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State offers loans for energy upgrades

  • The Wichita Eagle
  • Published Wednesday, Nov. 18, 2009, at 12:05 a.m.
  • Updated Wednesday, Nov. 18, 2009, at 10:38 a.m.

A new state program aims to help Kansans reduce their energy use and save money on monthly utility bills.

Property owners who participate in Efficiency Kansas can choose to take out low-interest loans to upgrade insulation, install new furnaces, seal doors and windows and make other improvements.

They then pay back the loans from savings on monthly energy bills — which could be as much as 20 percent, state officials said.

"This program is designed to help homeowners make fundamental changes to their home, make them more comfortable, save on fuel costs and improve the overall value of their homes," said Susan Duffy, executive director of the Kansas Corporation Commission.

Participants must go through an energy audit and make what the audit determines are the most cost-effective improvements.

Wichitans Duane and Barb Allender were skeptical when the state asked them to open their home — a typical 1960s-era ranch — to help launch the program Tuesday.

The chimney vent leaked cold air, as did an area around their fireplace and windows.

An energy audit targeted improvements it said would cost the Allenders about $2,900.

The Allenders chose not to take out a loan, but they are slowly making improvements that are estimated to save them $35 a month and more than $400 a year. If they had taken out a loan, the estimated monthly payment would have been $24. The interest rate for loans is 4 percent.

Duane Allender has fixed leaks, applied insulation, put a plastic cover over his chimney vent and bought a new seal for his automatic garage door.

The revolving loan program will use $34 million in American Recovery and Reinvestment Act funds.

The maximum amount of funding for approved projects is $20,000 for houses and $30,000 for small businesses, although average loans are expected to range from $5,000 to $6,000.

The program has 14 banks with 89 branches across the state signed up to participate in the program, with more expressing interest, said Kansas State Treasurer Dennis McKinney.

The program's Web site allows consumers to look for participating lenders and companies trained to perform energy audits. The Web site is www.efficiencykansas.com.

Reach Beccy Tanner at 316-268-6336 or btanner@wichitaeagle.com.

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