Alliance for Green
Heat - A Maryland program that provides rebates for select pellet stoves
and EPA certified wood stoves has been an overwhelming success for
pellet stoves. Of the 773 rebates given
since the program started in September 2012, 646 or 83% of them have been for
pellet stoves.
To date, the Maryland program has provided nearly $400,000
in rebate grants for pellet stoves and $67,000 for wood stoves. The program is only open to families who heat
with oil, propane or electricity in order to target those who have highest
heating costs and the most carbon intensive fuels.
“These results show that rebates for pellet stoves can help
a state meet residential carbon and electricity reduction goals,” said John
Ackerly, the President of the Alliance for Green Heat and one of the advocates
for this program. “Per dollar of state
funds invested, this has enabled Maryland to help many more families reduce
energy costs and drastically reduce their fossil fuel use,” Ackerly added.
The greater interest in pellet stoves is result of a
combination of factors, including people using the rebate to upgrade from an
old, uncertified wood stove to a pellet stove, a higher rebate amount for
pellet stoves and not as many wood stoves qualifying for the program’s 3-gram per
hour emission requirement. Pellet stoves are held to 2-gram an hour emission limit.
Another factor is that pellet stoves are simply becoming
more popular in Maryland as they are nationally. The state has one of the
premier pellet stove dealers in the nation and a full 58% of the 79 wood and
pellet stove grants listed one month were being handled by that dealer,
Courtland Hearth & Hardware, that has 3 stores in northeast Maryland.
On a per capita basis, the rebate program has been most
popular in Harford County and Maryland’s rural eastern shore, a peninsula
between the Chesapeake Bay and the Atlantic that has very little natural gas
penetration. On a numerical basis, the
most rebates are in Harford, Anne Arundel and Baltimore County, more heavily
populated counties that also have higher median household incomes and can better
afford the up front costs of purchasing and installing a stove. Garrett County, one of Maryland’s counties
with the lowest average household income and the highest rate of wood heating,
had very few participants in the rebate program and they were only one of two
counties that favored wood over pellet stoves.
In Maryland, the western counties and the Eastern shore have the lowest average household incomes and the center, which is part of the Washington, Baltimore, Philadelphia corridor are the wealthiest, with the exception of inner city Baltimore. This corridor also has very high rates of national gas penetration.
Unlike many programs in other states and areas, where wood
smoke is a worse problem, the Maryland program does not require the homeowner
to turn in an old uncertified stove to qualify for a rebate. Nevertheless, according to several stove
retailers, between 50% and 75% of old uncertified stoves are removed and
recycled anyway. Recyclers usually pay $25 - $40 for old wood stoves. This indicates that a rebate program that
requires professional installation can be an inexpensive way to remove old wood
stoves from the airshed compared to many change out programs, which tend to be
more expensive.
The $500 - $700 rebate from the state helps Maryland achieve
several objectives. Other than helping
people replace or significantly reduce fossil heating fuel, it also steers
people to pellet stoves instead of wood ones and leads consumers to buy a
cleaner stove and ensures that it is professionally installed and/or inspected,
depending on permit and inspection requirements of the county. Without the rebate, it is more likely that more
consumers may buy off the second hand market, or buy higher emitting wood or
pellet stove, or hang on to an older stove for longer.
From a carbon perspective, incenting the purchase of wood
and pellet stoves can be a very good investment as a wood or pellet stove is often about 10% of the cost of solar or geothermal and can
displace about the same amount of fossil fuel as the typical solar or geothermal installation. Pellet stovesGenerally, pellet stoves are more
likely to be a primary or sole heat source for a home because they can be
easily run 24/7.
From an emissions perspective, pellet stoves are clearly
better than wood because the fuel size is small, it has consistent low moisture
content and is fed into a more controlled combustion chamber. By limiting the rebate to
homes that heat with electricity, oil or propane, the program effectively
limits the vast majority of participants to rural areas, where stove emissions
are not as problematic.
Nationally, wood stoves have always outsold pellet stoves,
but pellet stoves have twice come close to selling more than wood stoves
annually. Over the five years preceding
2013, manufacturers shipped an average of 90,000 pellet stoves per year versus
137,000 wood stoves, according to data from the industry association, the Hearth, Patio and Barbecue Association (HPBA).
Sampling of data from
applications:
The MEA provided the Alliance for Green Heat with a sampling
of data from 110 applications. This data
helps the MEA and other stakeholders understand which fossil fuels are being
offset, what applicants do with old wood stoves and other metrics that can help
assess the strengths and weaknesses of the program. It appears that the fossil
fuel most commonly displaced was electricity, which was twice as common as oil
and propane. It is unclear if electric
heating means electric resistance heat or a heat pump and that has a large
bearing on the amount of electricity reduced.
Many Marylanders have older, inefficient heat pumps that work poorly in
very cold temperatures.
The application does not ask if the person intended the new
stove to be a primary or secondary heat source or whether an old wood or pellet
stove being replaced was a primary or secondary heat source. That will be one of the recommendations the
Alliance makes to the MEA about future data collection to provide better
metrics for the program.
Of the 110 applications, 33 of the households already had an
older stove. What is surprising is that Pellet stoves have
many moving parts and are not as durable as wood stoves and often need to be
replaced every 10 – 15 years. Of the 33 households
with existing stoves, nearly 60% had their old one recycled or otherwise
disposed of. Six of them, or 18%, sold
them on the second hand market, including a few old pellet stoves. And 3 people kept their old wood stove
installed as an emergency back-up heat for their new pellet stove. Nearly
half of these households already had a pellet stove and wanted to upgrade to a
newer pellet stove.
This analysis is based on much more data but continues the trends that were noted in a similar analysis in February of 2013 after the pilot phase of the program. During the pilot phase, rebates were $400 for wood stoves and $600 for pellet stoves.
More info:
Maryland wood and pellet stove program details and application
Other Maryland renewable energy programs
Background on how the program began
Common questions and answers about the program
More info:
Maryland wood and pellet stove program details and application
Other Maryland renewable energy programs
Background on how the program began
Common questions and answers about the program