Shifting Solutions

Laws and Incentives for Going Green

If you upgrade to wind power, as this home did, you can receive a tax credit each year through 2016.

With the popularity of Green Construction we begin to see the many benefits emerging. There are many municipalities today enacting laws that do require various “green” techniques to be used.
As well, the individual states and the federal government are providing financial incentives to encourage green development.

The stimulus package, or lesser known American Recovery and Reinvestment Act of 2009, allows a tax credit of 30 percent of the cost of small improvement projects, up to $1,500. This would include, window, door and roof replacements, insulation projects and replacing old appliances with more efficient EnergyStar models.

As for those people who wish to do more advanced going green projects, such as perhaps installing home solar power, or wind power, the Recovery Act allows for homeowners to apply for a $1,500 tax credit each year through 2016 for up to 30 percent of projects that qualify, including geothermal heating systems, wind-powered generators and solar water heaters or panels [source: Hadhazy].

The FHA Energy Efficient Mortgage program is another option for homeowners looking to add green improvements . It helps the homeowner to borrow money at lower than average rates to make EnergyStar upgrades, to add solar or geothermal power, or to make other qualifying green improvements to their homes [source: North Carolina State University].

To find a very complete list of green building incentives for your state, go to the Database for State Renewable s and Efficiency.
For those who install green features a lot of states offer property tax exemptions, free or expedited building permits and other benefits .

So if all these credits and tax exemptions aren’t enough to motivate you to make going green a priority for you, contemplate this:In California, the city of San Francisco enacted a new building code in August 2008 requiring every building (commercial and residential) new project or renovation to adhere to the green building standards. For the homeowners, this will mean meeting the GreenPoint system, a local green building certification program, similar to the USGBC’S LEED system [source: Buchanan].

And it’s not just California, a similar initiative is taking place in Montgomery County, Maryland, a suburb of Washington, D.C. There, lawmakers are working to pass legislation that would require every new home be built to minimize environmental impact and energy use [source: Marimow].

The green laws for residential homes are fairly new updates on decades of similar laws aimed at the commercial sector. Now 22 states, 2 federal agencies and 75 municipalities in the United States require commercial buildings be built to meet LEED standards or certification [source: Kamenetz].

So it only follows that sustainable living lifestyle of going green will come to a city near you, by law. How fun is that?

Going Green – Marketing the Intangibles

A lot of the green homes are marketed in terms of reduced energy because it is the simplest way to measure. Energy reduction is important but there are a lot of people willing to pay a higher price for a home that has green features that doesn’t necessarily have to do with the saving of money.

There was a study done by Green Builder Media in 2007 that showed home buyers are willing to pay as much or more than 11 to 25 percent for a green home (source: Sekine-Pettite). Separately, a study was done by the National Association of Home builders, which showed that 50 percent of the home purchasers that were interested in the green home concept, were motivated by the health factor and the environmental impact ( carbon footprint) more than any other reason [source: Perkins]. So, this shows, that as many green home buyers there are that are looking to save money on energy bills, there is another equal amount of home buyers that are motivated by other factors of the green life style tha t is not neccessarly related to saving moneyand are willing to pay a premium for a home if it meets this criteria.

Following the energy saving steps I outlined in an earlier article and you’re already on your way to reduce the carbon footprint your home leaves behind. But consider other factors that you can implement that may further reduce your impact.

Consider installing solar home products or even build a solar panel system or your own wind power system. Again, as described in an earlier article, you can do this easily and cost effectively. Build it yourself and save thousands of dollars over hiring a professional. Think also of all the m0ney you can save on your power bills. Talk about increasing the value of your home, this would be a tremendous asset on your sales listing.

The world’s water supply is now at a critically low level around the world, yet we still continue to waste this precious comodiity far too much. Here in the United States, about 60 percent of the water we use is for irrigation and landscaping [source: Clemson University]. You can helpt reduce this impact, by installing drip irrigation, rain barrels and the use of native plants. Inside the house, reduce the water consumption by using low-flow plumbing fixtures.

You the homeowner can also help impact the environment by choosing the right kind of materials in your renovations. Choose rapidly renewable resources, such as bamboo, linoleum, cork and wheat board, and by doing so you can ensure that your furnishings and flooring will have a minimal impact on trees and other resources that take so long to grwo.

In reducing carbon emissions, you’ll want to choose materials produced locally and to further reduce your impact, choose reclaimed materials to install, such as salvaged wood floors, recycled bricks or masonry, and refinished furnishings.

Our Health is what most fans of the green construction and building movement are most interested in, to make your home a healthy one, find materials with low VOC content. VOC’s, or volatile organic compounds, are chemicals used to produce most furnishings, paints, floorings and adhesives.

A healthy home needs to be one that is breathable . Homes are built tighter to help reduce energy bills, but natural ventilation is reduced. Installi a central ventilation system, then you can market your home as not only green, but healthier.

Improve The Energy Efficiency Inside Your Home

A programmable thermostat can really help save you money.

There are so very many books and articles being written now on this subject of ” going green” and renewable energy systems for a sustainable living life style and reducing your carbon footprint in the world around you, it could take a life time itself reading through all the newest and latest ideas, but many home owners believe, that when it comes to their heating and cooling systems, it involves all kinds of complicated new technologies and costly investments. which doesn’t have to be true….

Of course there are several options, such as geothermal heat pumps, or very highly efficient newer heat pumps that you could spend good money on, but before you even consider doing such a thing, there are some very simple things you could do first that would make even a bigger impact and woulod b3e much more affordable.

Such as the following ideas:

• Seal your ductwork. Use a can of duct mastic and a roll of aluminum tape and seal off any air leaking out from poorly fitted or bent or cracked areas of your ducts. Possible cost savings to you… more than $100 a year (source: Gorman)
• Replace your old thermostat with an EnergyStar programmable thermostat (around $42, if you install it yourself), … possible savings… $180 a year in reduced energy bills (sources: Gorman, EnergyStar).
• Change out your lighting in your home, you csan save money easliy by changing a few light bulb. When you switch out about five of the incandescent bulbs for compact fluorescents, your possible savings could be about $100 a year .(source: USGBC). Did you kow these bulbs last as much as 8 years? Some folks resist the intial hgher costs , but are surprised to find they do make a better investment over the long term.(source: EnergyStar).
• Lastly, look at your old appliances. If you need to or are planning to buy new ones, consider those that are EnergyStar Certified.” Possible savings ……on average…, $50 or so for every EnergyStar appliance (source: USGBC).

An average homeowner will spend about $2,000 a year on their utilities, which about half is spent on heating and cooling their home [source: EnergyStar]. So get to it and utalize some ort all of the tips above, you should easily cut your utility bills by $1,000, and by doing so, increase the value of your home by $20,000 at the same time.

Improving Energy Efficiency on the Outside

Those people who believe in Green Building know that by creating sustainable, environmentally friendly homes, that home owners expect and expereince increased property values and smaller utility bills.

In 2007 a study was undertaken by the National Association of Appraisers that shows that this is a fact home owners can expect lower utility bills and an increase in home values. they have calculated that for every $1.00 saved on the energy cost, the home owner could expect an increase of $20.73 in the value of their home. ( source eco-smart) The real surprising things though is just how easy and affordable it can be to to make all this happen.

But where do I start? you ask?

Well, if you’ve read my reports on home audits, then you’d know that the place to begin would be to tighten up the home’s exterior so that your heated or cooled air is not leaking out to the outside. Buy a tube of caulk, seal the area around your doors and windows, and fill in wall penetrations such as those around the dryer vents or the cracks where cables and wires enter your home, doing this alone you’d likley save about $100 a month [source: USGBC].

That done, then check the windows. You could switch to EnergyStar rated windows where you could save $350 a year over your old single-paned windows or $70 per year over any old double-paned styles [source: Myers]. These windows cost around $65 a piece, making them a wise investment with a fairly quick payback for many homeowners [source: Gorman].

You’ve completed the windows, mso now take a look at your insulation. For a 1,800-square-foot (167.2-square-meter) house, look to save $436 in energy costs a year by installing a R-30 fiberglass batt insulation in the attic. If your just a little handy, this would be a simple simple do-it-yourself (DIY) project which would turn into big savings and a substantial increase in the value of your home [source: Jacksonville Electric Association].

There are many books on the subject that would make a great read as well as very informative on this and other green construction projects such as renewable energy systems that you might fancy in the future if not now.

After the Audit

Even before the era of energy audits, thrifty homeowners knew the value of caulk.

­Now you’ve done your Audit, what comes next? If you’ve hired a professional then the contractor should give you a list of things he would recommend to making your home more energy efficient. They may also indicate how much you can likely save if you change out your current equipment or appliances for more energy-efficient ones. If you’ did the audit yourself, then you’d have your own checklist of troubling areas that need addressing.

What ever the result, don’t panic and and go out and drop $20,000 on a new furnace or air conditioning unit. Before doing anything major to overhaul your home, first try any quick fixes that can be done cheaply ie” adding insulation or caulking crevices. That might be good enough to drop your energy bill substantially.

Here are some of the most common trouble spots, and how to fix them:

1. Seal all sources of air leaks and cracks, including holes and cracks in windows. For small leaks (under 0.25 inch, or 0.63 cm), caulk usually works best. Expanding foam usually works better for larger holes. If you have really big openings (such as attic hatch covers), fill them with insulation (rigid foam or fiberglass). Also fill in any gaps in the insulation lining your attic, basement, crawl spaces and walls.
2. Add weather stripping to the tops, sides and bottom of doors, as well as around window sashes. Repair or replace any windows that are damaged or cracked. If they’re in really bad shape, consider investing in newer, energy-efficient windows. You may get an added bonus by replacing your windows in the form of a tax break. Consider adding storm windows and thick blinds or curtains, which are good for preventing heat and cold loss.
3. Replace high energy light bulbs with lower wattage or compact fluorescent light bulbs, especially in the lamps you use most often, such as in your den and office.
4. When buying new appliances (and if your appliances are more than 10 years old, it may be time to start thinking about it), look for the Energy Star label. These products use 10 to 50 percent less energy than regular appliances [source: Energy Star]. You can also make the appliances you already have more efficient. For example, regularly vacuum your refrigerator coils and air conditioning unit, because getting the dust off will help them work better.

If after that major improvements are still required, then at that time you should hire a professional to help. Check out companies that can help you pay for the improvements, such as Clean Power Finance.

Another way to save energy costs and reduce your home energy bill is to consider “Going Green” and reduce the carbon footprint created by mass production of electricity by the power companies. This you can do cheaply and effectively by building your own renewable energy source by looking into and implementing Home Solar Energy technology. There are Solar Home Kits available with complete step by step videos and manuals that make it easy to find all the parts cheaply and how to assemble it and install it on your home roof, you can do all this for under two hundred dollars if you do the work yourself. You don’t even need to be all that handy to do a good job!

Reduce or even replace the power you buy and spend the savings on more fun things. Now that’s a plan!