Efficiency Navigator Celebrates Latest Building Upgrades

Madison’s flagship Efficiency Navigator Program recently wrapped up the projects initiated in 2023, funded by the American Rescue Plan Act of 2021 and an annual Community Development Block Grant provided the by the U.S. Department of Housing and Urban Development. I would like to take a moment to recognize the importance of this program and its accomplishments in its second year.

Renters often contend with poor insulation, drafty windows, older heating or cooling equipment, and possible health hazards, such as lead, mold, and gas appliances. But it can be difficult for small independent landlords to make investments in energy efficiency and indoor health improvements without increasing rent, as they are legally bound to individually meter each rental unit they own, preventing them from capturing the value of such investments. As a result, renters often end up paying high energy bills, while small independent landlords must make the tough choice of maintaining their properties’ affordability or making improvements and increasing rents.

The Efficiency Navigator Program solves these problems by making energy upgrades easy and free. This City-sponsored initiative is administered buy nonprofit partners Sustain Dane and Elevate Energy. The program provides free technical assistance, facilitates access to all applicable rebates, grants and tax credits, and pays for energy efficiency and other upgrades to small- and medium-sized multifamily housing. Participation is open to unsubsidized multifamily housing with rents that are affordable to households at or below 80% Area Median Income. Selected buildings receive free technical assistance and building upgrades such as efficient lighting; improved heating, ventilation and air conditioning systems; better insulation and air sealing; water softener optimization, tune-ups or replacement; water conserving fixtures; and recommendations to improve home health (e.g. reduce asthma triggers). 

In 2023, the City, Sustain Dane, and Elevate Energy worked together with building owners to improve the homes of 71 families in our community.  Upgrades save households an average of $90 a year on their energy bills, with some households saving over $120 in annual energy costs. These improvements also reduce resident’s exposure to indoor air pollutants associated with natural gas and mold. In exchange for these free upgrades, owners agree to keep rents at Housing and Urban Development Fair Market Rates (HUD area FMR). This helps maintain the stock of unsubsidized rental housing even as the cost of rental housing in Madison tends to increase as the city grows.

The benefits of this past year’s program go beyond housing improvements. Outreach conducted by Sustain Dane has empowered renters to inquire about their buildings’ participating in the program and spurred broader community conversations about the benefits of energy efficiency. Participating owners have often been so happy with the work that they have independently funded additional improvements to help their tenants. Contractors who participate in the program are now being networked and encouraged to promote energy efficiency by joining the Focus on Energy certified contractors list and upskilling to take advantage of Inflation Reduction Act opportunities. Excitingly, the program is supporting the diversification of the contractor workforce through its partnership with the Latino Academy of Workforce Development in the Contractor Accelerator program. 

The new Home Efficiency (HOMES) rebate program, funded by the Biden/Harris Affordable Clean Energy Plan and administered by Focus on Energy in Wisconsin, will provide rebates to reduce the cost of energy-saving, whole-home improvements for both single and multifamily homes, such as improving insulation, and heating and cooling equipment. Participants can save anywhere from $1,500 to $10,000 on a project, depending on income, whether they live in a single-family or multi-family home, and how much energy they expect to save. Tax credits are also available for energy efficiency upgrades, renewable energy, and electric vehicles. Wondering how you can take advantage of these benefits? Check out this comprehensive guide to federal incentives created by our partners at the Dane County Office of Energy and Climate Change.

With more federal money to help, we can help accomplish even more. This means every household in Madison, not just those participating in the Efficiency Navigator, can receive financial support for their energy efficiency projects.