Home Remodeling
Get Tax Credits for Solar Hot Water Heaters
Tax Credits for Solar Hot Water Heaters
Long, hot baths don’t have to be a waste of energy. Solar hot water systems can heat the water for your kitchen or bath without running up your electric or gas bill.
In fact, many homeowners are now replacing traditional hot water heaters with solar powered systems, proving to be a revolution in green building. Solar water heaters use collection plates and highly insulated storage tanks to harness the power of the sun, thereby reducing carbon footprints and saving money on energy bills.
Systems are categorized as either active or passive. Active systems circulate the water within the tank using pumps or coils. While passive systems rely on gravity and the water’s natural temperature based circulation. An experienced green builder can advise you as to which system fits with your solar water heating needs. Some factors to be considered include your home site, local building codes, and the size of your family.
Whichever system you choose, the benefits can be astounding. According to some statistics, solar water heating systems can reduce your monthly utility bill, essentially paying for itself in less than five years. Your home builder can also help you to comply with federal tax credit regulations regarding a new solar hot water heating system to further help in covering the costs of the unit and installation. Federal tax credits will pay for up to 30% of the cost of installation of an energy star solar water heating system, but only if the system is installed before the deadline of December 31, 2016.
It’s important to contact your green building specialist as soon as possible to discuss the solar heating options for your home to start saving money and energy. Whether you’re building a new construction or updating the system in your existing homes, it’s a win-win situation for all homeowners.
Home Remodeling and Energy Tax Credits
Energy efficient replacement windows in a home remodel can earn energy tax credits.
Conserving energy through the use of “green” products might not have been at the top of your list a few years ago, but thanks to the 2009 economic stimulus bill the government has made it financially beneficial to homeowners to work toward energy efficiency. Tax credits are available unlike ever before to homeowners who are planning a home remodel with green appliances and practices.
The 2009 economic stimulus bill improves upon pre-existing credits in a big way:
- 2009 tax credits are now in effect until 2010
- The 10% tax credit is now 30%
- Tax credits that were once a specific amount are now converted to 30% of the cost of materials
- The maximum credit is now $1500 instead of $500 and is for all improvements combined for the 2009-2010 period
- Certain home improvements, including geothermal heat pumps, solar water heaters, and panels are not subject to the $1500 maximum
Asheville remodeling contractors such as Brock Builders can perform a home energy audit to outline the areas that will benefit most from installing energy-efficient appliances and insulation systems. By installing a variety of energy-efficient items from the following categories, you may be eligible to claim a tax credit of 30 percent:
- Biomass stoves
- Exterior doors, skylights and windows
- HVAC
- Roofing (metal and asphalt)
- Storm doors and windows
- Water heaters (nonsolar)
Tax credits are also available at 30% of the cost, with no upper limit through 2016 (for existing homes and new construction) for the following categories:
- Fuel cells
- Geothermal heat pumps
- Solar panels
- Solar water heaters
- Small wind energy systems
The new tax credit does have a discrepancy, however, when it comes to windows. Energy Star windows purchased before June 1, 2009 are eligible for the tax credit of 30%, but not all Energy Star windows purchased after June 1 will qualify. To meet the requirements for the tax credit after June 1, the windows in your remodel must be super-efficient windows with a U-factor and solar heat gain coefficient (SHGC) less than or equal to .30. According to Energy Star’s website, most of their windows will not meet the requirements for the tax credit. These confusing standards are being reviewed by the American Architectural Manufacturers Association (AAMA), who are urging Congress to reconcile the stimulus bill standards with Energy Star criteria.
In order to qualify for the tax credit, all products must have a signed statement from the manufacturer certifying the product meets the standards for the tax credit. The Manufacturer Certification Statement isn’t required to send in with your tax return but must accompany your receipts and records. It is recommended by the National Association of Home Builders (NAHB) to save all receipts with the contact information of each manufacturer, the make and model of the product, and the manufacturer’s statement that the product meets the tax credit standards.
Whether you plan to do a basement, bath or kitchen remodel, hiring a general contractor familiar with these tax credits ensures your home remodel is earning the highest credits possible, the proper appliances and products are purchased and installed, and the specific records you need are organized. When helping the environment while saving money, everybody wins.
Large Home Remodeling Project Video
We put together this video showing some images of a major home remodel we have underway. This has been a fun, and challenging, project so far. Some rooms have been added and many Marvin windows installed. One of the more interesting features of this remodel is the outdoor pizza oven. We have also added some architectural features such as a large shed dormer and raised ceiling in the great room.
We’ll post more about this remodel as it nears completion. Stay tuned for some “after” photos and videos.
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