Making Energy Efficiency More Affordable
April 17, 2015- The U.S. Department of Energy (DOE) is helping citizens better understand what kind of financial assistance is available to make energy efficient purchases more affordable.
"There are many different types of energy incentives and understanding each one is key to maximizing your total savings," writes the DOE's Allison Casey in a recent
BreakingEnergy.com.
Here are the highlights the post, "Energy Efficiency Tax Credits, Rebates And Financing: What Options Are Available For You?"
Tax Credits
Casey first looks at tax credits, the amount subtracted from the amount of tax that you owe. Tax credits are claimed when taxes are filed for the previous year, so if you made a purchase in 2014, you would be claiming your tax credit now.
Although many of the energy efficiency tax credits expired at the end of 2013, the Tax Increase Prevention Act of 2014 extended many of the credits through December 31, 2014.
Therefore, if you made any of the following purchases in 2014, you are eligible for a tax credit this year:
o Biomass stoves
o Heating, venting, air conditioning, including:
-Advance main air circulating fan
-Air-source heat pump
-Central air conditioning
-Gas, propane, or oil hot water boiler
o Insulation
o Roofs (metal and asphalt)
o Water heaters (non-solar)
o Windows and doors
The following items, if installed in 2014 or if you are planning to install them in the future, are eligible for a tax credit through 2016:
o Geothermal heat pumps
o Small residential wind turbines
o Solar energy systems
o Residential fuel cells and microturbine systems
Casey recommends that you visit the Energy Star website for the exact requirements for each of the products in the above lists.
If you are planning to install a small wind energy system this year, Casey notes that there is new certification guidance for systems purchased or operational after January 26, 2015 and provides a link for more information.
Rebates
Rebates get cash back into your hands more quickly after the purchase. Currently, there are no federal rebates for energy efficient purchases, however, many state governments, local governments, and utilities do offer, and some manufacturers also sponsor special offers that can make efficient products more affordable.
Rebates and special offers may be combined with other incentives like tax credits. Because many are only available for a limited time, do your research before making a purchase. Casey recommends searching "tax credits" and "rebates" on energy.gov and to find incentives from Energy Star partners.
Energy Efficient Financing
Financing options are available if you are interested in making energy efficient home improvements. Casey notes the new PowerSaver Loans program which offers loan options for smaller efficiency projects; larger efficiency projects such as solar installation that may require a second mortgage; and energy rehab loans for a first mortgage, either for a new home purchase or a refinance of an existing mortgage.
State, Local, And Utility Incentives
Lastly, Casey says to be sure to exhaust all options when searching for incentives for your purchase and find out if your state government, local government, or utility may offer incentives. For example, utilities sometimes offer free or discounted energy audits, which can help you identify the improvements that would have the greatest impact on your energy bills, so check your utility's website.
"Above all," Casey writes in closing, "don't be intimidated by the different options available. A little research can yield some big savings, both when making a purchase and on your energy bill for years to come."
Read Allison Casey's full BreakingEnergy.com post here, which contains links to Energy Saver, Energy Star, PowerSaver loans, the Database of State Incentives for Renewables and Efficiency, and other websites.
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