Earlier this year Congress extended solar and alternative energy tax credits to take a bite out of the bill of upgrading your home energy systems. In addition, the EEM or Energy Efficient Mortgage is the new rage among borrowers needing up to 5% of your home's value to make energy efficient improvements..*
Since when is energy from the sun considered 'alternative'? Isn't the sun our main method of heating the earth? Even primitive adobe housebuilders and cave dwellers knew which way to face their walls for maximum solar gain.
The new 'alternative energy' credits mean that our federal government is providing a $2,000 credit paid to the builder on new homes whose space heating and cooling energy consumption is 50% below the annual consumption a standard home.
Ask your accountant to research your rebates! Heck one guy I know has an entirely 'alternative' net zero home and it's not the first one he has built so these are not new ideas folks. They are ideas whose time has come when we are looking around at the folly of ripping minerals out of the earth at great expense so we can send ships full of the stuff spilling their way to some refinery so another train or truck can haul it and at the end we get to pay three times what it actually cost to produce. Perhaps the new transparency is finally arriving just in time to start making sense. Like about the time we can't afford our gas bills this winter...that would be a good time. If you are like many of us seeing 50% higher energy costs, this tax credit is the perfect tipping point: Alternative thinkers are no longer the oddballs...they are the ones with real jobs climbing on roofs installing new solar collectors taking advantage of our new found enthusiasm for doing the right thing!
Energy Audits: If you plan to install a solar photo voltaic energy system, better windows, upgrades to insulation or other green features, you will need a home energy audit to verify the improvements are worth the effort. A HERS Audit is performed (approx $750 cost of which a portion is credited back in your EEM). Certified inspectors use techniques like infrared thermography and blower doors to test the energy efficiency of your home. These systems checks are part of LEED gold and BuiltGreen 4 star home certifications and are increasingly used by renovation specialists.
In some cases the product manufacturer can provide statistics of before and after savings to satisfy the underwriter's guidelines on yearly savings. Double or or triple pane windows and low-e glass are a no brainer in colder climates. One borrower installed a pellet stove to replace an older wood stove. The pellet stove manufacturer provided statistics comparing the savings of using a recycled easily sourced product and the heat btu gain plus dollar savings. Very convincing!
The bottom line is that your energy improvements must net dollar savings over time. Lenders appreciate that you will be paying less for energy going up in smoke, literally, and give you some credit toward a higher mortgage payment.
Who Can Help? Call your local Building Planning Department may refer professionals in the area. Contact your local chapter of American Institute of Architects or Building Designers. Seek out professionals in local building trades groups. City planners, universities and other business networks and sustainability groups may refer members who are experienced in these technologies. There's always Google!
Get a leg up on the renovation boom! Many folks are staying put and making lifestyle and health changes including improvements to their homes to allow aging in place...all good! Factoid: Most so called 'green loans' are a public relations ploy to get you in the door and the lender doesn't even know about EEM's and may not have a specialist construction department--borrower beware!
Get the Real Deal! Your green project needs to realize more than good intentions. Invest in a designer or architect and builder who are certified under a green program. The two most recognized programs are: Built Green, rated by stars and LEED rated as silver, gold or platinum.
Built Green is run by our local BIA chapter: http://www.biawc.com There are other programs in other regions.
LEED for Homes is managed by the US Green Building Council. http://www.usgbc.org this program was originally developed by commercial architects and has the most rigorous testing.
So remember the new mantra of our times: Green is Good!
© 2009 susan templeton