Funding Home Efficiency Improvements

The idea of owning a more efficient home—and paying lower utility bills—has widespread appeal, but finding ways to fund needed energy efficiency improvements can be difficult during hard economic times. Fortunately, there are several ways to recover some of your expenses when planning your next project.
 
Through the federal Energy Improvement and Extension Act of 2008, Uncle Sam offers a personal tax credit of up to $500 for energy efficiency upgrades made to existing homes this year. You can recover up to 10% of the cost of adding insulation materials and exterior doors, windows, and roofs designed to help reduce your home’s heat loss or gain.
 
Want to install a new central air conditioner or air-source heat pump? Your credit could be as much as $300. The benefit covers up to 100% of the cost for qualifying heating and cooling units, with a maximum credit of $500 for all improvements.
 
In addition, other federal incentives are available. While solar panels, solar water heaters, and geothermal heat pumps are expensive, you may qualify for a tax credit equal to 30% of the installation cost if your projects are approved by the Solar Rating and Certification Corporation or ENERGY STAR®, depending on the project’s scope. Solar panels do not have a maximum limit for this benefit as of 2009; solar water heaters and geothermal heat pumps carry a $2,000 limit. Check with your local electric cooperative before proceeding with any type of solar project.
 
Access Energy Cooperative also has a rebate program for members who want to make a home more efficient. For a listing of state and local energy efficiency assistance available, visit the Database for State Incentives for Renewables and Efficiency, a project funded by the U.S. Department of Energy, at www.dsireusa.org.  For details on how the right appliances can help you cut your electric bills, visit www.energystar.gov.

Source: Database for State Incentives for Renewables and Efficiency