Funding Your Energy Efficient Projects with DC Incentives

In the District of Columbia, three essential programs are making a significant impact on energy efficiency and sustainability: 

1. Income Qualified Efficiency Fund (IQEF);  
2. Affordable Housing Retrofit Accelerator (AHRA);
3. And Commercial Direct Install (CDI). 

IQEF and AHRA  both aim to empower low- to moderate-income residents and multifamily buildings with energy efficient solutions, lowering utility bills and helping buildings comply with the new Building Energy Performance Standards (BEPS). For those who do not qualify for low- to moderate-income housing, the CDI program is a solution to funding energy efficiency projects. 

Income Qualified Efficiency Fund (IQEF)

Low-Income Buildings, Not Subject to BEPS

• The Income Qualified Efficiency Fund (IQEF) program provides financial incentives up to 90% of the total project cost for energy-efficient upgrades to low- to moderate-income households including limited equity coops and low-income multifamily apartments.
• These upgrades include insulation, HVAC improvements, energy-efficient lighting, and appliance replacements.

Qualifications:

• Eligibility for IQEF requires applicants to be DCSEU Approved Contractors, which are included in Honeydew’s network of providers. 
• The program prioritizes buildings meeting affordable housing criteria with 50% or more dwellings occupied by households earning 80% or less of the area median income (AMI). 
• To qualify for the program, it is imperative to meet a specific cost-to-MWh savings ratio. Notably, DCSEU has not yet provided this ratio, and it will be determined once the applications are submitted. In this regard, Honeydew will advocate for a more lenient cost-to-MWh savings ratio from DCSEU, particularly for condos and coops.

Affordable Housing Retrofit Accelerator (AHRA)

Low-Income Buildings, Subject to BEPS

• The Affordable Housing Retrofit Accelerator (AHRA)focuses on boosting energy savings and compliance for low-income multifamily buildings and limited equity co-ops who are subject to Building Energy Performance Standards (BEPS). 
• Eligible buildings over 50,000 sq ft will receive funds to cover 100% of ASHRAE Level II audits and energy conservation measures that will help them comply with BEPS.

Qualifications:

• Buildings need to be over 50,000 sq ft and subject to BEPS to be eligible for this program.
• Applicants need to also meet affordable housing criteria with 50% or more dwellings occupied by households earning 80% or less of the area median income (AMI).

Commercial Direct Install (CDI)

Buildings That Are Not Low Income, Subject or Not Subject to BEPS

• For those buildings that are not considered low- to moderate-income, DCSEU offers the Commercial Direct Install (CDI) program to assist in making multifamily buildings more energy-efficient. 
• The CDI program helps cover around 30% – 70% of the project costs, with low-income buildings receiving a higher percentage of coverage through the AHRA and IQEF programs.

Qualifications:

• Just like for the IQEF program, eligibility for CDI requires applicants to be DCSEU Approved Contractors, who are also in Honeydew’s network of providers.
• To qualify for the program, it is imperative to meet a specific cost-to-MWh savings ratio. Notably, DCSEU has not yet provided this ratio, and it will be determined once the applications are submitted. In this regard, Honeydew will advocate for a more lenient cost-to-MWh savings ratio from DCSEU, particularly for condos and coops.

The General Process:

• First step is to schedule a meeting with a Honeydew advisor so they can determine which program is best fit for your building and whether or not they believe you’ll qualify. 
• Honeydew will then collect bids from at least three DCSEU Approved Contractors for the customer to review side by side.
• The customer will choose which contractor to continue working with based on a list of factors compared in Honeydew’s proposal. 
• Once the contractor is selected, engineers at DCSEU will conduct an energy savings analysis of the project, generating the incentive amount based on the agreed percentage.
• An essential step involves conducting a pre-inspection of the property to ensure the proposal aligns with the building’s requirements. 
• After completion of these steps, the building’s authorized signer and the contractor will receive an Incentive Agreement, which breaks down the energy savings and incentive amount. This agreement stipulates that the incentive will go to the contractor to cover the agreed-upon percentage of the project costs. 
• Subsequently, the contractor will receive a Work Order agreement to start the project. 
• As the project concludes, the contractor will submit an invoice, followed by a post-inspection before the incentive check is sent.

District residents and multifamily building owners have access to some of the most robust energy incentives in the country. By participating in the IQEF, AHRA or CDI programs, you can improve your building’s efficiency, reduce utility costs, comply with local ordinances like BEPS and contribute to a more sustainable and environmentally-friendly community. Subscribe to our newsletter for updated information and feel free to reach out to us in the intake form below to take advantage of these very generous incentives.