Energy Rebates and Tax Credits: Why Should You Care?October 14th, 2010 | Posted by in Environment | Fuel Efficiency | Green Homes | Green Products
(Well, for one thing, some are due to expire!)
While retrofitting a house or apartment can provide substantial energy savings – and, by extension, ecological benefits – many people worry about the initial costs of retrofitting a home. The cost of insulating a home, buying new energy-efficient appliances, or even installing a renewable energy system, can entail a substantial investment that is sometimes beyond the means of the average person.
Acknowledging this dilemma, however, both state and the federal government have in place numerous rebates and tax exemptions to incentivize homeowners to upgrade their homes and appliances. Utility companies and state agencies – like ConEdison and NYSERDA – also have incentive programs. The kinds of rebates for homeowners are diverse – there are literally hundreds of them, and the process of wading through them can be daunting, to say the least.
But why care? Why are rebates important, and would it be worth the effort to determine which rebates a homeowner is eligible for, considering the overwhelming number of options available?
Of course, the answer to this question is that it is entirely worth it. Put frankly, these programs are free cash for investment. In the short-term, rebates and exemptions save the homeowner up-front costs for buying green products like high-efficiency washers, driers, and other appliances; and they can bring the cost of installing even the most advanced systems, like photovoltaic panels, within the reach of the average American. In the long-term, having these products in the home not only saves money, but natural resources like water and fossil fuels used to power appliances.
One incredibly important reason to care about the ENERGY STAR federal tax credit for energy-efficient green products, in particular, is its expiration date: December 31, 2010.
This federal tax credit is a comprehensive one and covers a number of products, some of which are carried by Green Depot, like the GeoSpring Hybrid Water Heater or the Solatube Solar Star Attic Fan. So many products are eligible for tax credits through 2010 – including biomass stoves, central A/C, electric heat pumps, furnaces and boilers, main air circulating fans; insulation materials or heat control systems; metal and asphalt roofing; water heaters, electric heat pumps; exterior windows, doors, and skylights. The federal tax credit can cover up to 30% of the cost of these products, up to $1,500.
State rebates and incentives exist too, and some can cover the additional costs of installing the above products. Some incentives go even further than federal incentives – for example, New York State includes a tax break of up to $2,000,000 (million!) for green building.
There are so many rebates and tax breaks that apply to so many different products that everyone can benefit from – proving that rebates are something anyone can and should care about!
There are numerous resources available for the homeowner looking to upgrade their homes and appliances to green products: