Heat Pump Warms Up Tax Credits and Conserves Energy
Energy savings, how to get the most out of $3,500.
by Don Ames
Too bad energy savings always has a budget attached. Much easier to save energy and save money when we have unlimited funds to purchase energy savings. How do get the most out of a $3,500 budget?
A little review is in order. This home has more heating days than cooling. Having an efficient heating system is more important than having efficient cooling. The home was constructed in 1994 and has 1900 sq ft on two floors. Electric forced air heating system with two returns and 12 supply registers. Blower door gives a ventilation rate of 2,680 cubic feet per minute (cfm ). Duct Blaster is off the charts – so leaky the DG700 won’t even guess at a figure.
The homeowner has hopes of a heat pump to address more efficient heating. I arrange to have Heating Contractor look at the system to provide a cost estimate on adding a heat pump. The furnace is heat pump ready as there is already a coil in the furnace housing (plenum). Heat pump ready does not mean much when it’s 2010 and the home was built in 1994. The coil is too old to use and it’s going to be hard to find a new coil that will fit in it’s place.
The heating contractor talks about efficiency ratings, tax credits and power provider incentives. ( Incentives are rebates offered by the power company ) In order to be eligible, the heat pump will need to be have specific efficiency ratings. On this home, the tax credits and incentives stack up this way:
PS. Remember to use a tax credit certified technician. Otherwise, the tax credits may not be available. ( HSPF stands for heating seasonal performance factor, EER stands for energy efficiency ratio, SEER stands for seasonal energy efficiency ratio.)
Federal tax credit, 30% of cost up to $1,500, Heat pump rating, 8.5 HSPF, 12.5 EER, 15 SEER or higher
State tax credit, $300 to $430, Heat pump rating, 9.0 HSPF, 12.0 EER or higher.
Electric company incentive, $1,900, Heat pump rating, 8.5 HSPF, 14 SEER or higher
As you can see, the tax credits and incentives are like a maze that most people have a hard time finding their way through. This is where a good certified heating contractor earns his keep. The heating contractor should know the tax credits and incentives by heart and should fill out all the forms and applications and all you should do is add your signature and reap the benefits.
Now, back to the poor DG700 and the duct blaster. Before we can install a more efficient heating system we need to be sure the more efficient air is not just blowing into the great outdoors. Before the heat pump goes in, the ducts will be sealed.
Hope you enjoyed this trip – come back soon…but I won’t leave the lights on for you!