The Great Energy-Efficiency Payback

Incentives to Upgrade and Save Money

by Brita Belli

The biggest obstacle to retrofitting our home with energy-saving upgrades and technologies—from storm win- dows to stellar insulation and rooftop solar panels—is often the cost. Even though we’re paying higher electric, gas and water bills due to leaks, drafts and outdated systems, these incremental penalties somehow seem more manageable than the upfront investment of installing say, a new geothermal heat pump. Fortunately, Americans today

have access to a range of federal and state incentives, loans, mortgages and tax breaks for those who want to im- prove their energy use while reducing the initial cost. It’s now possible to make everything from solar heating to efficient air conditioning or a new furnace more affordable. Find the latest federal, state and

local utility deals listed online at dsire.org, a service of the U.S. De- partment of Energy.

1. Energy-Efficiency Tax Credit:

Energy-efficient water heaters, fur- naces, boilers, heat pumps, air condi- tioners, insulation, windows, doors, roofs, circulating fans and biomass stoves are eligible for a 30 percent tax credit of up to $1,500. Expires December 31, 2010.

EnergyStar.gov/index.cfm?c=tax_ credits.tx_index

Natural shades

Natural shades enhance any design aesthetic, from traditional to modern. Earthshade, a leader in natural window fashions made from rapidly renewable plants such as grass, reed and bamboo, produces shades in an array of styles and flexible options. Principal Craig Swanson promotes the rigorous quality standards his shades must meet, as well as the fact that they are sustainably pro- cured and fair trade crafted, all without chemicals.

2. Renewable Energy Tax Credit:

Geothermal heat pumps, small wind turbines and solar energy systems are eligible for a 30 percent tax credit with no upper limit for existing homes and new construction. Expires December 31, 2016.

EnergyStar.gov/index.cfm?c=tax_ credits.tx_index

3. Fuel Cells and Microturbine Tax Credit: Residential

fuel cell and microtur- bine systems are eligible for a 30 percent tax credit of up to $500 per .5 kW of op- erating capacity for existing homes and new construction. Expires December 31, 2016.

EnergyStar.gov/index. cfm?c=tax_credits.tx_index

4. Federal Housing Administra- tion Energy-Efficient Mortgages:

Through an FHA program, lenders can borrow up to 100 percent of en- ergy efficiency improvement costs to add to an existing mortgage loan. Loan amounts cannot be greater than the projected savings the improvements will bring.

fha.com/energy_efficient.cfm Learn more at EarthShade.com.

Natural curtains

Natural window fabrics may be luxurious silk or organically grown cotton, hemp or linen. These fabrications are much more than renewable, however. Hemp, for example, is naturally insulating and can improve a window’s energy performance. Loose linen weaves will allow natural light to filter through while protecting furnishings from harsh sunlight.

Reputable sources include

5. Conventional Energy-Efficient

Mortgages: Private lenders sell loans to Fannie Mae and Freddie Mac that allow homebuyers to borrow up to 15 percent of an existing home’s appraised value for energy-saving im- provements as documented by a certi- fied Home Energy Rater (search for one by state at natresnet.org/directory/ raters.aspx). Fannie Mae also lends up to 5 percent for Energy Star-rated new homes, including applicants who might not be income-qualified, by allowing lenders to adjust borrowers’ debt-to-income ratio by 2 percent.

resnet.us/ratings/mortgages/ freddiemac/summary.htm

6. Energy-Efficient Ap- pliances Rebate: Con-

sumers can receive rebates to purchase new, Energy

Star-rated appliances when they replace used appliances—in- cluding boilers, air conditioners, dishwashers, refrigerators

and clothes washers—using $300 million distributed through the government’s American Recovery and Reinvestment Act. Start and end dates plus amounts vary by state.

EnergySavers.gov/financial/ 70022.html

Brita Belli is the editor of E – The

Environmental Magazine, and

the author of The Complete

Idiot’s Guide to Renewable Energy for Your Home.

Rawganique.com and PlumRidge.com.

Improve Lighting

Lighting is an integral part of a room’s appeal, but the right lighting does more than enhance the beauty and utility of a room; it can also improve its energy efficiency and safety.

CFL applications

Use compact fluorescent light bulbs only in fixtures that are continuously on for a half hour or more a day. For

natural awakenings

April 2010

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