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December 23, 2010

Report: Housing energy program fell short

A federally funded MaineHousing program to provide alternative energy systems to low-income families failed to save money on energy costs as anticipated, according to a report on the program's results.

A $1.1 million grant from the federal Department of Health and Human Services funded the installation of alternative energy systems in 80 homes and one apartment complex in five counties in central and eastern Maine from 2005-2008. A technical evaluation of the program, by Joseph Associates Inc. in Hallowell, however, found that a number of the systems were improperly installed, and many did not save enough in energy costs to justify the price of the new systems, according to the Maine Center for Public Interest Reporting, which obtained the report through a Freedom of Access Act request.

According to the report, four of the five system types installed -- solar hot water heaters, cold water heat pumps, all-climate heat pumps and wind turbines -- actually resulted in higher energy use or did not cut energy use enough to recoup the cost of the system over its useful life. The report detailed solar panels installed upside down or in shadowed areas, as well as wind turbines installed in places with little wind potential. Some homeowners turned off the systems because they believed they would not save energy or found them too noisy. Only basement hot water heat pumps showed a positive return on investment, according to the nonprofit journalism organization. Despite the findings, Joseph Associates said the program provided important data on how various energy systems perform and lessons on the importance of proper installation.

The report also cited management problems of the program and said it was "beyond the scope" of MaineHousing, as well as the community action programs and contractors involved in the program. Dale McCormick, director of MaineHousing, told the journalism organization that the program was essential to addressing high oil costs plaguing public housing, and that agency hopes to find the money to repair the faulty systems.

Go to the article from the Maine Center for Public Interest Reporting >>

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