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New (house) heating system... is this a good/great deal?

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Muse

Lifer
I get an unsolicited call around a month ago and it's a woman who says they are with a program that might install a heater in my house (Berkeley, CA). She didn't say that exactly, but that's where the conversation went because that's what I need. The heater in my almost 2000 square foot two story 101 year old house was a floor heater that's been disconnected and in the crawl space under the house, rusting since I moved in here in 1983. I bought the house (was renting with others before) in 2000.

I'm very low income right now and have qualified for a few assistance programs but when contacted in the past I didn't qualify for help putting in a heating system because mine wasn't connected and functioning. I explained this to the woman but she seemed to think it didn't matter. She makes an appointment for a guy to come over and check out the house.

The appointment was yesterday and the guy was nice as hell, worked up a plan in a matter of 1/2 hour - 45 minutes and I asked him if I could have a few days to make up my mind. He'd said there was a time limit and a limit on the number of rebates that would be issued, so he'd made it sound like I better act fast (yes, a common tactic and I don't know how for real this was). I asked him if he could call me Tuesday afternoon or Wednesday (today's Sunday).

The old heating system sent up heat through a grate in the floor, AFAIK being only a single one in the center of the downstairs in the living room.

This guy asked me if there was any ducting or way to send ducts up to the 2nd floor. If not, he said I'd either have to have just one heater (heat gets to the 2nd floor by rising up the staircases, there being one in front and one in back) or have 2 heaters, one in the crawl space and the other in the attic. Without bothering to go up into the attic or have a close look to see if ducting is possible from the crawl space to the 2nd floor, he decides it's not feasible (he may be right in that, but I'm not at all sure), he tells me if I want other than heat rising up the stairwells I need that 2nd heater in the attic. He makes a cell call to a guy in the office and asks about that and says they can get me an even greater rebate on a 2nd heater. If I have just one heater it will cost me around $7500, with 2 it will be $13,290 after 2 rebates from my utility company, PGE (evidently about $150 each), a "voucher amount" of $4000, federal tax credit of $400. He says they will provide 6 supply registers, 2 independent digital thermostats (one upstairs and one downstairs). They will remove the old rusted heater in the crawl space. They will have to widen one opening to the crawl space to get equipment (i.e. the heater itself) into the space and remove the old heater. Most of the accesses are surrounded by brick, but I think there's one they can hack into with saws. Presumably they'll repair. They say they'll install ducting (2"). What it actually says on the form he gave me is "Add new (if required) PVC 2" flue system up to 10ft." The heating system is rated at 95.5% AFUE (efficiency). The form says "Seal ducting system to current Title 24 standards as required by law." He said this included pressure testing.

He tells me they have a program where I can go 1 year without interest if I start paying $450/month.

The system he's proposing is a "Trane System," (he said I may have heard of them, said they are extremely good, I may have seen them at Home Depot), said their warranty (10 year limited parts and labor and limited lifetime warranty on heat exchanger) would extend to new owner if I sell the house, something he said only Trane does. The form said it's a 2 stage variable air flow system.

Does this seem like a good/great smart deal? Or should I shop around? The company is California Energy Services, and their site is californiaenergyservices.com.

This morning it occurred to me that I maybe should ask if it's possible to close off some of the supply lines (registers, I think they're called?). I live alone here and in a cold snap in the winter I might want to just heat part of the house or even one room if possible. If I keep the whole house warm or even half, it would use more gas than necessary. Is that a reasonable idea?
 
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The price seems fair, but be very careful of contractual limits. Things like "Add new (if required) PVC 2" flue system up to 10ft". That's a very specific limit, why is it there? They know the furnace needs a new flue, they know what material it is and where it needs go. The contract should be for a "turn key" system, complete in all respects, and all patch work necessary to a finished project. Does the contract mention lead or asbestos removal? I guaranty your house has both. What about building permits? The Peoples Republic of Berkeley charges plenty for them, are they part of the price? What you don't want is to be almost done and find out there is a major element that isn't included. Something like the gas line to the new unit in the attic could cost a couple thousand bucks, is it part of the bid?
Call their last five clients, ask if the work was done well, and if the finial cost exceeded the original bid.
I'm just finishing up a major remodel in Berkeley, those old houses are a bitch to work on, and full of surprises.
 
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I'd be suspicious. They might be legit, but the cold call - hard sell is a big red warning sign for me.

also, given the amount of work (two new difficult-to-place systems, and new ducting in a house that never had it), I'd want to know exactly how they plan to accomplish this stuff.

I'd look up the rebate/voucher programs they're planning to use, then call other HVAC companies to get quotes from them.

I'd also point out that in my experience, most HVAC contractors don't bother running the appropriate calculations to size the system (manual J, manual D), and usually just oversize the system based on a rough square footage. This can cause it to run in short bursts, which is less than ideal for air quality, efficiency, and mechanical lifespan.
 
Check your current heater out to make sure if it is 80% or greater efficiency (don't buy new heater if it is), and why is it disconnected, and what is the current heating system? New heater can be up to 99% efficiency but the saving isn't that great over the winter due to relatively low fuel consumption margin.

Heat rise therefore you don't really need a heater in the second floor, however it will be a bit cool up there in the winter. Check, and insulate the attic as needed and you will gain a lot of saving and comfort.

Replace the single panel windows with double glaze windows if you can afford it, otherwise plastic most over in the winter would work in a pinch.

Once you have more time and money. It is best to cut 2 small holes (enough to fit a vacuum hose) in the inside wall between studs and blow in fill, then patch the holes to bring the R value of the wall up.

Good luck.
 
$7500 for one heater after all those credits and stuff?

Doesn't seem like a very good deal.


For comparison, I'm in Rockridge in a 101 year old house that had a floor furnace when I bought it. Cost $9k before any rebates or anything to have high efficiency heater, ductwork, dual zone (one zone upstairs and one for downstairs) all done.
 
$7500 for one heater after all those credits and stuff?

Doesn't seem like a very good deal.


For comparison, I'm in Rockridge in a 101 year old house that had a floor furnace when I bought it. Cost $9k before any rebates or anything to have high efficiency heater, ductwork, dual zone (one zone upstairs and one for downstairs) all done.
I posted in newsgroup alt.home.repair and everybody said to beware. Many if not most thought I was probably being scammed, essentially.

How big is your house? When did you have that system installed?

I figure the thing to do is scout for reputable HVAC contractors and get competitive bids and workups on proposed systems and installations. The rebates, well, they're nice but I want to be confident that I'm getting a system that makes sense for me in my situation and that it'll be installed correctly and that they'll stand behind it. This guy's argument that I better act fast before the incentives disappear is a red flag. He was very nice, but I am not going for it.
 
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If I understand your post correctly, the only 'deal' he's offering you is the financing. Everything else is a rebate or tax credit available to anyone else. The voucher is probably a rebate from Trane.

Do your homework. What you received is basically a cold sales call meant to act upon emotion. You've figured that out. If you're seriously interested in getting central heating, talk to a number of contractors that are interested in actually thoroughly checking out your home which will include getting up into the attic.

With a house that old, I'm wondering if you even have insulation.
 
Yes, I have no reason to believe there's insulation. The attic, well, I don't suppose I can insulate it unless I have the place rewired. Right now it's old fashioned standard knob and tube wiring and it's exposed between the joists. I don't think they can drop insulation on top of that, IIRC.

This guy, I showed him the access door to the attic (you have to climb up the adjacent ladder), but he declined to climb the ladder. First thing I did was open an access door to the crawl space and tell him where to look with his flashlight for the old disconnected heater. He didn't crawl in there. He also didn't make much of an effort to determine if there was a way to get ducts from the crawl space up to the 2nd floor. He decided that it was either one downstairs system or two systems, one in the crawl space the other in the attic. He said he had one more stop and then he was off for the 4th of July weekend. Let's just say he didn't take his time! Thanks for the help!!
 
I just got a call from the guy who came over my house on Saturday. I told him I'm investigating my options. Then I asked a few questions:

I tried to find out what exact relationship his company has with Pacific Gas and Electric (PG&E, my utility company), and he says that this is a state program (the "Utility Savings Program"), and that it's just with PG&E and California Energy Services, noone else, and that the contract was awarded to CES because of their stellar record, rated A+ and 15 years without a complaint.

He says that the Trane discount on the furnaces is $2000 apiece (2 furnaces proposed for my house) for a total of $4000 and that that discount will expire at the end of the month (i.e. end of July 2011). PG&E's rebates are $150/furnace. He says that the Trane discounts are for this program only (I asked him that question specifically). He said there's also a tax credit available of up to $200/system, but in my case it probably doesn't matter. My income was so low the last two years I paid zero federal taxes.

I asked him about permitting (I'm in Berkeley, CA) and he said the inspector would come out and check out the furnace installation, nothing else and that it would be part of the program, no charge to me. If the program wasn't involved, I would be subject to a $300-$500 permit fee.

The no interest loan for one year is just that, never pay any interest with one catch, being that I have to pay off the loan entirely by the end of one year or I pay plenty of interest. The loan is through Wells Fargo. If I don't anticipate being able to pay off by the end of a year I can get a 9% fixed interest loan, otherwise it could be 25-26%. I have a HELOC, so I could pay off the loan no problem before a year's up.

He says the furnaces would be 20,000 BTU apiece (he said that since my house is almost 2000 square feet, the rule of thumb to have 10,000 BTU/500 square feet of floor space determines that), with 6 registers each. He said if I need a 7th register it would be no problem, no charge. The ducts would be 6-8" R6 insulated. They'll run flu exhaust as required, the one in the attic up through the roof and sealed as required. The furnaces would be suspended (i.e. in the crawl space, it would be suspended above the ground by brackets) and would be in the center of the house to avoid long/short runs, or at least ameliorate them.

The problem of access was another thing I brought up. I wanted to know if I'd have to pay extra for that. He said around $150-200. The furnaces are 95.5% efficient, dimensioned 20" x 30" x 40", so they'd need a 20x30" hole to get them in.

Looks like the total job would come to about $13,500. Do you guys still think this is a scam or that I'm being over charged or that they really should check out the house more carefully?
 
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If I understand your post correctly, the only 'deal' he's offering you is the financing. Everything else is a rebate or tax credit available to anyone else. The voucher is probably a rebate from Trane.

Read the post I just made. I believe the PG&E rebates of $150/furnace are available to everybody but he says the Trane discounts of $2000/20,000 BTU furnace is for this program only, the "Utility Savings Program" and that that program involves this chosen company (they "were awarded the contract") and no other, in conjunction with PG&E. I suppose I can make some calls and if persistent, find out if this is for sure the truth...
 
Trane products are good and are readily available. However, the rule of thumb often doesn't provide enough heat for comfort or too much heat (air leak test the house for heat lost calculation).

Your house is old, hence it make more sense at putting the money where it make the most sense, and that is insulation/double glaze windows/seal cracks and leakages. Other wise you are just throwing your money out the window.

If you are not planing to keep the house for a long period, then addressing only the heating will be fine, otherwise heed my suggestion above.
 
i think you should call another heating and cooling company for estimates. my personal rule of thumb is to call 3 companies to compare when working with services over $500. $13-$14K when you aren't flush with income is quite a bit of money to spend without getting comparables.

also, you can save up a few hundred and put that towards insulation. i installed blown-in insulation in the attic myself for $400 and the house stayed warmer for longer.

i had a $12K estimate to replace oil heating with new gas furnace. this is including removing the oil tank, running new gas lines, and replacing heating and cooling together. There is only one unit for a house same size of yours. I didnt want to spend the money just to save money on heating oil bills.
 
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