Ways to trim your energy bill
A big cost of owning a house is what you spend on energy, but Uncle Sam offers tax breaks for energy-efficient home upgrades that can lower utility bills. Here is a list of several upgrades that qualify for a federal tax credit and can pay off over time in energy savings.
Insulation and air sealing Savings:
An average 15% on heating and cooling costs for those who air seal their houses and add insulation in attics and crawl spaces or basements, according to the Environmental Protection Agency. Tax credit: 10% of the cost of bulk insulation and air-sealing materials (installation costs are not eligible).
Heating and air conditioning Savings:
Replacing a heat pump or air conditioner that is more than 10 years old with a high-efficiency unit can save up to 20% on heating and cooling costs, according to Energy Star.
Tax credit: Up to $300 for qualifying central air conditioners and air-source heat pumps; up to $150 for qualifying gas, oil or propane furnaces and boilers.
Windows Savings:
Replacing single-pane windows with Energy Star–certified windows can save you from about $100 to nearly $600 in household
energy bills a year, according to estimates by D&R International. Tax credit: 10% of the cost of any Energy Star–certified windows (not including installation), up to $200.
Water heaters Savings:
An Energy Star gas storage water heater uses 10% less energy than a standard model. With an electric heat pump water heater, a family of four can save as much as $3,750.
Tax credit: Up to $300 for qualifying gas, oil, propane or electric heat pump water heaters.