Saving With Energy Rebates

An average of 70% of the energy used in your home is from the operation of appliances, refrigeration, space heaters, cooling and water heaters.  Replacing outmoded units with energy efficient models identified with the Energy Star label may qualify you for federal tax rebates.  These rebates are being funded by the American Recovery and Reinvestment Act of 2009 which has designated $300 million in tax relief to consumers who replace old appliances with energy efficient appliances and equipment.

Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy.  The goal of the program is to assist consumers in saving money and protecting the environment through energy efficient products and practices.  In order to earn the Energy Star label products and equipment such as appliances, furnaces, air conditioners, heat pumps, boilers, windows and other consumer products must meet certain criteria for energy efficient that far exceed the mandated minimum requirements.

 Each state and territory has selected its own group of Energy Star qualified products to rebate.  All 56 plans have been approved by the U.S. Department of Energy.  Each state and territory has established a process for receiving rebates on purchases.  Information on what products qualify for energy rebates is available at the Department of Energy website or your state website.  Most states require some proof that old appliances have been properly discarded or recycled.  Rebate typically range from $50.00 to $500.00 depending on the initial cost of the replacement or installation of the energy efficient appliance or equipment.

 Energy rebates are just one incentive for residential consumers to consider replacing appliances and other products like windows, doors and light bulbs with energy efficient alternatives.  Energy savings from energy efficient products reduces the amount of energy required to perform the same task but energy conservation is an important piece of the equation as well.  Being conscientious about energy consumption and maintenance of major appliances and systems will not only increase savings but extend the life of your investment.

Commercial consumers may also qualify for federal energy rebates through the federal Energy Policy Act of 2005.  A tax deduction of $1.80 per square foot is available to owners of new or existing buildings who install interior lighting; building envelope, or heating, cooling, ventilation, or hot water systems that reduce the building’s total energy and power cost by 50% or more in comparison to a building meeting minimum requirements. 

Deductions of $0.60 per square foot are available to owners of buildings in which individual lighting, building envelope, or heating and cooling systems meet subscribed levels that would contribute to an overall building savings of 50% if additional systems were installed.

These energy rebates are available primarily to building owners, although tenants may be eligible if they make construction expenditures.  The Energy Policy Act has been extended to include the installation in new or existing buildings through 2013.