Monday, October 19, 2009

Summary of NEW HOME energy efficiency incentives

There are a lot of energy efficiency incentives for new homes out there - these are the relevant ones that I know of right now:

Federal tax credits:
(1) $2000 federal tax credit to the builder of a home that used 1/2 the heating and cooling energy of a home just built to code. Note that the home has to exceed Energy Star by a substantial margin, and that the credit is based only on heating and cooling and does not include water heating or appliances. The same process used to certify homes for Energy Star is used, but our computer program prints out a certificate for homes that qualify, and we present it to the builder upon completion of the project.
Note: congress is currently considering extending this and may add further incentives when they do so.
(2) Renewable energy: 30% federal tax credit for renewable energy systems including solar thermal, PV, wind, micro-hydro, and geothermal.
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index (this site also has a good FAQ)

State tax credits - North Carolina:
(1) Renewable energy: 35% state tax credit for solar thermal, PV, wind, micro-hydro, and geothermal. There are caps on each, depending on technology. There is also a tax credit for passive solar homes that allows you to take a credit for a portion of windows, thermal mass, and control systems. However, the rules of the credit are very specific and homes MUST be designed with its requirements in mind to qualify. Also be aware that the total tax credit taken in a year can't exceed more than 50% of your total state tax liability - but you can roll the credits forward for up to 5 years.
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NC20F&re=1&ee=1 (NC renewable credit overview)
http://www.dsireusa.org/ (links to incentives for all 50 states)

Local municipalities:
(1) City of Asheville: $100 permit fee rebate for Energy Star new homes. Additional $100 permit fee rebate for certified Healthy Built Homes.
(2) City of Black Mountain: $500 permit fee rebate for new Healthy Built homes certified at the Bronze level or better.

Utilities:
(1) PSNC gas company: $0.05 per therm rate discount for Energy Star homes, and $100 rebates for high efficiency gas furnaces, boilers, and water heaters.
http://www.psncenergy.com/en/residential-services/customer-service-center/rate-plans/default.htm#discount
http://www.psncenergy.com/en/save-energy-and-money/appliance-rebates/default.htm
(2) Progress Energy: 5% discount on electricity and a $400 rebate for new Energy Star homes with 14 SEER or higher AC or heat pump. The rebate is increased by an additional $300 per unit (max 2) for 15 SEER or higher, and an additional $600 per unit (max 2) for geothermal.
Note: 5% discount is to the homeowner, rebates go to the builder.
http://progress-energy.com/custservice/carres/efficiency/programs/ha/details.asp#faq
(3) Duke Power: 5% discount on electricity for Energy Star new homes.

Disclaimers:
When trying to determine whether you will quality for a rebate, pay attention to these things:
1) check with your accountant to make sure you will be eligible (you have to pay taxes to take tax credits!)
2) check the eligibility rules - we have heard that it can be tricky for owner-builders to take the $2000 federal builder tax credit. If something says it's for builders, an owner builder may not be eligible. We don't make the rules, we just provide the paperwork!
3) make sure the home you are buidling qualifies. Energy Star homes must be inspected throughout construction - once drywall is on, homes can't be certified.
4) We've done our best here to outline the pitfalls, but check each of the websites yourself to make sure you have current and accurate information.

1 comment:

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