Grasslands Siding

Save Energy Now, Maximize Your Window of Opportunity

Tax credits and new products make this a great time for improving your home's energy efficiency. Here are five things you should know about upgrading for energy savings.

1. The government will help you pay for specific energy upgrades--but only until the end of this year.
Through 2010, you can claim a federal tax credit of 30 percent of the cost--up to $1,500--for new qualified windows, doors, roofs, insulation, water heaters, and heating and cooling systems. So, if you spend $5,000 (whether on one qualified product or total on several projects), you can claim the full amount of the $1,500 credit on you 2010 income tax form. (Tax credits for alternative equipment, such as solar panels, solar water heaters, and geothermal heat pumps, are available through 2016 and have no cap.)
Here are some tax-break scenarios.

• INSULATION: Covering 1,000 square feet of attic space with R-19 fiberglass batt at 46 cents per square foot would cost $460; your tax credit would be $138.
• GAS, OIL, OR PROPANE WATER HEATER: The tax credit covers both product and installation. If you pay $900 total, 30 percent of that is $270.
• GAS, OIL,OR PROPANE FURNACE OR BOILER: You'll likely spend more than $5,000 to replace your old furnace or boiler. You can include installation when figuring the tax credit, so you could receive the total $1,500 credit on this project alone.
• WINDOWS: If each window costs $375, you could buy 14 windows to get back the maximum $1,500. Note: The tax credit doesn't cover installation.

Consult a tax expert before making major purchases, save all receipts and get a Manufacturer's Certification Statement as proof of qualification for products you buy for tax credit purposes. Products installed in 2009 may be allowable, but specifications have become more stringent, so check models. Manufacturer Web sites and retailers are your best bets for identifying qualified products; look for the phrase "$1,500 tax credit."

2. Start with a complete picture of the energy your home is using.

Your best whole-house solution is an energy audit--an evalution of your home's current energy performance and list of recommendations for improving it. Think of it this way: If you've got more than the sniffles, you go to the doctor for a diagnosis. The pain of your illness pushes you to get help. It's the same way with your house. When the pain of paying high utility bills and living in drafty room hurts enough, it's time for a diagnosis and prescription.

A professional energy auditor (also known as a home energy rater) will evaluate the ductwork, insulation levels, and other aspects that affect home performance. The report not only pin points the source of the "pain" but also prioritizes recommended home energy upgrades to maximize the return on investment.

"We take a holistic approach to a house, looking not only at the individual components, but whether together they perform as they should," says Mark Cannella, principal partner of Pro Energy Consultants, a nationally franchised home energy auditing company (proenergyconsultants.com).

Some professional energy audits are simple visual inspections that identify costs and savings for upgrades appropriate for your home, and may be offered at a low cost by your local utility company or state energy office.

A comprehensive energy audit, which can cost about $500, includes the use of diagnostic tools. A blowere door tests a home's airtightness, for example, and an infrared camera detects insulation gaps and other inefficiencies. To find an energy auditor in your area, start with Energy Star (energystar.gov; click on Home Performance with Energy Star) or Building Performance Institute Inc. (bpi.org; click on Find a BPI Resource).

The most complete information will come from a pro, but you can also do your own evaluations. A basic home energy review uses an Internet-based tool or software program; your input produces generalized results that give some sense of your upgrade options. These organizations offer free surveys: Energy Star (energystar.gov/yardstick), Department of Energy (http://hes.lbl.gov; start by entering your zip code), and Alliance to Save Energy (ase.org; search for"home energy checkup"). You can also do your own walk-through to locate air leaks, evaluate heat loss through ceilings and walls, inspect heating and cooling equipment, and measure energy use. See energysavers.gov; click on "how to conduct your own audit."

3. Payback isn't the only indicator or whether you should upgrade.

Be realistic about the money you'll get back by making an energy upgrade. Though you're eligible for a tax credit by replacing your current windows or furnace, for example, the credit likely won't be enough of an incentive on its own. You may not recoup all your costs in energy savings either. However, investing in good-quality, energy-smart products offers other benefits, with personal comfort topping the list. And if you were already considering a replacement product, the tax credit may provide an opportunity you don't want to pass up.

4. The most effective upgrades aren't always obvious.

Kevin Waldron couldn't keep his three-bedroom home in Macedonia, Ohio, warm, and his monthly heating bill would peak at $250. "I was ready to spend $10,000 on new windows, as I was sure they were the source of all my heat loss," he says. An energy audit found the biggest heat loss was actually due to poorly installed attic insulation. Now, Kevin will pay about $2,000 to redo it. "Since this improvement is a whole lot less than what I was planning on spending, it's going to get done a lot quicker," Kevin says. "If I had spent the $10,000 on new windows, my house would still have the same energy-efficiency problems because 90 percent of my problems are in the attic."

5. Energy upgrades don't have to be expensive.

Tax credits aside, a few simple upgrades can help you save energy, starting with insulationg the attic hatch, if you have one. "An attic hatch is just quarter-inch plywood. It needs to be insulated," says Cannella.

Other suggestions:

• Use caulk and weatherstripping around windows and doors.
• Replace your furnace filter.
• Install a programmable thermostat.
• Insulate your water heater with a special water heater blanket.
• Insulate electrical outlets and light switches with precut foam seals.

In addition:

You may be eligible for a federal tax credit on certain insulating window shades, like this one. The Duette Architella shade from Hunter Douglas (hunterdouglas.com features a honeycomb-within-a-honeycomb design.

Caulk that shrinks or cracks over time will allow air leaks and require repair work. Unlike acrylic caulk, GE Silicone caulk is flexible and waterproof (caulkyourhome.com).

Better Homes And Gardens, April, 2010