HERO Program

The Louisiana Home Energy Rebate Option (HERO) offers an actual cash payment for Louisiana residents who build new homes to high levels of energy efficiency or make energy improvements to existing homes. HERO is a component of the Home Energy Loan Program of the Louisiana Department of Natural Resources (DNR).

The amount of the cash payment depends on the level of energy savings, called the Energy Efficiency Premium. The cash payment is 20% of the Energy Efficiency Premium up to a maximum of $2,000. The Energy Efficiency premium is determined by a home energy rating that is required on all homes participating in the program.

HERO is available to any Louisiana homebuilder, home buyer or homeowner. Application for HERO is made directly to DNR. Information and step-by-step instructions are available by calling the toll-free HERO hotline or the DNR Energy Section.

Eligibility Requirements for Cash Payment

New Homes - For a new home to qualify for the program, it must be built at least 30 percent above the 1995 Model Energy Code (MEC). This corresponds to a minimum of 86 points (five stars) on Louisiana's 100-point rating scale. Application for HERO should be made at the planning stage prior to beginning construction.
Existing Homes - For an existing home to qualify for HERO, it must have its level of energy efficiency improved by at least 30 percent. This corresponds to an improvement of at least six points on Louisiana's Rating Scale. Application must be made before starting improvements.

Determining the Energy Efficiency Premium

The Energy Efficiency Premium differs for new and existing homes. A home energy rater determines the Energy Efficiency Premium as part of a home energy rating that is required on all homes purchased or built under the HERO program.
New Home - On a newly-constructed home, the Energy Efficiency Premium is the present value of the energy saved over the life of the energy improvements made to the home as compared to a similar home built to only 1995 MEC standards. The more energy efficient the home is constructed, the larger the Energy Efficiency Premium.
Existing Home - On an existing home, the Energy Efficiency Premium is the lesser of the cost of improvements or the present value of the energy saved by energy improvements made to the home over their useful lives. Again, the greater the energy improvements made to the home, the larger the Energy Efficiency Premium.

Home Energy Ratings

A home energy rating lets you compare the energy efficiency of your house to others, estimates your future energy bills, and evaluates improvements that will save you money. It is a standard measure of your home's energy efficiency. According to national standards, the energy efficiency of a home is measured on a 100-point scale. Houses rated at 80 points are deemed to meet the requirements of the Model Energy Code. To qualify for HERO, the home must be 30 percent more efficient than the code and, therefore, must rate 86 or better on the rating scale.
In Louisiana, the Home Energy Rating system is administered by Energy Rated Homes of Louisiana (ERHL), a section of the Louisiana Department of Natural Resources. All ratings are performed by private sector raters trained and certified by ERHL. Included in a rating is a detailed computer analysis and on-site inspection of the home. The on-site inspection includes testing the home for air infiltration and duct leakage using an instrument called a blower door.
For individuals purchasing an existing home, a Home Energy Rating can also be used to qualify for an Energy Efficient Mortgage (EEM). With an EEM, home buyers can borrow the additional funds to make energy improvements at the time of purchase. The additional funds are included in their mortgage. The resultant reduction in energy costs is generally larger than the increase in mortgage payment. This means an average savings of $300 to $600 annually for homeowners.
A list of Home Energy Raters can be obtained by clicking here or calling the HELP hotline. A rating generally costs between $250 and $350 depending on the complexity of the home.

Special $100 Energy Rating Rebate

For a limited time, DNR is offering a $100 rebate to homeowners/home builders who have a home energy rating conducted in connection with HERO. At submission of the initial rating certificate to qualify for the HERO program, DNR will award a $100 rebate to the homeowner/homebuilder that can be applied toward the cost of the energy rating.

Contact A & H Service now to take advantage of this special program! Coupled with our special offer, you're sure to save!

More information on the HERO Program is available from the Louisiana Department of Natural Resources here.