs depicting these savings. Graphs of savings. (printable copies) (pdf) Energy Star and Home Energy Rebate Option Statistics