Government grants help homeowners make energy-efficient improvements.
The average American home could benefit from energy-efficient improvements. "More than 70% of the energy used in our homes is for appliances, refrigeration, space heating, cooling, and water heating," states the U.S. Department of Energy (DOE). Federal government grant programs allow state and local governments to offer homeowners monetary incentives to make energy-efficient repairs in their homes. Grants also help communities improve infrastructure for better energy distribution.
Energy Efficiency and Conservation Block Grant
According to the DOE, homes that qualify for an energy-efficient makeover could use, on average, $6,500 in such improvements. Local housing agencies allocate government funds from Energy Efficiency and Conservation Block Grant programs to promote "home energy audits, weatherization, energy efficiency upgrades, replacement of outdated appliances" and similar retrofits, says The Daily Green, a consumer guide. The grant comes from $3.2 million in economic stimulus funds allotted for energy efficiency and conservation projects nationwide.
USDA High Energy Cost Grant
The United States Department of Agriculture's (USDA) High Energy Cost Grant Program provides funds to individuals, local governments, non-profits and other eligible entities, to assist in certain rural areas. Funds help improve "energy generation, transmission, and distribution facilities" that service qualified communities that have home energy costs that are more than 275 percent of the national average, says the USDA. Administrative costs for such improvements may not exceed 4 percent of the grant amount and must serve designated "extremely high energy cost" communities, says the USDA. Grant funds pay for "acquisition, construction, installation, repair, replacement, or improvement of energy generation," of facilities in the communities which affect surrounding homes, not the individual homes, according to the USDA.
Tax Credits and Rebates
As a result of the federal government grants, tax credits of up to $1,500 for purchases "placed in service" between January 1, 2009 and December 31, 2009 are available to homeowners, according to the DOE. Qualifying purchases include energy-efficient products or renewable energy systems for your primary existing residence, such as biomass stoves; heating, ventilation and air conditioner (HVAC) systems; insulation; roofing; windows, doors and skylights. You can purchase up to $5,000 worth of products and receive 30 percent as a tax credit.
Through December 31, 2016, you can get 30 percent in tax credits for buying "geothermal heat pumps, solar energy systems, wind energy systems, and fuel cells," says the DOE. There is no tax credit limit and most of the energy-efficient improvements may be used for new and existing primary residences or second homes.
By replacing old appliances and old equipment with Energy Star-qualified appliances, you can receive a rebate from your state. Each state or territory determines which residential consumers (e.g. low-income) qualify for rebates and the amount. Rebates range from $50 to $500, according to the DOE.
Tags: energy systems, energy-efficient improvements, Block Grant, Conservation Block, Conservation Block Grant
