Maybe you dream of making your home more energy efficient, so you can save money on your energy bills. Thanks to state and federal incentives, 2009 and 2010 are the years to take action.
Policy shifts
Since January 2009, the energy policy picture has transformed. The American Recovery and Reinvestment Act (ARRA) offers not just residential tax credits, but also passes on millions of dollars to the states for weatherization and energy efficiency.
Missouri just passed major legislation that allows utilities to recover the costs of helping their customers become more energy efficient – by using programmable thermostats, installing more efficient HVAC systems, etc. This policy represents a significant shift: Utilities normally make their profits from customers that use more energy, not less.
Kansas offers no comparable energy efficiency legislation, although the Kansas Corporation Commission (which regulates investor-owned utilities) allows utilities to recover costs on a case by case basis.
The following represent a sampling of the opportunities for residential homeowners.
Federal residential tax incentives
Energy Efficiency Improvements for Existing Homes
Federal tax credits for 30% of the cost (up to $1,500) of improvements carried out between January 1, 2009 and December 31, 2010. Eligible improvements include insulating walls, ceilings, and ducts, installing energy-efficient windows and doors, biomass-fueled stoves, HVAC systems, fans, water heaters, and EnergyStar rated roofs.
Tax credits for small wind, photovoltaics, solar water heating, and geothermal
Credit for up to 30% of costs. No cap or limited caps, time frames range from 2006 thru 2016.
Alternative Vehicle Tax Credit
Credit for purchases of hybrid-electric and other alternative vehicles, amount depends on vehicle model.
Kansas incentives
The Kansas State Energy Office has received $34 million in ARRA funds for energy efficiency loans to homeowners and small businesses. To distribute the funds, it has established Efficiency Kansas, a revolving low-interest loan program.
The program helps homeowners pay for up to $20,000 in cost-effective energy efficiency improvements recommended by a certified home energy auditor. Loans may go as long as 15 years, and interest is capped at 4%. The cost of the improvements covered is limited to the cost
of the energy saved. Seventeen banks have stepped up to participate in Efficiency Kansas -
click here to find a lender near you. Midwest Energy is the first partner utility, offering their How$mart
program in partnership with Efficiency Kansas. Several other regulated
Kansas utilities are expected to participate in the program. For utility programs, the loan would be paid back through the utility bill. If the homeowner
moves, the loan stays with the house.
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