
Seven weeks after its launch, a Pennsylvania program offering nearly $12 million in federal funds for rebates on home energy appliances remains largely unused.
The Home Heating Equipment Rebate Program, which the state Department of Environmental Protection began in mid-April to distribute $11.9 million from the federal American Reinvestment and Recovery Act, still has more than $10 million left to give Pennsylvania residents -- about 85 percent of the total.
By comparison, Ohio, which began its program March 26 with $11 million, has distributed more than 90 percent of those funds and has a waiting list that may deplete the rest. As of Friday, the website for New York's program, which launched Feb. 12 with $18.7 million, informed visitors that all funds have been reserved and encouraged them to join a wait list.
Pennsylvania's money may be going out the door more slowly because of limitations that the state placed on which appliances qualify for the program.
In Ohio, residents could get a rebate on an energy-efficient refrigerator, clothes washer, dishwasher, gas storage water heater, or electric heat pump water heater.
In Pennsylvania, the only one of those items that would qualify would be the gas storage water heater. The state's program limits rebates to a half-dozen types of heating appliances: gas storage water heaters, gas tankless water heaters, oil furnaces, gas furnaces, oil boilers and gas boilers.
DEP spokesman John Repetz said Pennsylvania is not offering rebates for appliances such as refrigerators or dishwashers because the state's electric utilities already offer rebates for those items as part of complying with state law requiring them to help their customers be more energy-efficient.
He acknowledged that may be a factor in the different states' participation rates. Still, Mr. Repetz didn't seem disappointed. Participation in the program "has been going according to what we expected," he said.
As of Thursday, Pennsylvania consumers had made 5,539 reservations for rebates totaling $1.7 million, for an average of $298 each. That's 14.6 percent of the total received from Washington.
Mr. Repetz said the agency has been publicizing the program mainly with information directed toward contractors and utility companies. Those, in turn, are reaching out to consumers.
For instance, the city's largest natural gas utility, Peoples Natural Gas, began tucking an insert with information about the program into bill mailings two weeks ago.
"It did generate a lot of calls where people had questions about it," said Peoples spokeswoman Sadie Kroeck. For more information, the company's service representatives are referring customers to the program website, www.paheatingrebates.com.
Some may find that website daunting.
Bill Yudichak, director of user experience with Sewickley-based Internet consulting firm Tachyon Solutions, did not give it high marks for usability.
Thinking as a homeowner seeking the rebate, he said, "There's two things that I definitely want to see right away, like what products are eligible for the rebate and how can I get the rebate."
All of that information is there, he said, but not presented in a clear way.
Tachyon CEO and co-owner Marion Lewis agreed. "It's extremely wordy ... not very inviting," she said. "I don't think it's very clear how to go about the process."
Cindy Datig of Robinson had no problem with the website. As executive director of the Dollar Energy Fund, Ms. Datig stays on top of energy news and visited the website as soon as it became operational.
She used it to reserve a rebate, then called her heating contractor for help in deciding which high-efficiency boiler to buy to replace her old one, which was between 30 and 50 years old.
"It was quite easy for applying," she said. Her new boiler was installed May 3 and she mailed in paperwork for her rebate the next morning. She's waiting for her $500.
That rebate is only a fraction of the benefit that Ms. Datig expects from her upgrade. She is also tapping a $100 manufacturer's rebate from Carrier and a $50 rebate on her thermostat through Duquesne Light's Watt Choices program, which offers rebates on select items that increase household energy efficiency. And she anticipates a $1,500 tax credit when she files her 2010 federal tax return -- all on a $5,078 purchase.
The possibility of putting together such a savings package makes this a good time to buy new heating equipment, said Tom Kennell, president of Beverly Services, a Bethel Park heating and cooling contractor.
"All of our customers are being informed" about the state program, he said. "I would say a large majority of them are applying for the money."
The program has boosted his business, he said, estimating more than 300 customers have applied for rebates so far, and none have reported any problems with the program.
"Early on, when things were sketchy, I think there was some confusion," he said. "But I think that's all been cleared up now."
Mr. Repetz of the DEP expects an uptick in reservations as the arrival of summer leads homeowners to re-evaluate their air conditioning systems, which are often part of their heating systems. Then there may be a decline, followed by another surge as people prepare for colder weather.
Expect to see more publicity about the program then.
"Whenever people are going to start thinking about doing that on their own, then we'll be doing some public outreach to make them aware of the opportunity that is available," Mr. Repetz said.
The rebate program will continue until funds are depleted.
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