Ten Ways to Make a Home More Energy Efficient with Help from the Recovery Act of 2009
Some Helpful Resources:
Each homeowner who wants to make his/her home more energy efficient must choose the option that makes the most sense in light of budget, available funds, ability to have money invested tied up for 3 to 10 years, home size, roof type, amount of yard, region and climate, age of current HVAC system, and access to direct sunlight and/or wind.
Here are the major options available to homeowners:
- Seal the home envelope, tune-up systems, and seal and insulate ducts, walls and windows. This involves sealing all openings to the exterior of the home, including small cracks in walls. Properly insulate and seal all windows and exterior doors. Inspect and seal all cracks in ducts inside the home, and then wrap the ducts in insulation. A tune-up of the furnace, boiler or heat pump could improve the efficiency of the existing system by as much as 30%. Thirty percent of the cost of the insulation (assuming it meets standards) can be claimed in a tax credit (up to a total of $1,500 per year).
- Replace existing windows and doors with energy efficient new windows throughout
 the home. The top-of-the-line window for energy efficiency will be a triple-glazed window with Xenon in the wider spaces between the three panes of glass. These windows will also be treated with a UV coating to reduce the sunlight penetrating the window and heating up the interior of the home. Energy efficient windows will not do their job if they are improperly installed and insulated. Improperly installed windows can reduce the efficiency of your home by as much as 20%. Thirty percent of the cost of the windows and doors (if they meet specifications) can be claimed in a tax credit (up to a total of $1,500 per year).
- Replace the roof with energy efficient options. If it is about time to replace an existing roof, choosing the most efficient options for the replacement will save money month-by-month and qualify for a tax credit of thirty percent of the cost up to a maximum of $1,500 per year. The most efficient options are: Highly reflective foam sealants for flat roofs, efficient asphalt shingles, specific types of tiles, and insulated metal roofing systems. Thirty percent of the cost of a qualifying new roof can be claimed as a tax credit (up to a maximum of $1,500 per year).
- Replace the existing heating and cooling system(s) with qualifying energy efficient systems. For information on the specific qualifications of each type of heating and cooling system, visit www.remodelormove.com/remodelingdiscounts. Some Central Air Conditioning, Air Source Heat Pumps, Natural Gas or Propane Furnaces, Oil Furnaces, Advanced Main Air Circulating Fans, and Gas, Propane or Oil Hot Water Boilers will qualify for a tax credit of 30% of the cost of the new system (up to a total maximum of $1,500).
- Replace the existing water heater with a more efficient model. Qualifying Oil, Propane and Gas water heaters must meet the requirements of an Energy Factor >=0.82 or a thermal efficiency of at least 90%. Electric heat pump water heaters must meet the
 requirement of an Energy Factor >=2.0. A Biomass Stove (which burns biomass fuel to heat a home or heat water) will qualify if it has a thermal efficiency rating of at least 75% as measured using a lower heating value. Thirty percent of the cost of all of these systems can be used to claim a tax credit for 30% of the cost up to a total credit of $1,500. Replacing with a Solar Water Heating System allows the homeowner to claim a tax credit for 40% of the cost of the system with no limit on the amount of the credit. [Note: The system must produce at least half of the energy from the sun. Only the water heating cost or part of the system can be claimed, not a solar system to heat water for the entire heating of the home.]
- Replace the existing system with a Photovoltaic system. The new system must provide electricity for the home and must also meet all applicable fire and electrical code requirements. The homeowner can claim a credit for 30% of the cost of the system with no limit on the amount of the credit. Photovoltaic systems use semiconductors to convert sunlight directly into electricity. A typical home would need a three-ton photovoltaic heat pump system. The cost would average about $7,500. Heat pump systems with air conditioning would cost, on average, about $4,000. The energy savings usually ranges between 30% and 60%. Let us assume for the moment that a homeowner currently has electric bills of $312 per month for an all-electric home. The electricity cost for a year would be $3,744. If the photovoltaic system saved 30% per year, it would save $1123.20 per year. If it saved 60%, the savings would come to $2,246.40. If the difference in cost is $3,500, the homeowner would recover the initial cost difference in less than two years. If the homeowner claims a Federal income tax credit for 30% of the cost of the system, $2,250, the total cost of installing the system would be recovered in less than one year.
- Replace the current system with Residential Small Wind Energy Systems. Wind Energy Systems qualify for a tax credit of 30% of the cost of the system with no limit on the amount claimed. Assuming the average residence and average energy use of $1,160kWh per month, the homeowner would need a 20kW wind turbine, the cost of the system would be about $50,000. With an efficiency rating of 90%, the homeowner’s electric bills of $3,744 per year would drop to $374.40 per year. The homeowner would recover $3,369.60 each year of operation. When the homeowner claims a tax credit for 30% of the cost of the system, that $15,000 is a big step toward paying off the remainder of the cost. When state credits and rebates plus utility company rebates are added, it is likely that the homeowner would recover the cost in about 7 years, perhaps less.
- Replace the existing system with Residential Fuel Cell and micro-turbine systems. Hydrogen fuel cells promise cleaner and more efficient power for automobiles, homes and businesses than the internal combustion engines that are fueled by fossil fuels. These systems are currently in development and probably will not be affordable to homeowners for several years. When affordable, fuel cells must achieve efficiency of 30% or more and must have at least a 0.5 kW capacity to qualify. These systems must be installed by December 31, 2016. The Federal tax credit will be 30% of the cost of the system, up to $1,500 per 0,5 kW of capacity.
- Replace the existing system with a Geo-Thermal Heat Pump. Closed loop systems must meet these criteria: EER>=14.1, COP >= 3.3; Open loop: EER >= 16.2, COP >=3.6; Direct Expansion: EER >=15, COP >= 3.5. These replacement systems qualify for a tax credit of 30% of cost with no limit on the amount of the credit. The cost and time involved for installation of a Geo-Thermal heat pump system varies according to the land in which it is installed. When there is adequate land available, the systems can be installed horizontally. If there is not enough space, they must be installed vertically in the ground. Systems installed horizontally cost less. The cost of a geo-thermal heat pump system with hot water heating and cooling capacity is about the same as a small wind system and achieves about the same savings on utility bills.
- Consider the most efficient system possible: a hybrid system which brings together solar and wind power. This hybrid system would be completely reliable to provide power without recourse to the electric grid at any time. The peak energy generating times for wind and solar energy actually occur naturally at different times of the day and at different times of the year in many regions. This makes it highly likely that one system or other will be generating power at all times and provides power whenever the homeowner needs it. Such a system would also need enough storage to meet the homeowner’s needs on days when neither is operating – probably enough for three days.
The ten options outlined should provide a viable alternative for every homeowner who wants to improve the energy efficiency of his/her home. There are also several options which rely on renewable energy sources (wind, solar, geothermal). No matter what the budget, the “American Recovery and Reinvestment Act of 2009”offers sufficient tax credits to make some change affordable for all homeowners.
These articles might be of interest too:
|
