- Disconnect. Appliances can be turned off but still gobble up energy when they are plugged in. Walk though the house and disconnect everything that doesn’t absolutely be need to be connected full time.
- Draft Dodge. Another way to cut energy costs is to close off those drafts and increase your home insulation. Buy some weather stripping and caulk to close every draft site. The Department of energy says heating and cooling accounts for 50-70% of the energy used in the average American home. According to Energy Star, a joint project of the EPA and the Department of Energy, this can reduce your overall heating and cooling bills by up to 20% a year. Spend $1,000 a year on those costs and you are looking at an annual savings of $200. Start by buying some simple caulk and weatherstripping and plugging every known draft site, from windows to doors and the electric and cable sockets around the house. Next up is upgrading your home's insulation. While 6-7 inches of insulation is common, adding another 3 to four inches will boost your energy efficiency. If you’re game you can tackle the project yourself; go to energystar.gov and type in “home sealing” in the search box, you can then download a free brochure on do-it-yourself insulating projects. Or hire an insulation contractor to do the work. Ask about eco-friendly insulation products such as cellulose (shredded and treated old newspapers) or the new generation of formaldehyde-free fiberglass insulation.
- Curb Your Temperature. For every degree you lower your thermostat in winter and raise it in summer, you save at least 1% or more on your bills. To help, install an automatic programmable thermostat (cost $40 to $150 typically) that allows you to set specific temperatures for different times of the day-for example in the winter you don’t need it as warm when you are sleeping and in summer you don’t need to cool the house while you are at work-can save you about $150 a year according to the U.S. Environmental Protection Agency. While we’re talking about temperatures; make sure your water heater is set at the midrange of 120 degrees; anything hotter and you are wasting energy. And if your water heater is at least three or four years old, wrap it in an insulation blanket; it costs less than $10 at your local hardware store.
- Use Energy Efficient Light Bulbs. An estimated 25% of the energy needed for our homes is to keep the lights on. According to the energystar.gov, if every U.S. household simply replaced one traditional light bulb with an energy efficient compact florescent lamp (cfl) we would save enough energy to light 7 million homes and save $600 million in utility bills.
You’ve probably noticed CFLs when light shopping, but steered clear of them because the price tag was far more than for a standard bulb. But a CFL uses about two-thirds less energy and lasts about 10 times as long as a traditional light bulb; over the life of the bulb the estimated savings is about $30 in reduced energy costs. That can translate to about 10x your original purchase price for the eco-friendly bulb.
- Become Appliance Compliant. When it’s time to replace appliances, opt for a model that has the Energy Star approval rating. While energy-efficient models often come with price tags that can be 15% or more above the cost of a standard appliance, remember that the payoff comes in lower utility bills and lower guilt about your home’s indirect emission of greenhouse gases. (One of the biggest energy hogs are old refrigerators; an energy efficient model could shave $50 a year off your utility bill; on a mid-range fridge that would mean you could recoup your extra purchase cost in just two or three years).
Ask your utility company if there are any special rebate offers if you go green. Many utilities offer to offset some of your costs when you purchase an energy efficient washer or dryer or upgrade your heating system. Or you can check online for deals at http://www.dsireusa.org/
- Go with the (Low) Flow. A cleaner you can also mean a cleaner atmosphere for all of us. Install a low-flow showerhead and you can reduce your usage of hot water; about ¾ of the water used in a shower is hot,and could lower your utility bill by $15 to $40 a year. That’s enough to recoup the cost of at least one showerhead in under a year, unless you opt for a super swank handheld model.
Certain eco-friendly upgrades to your home can qualify for federal tax credits through the end of this year. A credit is much more valuable to you than a standard tax deduction. A credit is a dollar for dollar reduction in your tax bill. A deduction’s value is based on your marginal tax bracket. For example, a $500 tax credit reduces your taxable income by $500. A $500 tax deduction for someone in the highest income tax bracket of 35% is only worth $175 ($500 x .35)
The maximum lifetime energy credit you can claim for upgrades to your primary residence is $500 total. Among the energy-efficient upgrades that qualify for the credit are:
- New windows, storm windows, sky lights: credit on 10% of the cost up to $200 total for all windows.
- New Exterior doors: credit on 10% of the cost up to $500.
- Metal roofs: 10% of the cost up to $500.
- Insulation. Credit on 10% of the cost up to $500.
- Central air/heating: $300 credit.
- New Furnace: $150.
- Geo-Thermal Heat Pump: $300.
- New Water Heater: $300
You must complete IRS Form 5695 to claim a Residential Energy Credit. To access the form
click here.
NOTE TO NEW HOME BUILDERS:
If you are building a new home, you do not qualify for the tax credits for windows, doors, insulation, roofs or HVAC & non-solar water heaters. However, the tax credit for photovoltaics, solar water heating, and fuel cells is available for homeowners building new homes.
- Efficient Cars Tax credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. These credits are available for vehicles placed in service after 12-31-05 and purchased on or before 12-31-10.
- Solar Energy Systems Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2008. The tax credit is for 30% of the cost of the system, up to $2,000. This credit is not limited to the $500 home improvement cap.
- Fuel Cells There is a consumer tax credit of up to 30% of the cost (up to $500 per 0.5 kW of capacity maximum) for installing a “qualified” fuel cell and microturbine systems. The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2008. This credit is not limited to the $500 home improvement cap.
For more information on Tax Credits for Energy Efficiency, click here.
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