Energy Efficient Home Review

One of the biggest energy costs that most people face in their daily lives are the costs associated with heating.  Whether it is heating the house or heating hot water for baths, showers, cleaning, and laundry, we spend a lot of money on this modern convenience.  Most people will happily tell you it is worth it (especially those whose hot water heaters have gone out midway through a shower), but at the same time, people are often looking for ways to trim these bills if necessary. 

The federal government is getting in on the action in this area, by giving tax credits for the installation of Energy Efficient Water Heaters.  To find out more about these tax credits, you can visit the Energy Star website, and consult with a qualified accountant.  Here is a basic overview.There are three main categories of Energy Efficient Water Heaters.  The first are gas, oil, and propane hot water heaters.  They can either have a large holding tank or they can be tankless. 

These are probably the most common water heaters, and the government is offering a thirty percent tax credit for those installed in 2009 and 2010 that meet certain efficiency criteria.  Unfortunately, residential water heaters with storage tanks do not meet the efficiency guidelines for claiming the tax credit, but some commercial units do.The second category of Energy Efficient Water Heaters to qualify for the thirty percent federal tax credit are electric heat pump water heaters. 

Please note that electric storage tank or electric tankless water heaters do not qualify for the tax credit, and the electric heat pump water heaters must have an efficiency rating of over 2.0.  (All Energy Star Certified electric heat pump water heaters will qualify for the credit.)  You can find more information online to guide you in choosing specific models.The final category of Energy Efficient Water Heaters that qualify for the generous federal tax credit (which includes labor and installation costs up to $1,500 in all three categories) is solar water heaters.  For these to qualify, at least half of the energy used mus come from the sun. 

You can only claim the tax credit on the solar heating equipment, and not on the system for the entire house.  Additionally, solar heaters used for swimming pools and hot tubs do not qualify.  Again, you can find more specific information, including a list of Energy Star rated solar hot water heaters, on the Internet.  It is highly advisable to make sure your desired unit will qualify for the tax credit before you purchase!