Homes that add energy-efficient products up for rebates, credits

By J.N. Sbranti
jnsbranti@modbee.com

E-Mail

reprint or license

Comments (0)

Text Size:

tool goes here

Slipped inside last month's massive federal stimulus legislation were goodies for homeowners: hefty tax credits for those who make their homes more energy-efficient.

News about the cash is starting to circulate as businesses discover how it can help their customers and boost sales.

Here's the scoop: Homeowners can get tax credits of up to $1,500 for replacing some or all of their windows, exterior doors, water heaters, air conditioners and furnaces with more energy-efficient models, or for adding insulation.

CLICK FOR MORE PHOTOS

They also can get unlimited tax credits for installing electricity-generating solar panels or solar water heaters. The federal deal will cover 30 percent of the solar project's cost, no matter how much a homeowner spends.

Atop those savings, homeowners can collect assorted rebates from their energy providers, such as the Modesto Irrigation District, the Turlock Irrigation District and Pacific Gas & Electric Co.

"This is a brilliant program," said Mitch Bailey, owner of Bailey's Heating & Air in Modesto. Bailey said combining federal tax credits, MID rebates and manufacturer incentives can save homeowners up to $3,550 on a high-efficiency heating and air- conditioning system.

"It's a no-brainer now for customers to buy the energy-efficient models," said Bailey. High-end heating and air-conditioning systems typically cost $8,000 to $12,000, which is about $2,000 more than regular models.

"With all these rebates and the money saved by lowering energy bills, these energy- efficient systems will pay for themselves within 15 years," he said.

Thanks to the federal rebates, other energy-saving upgrades will pay off even faster.

Electricity-producing solar panels, for instance, can pay for themselves in seven to 10 years, according to Acro Electric of Oakdale.

"About 50 percent of the solar panel costs now are covered by these incentives," said Terri Loftus of Acro. She said the panels produce much more energy than they used to, and their prices have dropped recently. "That makes now the best time to buy."

That's just what Ernest Waggoner did a few weeks ago.

Waggoner spent about $100,000 to equip his Oakdale ranch home with a large photovoltaic solar power system. He'll get 30 percent of that refunded in federal tax credits, and an additional $18,000 back from PG&E.

"It's going to take seven or eight years for me to recoup the money I spent," said Waggoner, 84, whose electric bills used to hit $600 a month. "And if PG&E has the audacity to raise its electric prices in the future, I'll probably be paid back in four to five years."

Story continues below video

Such big investments aren't required to take advantage of the federal tax credits.

Blowing insulation into an attic costs about $500 per 1,000 square feet, and the tax credits can cover 30 percent of that up to $1,500. The MID also offers additional rebates for attic insulation.

"A lot of people can get back what they spend on insulation within one year because of lower energy bills," said Sean Archuleta, manager for the Modesto branch of Gold Star Insulation. He said well-insulated homes also are more comfortable to live in. "Homeowners notice the difference right away, espe- cially during the summer."

Improve comfort level

Energy-efficient windows, skylights and glass doors also can keep homes cooler in the summer and warmer in the winter. They, too, qualify for 30 percent tax credits up to $1,500, plus additional MID rebates.

"They absolutely change the comfort level in a home," said Steve Mort, chief executive officer for Don's Mobile Glass.