Energy Star Gives Huge Rebates For Homeowners
By
Nathan Ferguson
on March 18, 2010 
The American Recovery and Reinvestment Act of 2009 allocated 43 billion dollars to energy investment. While most of that money goes to companies doing cutting-edge research developing the next generation of green energy, there’s something in the package for the average home-owner as well: massive tax credits for Energy Star-labeled products. There are also rebates on biomass stoves, HVAC systems, insulation, roofs, water heaters, windows and doors.
Unfortunately, the cost of installation is not included with the rebate so you’ll have to pay that for yourself. However, when buying geothermal heat pumps, small wind turbines or solar energy systems, there will be no upper limit to the tax credit. In other words, if you decide to build yourself some solar panels for your roof, effectively reducing your electric bill and increasing the value of the house at the same time, the government will pay for nearly a third of it.
All of these tax credits are not scheduled to expire until the end of 2016.
Earlier today, I interviewed the president and co-founder of Geonomic Developments. Nick Cabianca is a licensed general contractor specializing in geothermal heat pumps for homes - among other forms of renewable energy. I asked him about how the Energy Star rebates have affected his business and customers.
How do you feel this energy star program will impact your company business?
It opens up a whole new market for the middle class. Things aren’t going too crazy, but we are seeing a slow growth. Overall interest is growing. My interperatation is that a large majority of people are looking to improve energy efficiency, but these lower costs play a big roll.
These tax credits are not scheduled to expire until December 31, 2016. Do you expect to see improved sales until then?
I do. I think it is going to mirror the economy though. I’ll stay relatively positive.
How many of your costumers take advantage of the tax rebate that you know of?
All of them that qualify, and most all of them do, assuming they are tax payers.
On average, How much can a customer save with this rebate vs the total cost of instillation?
The cost of the system is going to vary, but the average cost of the system is about $20,000 so the average savings is about $6,000.
On average, how much can a customer save on their electric bills after instillation?
This can be tricky, I don’t want to be too confusing here but there are ballpark estimates based on the size of the home. If you are on an electric heat pump you can save about 40% of energy costs a month. Your overall energy usage can decrease by 60% savings with natural gas.
How do you feel about the Energy Star system as a whole?
I feel that it runs well, it’s organized, and they are only going to give you the tax credit if it’s done correctly.
David
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