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Deal of the Day by Kelli B. Grant (Author Archive)
Energy Efficient Home Upgrades
KERMIT THE FROG may have lamented that "it's not easy being green," but we respectfully disagree.
Thanks to federal tax credits and increasingly competitive prices on energy-efficient appliances, it's easier than ever to boost your home's energy efficiency without going broke. So whether you're looking to give the environment a helping hand — or are simply seeking ways to reduce those brutal home heating bills — here's some advice:
Taking Advantage of the New Federal Tax Credits
Under the Energy Policy Act, in 2006 and 2007 consumers can receive federal tax credits for making energy-efficiency upgrades to their homes this year. (For more on the law, including details on the tax breaks for hybrid cars, click here.)"Energy efficiency is a good deal unto itself, but these tax credits are offering some special opportunities to get a financial boost," says Bill Prindle, deputy director of the American Council for an Energy-Efficient Economy, a nonprofit that advocates energy efficiency. Unfortunately, the credits don't apply to just any energy-efficient upgrade. Here's what's covered:
Home energy-efficiency improvements: You can get a one-time tax credit of up to $500 for projects that involve the home's shell (insulation, windows, sealing) or its home heating and cooling equipment. Each project must meet specific criteria, and must be put in place by the end of 2007. Eligible projects include new windows (10% of the cost, up to $200), central air conditioners (up to $300 of the full purchase price), hot water boilers (up to $150 of the full purchase price) and pigmented metal roofs (10% of the cost, up to $500).
Solar energy systems: you can get a one-time tax credit for the cost of installing an alternative energy system in your home. For installing a photovoltaic system (which produces electricity) or a solar water heating system, you'll receive a credit for 30% the cost of the system — a maximum of $2,000. Each project must meet specific criteria, and must be put in place by the end of 2007.
For a full list of the eligible products, plus credits, requirements and places to buy, visit the Tax Incentives Assistance Project .
How Much Can You Save? | ||
| Purchase | Tax
Savings | Annual
Energy Savings* |
| Central air conditioning (Houston, Texas) | Up to $300 | $270 |
| Furnace or boiler (Chicago) | Up to $150 | $570 |
| Windows (Replace all with an Energy Star brand, in the Midwest) | Up to $200 | $270 |
| Insulation (Add to ceiling and an un-insulated basement, in Chicago) | Up to $500 | $760 |
| * Compared to average expenses incurred with a non-energy-efficient product. Figures based on region.
Source: The U.S. Department of Energy and the Alliance to Save Energy |
Look for Rebates
Unfortunately, most appliances — including dishwashers, dryers and refrigerators — aren't eligible for the federal tax credits. But you still may be able to save. Many states, cities, utility companies and appliance manufacturers offer rebates and coupons.In Montana, for example, NorthWestern Energy offers consumers $2 rebates for each energy-efficient compact fluorescent lightbulb they purchase, up to a maximum of 15. New Jersey Natural Gas' WARMAdvantage program offers customers rebates for buying high-efficiency equipment: $300 for a furnace or boiler, and $50 for a water heater. Other states have programs for free online energy audits and for weatherization for homes of low-income residents.
You can view these rebates and programs at Energy Star, Greener Choices and the ACEEE.
Go Middle-of-the-Road
It used to be that energy-efficient products cost more — sometimes significantly more — than their energy-loving counterparts. No more. Significant strides have been made over the past 10 years, says Carolyn Forte, homecare director for the Good Housekeeping Institute. Today, the cost of many energy efficient products is comparable to those that are not energy efficient. Oftentimes the pricier models simply have fancy bells and whistles — it's up to you to decide whether they're worth the added cost.When looking for an energy-efficient model, look for the Energy Star label, says ACEEE's Prindle. The tag is currently found on more than 40 products, from refrigerators to washers to televisions and computers. It will tell you how much energy the appliance uses — an invaluable number when comparing various models.
Make Small Changes
If you're not in the market for a new appliance, there's plenty you can do to increase energy efficiency without spending much money, says Urvashi Rangan, a senior scientist and policy analyst at Consumer Reports' Greener Choices, which focuses on environmentally-friendly products. To boost your existing heating system, she advises replacing any analog thermostats with programmable ones. That way, you can program the system to power down during the times when you're at work or sleeping. Other options: Caulk your windows, and buy an inexpensive jacket for your hot water heater.(For more ideas, see our column 25 Extreme Energy Saving Tips).
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