It’s all over the news; with the passage of the federal stimulus bill there’s money available to help many Americans weatherize homes and make energy efficiency improvements. But how can you connect with these resources? Escambia River Electric Cooperative, Inc. (EREC) is ready to help as the American Recovery and Reinvestment Act of 2009 goes into effect.
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Investing in a few basic measures to secure a home from outside elements could provide major benefits. The U.S. Department of Energy (DOE) says weatherization—the process of sealing air leaks and properly insulating a home—can reduce heating bills by up to 32 percent, resulting in an average energy savings of $358 per year.
Department of Energy's Weatherization Assistance Program
As a result of the stimulus package, DOE’s Weatherization Assistance Program is expanding with a goal of weatherizing one million homes per year. In the past, only households that earned up to 150 percent of the national poverty level were eligible to participate. The stimulus bill extends eligibility to those with incomes below 200 percent of the national poverty level. For a family of four, that’s an income limit of $44,100.
Program participants receive a professional energy consultation with an analysis of energy bills, a blower-door test to locate air leaks and advice on how to be more efficient. Workers then arrive to make energy upgrades like insulating walls and roofs, sealing air leaks, and installing more efficient heating and cooling systems. The process to weatherize a home through the program usually takes two days with an average cost of $2,500. Since some homes have different needs, the stimulus bill allows up to $6,500 to be spent on each home.
Federal Efficiency Tax Credits
For members not eligible for federally funded programs, the stimulus plan provides a homeowner efficiency tax credit of up to $1,500, or 30 percent, of the cost for new energy upgrades, including weatherization activities as well as installation of efficient heating, ventilation, and air conditioning systems. Efficiency tax credits were already available for 2009, but carried a $500 limit (with additional caps for certain types of upgrades) and only covered up to 10 percent of a member’s investment. A list of qualified improvements can be found at Energy Star.
Tax credits directly lower a member’s federal income taxes, and are generally more valuable than tax deductions because they reduce taxes owed dollar-for-dollar. In contrast, a tax deduction, like a home mortgage or charitable gift, lowers taxable income and may only offer small savings. For example, a $1,500 tax deduction for someone in the 25 percent tax bracket would lower taxes owed by $350; a $1,500 tax credit for energy efficiency efforts will lower taxes owed by $1,500!
Florida's WAP
The Florida Weatherization Assistance Program annually provides grant funds to community action agencies, local governments, Indian tribes and non-profit agencies to provide specific program services for low-income families of Florida. These entities provide program services throughout the state.
Eligible Applicants
The total household income may not be more than 50 percent above the national poverty level. Preference is given to owner-occupied homes, elderly (60 years-plus) or physically disabled residents, families with children under 12 and households with a high energy burden (repeated high utility bills).
Types of Assistance
- Repair or replace inefficient heating and cooling units
- Address air infiltration with weather stripping, caulking, thresholds, minor repairs to walls, ceilings and floors, and window and door replacement
- Install attic and floor insulation (floors in northern Florida counties only)
- Repair or replace water heaters
- Install solar screens
- Apply solar reflective coating to manufactured homes
- Install attic ventilation
Florida Renewable Energy Assistance
The State of Florida offers a number of financial incentives to businesses, organizations and residents who are seeking to use renewable energy technologies. To learn more about these programs, visit the state link above.
Florida Energy Star Residential HVAC Rebate Program
The Florida ENERGY STAR Residential HVAC Rebate Program is designed to encourage existing homeowners to replace their old energy-inefficient heating and cooling system with a properly-sized energy system and to ensure that their heating and cooling duct system has minimal leakage. This program starts August 30, 2010 and ends December 31, 2010. Visit www.rebates.com/floridahvac for more information.
For more information, please contact Nick Jackson, Marketing & Energy Services Advisor, at (850) 675-7417.