In the latest move in his socialist agenda, President Obama will soon be stealing more from Peter (you) to pay Paul (not you). His latest ingenious plan, a derivative of the catastrophic cash for clunkers program, will reimburse homeowners for energy-efficient appliances and insulation, part of a broader plan to stimulate the economy. CNN has dubbed this rediculous idea “Cash for Caulkers.”

Steve Nadel, director at the American Council for an Energy-Efficient Economy, who’s advising on the bill, said a homeowner could receive up to $12,000 in rebates. Big-ticket items like air conditioners, heating systems, washing machines, refrigerators, windows and insulation would likely be covered, Nadel said.

Based on earlier bills, consumers might be eligible for a 50% rebate on both the price of the equipment and the installation, up to $12,000, said Nadel. So far, there is no income restriction on who is eligible. That would mean a household could spend as much as $24,000 on upgrades and get half back.

We know energy efficiency “creates jobs, saves money for families, and reduces the pollution that threatens our environment,” Obama said.

Really? The latest round of government theft is designed to save American families money?

Here is a present value calculation on spending $12k out of pocket to improve efficiency.

Average home KW/hr usage: 10,656 KW/hr
Average KW/hr cost: $0.113 KW/hr
Average yearly cost: $1,204
Estimated 20% savings: $240
Residential Energy Inflation: 3.3%
Full Program cost to household: $12,000
Discount rate: 7%

At the end of 20 years you have a Present Value of ($8614). Homeowners would have to save ~$850/yr from year one on their energy bills for this to make sense!

Comments?

Popularity: 3% [?]