Jul. 21--Looking closely at the state's $28 billion budget, homeowners could find some financial opportunities to help them save on their electric and heating-oil bills.

A $650 million energy plan promises to reduce energy consumption statewide by making money available for improvements to reduce the demand for electricity, such as adding insulation, installing energy-efficient windows and doors and replacing old heating and air-conditioning systems.

The state will pay 25 percent to 35 percent of the cost, including installation, depending on the project.

"Homeowners should look at this very closely," said Jeanne Dworetzky, executive director of the Pennsylvania Energy Development Authority. "There is a lot of opportunity here to address both the electric side and the fuel side."

Gov. Ed Rendell made reducing energy demand a priority in the budget, pushing for programs that will reduce Pennsylvania's reliance on fossil fuels. He didn't get the $850 million he wanted, but the compromise created a funding package that emphasizes conservation while offering incentives that encourage development of less-polluting, alternative sources of energy such as wind and solar.

Solar got the biggest slice of the pie, roughly $180 million (nearly 30 percent). Homeowners who want to convert to solar energy for their heat or hot water could be reimbursed for up to 35 percent of the cost.

"It's the single most important part of the package for consumers," said John Hanger, president of PennFuture, a Harrisburg-based public policy group. "I personally believe that the 21st century will be a solar century, just like the 20th century was the century of oil."

Solar could pay off in a couple of ways.

First, it can reduce the amount of electricity a home pulls from the electric grid at a time when the cost of electricity is poised to increase by 20 percent to 50 percent in the next few years.

Second, on sunny days, a solar system can produce more electricity than the home will use, which could give the owner a credit. Under state law, utilities must buy the excess power.

"It's like your meter is running backward," said Courtney Lane, a policy analyst for PennFuture.

But there are drawbacks to consider.

Pennsylvania is not the sunniest state -- Harrisburg sees about 87 sunny days a year, according to the National Oceanic and Atmospheric Administration. If you throw in partly sunny days, the number rises to 196, a little more than half a year.

Solar also remains expensive, though that is expected to change.

According to one company's online calculator, converting to solar a 2,000-square-foot home that uses about 27,000 kilowatts a year would cost about $50,000 after the 35 percent rebate.

"A lot of people aren't aware of the cost of solar," said Gregory Hess, owner of Solar Tech of Pennsylvania, a Camp Hill company that sells and installs solar equipment. "Most people go with smaller projects, like using it for hot water or heating."

Higher energy prices have kept Hess' phone ringing.

"It's just going crazy right now," he said.

As interest rises and more manufacturers produce components, Hess expects prices to drop.

Meanwhile, the 3-year-old company is looking at expanding its work force from four to 50, and it plans to build a warehouse to store equipment.

Not ready for solar? There are other ways to take advantage of state energy money.

Insulating, sealing air leaks, replacing windows and switching to those fluorescent lights that look like a Mr. Softee ice cream cone can reduce energy use. And the budget includes $92 million to help property owners pay for such changes.

The Consumer Energy Conservation Project will offer reimbursements of up to 25 percent.

"At a time when energy prices are high, we see it as a way for homeowners and businesses to cope," Dworetzky said.

On Friday, Matt Steiman was in the sunshine installing solar panels that will supply about 800 watts of electricity to three huts, called yurts, on Dickinson College's farm near Boiling Springs. The small buildings will be used to house student interns working on the farm.

Steiman, assistant farm manager, said the college made a commitment to lower its emissions of carbon pollution by installing solar panels. And he's all for it.

"I've been an advocate for it since I got here," he said.

ENERGY BUCKS: Here's a glimpse of new programs in the state budget that homeowners can use to help pay for energy improvements:

--Reimbursements covering 35 percent of the purchase and installation costs of solar electric or water-heating systems. Money likely will be made available to individuals and small businesses as loans, grants or rebates. These systems can range from a few thousand dollars for a water heater to tens of thousands of dollars for a whole-house system. Amount available: $100 million.

--Loans or grants for the construction or renovation of "high-performance" green buildings. Amount available: $25 million.

--Reimbursement for up to 25 percent of the cost of energy efficiency improvements in homes and small businesses, such as windows and doors, lighting, insulation and heating and air-conditioning systems. Amount available (over eight years): $92 million.

--Energy-efficiency loans for income-eligible families to help pay for weatherization projects. Amount available: $5 million.

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