Research Articles
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How to Find Energy Efficiency Rebates in Your Area
Improving your home's energy efficiency offers plenty of financial benefits. You can save on energy expenses, paying less in utility costs energy each month. What's more, you can also use credits, rebates and other financial incentives to offset your home improvement expenses. Several government-run and private programs help homeowners finance projects that are sure to improve their home's energy efficiency. Discover energy efficiency rebates, credits and financing options for your home projects.
What Are Some Incentives for Energy Efficiency?
Financial incentives, whether federal, state, local or private, can help you fund your home energy efficiency projects. Before you start making home improvements, look into available programs. Check out some of the energy efficiency incentives you can take advantage of today.
Manufacturer Rebates
Some manufacturers offer rebates for energy efficiency upgrades, such as a new appliance or remodel. You can find manufacturer rebates on some Energy Star-certified products. A product earns the Environmental Protection Agency's (EPA's) Energy Star logo if it meets efficiency requirements. The appliance has to contribute to efficiency savings and deliver high performance.
Federal Tax Credits
You can also save money with tax incentives for energy efficiency. Tax credits directly reduce the amount you owe in taxes. The federal government offers tax credits for some environmentally friendly purchases. When you buy a renewable energy product, energy-efficient appliance or renovate your home in certain ways, you can save money on your taxes. Federal tax credits can cover the following projects.
1. Renewable Energy Projects
The federal government incentivizes renewable energy products with tax credits. You can decrease your tax burden when you buy:
- Fuel cells.
- Wind turbines.
- Geothermal pumps.
- Biomass fuel stoves.
- Solar energy systems.
2. Energy Star Appliances
You can also earn tax credits when you purchase some Energy Star home appliances, such as:
- Central air conditioning systems.
- Water heaters.
- Advanced main air circulating fans.
- Certain hot water boilers, furnaces and fans.
3. Home Improvements
In addition, tax credits apply to some energy efficiency home improvements, including:
- Insulation.
- Roof.
- Windows.
- Doors.
- Skylights.
State-Level Energy Efficiency Incentives
Along with federal incentives, many states offer incentive programs for energy efficiency upgrades. Depending on where you live, state and local programs may help you save on your upgrades. You can utilize rebates, tax credits and deductions, loans and other programs. For instance, Pennsylvania offers the Homeowners Energy Efficiency Loan Program to help homeowners finance repairs like air sealing, insulation and roof replacements.
Utility Company Rebates
You might also be able to take advantage of utility rebate programs or discounts. Many utility companies will help homeowners reduce their energy consumption and save on costs through energy efficiency projects. If you want to know whether your utility company offers any rebate or discount programs, check out their website or give them a call.
Keep in mind, if you live in a deregulated energy state, you can choose your energy supplier — meaning you can switch utility companies if desired. If you find a utility company that offers incentives and energy efficiency rebates, you may be able to switch over to that company.
Energy-Efficient Financing
If you're concerned about financing an energy-efficiency project, look into your options. You might qualify for special loans, mortgages and other financing options. For instance, the Energy Efficient Mortgage (EEM) program allows borrowers to refinance Energy Star-approved homes or fund improvements. Energy efficiency financing programs can help alleviate the financial burden of an energy-saving home improvement.
What Types of Home Improvements Qualify for Energy Tax Credits?
When you make energy-saving home improvements, you may qualify for specific tax rebates and credits. Learn more about some of the projects for which energy efficiency rebates and tax incentives apply.
Central A/C
If you install a central air conditioning unit with an Energy Star rating of Most Efficient, you can qualify for a $300 tax credit. In order for a product to qualify as "Most Efficient," it must use the latest technology to provide the best possible efficiency. The EPA notes that lifetime costs and savings will vary based on location, size, installation quality and other factors. However, any "Most Efficient" heating, ventilation and cooling (HVAC) system is sure to produce savings.
Water Heaters
An efficient water heater will also earn you savings. You can earn a $300 tax credit for any water heater with an energy factor of 0.82 or greater and thermal efficiency of at least 90%. A conventional water heater contains a storage tank of water it always keeps heated. More efficient versions are tankless, heating water only when necessary.
Different types of water heaters are available — the most efficient option for you will depend on your home's unique characteristics. Heat pump water heaters are more efficient than traditional ones. A heat pump water heater pulls warmth from its surroundings to heat up its stored water. For that reason, they work best when placed in hot spaces, such as furnace rooms. You could also opt for a solar water heater, which uses the sun's natural heat, or an indirect water heater, which uses your existing home heating system to provide hot water.
Geothermal Heat Pumps
Geothermal heat pumps or GHPs use the consistent temperature within the Earth to heat or cool a home. Several different types of GHPs are available — they can be either closed or open loop and require installation underground or in a body of water. For most homes, a cost-effective choice will be an underground, horizontal geothermal pump. You can cut costs by choosing a hybrid or dual-source system, which combines an air-source pump with a geothermal pump.
In order for a geothermal pump to qualify for tax credits, it must meet Energy Star requirements, including minimums for the coefficient of performance (COP) and the energy-efficient ratio (EER). The COP is the ratio of the change in heat from the source to the application, and the EER is the overall efficiency.
Standards vary depending on whether a system is a closed or open loop, as well as its source. For geothermal pumps, the tax credit includes installation costs. In addition, the home served by the system does not have to be your primary residence.
Air Source Heat Pumps
You can also earn savings for efficient air source heat pumps. Any air source heat pump with an Energy Star certification qualifies for the $300 tax credit. It has to have a minimum heating seasonal performance factor (HSPF), energy efficiency ratio (EER) and seasonal energy efficiency ratio (SEER) — but all you need to know is whether or not it has the Energy Star seal of approval. Air source pumps are a good option if you lack the land required for a geothermal pump or if you're looking for a smaller upgrade project.
Smart Thermostats
"Smart" or programmable thermostats make it easier to keep your home comfortable while reducing your energy costs with automatic temperature settings. For instance, you can program a smart thermostat to heat or cool your home when you're on your way home from work. Although smart thermostats are not part of a tax credit program yet, you can find local energy efficiency rebates to offset the cost. In any case, these systems will help you save on heating and cooling expenses.
Biomass Stoves
Biomass stoves use renewable, bio-based fuel sources, such as:
- Agricultural crops.
- Plants and grasses
- Wood and wood residues, such as pellets.
As of 2021, efficient biomass stoves with thermal efficiency ratings of 75% or greater qualify for the Renewable Energy Tax Credit. You can earn an uncapped 26% tax credit based on the system's full cost, including installation. You'll want to act quickly, however, because the credit drops to 22% in 2023 and expires after that unless Congress renews it. Keep in mind, you can only claim the credit for the year of installation, not purchase.
Solar Energy
Solar energy systems also qualify for the Renewable Energy Tax Credit, including solar water heaters and photovoltaic panels. The system has to have a Solar Rating and Certification Corporation (SRCC) certificate or similar state government endorsement. Like with other renewable energy projects, the home the system serves need not be your primary residence.
Roofing
You can also earn a tax credit when you upgrade your roof. The credit applies to Energy Star-certified metal and asphalt roofs designed to ward against heat gain, using pigmented coatings or cooling granules to reflect more sun rays. The tax credit is 10% of the cost up to $500, not including installation. For this tax credit, the home must be your primary residence and it must be an existing home, not a new construction project.
Doors, Windows, Skylights
Energy Star-certified doors, windows and skylights generate the same 10% tax credit as roof upgrades. The credit is capped at $500 for doors and $200 for windows or skylights and does not include installation costs. Keep in mind, if you're upgrading more than one part of your home, energy efficiency tax credits cannot exceed $500 total.
Appliances
If you're looking to upgrade your appliances, you can benefit from energy-efficient appliances rebates. Appliances like fridges, freezers and dishwashers qualify for Energy Star ratings. You can use the Energy Star Rebate Finder tool to find available rebate programs.
Lighting
Lighting upgrades are another way to improve your home's efficiency. Light-emitting diode (LED) bulbs use 75% less energy and can last 25 times longer than incandescent bulbs. They'll allow you to light your home while using less energy. You can also use automatic motion-sensor or timer lights to cut back on your energy consumption. Home lighting projects might qualify for rebate programs or other incentives. They can help you earn an EEM as a home financing option.
Insulation
Insulation improvements qualify for the same tax incentive as roofing, windows, doors and skylights. It's a 10% credit with a cap of $500, not including installation. Qualifying products include batts, rolls, rigid boards, expanding sprays, blow-in fibers and pour-in-place insulation solutions — almost any product that reduces air leaks in your home. You can also qualify if you buy weather stripping, spray foams, caulks or wraps.
How Do You Find Energy Efficiency Rebates?
Before you begin your home improvement projects, do plenty of research to see how you might reduce your financial burden. In many cases, home energy efficiency projects reduce homeowner costs, thanks to both decreased energy expenses and incentive programs.
If you're wondering how to find tax incentives and rebate programs for energy efficiency, several tools are available. You can search the incentive programs in your state using the Database of State Incentives for Renewables and Efficiency (DSIRE) tool. This database shows you a list of all the federal and state incentive programs for various energy efficiency projects.
Be sure to check out Energy Star incentive resource pages to learn about eligible appliances or projects. You can also search your state's government websites for relevant information. Each state has its own energy department or administration, and some states also have renewable energy offices that supply funding for renewable projects. Check out all of the resources specific to your location.
When you purchase HVAC products from Ingram's Water & Air, we'll match you with the energy efficiency rebates and incentives for which you might qualify, saving you the time and effort you'd spend researching.
How Do You Claim Energy Efficiency Rebates?
It's simple to claim energy efficiency rebates or tax credits. If you qualify for a nonbusiness energy tax credit, you can claim it by filing Form 5695 with your tax return. The form provides details about qualifying home projects and how to determine your credit amount. Make sure you have the Manufacturer's Certificate handy to prove its energy-efficiency certification.
How Else Can You Tell You Have an Energy Efficient HVAC?
Aside from Energy Star ratings, other metrics will help you determine the energy efficiency of your HVAC systems. You can check the unit's user manual for efficiency ratings. Air conditioners and heat pumps have SEER ratings, and furnaces have annual fuel utilization efficiency (AFUE) ratings. Look for a SEER rating greater than 15. If you have an oil furnace, look for an AFUE rating of at least 85% — or 90% for a gas furnace.
Shop High-Efficiency Water and Air Equipment From Ingram's Water & Air
Improving your home's efficiency offers many financial benefits. Your home improvements could help you save on regular energy costs and other expenses. What's more, they might allow you to qualify for energy efficiency rebates and incentive programs. You may be able to take advantage of federal tax credits, manufacturer or utility rebates, state-level incentives or financing programs. These incentives encourage homeowners to use energy efficiently.
If you're looking to improve your home's energy efficiency, Ingram's Water & Air equipment are an ideal choice. We offer popular brand HVAC products, including Goodman and MrCool, at competitive prices. We'll automatically match you with local energy efficiency rebates and incentives for which you might be eligible, saving you the hassle and time it can take to find these programs on your own.
Choose Ingram's Water & Air for your home improvements — browse our efficient water and air equipment today. We offer HVAC units, geothermal systems, indoor air quality improvement systems, water heaters, filters and backup generators. Find everything you need for your home's heating, cooling and water with Ingram's Water & Air.
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Installing a DIY Air Conditioner Yourself
By installing a DIY air conditioner in your home on your own, you can save money, time and energy. While the average cost to replace heating and air conditioning is what prevents people from hiring an HVAC technician, you can DIY the project for a fraction of the price. Considering the equipment, labor, installation of ductwork and the complexity of your home AC system, you'll save so much money on your HVAC replacement cost.
You would know if you need to replace your HVAC system if you see these warning signs in your air conditioner:
- It's not blowing out cold air.
- It won't start.
- The coil has broken.
- It's on fire.
When looking for a DIY air conditioning kit, don't settle for junk. Get a high-quality air conditioner that is easy to install, with a warranty included in the new AC unit cost. Use this guide to set up a system to control the temperature in your home.
Is Installing a DIY Air Conditioner Safe?
Installing a DIY air conditioner is relatively easy, but safety should always be your priority. You should only put up an air conditioning unit yourself if you feel comfortable doing so. If you get stuck at any time during the unit install process, we offer lifetime technical support on all our products.
Follow these safety instructions to avoid getting hurt or damaging your property:
- Regularly maintain your HVAC unit: HVAC maintenance can lower your HVAC system cost since mold and debris from an old machine can make the installation more difficult. Clean your air filters at least once a month and replace them as needed. To prevent corrosion in your coils, clean them often or hire a technician to do so. Inspect the drain lines and pans to make sure the water is flowing smoothly. You should also check the refrigerant charge and remove debris around the outside unit.
- Read the instructions: No matter which system you end up using, set up all products or accessories for your cooling system according to what it says in the instruction manual. Your new HVAC system should comply with local and national regulations for mechanical, building and electrical projects. If necessary, get local permits for your HVAC installation.
- Use protective gear: If you make a mistake during the set-up process, it can hurt you and your living space. Wear safety gloves and even goggles if you feel they're necessary. Be cautious if you have to handle sharp sheet metal.
- Call for backup: While an HVAC installation kit makes the project much more manageable, you should ask for help if you feel unsafe. Only handle refrigerant and high-voltage electrical wiring if you have the proper training. Call a friend or family member to help manage the equipment or provide easy transport from each part of the house.
What Unit Do You Have?
If you don't know what unit you currently have, you can find out by looking at them. Check out these characteristics of four different home air conditioners to identify which one you have in your house:
- Portable air conditioner: These mobile, flexible systems are freestanding, which allows you to move them quickly throughout the house as needed. You can install these AC units on the floor through your window, a drop ceiling or a prepared hole in the wall. Use portable air conditioners for a temporary area or where it doesn't make sense to have a window-mounted unit.
- Window air conditioner: These energy-efficient, versatile units can serve as either a primary cooling source or along with a central AC. Install your window air conditioner through a window or a prepared and measured hole in the wall. The unit comes with all the refrigeration components in a simple, compact box. Window air conditioners are efficient for single-story homes or smaller two-story homes.
- Central air conditioner: As the most common type of conventional air conditioner, central split duct systems blow the same temperature throughout the entire home. The split systems provide cooling and dehumidification as well as heating in the winter.
- Ductless mini-split system air conditioner: These high-efficiency air conditioners feature a quiet performance that can cool various parts of the home at once. You may have seen them in hotels and multi-unit buildings since they can adequately control the indoor air temperature of each room. Ductless mini-split system air conditioners require a sizeable outdoor condenser unit and a small blower unit that mounts on the wall inside the house.
What Do I Need to Get Started?
If you do the whole project yourself, you'll need a variety of tools, like an L-square, a wrench, wire cutters and other fancy items. With the Ductless Mini Split from MRCOOL, you only need these tools and supplies:
- The air conditioner, of course.
- Pliers with an adjustable wrench.
- Cross-tip screwdriver.
- Water and soap in a spray bottle.
- A drill and drill bits according to the instructions for the DIY kit.
- A handheld stud finder.
- A 3.5-inch bi-metal hole saw with an arbor.
You can get most of these tools at a local home improvement or hardware store. The MRCOOL DIY is a pre-charged and sealed system, so it doesn't need a vacuum pump. Everything you need for this project is right in the kit, so you'll save money on the AC unit cost.
Do I Have to Do Anything to Get My House Ready for Installing a DIY Air Conditioner?
With a DIY kit, you will have to do minimal work to get the room ready for installing your air conditioning system. You can have the AC cranking through the house in a matter of hours. As you prepare the home, and yourself, to replace your AC unit, here are some steps to consider:
- Select the right AC unit: Picking out the type of air conditioner unit you need isn't quite as simple as going to the store and grabbing the first one you see on the shelf. You also need to measure the area that you want to cool to find out what size unit you need. A ductless mini-split system is easy to install because it doesn't require the addition of ductwork throughout the house.
- Find a spot for your new AC unit: The location for both the indoor and outdoor units of your air conditioning should be on a level and firm surface. If possible, keep the outdoor unit out of the sun or away from a gutter so it will run more efficiently. As you look for a wall that connects to an empty spot outside the house, remember that the MRCOOL DIY kit includes the copper refrigerant line that measures about 25 feet.
- Clear away bushes and other obstructions: The outdoor unit should be in a space away from branches and plants for the proper airflow. If you care about the curb appeal of your house, you also should put the outdoor unit in a space that's out of sight, far from an electric or gas meter. Cut bushes away or move around furniture to make room for the exterior unit. Once you've found and cleared a space outside, lay down a condensing pad on a level surface and center the condenser on top.
- Cut a hole in the wall: Use the wall template included in the DIY kit, a mounting plate and a level to mark the place where your indoor air conditioner unit will go. The stud finder will locate points to help you create a level line for the mounting plate. Double, triple and quadruple check that the wall template is plumb and level each time you complete a process in the unit install. Now comes the fun part. Using the bi-metal saw, drill a 3.5-inch hole on the right of the mounting plate to run the wiring. Cut the hole at a slightly downward slope to accommodate the drain piping.
What Is the Line Set and How Do I Install It?
A line set connects the indoor and outdoor AC units of a ductless mini-split system or a central air system. This system consists of a suction line, which connects the evaporator outlet to the compressor inlet, and the liquid line, which connects the condenser to the expansion valve. You would need to replace the line set when you install a new AC unit.
Here are the steps for installing a DIY air conditioner line set:
- Insert the sleeve: The sleeve of wiring should be in a package together in the MRCOOL DIY kit. You might want to have a friend or family member stand on the other side of the wall to catch the piping outside.
- Keep the piping and wires: Since the copper piping could kink when you bend it, make sure it stays straight as you move it through the hole. You could do this by holding the end down with your foot or taping it. At this point, you can install the unit on the indoor wall by snapping it into the mounting plate.
- Bring it all together: On the outside of the house, connect the piping to the outdoor unit. Refer to the wire guide on the panel in the condenser, or call an electrician to connect the refrigerant lines. Thread the wiring by hand and use an adjustable wrench to tighten it. Be careful not to cross the pipes so that you don't kink the wires. Use soapy water to check for leaks after it's all connected.
How Can I Prepare My High-Voltage Connections?
An air conditioner runs on a significantly high voltage of electricity to establish a connection with the main electrical circuit panel. While you can prepare the wiring for a hook-up, only a skilled contractor can take on dealing with high-voltage wires. If you try to take on the project by yourself, you could shock yourself and damage your property. Plus, your AC probably won't work.
To prepare the high-voltage connections for your AC unit, choose the right wire thickness and corresponding breaker for your condenser. High gauge numbers indicate a thinner wire. Check the instruction manual for your air conditioning system to find out the gauge of your unit's connections. After you know which wires are correct for your installation, here are some steps for preparing the high-voltage electrical system:
- Set up the disconnect box and electrical whips.
- Mount the whips to the ceiling and connect the flexible wire through to the electrical panel of the home.
- Install high-voltage wiring to the condensing unit.
How Do I Connect the Low-Voltage Wiring?
Low-voltage connections run from the thermostat and the inside furnace to control your air conditioner unit. These connections are safer than working with light fixtures or power outlets because there is less of a possibility for electrocution. While these will not be necessary for installing a DIY air conditioner, here are some tips for installing your low-voltage connections:
- If you took a break from installation after your high-voltage connections, make sure the electricity is off.
- Push the low-voltage wire set into the control box through the access opening.
- Use a razor knife to remove a few inches of the outer plastic sheathing from the cable.
- Strip a little less than an inch of insulation from each inner conductor using wire strippers.
- Twist together the low-voltage wires and secure them with a wire nut.
- Connect the low-voltage wires to the condensing unit.
- Carry low-voltage wiring along with the ceiling to the furnace or the air handler.
- Run wires from the furnace or air handler and connect to the thermostat.
After installation, you should always check that your AC unit is running smoothly after turning on the electricity. If you notice any weird noises or smells coming from the air conditioning system, call the manufacturer or technical support.
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