Community benefits by heating with local wood

Benefits of the Model Neighborhood Project

40% annual fuel savings for average participants

75% subsidy for to support purchase and installation of new pellet systems

14-ton per house reduction in greenhouse gas emissions 1,000 gallons of heating oil replaced by wood pellets

100% of every dollar spent on wood pellets from the Northern Forest will stay in the lcoal and regional economy

Model Neighborhood Project

This new program is subsidizing up to 75% of the costs to transition from oil heating systems to advanced wood pellet boilers for as many as 40 homeowners in Berlin, NH, over the next 2 years.

Learn more below.

Clean and efficient system

The new ÖkoFEN boilers are a virtually seamless replacement for traditional oil-based systems.

Homeowners remove small bags of ash only 3 or 4 times a year through a clean quick-release system.

Program benefits regional economy

Demand for wood pellets will strengthen the market for low-grade wood

Increased pellet production will stabilize and increase employment in forest-related businesses

100% of every dollar spent on wood pellets stays in the regional economy
 

A Collaboration of

Northern Forest Center
Berlin BetterBuildings
Maine Energy Systems
City of Berlin

 

The Model Neighborhood Project’s goal is to help the Northern Forest region move away from dependence on imported oil toward a local energy source that will create jobs and strengthen the forest economy.

Switching to heating with wood pellets made from fiber grown and processed in the Northern Forest will retain 100% of the money spent on this alternative fuel in the local and regional economy – a welcome alternative to exporting nearly 80 cents of every dollar spent on imported heating oil.

The Northern Forest Center is launching the Model Neighborhood Project in the greater Berlin, NH, area, in collaboration with Berlin BetterBuildings, the City of Berlin and Maine Energy Systems with financial support from foundations, corporations and individuals.

The project will subsidize the purchase and installation of new, state-of-the-art wood pellet heating systems in homes, affordable housing units and municipal buildings in pilot communities to demonstrate the efficiency, cost-savings and ease of use of these systems. Learn more about program eligibility and participation.

The Model Neighborhood Project will generate the following community benefits, and many more:

  • 40% annual fuel savings for an average home and for participating affordable housing buildings (based on Oct. 2010 oil prices)
  • 14 ton per house reduction in greenhouse gas emissions for every home that replaces 1,000 gallons of heating oil with wood pellets
  • Financial incentive for forestland owners to keep their forests intact through stronger markets for low-grade wood.
  • Stabilized and increased employment in forest-related businesses, such as 4 existing Maine pellet producers that could support 500 additional direct and indirect jobs if operating at full capacity.
  • Financial subsidy for program participants to support purchase and installation of new pellet systems


Tax credits are available to support this program.

 

Selected homeowners in Berlin, NH, will have the opportunity to save 40-50% on home heating costs while keeping their energy dollars circulating in the regional economy to help create jobs.

Up to 40 homeowners will be selected in the coming two years (Nov. 2011-Nov. 2013) to receive direct financial assistance of up to 75% of the costs involved in making the transition from fossil fuel boilers to advanced wood pellet boilers – with the goal of completing the first 10 installations before January 2012.

Project candidates will be identified from the pool of participants in the Berlin BetterBuidings energy efficiency program. Anyone with a home in Berlin can apply to the BetterBuildings program.

The Model Neighborhood Project will also seek opportunities to install pellet boilers in affordable housing units and municipal buildings. Managers of municipal buildings or affordable housing units who are interested in participating in the Model Neighborhood Program should contact Mike Wilson at the Northern Forest Center for participation details.

Further information included below:
Heating System

Homeowner Benefits

Participant Responsibilities

Financial Assistance

Selection Criteria

High Efficiency Wood Pellet Home Heating Systems

The ÖkoFEN wood-pellet heating systems offered through this project are assembled in Bethel, Maine, and designed as a virtually seamless replacement for traditional oil-based systems.

Installed systems are valued at roughly $17,500 and offer characteristics and benefits including:

  • Wood pellets are delivered in bulk to the home by a delivery truck that blows them into a basement storage bin that can hold up to 3.5 tons of pellets (enough for 3-4 months of use);
  • Wood pellets are automatically auger-fed from the bin based on the demands of the boiler – no bags involved;
  • Boiler requires minimal ash removal and the process is clean, contained and convenient for homeowners through aa a quick-release and remove bag system that needs to be tended approximately 3 times per year;
  • Boilers are exceedingly efficient and have minimal Greenhouse Gas CO2 emissions;
  • Retrofitting to a pellet boiler requires minimal changes to the home heating system; and
  • Homeowners can maintain their oil boiler as a back-up system if they have sufficient flue space.

In order to participate, homeowners must also participate in the Berlin BetterBuildings program, and have homes that meet certain specifications (e.g. appropriate square footage in basement).

Benefits to Participating Homeowners

  • Significant financial assistance toward the purchase of state-of-the-art ÖkoFEN boiler systems sized to meet home heating needs – see below for details.
  • Installation of the pellet heating systems by licensed, qualified installers in keeping with all applicable state and local codes.
  • Locked-in fuel cost at the equivalent price of $1.99 /gallon heating oil through June 31, 2013.
  • Regular system maintenance provided by the installer for one year, plus 24/7 access for emergency service. (It is expected that the relationship will continue beyond the trial year.)
  • Long-term fuel cost savings. At today’s pellet and fossil fuel prices, the average homeowner would save 40-50% of their anticipated oil costs by switching to pellet-fired central heating.
  • Environmental benefits: A home that burns 1,000 gallons of oil per year will reduce its greenhouse gas emissions by 14 tons per year by switching to pellet heating.

Participant Responsibilities

  • Provide appropriately lined flue space for the ÖkoFEN boiler system.
  • Agree to use the ÖkoFEN boiler system, or the ÖkoFEN with fossil fuel back-up if they have sufficient flue space, for heating their homes and domestic hot water for a period of at least one year from installation.
  • Agree to communicate with the BMNP Program Manager on a regular basis and to complete on-line questionnaires about the performance of their systems.
  • Allow their boiler performance to be made available for monitoring on the worldwide web by providing a live internet access port near the boiler. Neither the boiler’s location nor the homeowner’s name will be associated with the live performance data.
  • Show their systems to interested parties on up to five scheduled occasions during the trial year.
  • Permit the Project Manager to use their names and comments in testimonials about the products and systems they have used.

Financial Assistance

Direct financial assistant during the first round of BMNP heating system retrofits will take advantage of three funding sources:

  • Northern Forest Center – Direct Cash Subsidy: $8,000
  • NH Office of Energy and Planning Rebates: $5,500 (estimate)
  • 1% Loans through the Berlin BetterBuildings Program plus any available program incentives

These incentives subsidize approximately 75% of the standard purchase and installation cost of a state-of-the-art OkoFEN home boiler.

Low-interest financing is available through the BetterBuilding program to help participating homeowners cover remaining purchase and installation costs, as well as any additional expenses related to repairs or upgrades to the chimney, circulation system or other elements of the existing home heating system.

Participating Lending Partners include Guardian Angel Credit Union, Laconia Savings Bank, Northway Bank, and Woodlands Credit Union.

Homeowner Eligibility and Selection Criteria

Project partners are looking for a diversity of housing types for this pilot project and will select residential participants accordingly. The program is available only to single-family residences or owner-occupied multi-unit buildings serving as primary residences in Berlin, NH. Additional eligibility criteria include completion of a Berlin BetterBuildings program application and home energy audit process and pre-approval for any necessary loan financing.

Final selection of project participants will be based on the following criteria:

  • Diversity of housing stock;
  • Diversity of annual heating demands;
  • Suitability of existing home heating infrastructure (chimney, circulation system, etc.)
  • Space availability or limitations;
  • Willingness and ability of homeowners to represent their experience to other potential buyers or markets for wood pellet heating systems.

As noted above, to be eligible for the Model Neighborhood Project homeowners must participate in the Berlin BetterBuildings program, conduct a home energy analysis, and through energy efficiency upgrades, target a minimum 15% energy savings.