| Vol. 7 | No. 1 | Winter 2004 |
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Home Efficient Home |
Energy efficiency and renewable energy provide a healthy return on investment for consumers as well as the environment. Energy-efficient homes, for example, have lower electricity and heating bills and help keep pollutants and heat-trapping emissions out of the atmosphere. What's more, an ICF Consulting study determined that every dollar saved in annual utility bills can add $20 to a home's market value.
Unfortunately, the higher up-front cost of energy-saving technologies (ranging from two dollars for a compact fluorescent light bulb to $10,000 or more for rooftop solar panels) scares away many consumers, despite the fact that these items can pay for themselves over time via lower operating costs. To change this pattern and encourage you to invest in clean energy products, a variety of government agencies, utilities, and mortgage lenders offer financial incentives.
Renewable Energy
Solar, wind, geothermal, and other forms of renewable energy generate electricity and heat without pollution. Not everyone can put a wind turbine in their backyard, of course, but you can take advantage of financial incentives that will help you harness Earth's renewable, free energy resources by installing photovoltaic (solar) panels, a solar water heater, or a geothermal heat pump in your home.
Incentives can vary from state to state; for example, solar and wind energy equipment is exempt from sales tax in Arizona, while New Jersey residents who install a photovoltaic system can receive a rebate that reduces costs up to 70 percent. The online Database of State Incentives for Renewable Energy allows you to search for local, state, federal, and utility incentives by state, incentive type, and technology.
Energy Efficiency
Energy Star-rated appliances, furnaces, and light bulbs consume less electricity or fuel. Energy Star-rated roofing material, windows, and doors lessen energy consumption by reducing the amount of heat that enters or escapes a building. Many utility companies offer their customers rebates on the purchase of these products, averaging two to four dollars for compact fluorescent light bulbs and $50 to $100 for appliances. And some manufacturers offer instant or mail-in rebates, allowing you to save even more.
Energy Star has an online rebate locator that can help you find selected rebates using your zip code (www.energystar.gov, click on "Special Offers"). You can also ask your state energy office or local utility about incentives available in your area.
Loan Programs
To make these home improvements even more affordable, consider financing them through an energy-efficient mortgage (EEM) or loan. These programs—available through government agencies, mortgage lenders, and some state energy offices—can help you cover the up-front cost of purchasing and installing energy-efficient or renewable energy equipment in your home and pay off the balance over time, often at a lower rate than most credit cards and some conventional mortgages. And, depending on the program, the interest you pay on the balance might be tax-deductible.
Learn more about these money-saving opportunities by visiting the Department of Energy website contacting your state energy office.
Also in this issue of Earthwise:
Dialogue
Is the "Earth Friendly, Farm Friendly" seal a good indicator that the food is sustainbly produced?
