CUB Explainer Archives | Citizens Utility Board

CUB Explainer: What is a solar group-buy program?

Elizabeth — Tue, 14 Nov 2023 16:46:37 +0000

For the last few years, CUB has helped organize a “solar group-buy program” in the Chicago region–now called “Switch Together”–and these programs have helped save participants hundreds of dollars a year on their utility bills, according to CUB’s partner in the program, Midwest Renewable Energy Association (MREA). Today we’re backing up a bit to cover what exactly is a group-buy program and how does it work? A group-buy program uses the power of bulk purchasing to make a product more accessible and affordable for customers. You often can get better prices on items if you buy in bulk–but for certain products, say solar panels, it’s much too expensive and impractical for an individual to do that. Instead, a group-buy program gathers as many people as possible interested in going in on a bulk purchase to make it a better deal for everyone. This is the power of a group-buy program, such as Switch Together, which organizes people interested in solar panels into one bigger group for more purchasing power. The Switch Together group-buy program is a partnership of CUB, the Midwest Renewable Energy Association (MREA) and several Chicagoland counties. Solar group-buy programs are educational–they allow participants to learn more about solar energy– and, since the cost of going solar is cheaper when more people buy, individual consumers save on the total cost of going solar. This lower cost of a group-buy program empowers residents who might not have been able to make the transition to solar energy before to take the plunge now and help the communities where they live move closer to their climate goals. Bob K., a Dundee resident, participated in a CUB solar group-buy program in 2020, and his savings were significant. Bob was interested in solar panels for several years before taking the plunge. The program’s Solar Power Hour presentation helped him learn the practical steps to going solar and secure a good installation deal thanks to the volume purchasing discount and rebates. “The system should pay for itself completely in about five to six years,” Bob said in a 2022 year interview with CUB. “For eight months out of the year last year my electric bill was $0—even factoring in charging for an electric vehicle.” Bob recommended getting multiple installer bids to compare prices, as he did. In the end, the group-buy program was better than any other offer he reviewed. “CUB’s group-buy program was the best deal I found and very helpful in learning about the switch to solar,” said Bob. If you’re interested in CUB’s solar group-buy program, visit SwitchTogether.com/Solar/Chicagoland to learn more.

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What is Electrification? A CUB Explainer

Elizabeth — Fri, 28 Apr 2023 15:56:24 +0000

What’s with all the buzz about electrification? CUB has a new “Better Heat” guide that explains this topic in-depth, but here’s a quick CUB explainer to help break it all down. What is electrification? Building electrification is the process of replacing fossil-fueled equipment like furnaces and natural gas stoves with their electric counterparts. Switching to electricity to run your home means that your energy can come from clean and more affordable sources like solar or wind, improve indoor air quality and help protect you from high gas costs. Why does CUB support it? CUB supports the transition to electrification because Illinoisians simply can’t afford not to. Gas is bad for our bottom lines: The volatile gas market subjects customers to recurring price spikes and high charges linked to aggressive utility spending. Currently, Illinois consumers face about $887 million in rate-hike requests by the state’s major gas utilities. These problems are felt statewide but seem to be most severe in Chicago, where about one in five customers are consistently one month or more behind on their gas bills. (Last month, we held a protest at the Peoples Gas Headquarters against their record $402 million rate-hike request.) Gas is bad for our health: There is mounting evidence that gas stoves pollute your home’s air. Sustainability think tank RMI linked the typical use of gas stoves to a 42 percent increase in rates of childhood asthma and additional health problems. Gas is bad for the planet: Heating with gas is a major contributor to greenhouse gas emissions. RMI found that 10 states account for nearly 60 percent of greenhouse gas emissions from buildings — and Illinois ranks third. Natural gas isn’t a sustainable option, either environmentally or financially, in the long run. It’s time for consumers to explore alternatives. How do we electrify? Electrification requires planning–this won’t happen overnight. But there are steps you can take now to get started. Complete your checklist of energy efficiency upgrades. CUB’s Clean Energy page has information on tips and programs to make your home more efficient. A home energy audit can help you make a checklist of improvements. Making your home as efficient as possible maximizes savings before you switch from gas. Plus, it’ll help when the time comes to purchase an electric heat pump (see below) to replace your gas heat: An energy-efficient home may require a smaller, less expensive pump. Manage your energy use. When you use energy is as important as how much you use. You can participate in “demand response” programs in which you can put off the bulk of your electricity usage to times when electricity demand is lower. By reducing peak electricity demand, these programs help make the power grid cleaner and more reliable, and they can help you save money. Consider using more renewable energy– you can do this by subscribing to a community solar offer or installing solar panels on your home. There has never been a better time to go solar. Once you’ve done these, consider switching from gas to electric appliances. Geothermal heat pumps are the most efficient method to heat and cool your homes and […]

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Breaking: Inflation Reduction Act is signed into law

Jim Chilsen — Tue, 16 Aug 2022 10:00:23 +0000

The nation has taken a historic step forward in fighting costly climate change and lowering utility bills through energy efficiency with passage of the Inflation Reduction Act (IRA). President Biden signed the IRA into law on Tuesday, August 16, The landmark energy bill passed the U.S. House on Aug. 12 and the Senate on Aug. 7. (The legislation needed Vice President Kamala Harris to break a 50-50 tie in that chamber.) “Passing the Climate and Equitable Jobs Act was a huge breakthrough in Illinois. But we’ve got more work to do, and we need strong legislation, like the Inflation Reduction Act, coming out of Washington,” CUB Executive Director David Kolata said after the IRA passed the House. “CEJA and the IRA are about seeking consumer-friendly ways to fight climate change–protecting our planet and at the same time protecting our pocketbooks.” Kolata thanked CUB supporters who sent more than 1,400 messages over the last week urging Washington to pass the IRA. The legislation includes significant provisions on taxes and health care, but the largest chunk of spending, $369 billion, goes to clean energy and efficiency improvements to fight climate change. CUB has long promoted the bill-cutting benefits of energy efficiency, and the watchdog argues that climate change unchecked will cost electric customers billions in higher bills in years to come. So fighting the world’s climate problems through strong clean energy legislation benefits consumers and their pocketbooks. The IRA represents the largest combined investment in energy efficiency in U.S. history and a “massive win for our climate and for reducing energy costs for households and businesses,” according to the American Council for an Energy-Efficient Economy (ACEEE). Below is a summary of key provisions: 40 percent reduction in carbon emissions by 2030. $9 billion for rebate programs focusing on lower-income consumers to help people make efficiency upgrades and switch to more efficient electric appliances. 10 years of tax credits for making heat pumps, rooftop solar, electric HVAC and water heaters more affordable. $4,000 tax credit for lower/middle income drivers to buy used clean vehicles, and a tax credit of up to $7,500 to buy new clean vehicles. $1 billion grant program to make efficiency upgrades to affordable housing. Tens of billions of dollars in tax credits, grants and loans to support U.S manufacturing of solar panels, wind turbines, electric vehicles and batteries. Get more details on the IRA: Here, here and here. “The legislation’s landmark investment of $369 billion in climate and clean energy programs will help deploy thousands of megawatts of renewable power, create hundreds of thousands of good-paying American jobs, reduce the cost of electric power, and finally put the country on track toward achievement of our climate goals,” said the American Council on Renewable Energy. RMI, formerly the Rocky Mountain Institute, added that the legislation will lower energy costs, increase investment in clean energy economic opportunities, and stimulate jobs and economic growth. “Hands down, the investments in this new legislation will help lower energy cost inflation,” said Jules Kortenhorst, CEO of RMI. The nonprofit, nonpartisan Committee for a Responsible Federal Budget estimated the IRA would reduce deficits by $1.9 trillion over […]

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CUB explainer: The Inflation Reduction Act

Elizabeth — Wed, 03 Aug 2022 20:52:08 +0000

The U.S. Senate is considering legislation that supporters say would represent the nation’s largest investment in energy efficiency in history, and its biggest and best attempt yet to fight climate change. The Inflation Reduction Act (IRA) aims to reduce inflation by increasing corporate tax revenue by closing loopholes and supporting programs that help consumers cut their energy bills through efficiency. CUB supports the IRA because we have long argued that climate change will cost electric customers billions in higher bills in years to come, so fighting it through strong clean energy legislation is a pro-consumer issue. The American Council for an Energy-Efficient Economy (ACEEE) called the IRA the largest combined investment in energy efficiency in U.S. history. “While far more investment will be needed to address the climate crisis, the IRA investments…will put us on a much better path,” ACEEE wrote. “And the investments will save money for American consumers and businesses, grow the energy efficiency and clean energy industries, improve public health, and strengthen energy security.” The proposal is a compromise reached by West Virginia Sen. Joe Manchin and New York Sen. Chuck Schumer after another bill Build Back Better stalled last year. The Senate opens debate on the legislation as early as this week. It would require a simple majority, under a procedure called “budget reconciliation.” The IRA aims to reduce emissions by 40 percent by 2030, and “would represent the single biggest climate investment in U.S. history, by far.” While the legislation touches on health insurance and tax issues, the legislation devotes the largest chunk of spending, $369 billion, to fight climate change, including… $9 billion in rebate programs to help consumers make energy efficiency upgrades and switch to more efficient electric appliances. 10 years of tax credits for making heat pumps, rooftop solar, electric HVAC and water heaters more affordable. $4,000 tax credit for lower/middle income drivers to buy used clean vehicles, and up to $7,500 tax credit to buy new clean vehicles. $1 billion grant program to make efficiency upgrades to affordable housing. Tens of billions of dollars in tax credits, grants and loans to support U.S manufacturing of solar panels, wind turbines, electric vehicles and batteries. (Get more details on the IRA.) The clean energy measures are designed to combat inflation as well as climate change. Robbie Orvis, of the nonpartisan think tank Energy Innovation, said elevated energy prices have driven about a third of the 9 percent increase in the overall Consumer Price Index over this past year. “By helping Americans become less reliant on fossil fuels, the spending helps ease the global oil crunch and cut consumer bills,” Vox reported. To fund these clean energy initiatives, the bill would levy a minimum 15 percent tax on corporations, like ExxonMobil, that have $1 billion+ in yearly profits. It also would reportedly add a 1 percent excise tax companies would have to pay on the amount of stock they repurchase. The legislation would beef up Internal Revenue Service enforcement to capture more unpaid taxes. “We passed the Climate and Equitable Jobs Act in Illinois, and that was a big step forward,” CUB Director of Communications […]

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