Not YET Green

Solutions for the not YET green home.

$3500 towards energy efficiency…how best to spend it

by Laura - March 14th, 2009.
Filed under: Energy Audit, Retrofit, Tax Incentives. Tagged as: , , , , .

The Valentine’s Day stimulus package provides a energy-efficiency tax credit for 30% of the cost of projects such as Energy Star windows, insulation or high-efficiency furnace.  The credit caps at $1500 which means a project total of $5000.  If you are in the market for some energy-efficient upgrades your final cost of $3500 could go a really long way towards significantly cutting your monthly heating and cooling bills. 

Based on my experience in greening my own Elmhurst home, and some of the resources available through EcoBroker I’ve got some thoughts on how to prioritize your green home projects. 

First, even though it’s not eligible for a tax credit, I highly recommend starting with an energy audit. Make sure you hire someone who offers a Blower Door Test and an Infrared Scan.  You’ll end up with objective info on where you can make your home more energy-efficient and some info on how long it will take for projects to payback for themselves.  Also, since the auditor doesn’t sell the product solutions you’ll get some honest advice on how much any one project will do (ie, should I upgrade windows or add insulation?) and how they might (or might not) work efficiently together.  RESNET is a good resource to find a local auditor, or check out the “Energy Audit” section of this blog.   

Once the audit is done, I would recommend tackling air sealing and weatherstripping.  This too is not covered by the tax credit — but can be easily completed as do-it-yourself projects.  Energy auditors Green Dream Group have some great how-tos: http://www.youtube.com/user/GreenDreamGroup.  The State of Illinois has a really helpful brochure too:  http://keepwarm.illinois.gov/documents/FinalIllinoisEnergy.pdf.

So once you know what the priorities are and you’ve tightened your house the projects covered by the tax credit will perform more effectively.  Here are some great resources if you are shopping for products for three of the qualifying projects: 

*  New high-efficiency furnace or AC:  Use the checklist to determine if and when to upgrade – http://www.energystar.gov/ia/products/heat_cool/GUIDE_2COLOR.pdf.  Then, confirm qualifying criteria here before you purchase – http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c3

*  Add or upgrade insulation:  Check out the Green Remodeling series from the City of Chicago.  The insulation (and windows) section is very helpful – http://egov.cityofchicago.org/webportal/COCWebPortal/COC_EDITORIAL/GreenRemodeling_BuildingEnvelope_lo_1.pdf.

*  Upgrade windows:  I listed this last because while drafty windows are not good, good windows tend to be expensive with a long payback period.  I don’t think windows should necessarily be your first tool for improving energy-efficiency.  My favorite site is the Efficient Windows Collaborative.  Here’s a  link to compare ratings specifically for Elmhurst homes.  http://www.efficientwindows.org/city_all.cfm?new=E&prodtype=WN&id=15.  They also have excellent resources – see the glossary and NFRC (that label with all the letters and numbers!) info.  Finally, check out the “windows technologies” tab for a 101 on all the parts that come together to make a good window.  I did a ton of research before picking windows.  Be sure to double-check the Energy Star website for tax credit requirements.  Windows must have a  U value <.30 and SHGC <.30.  Good luck!

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