Tax Credits, Rebates, and Incentives
Please read
the FAQ section titled
"Deductions,
Credits, Rebates,
Incentives — What's the difference?" for more hints and
traps.
| Efficiency Maine |
Northern Utilities |
U.S. Government |
Efficiency Maine
Home Energy Savings Program (HESP)
IMPORTANT
NOTE:
The Efficiency Maine Home Energy Savings program is offering energy
efficiency cash incentives for the first 4,000 dwelling units that
receive pre-approval. The Program is performance based, not
just prescriptive. For example, incentive amounts depend on
the projected energy savings; your building will be inspected to
see if you met your targets BEFORE you will receive the rebate.
These
incentives are not targeted to help people struggling to finance a
$20,000 dollar project. For these are not unusual costs to
reach the Tier 1 or 2 savings. Instead, the program intends
to
encourage investment in energy efficiency measures instead of a new
granite counter top.
Low income homeowners that qualify for LIHEAP are directed to Maine
State Housing Authority or local Community
Action Program efficiency programs.
UPDATE - 04/21/10:
Obviously
access to funds is a problem for many middle class Maine
citizens in today's economy, but there may be help on the way. First, the State of Maine has just won a $30
millon dollar
grant to start a PACE
loan program. PACE stands for a Property
Assessed Clean Energy
and under recently enacted LD 1717, a Maine municipality, on
its own or through agreement with other municipalities, counties,
nonprofit organizations, private lenders or other entities, may
establish a clean
energy improvement financing program under which financing for clean
energy improvements (including energy efficiency improvements
contemplated under HESP) located on a qualifying real property, is
secured. In simple terms, your municipality may offer loans through
a PACE program at preferential rates to you, for the large energy
improvement projects contemplated under the HESP program.
The concept is that the energy improvement loan will stay with
the house and be repaid under usual and customary terms. If
the structure is sold, the loan can be repaid, or run with the house to
the new buyer under the original terms. Next,
and of critical importance, the
Federal Home Star legislation is winding its way through Congree.
It has been passed in the
House and is awaiting Senate action. Please look at the
writeup here in the
INCENTIVES section for more information. Please pay
particular attention to the Gold Star program. Published
reports
indicate that Home Star is the
next major legislative priority after the Financial System Reform.
Tier 1 Incentive
Efficiency upgrades resulting in a 25% to 49% total annual energy
savings from space heat and domestic hot water, will earn an incentive
of 30% of the project costs up to $1,500 per dwelling unit, to a
maximum of four units or $6,000.
Tier 2 Incentive
Efficiency upgrades resulting in a 50% or greater total annual energy
savings from space heat and domestic hot water, will receive an
incentive of 50% of the project costs up to $3,000 per dwelling unit,
to a maximum of four units or $12,000.
The incentives are open to all Maine residents. Second homes
and vacation homes that are heated throughout the winter may also
qualify. Low income homeowners are directed to Maine State
Housing Authority or local Community Action Program efficiency programs
because their benefits are often greater.
The first step is to get an energy audit by an approved
analyst/auditor, like us. After the analysis/audit is
complete and recommended energy efficiency improvements have been
selected, the project is modeled using EMWP approved software.
Then an application is prepared and submitted for
pre-approval. Documentation of the analysis/audit must be
submitted with the application.
Only pre-approved applications will be eligible for incentives.
RECAP:
Improvements eligible for incentives:
- Insulation and air sealing
- High efficiency heating and domestic hot water equipment
- Programmable thermostats and other controls
- Solar water heating systems
- Water saving devices (low-flow showerheads / faucet
aerators)
- Energy efficient replacement windows
Eligibility and Process:
- All income levels are eligible to participate
- Structure must be a one- to four-dwelling residence
- Homes must be occupied and heated year round
- Energy audits must be performed by a certified
analyst/auditor
- At least 25% savings must be achieved from combined heating
and hot water fuel usage
- Pre-installation review and pre-approval are required
- All work must be performed by, or supervised by a
Participating Contractor
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Residential Appliance Rebate
Residential Appliance Rebates are available for
certain ENERGY STAR appliances, including clothes washers,
refrigerators, air conditioners, and dehumidifiers. The rebates run
from $75 for a refrigerator, to $25 for an air
conditioner/dehumidifier, and are offered to Maine residents who are
replacing older, less efficient appliances. Rebate forms are
provided at the time of purchase from the retailer.
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Solar and Wind Rebate
Solar and Wind Energy Rebates are available for both
residential and commercial users. Rebates are authorized for PV solar
panels, solar water heaters, solar space heaters and wind power
systems. Caps for the solar projects run from $1,000 to $2,000 and from
$2,000 to $4,000 for the wind energy projects. All programs are
accepting applications but please call us for more information before
you get started.
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Business Programs and Incentives
The Business Program provides cash incentives and free,
independent technical advice to help businesses save energy and money
while helping the environment.
The cash incentives reduce the initial cost of projects that promote
the more efficient use of electricity. Any eligible organization may
receive Business Program incentives of up to $300,000 in a single
calendar year period.
There
are two types of incentives.
Prescriptive Incentives:
Are fixed incentives for certain types of equipment. In general,
these items generate savings that can be readily estimated over a wide
range of applications.
Examples:
- Lighting
- HVAC equipment
- NEMA Premium® energy-efficient motors
- Variable speed motor drives
- Commercial refrigeration
- Agricultural equipment
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Custom
Incentives:
Are available for electrically efficient equipment that is not on
the list of prescriptive incentives. These incentives are intended to
encourage creative solutions and to support equipment whose cost and
savings depend upon their application. Custom applications require
savings calculations that are supplied by the vendor and then reviewed
by the Efficiency Maine engineering staff.
The amount of the Custom Incentive depends upon the type of
project.
For retrofit projects, the amount of the Efficiency Maine custom
incentive may be up to 35 percent of the total cost of the efficiency
project, including labor. For new construction and major renovations,
as well as replacement of failed equipment, the incentive may be up to
75 percent of the incremental cost of high-efficiency equipment over
standard equipment. The incentive cap of up to $300,000 in a single
calendar year period applies in all cases.
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Free, Independent
Technical Advice:
Is available to small or medium
sized commercial, not-for-profit, or manufacturing facilities. The
organization must have 50 or fewer employees or sales less than $5
million, and have no in-house engineering staff. Schools, hospitals,
nursing homes, private residences, or businesses with residential
components such as apartments, camps, or condominiums are not eligible
for this program. The organization must provide Efficiency Maine with a
copy of one year’s worth of utility and heating bills prior to the
receiving the free technical advice and agree to participate in
follow-up activities in 6 months to a year. This can be a great
resource. If you have any questions, please contact us.
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Northern Utilities (Unitil)
Commercial Energy
Efficiency Programs
Northern Utilities offers rebates for multifamily customers,
small/medium businesses and large businesses. Eligible multifamily
buildings that have more than four units, a master-metered account, and
use gas heat and/or gas hot water, qualify for the multi-family
customer program. Customers who have a commercial or
industrial
building that has an annual gas usage of 40,000 therms or less, qualify
for the small/medium business customers program. All gas
customers
whose annual use exceeds 40,000 therms, plus all municipal buildings,
hospitals, and universities, qualify for the large business program.
Eligible energy efficient improvements are similar for all three
programs with slight variations; customers should check the Unitil
website for more information. Upgrades include: attic, roof, wall,
ceiling, floor, basement, heating pipe, duct and hot water pipe
insulation, temperature turn down, boiler reset control, automatic
temperature controls, water heater tank wrap, low-flow showerheads,
faucet aerators, heat recovery potential, chillers, etc. Each program
also offers a custom program that includes all of the above as well as
heating system electronic/pilotless ignition, burner replacement, and
other measures determined on a site-specific basis.
Northern Utilities will also perform a free or reduced cost energy
audit for commercial and industrial customers, make recommendations,
and pay 50% of the qualified installation cost of suggested upgrades,
up to a maximum of $50,000.
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Residential Energy
Efficiency Programs
Northern Utilities offers two weatherization programs to residential
customers.
First, customers can receive rebates of 50% to 75% of the costs
associated with purchasing and installing weatherization improvements,
such as attic/wall insulation and air sealing. Subject to caps,
homeowners are eligible for 50%, up to $1,500, and tenants can receive
75% of the cost, up to $1,500. Low-income customers can receive
weatherization improvements at no cost.
The second program is for smaller, "do-it-yourself" weatherization
projects such as installing door sweeps, pipe insulation, and caulking,
Northern Utilities offers a $25 "Self Install" rebate. Customers should
see the Unitil web site for rebate forms and program details.
Northern Utilities offers financial assistance of $150 to help pay for
a home energy assessment/audit. Customers can pick their own provider.
Rebate forms and more information can be found on the Unitil web site.
Northern Utilities also offers rebates for high efficient space and
water heating equipment. This program offers residential
customers up
to $1,350 in rebates towards the installation of qualified
high-efficiency gas-fired space and water heating equipment.
Eligible
equipment includes furnaces, boilers, water heaters, thermostats, and
windows. All equipment must meet certain energy efficiency
standards.
More information is available on the Unitil website.
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US Government
Residential Renewable
Energy Tax Credit
Provides a tax credit of 30% of the cost for solar panels, wind energy,
solar water heaters, geothermal heat pumps and fuel cells (including
labor) installed on your primary or secondary U.S. residence by Dec.
31, 2016.
There is no cap for solar energy system, geothermal heat pump and wind
turbine improvements. Fuel cell installments are capped at $500 for
each 0.5 kilowatt of power capacity. The credit includes the cost of
installation for all of the systems. A list of approved equipment can
be found at the ENERGY STAR Web site.
The applicant must retain their receipts and the Manufacturer’s
Certification Statement and then submit Form 5695 (line 52 — the
residential energy tax credit) with your federal tax return.
US Government Residential Energy Efficiency Tax Credit provides a tax
credit of 30% of the cost for energy efficiency upgrades like heat
pumps, furnaces, air conditioners, insulation, water heaters, windows,
doors and roofs.
Simple home improvements that can save money are also eligible for a
combined total of $1,500 in federal tax credits for the 2009 &
2010 tax years. Each energy—efficient improvement made on your existing
primary U.S. residence is eligible for a 30 percent tax credit.
While the 30 percent only applies to equipment or materials (not labor)
when improving your home’s thermal envelope (insulation, doors,
windows, etc), it applies to both equipment and installation when
purchasing high—efficiency heating, cooling and water-heating
equipment. A list of approved equipment can be found at the ENERGY STAR
website.
The applicant must retain their receipts and the Manufacturer’s
Certification Statement and then submit Form 5695 (line 52 — the
residential energy tax credit) with your federal tax return.
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HOME STAR Program
Home Star is a legislative proposal designed to create
jobs by providing short-term incentives for residential energy
efficiency
improvements. The program will drive new private investment into the
hard hit construction and manufacturing sectors, while saving consumers
money on their energy bills. By building on state programs and existing
industry capacity for the retrofits themselves as well as quality
assurance, the program will be fast-acting, in addition to increasing
consumer awareness of residential energy efficiency.
The bill provides $6 billion dollars of incentives to the American
people, coupled with private investment, to generate an estimated three
million home retrofits and tens of thousands of jobs, and to strengthen
American industry.
Update:
On May 6th the House passed the Home Star Energy Retrofit Act of 2010
(H.R. 5019) with a vote of 246 to 161. We are
pleased that the bill passed with bi-partisan support – 12
Republicans voted in favor. Both Maine Representatives supported the
bill. Representative Pingree worked hard to ensured that language
was included in the bill to specifically help Maine citizens access the
Home Star program and avoid conflicts with State programs.
This is a major milestone for
Home Star, but much work still remains.
First, the Senate must follow up and pass their version of the Home
Star bill. Additionally, the House vote was an authorization, so it
must be matched with an appropriation bill. An appropriation bill will
actually allocate the $6 billion dollars to the program.
We are proud to be a member of
the National
Save Energy Coaliton
and thank our customers, and the thousands of other people, that have
taken
time to make contact with elected officials over the past six months.
Rebate Programs
- $1000-1500 Silver Star rebates. Consumers can receive
between $1000 and
$1500 for each retrofit, with a benefit not exceeding $3,000 or at
least 50% of total project costs (whichever is less). Eligible measures
include insulation, duct sealing, water heaters, HVAC units, windows,
and doors. Rebates will be targeted to the most energy efficient
categories of upgrades, focusing on products primarily made in the
United States.
- $3000 Gold Star rebates. Consumers interested in whole home
retrofits
would be eligible for up to $3000 for a comprehensive energy audit and
retrofits tailored to achieve a 20% energy savings in the home. Consumers
can receive additional incentives of up to $8000 for energy
savings higher
than 20%. The Gold Star rebate program would
build on existing whole
home retrofit programs, such as Home Performance with Energy Star, a
national program from
the U.S. EPA and U.S. DOE program. All retrofits must be
installed or supervised by a BPI accredited contractor.
- Direct Rebates. For eligible measures, consumers are
eligible for
direct rebates at the point of sale. Small independent building
material dealers, large national home improvement chains, merchants
across the country, energy efficiency installation professionals and
utility energy efficiency programs (including rural utilities) can
provide the rebates directly to the consumers and be reimbursed by the
federal government.
Quality Assurance and
Support
- Contractor certification. Contractors are required to be
BPI
certified to install or supervise the retrofits.
- Independent quality assurance providers: are responsible
for field audits after job completion in order to ensure proper
installation and
measurable energy savings for consumers. States oversee the quality
assurance implementation.
Please
contact Senator's Snowe and Collins and ask them to support HOME STAR
!!!
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