Saturday, February 4, 2012

Your Tax Refund: Are You Thinking of Upgrading Heat & Air or Windows?

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These are two of the best strategies you can implement for saving on your utility bills as well as making your home more competitive in the resale market.

Buyers will be looking for energy efficiency. About 40% of all current new construction is being built to Energy Star standards and the new building code is incorporating requirements that will ensure efficiency at 15% higher than the previous standard. That means, quite literally, that if you don't plan to sell for five years, you will be competing against Energy Star homes.  As long as there is land to build on in North Carolina, and we have a ton to go, your resale will need to illustrate its ability to stand up to the new inventory if you want to maximize your profit at sale. So upgrading IS a good idea; I have blogged on this many times before.

http://www.bizjournals.com/triangle/print-edition/2011/07/08/home-builders-in-nc-must-meet.html

So how does one choose one's contractor and equipment?

First, let's see a) how far you are going with your remodel b) are you open to very cutting edge technologies such as geothermal air conditioning?(will depend on your lot size) and c) what fuel and heating system are you currently operating on to heat your home? Natural gas? Propane gas? Oil? Electricity only? Here is North Carolina as I suspect other parts of the country, both natural gas and electric heat are far cheaper than propane gas driven heat. You'll want to be sure your contractor is knowledgeable in Energy Star version 3.0 strategies for saving energy. Heating and Air Conditioning contractors (HVAC) are soon to be certified for this purpose since Energy Star 3.0 guidelines are rolling out but the list is not yet available. However you can read all about it on the Energy Star site with tips for picking your contractor: 

http://www.energystar.gov/index.cfm?fuseaction=find_a_product.

Look for heating and air and then 10 tips for choosing a contractor.

There is also a more up-to-date site for credits that expired in 2011 or changed for 2012:

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US43F

The brand of unit you pick is something you should discuss with your qualified contractor, since local fuel rates vary in different parts of the country. A geothermal unit may or may not be possible.  They are VERY expensive up front, but there is a 30% Federal Tax credit with no ceiling in place for a Geothermal unit, and the energy efficiency achievable is amazing.  We have a Geothermal in our Energy Star home and, for instance, we increased the home size from 2400 sq ft to 4200 sq ft and the utility bill stayed even simply because we went with geothermal heat and air in the remodel. Windows should DEFINITELY be Low-E - these contain an argon gas that helps prevent heat loss in winter and sun-heat gain in summer. Make sure all the windows are thoroughly caulked and also use a qualified contractor.All these strategies, besides saving on utilities and making your home more competitive, will reduce your consumption of fossil fuels thereby reducing your greenhouse gas emissions, and don't you feel good about doing your part to help save the planet? I hope this gets you all  off to a good start!

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