Currently, the government is so interested in economic rehabilitation and environmental issues that it is offering tax credits to homeowners who install energy efficient appliances, windows, and even insulation. Besides saving money by getting a bigger tax rebate – or, at least, paying less in taxes – this year, you can save money over the long term on your overall energy costs.
What is Eligible for the Tax Credit
Until the end of next year, you can spend money replacing your windows, insulation, roof, doors, and heating and cooling equipment with better, more efficient models, and the government will refund thirty percent of your costs up to $1,500. This can add up to a lot of savings, especially if you need to replace both your furnace and your air conditioning unit.
What’s more, if you replace your old heating and cooling system with a geothermal heat pump, which actually uses the earth’s heat in the winter and dumps heat out of the home into the earth in the summer, you can save 30% of the total cost without any limits. Combine this with specials that many heating and cooling companies are already running, and you can save some major cash.
How does it Work?
Basically, you’ll need to keep your receipts. At the end of the year when you’re itemizing your tax breaks, you’ll file for this rebate. The best part about a tax credit – as opposed to the normal tax deduction that you’ll get for charitable giving and the like – is that it’s a dollar-for-dollar deal.
This means that if you spend $5,000 on a new heating and cooling system for your home, you can apply for the full $1,500 tax credit. If you end up getting a tax rebate, the government will send you an extra $1,500, and if you owed the government, say, $2,000 at the end of the year, you would only have to pay $500 of that because your tax credit would offset the rest.
Not the Only Way to Save
Besides the tax credit, though, installing a new energy-efficient heating and cooling system in your home can save you money in repair costs and energy costs. If you current system is more than a decade old, chances are likely that it’s going to start having some major problems within the next few years, and paying to fix these issues can take a huge chunk of change. Newer systems will need fewer repairs, and they’ll probably be covered by warranties for a while, making them a safe investment.
Today’s technology in heating and cooling can save you hundreds or thousands of dollars a year in heating and cooling costs. If you live in a very cold area, a 90% efficient furnace could save you an average of $1,600 per year, and a very efficient air conditioning system in a hot area can do the same. You really can’t go wrong with this deal.
You probably realize that keeping your home warm all winter and cool all summer is a pretty expensive proposition. In fact, in most areas of the country, nearly half of the utility bill in most homes goes toward heating and cooling, and, besides this, your heating and cooling systems can up your carbon footprint by, well, a whole lot. If you want to put a little money back into your wallet and do something kind for the environment, figure out how to run your furnace and air conditioning less.
One very basic way to save on heating and cooling costs is to set your thermostat low in the winter and high in the summer, rather than setting it at the same temperature all year. This makes sense, anyway, since you’ll be wearing heavier clothes in the winter and lighter clothes in the summer. Who wants to deal with changing clothes each time you walk into your home because it’s either too hot for your sweater or too cool for your shorts?
Another way to save your wallet and the environment is to use the power of the sun. You don’t actually have to install a solar panel system, although that would help. Instead, simply draw back the curtains and pull up the blinds on any south-facing windows in your home during those short winter days. This will help brighten your home and your mood, and it will keep your home just a bit warmer. On the other hand, you should keep those drapes and blinds shut during the summer, since the simple fact that your rooms are shaded rather than bright will keep them much cooler.
On a similar note, be sure to block your north-facing windows up in the winter with insulating material of some kind. Many stores actually sell thermal curtain panels now, and they come in a variety of colors and textures and look no different from normal curtains. If you prefer blinds, there are thermal blinds available as well. Also, be sure to stop up any drafts you feel from windows and doors in the winter, whether you use towels, caulking, or specialized draft-blocking tools like those bean bags you can set in front of your door.
One last way to save on your heating and cooling bill every year is to have your furnace and air conditioning system serviced each and every year. It’s best to do this sometime before the heating or cooling season actually begins, but if you do it a few months beforehand, you may end up getting a discount. At the very least, you may be able to take your pick of appointment times, since the heating and cooling companies are less likely to be busy.
If you get to the point where your furnace or air conditioner can no longer be maintained, consider replacing it with the highest-efficiency model out there. These models aren’t all that much more expensive on the front end than other furnaces and air conditioners, but they will end up saving you hundreds or thousands of dollars in heating and cooling costs over the years.
Listed below are some tips and suggestions you can use to save money on your utility bills, heating and air conditioning equipment, and service. For other answers to your questions concerning new products, energy efficiency ratings, savings on your utility bills, repair or replacement service, consult your Rheem Team Top Contractor.
Set the thermostat
The most economical operation of your system comes from setting the thermostat properly. Set the thermostat at the highest summer setting or the lowest winter setting at which you are comfortable. Typical settings are 78 degrees for summer cooling and 70 degrees for winter heating. When cooling, your operating costs increase from 3% to 8% for each degree your thermostat is lowered. When heating, your operating costs increase for each degree your thermostat is raised.
Keep the air filter clean
The easiest way to ensure your system operates efficiently and economically is by keeping the air filter clean. There are several types of air filters and several possible locations for the air filter. Ask your Rheem Team Top Contractor where your air filter is located and which type of filter to use.
Keep doors and windows closed
Close all doors and windows to the outside. This will reduce the heating load in winter and the cooling load in summer. Your system will operate more economically as a result.
Keep vents and grilles unobstructed
Arrange your furniture and drapes so that all output vents and intake grilles are free from obstruction. This will reduce the cooling and heating load on your system, providing more economical operation.
Avoid excessive use of exhaust fans
Excessive use of kitchen or bathroom exhaust fans will make your system work harder. This will increase energy consumption and costs. Keep costs in check by making wise use of exhaust fans.
Use the AUTO setting
Generally, it is best to set your indoor fan to AUTO. This costs less and provides better humidity control in the summer. However, if you desire to operate your system with constant air circulation, ask for advice from your Rheem Team Top Contractor.
Control direct sunlight
Let the sun in during winter. Keep the sun out during summer. In summer, direct sunlight increases the load on your cooling system. Use of window shades and awnings will reduce the amount of direct sunlight and lower the cooling load. In winter, direct sunlight reduces the load on your heating system. Open window shades and awnings to increase direct sunlight and lower the heating load.
Keep the condenser coil clean
The condenser coil (the unit outside your house) should be kept clean to ensure efficient operation. If the condenser coil becomes restricted by dirt, lint, paper, grass clippings, leaves, or other debris, system efficiency will deteriorate. Use a garden hose to keep the condenser coil clean.
Insulate air ducts
Be sure all air ducts are well-insulated. Ducts should also be sealed with a vapor barrier.
Keep an air tight house
Ensure maximum retention of heated or cooled air by adding insulation to outside walls and to the attic. Seal cracks and use storm doors and/or insulated doors to prevent air leaks.
Properly vent clothes dryers
Be sure your clothes dryer is vented to the outside. Also ensure that your clothes dryer is vented away from your outdoor unit.
Keep heat away from the thermostat
Make sure no heat-generating appliances are near your thermostat. These include lamps, TVs, stereo and computer equipment.
