(Columbia, SC) A partnership launched today between South Carolina’s electric cooperatives and 
the Environmental and Energy Study Institute (EESI), a non-profit public policy education and outreach organization based in Washington, D.C., is a key step in developing a pilot project to help rural South Carolinians save energy and money in their homes. The collaboration between the co-ops and EESI to design and implement this pilot project is being supported by a $225,000 grant to EESI from the Doris Duke Charitable Foundation . The project was one of nine selected from among 372 pre-proposals that the Foundation received through a national competition soliciting ideas for scalable approaches to spurring energy efficiency retrofits of existing buildings in the U.S.
EESI will work with The Electric Cooperatives of South Carolina, Inc. (ECSC), the state association of electric cooperatives, and Central Electric Power Cooperative , the wholesale power aggregator for the state’s co-ops, to design and implement the program. Low-interest micro-loans for home energy efficiency improvements would be made to consumers, who then would use a portion of what they save on electricity to pay back the loans on their monthly electric bills. The project will serve as a model for similar programs in South Carolina and other states, and for a national program, the Rural Energy Savings Program Act or “Rural Star,” which has passed the U.S. House of Representatives and now awaits a Senate vote.
South Carolina’s electric cooperatives developed the program in response to an impending need for costly new electric generation capacity in South Carolina—driven by population growth trends and exacerbated by the state’s high energy use in both winter and summer and large percentage of relatively inefficient homes. “South Carolina could be the Saudi Arabia of energy efficiency,” said Mike Couick, CEO of the ECSC. “Looking at all our options, efficiency is simply the smartest and cheapest energy source we could find.”
“Our goal is to weatherize and upgrade 225,000 homes over 10 years,” said Ron Calcaterra, CEO of Central Electric Power Cooperative. “By doing that, we could save all co-op members $4 billion, or the cost of half of a nuclear plant. In the process, we’ll also cut the state’s carbon dioxide emissions by nearly 7 million metric tons.”
EESI’s primary role will be to make sure the project benefits from outside expertise and relevant experiences in other states, increasing the value of the project for other states and a potential national program. EESI has developed extensive information resources and relationships among energy experts across the country. “ This cutting-edge project provides a financially sustainable model for achieving dramatic energy and greenhouse gas savings,” explained EESI Executive Director Carol Werner.
Key innovations of Rural Star include the use of “on-bill financing,” which allows electric cooperative consumers to repay the home energy efficiency loans in less than 10 years on monthly electric bills. This system also allows low-income homeowners and renters who might not qualify for a conventional loan to participate, and maximizes the program’s impact by focusing on the most cost-effective improvements for high energy-use homes. The electric cooperative will pay for energy audits on prospective homes — one before the energy improvements begin and one after they are completed — to ensure that the loan can be paid back in a reasonable time. This innovative approach and the potential for nationwide replication were important in gaining support from the Doris Duke Charitable Foundation. “We are proud to provide funding to these organizations to test a number of creative approaches for making significant gains in energy efficiency across the country,” said Andrew Bowman, director of the Foundation’s environment program.
The Rural Star bill was inspired by a conversation between ECSC’s Mike Couick and Rep. John Spratt (D-SC). “This is a home-grown idea that has the potential of lowering the cost of heating and cooling homes throughout South Carolina,” said Spratt. “It has the real potential for providing a shot in the arm for the economies of rural communities, and it has great potential to lower carbon emissions.”
House Majority Whip James Clyburn (D-SC) was the lead sponsor of the Rural Star bill. “I fell in love with the idea and then introduced the concept to the members of Congress on both sides of the aisle,” Clyburn said. “This bill provides for energy conservation, job creation and cost-effective upgrades that will improve consumers’ quality of life. It’s a win-win proposition.”
The Rural Star bill passed the U.S. House with strong bipartisan support in September. The U.S. Senate is now considering similar legislation. “The money that we’ll make available to be loaned by the co-ops will go to some of the most trustworthy people in America,” said Sen. Lindsey Graham (R-SC). “They will pay you back. It is smart policy to take a small, limited amount of federal dollars and empower people to help themselves.”
