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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

Home Energy Savings Program Incentive (Please see the Update on a new $30 million dollar Grant) Commerical Residential
Residential Appliance Rebate Residential HOME STAR - Pending in the Senate (Please see the Update)
Solar and Wind Call Snowe & Collins NOW
Business Program & Incentives
Prescriptive Incentives
Custom Incentives
Free, Independent Technical Advice


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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