Windows & Doors
Just how much energy do “energy-efficient” doors and windows save? Claims vary, but sealing leaks with caulk or weatherstripping could be the first step. On the other hand, replacing windows might be the answer. Everything depends on the house, and every house is different.
According to the U.S. Department of Energy (DOE), heat loss through windows can account for anywhere from 10% to 25% of a homeowners’ heating bill. In climates where air conditioning is in steady use, the DOE says that energy-efficient windows can reduce electricity consumption by 10% to 15%.
But, if the house is an obvious candidate for new windows and doors. What exactly does “energy efficient” mean?
Before the American Recovery and Reinvestment Act of 2009 was passed, “energy efficient” meant Energy Star–qualified. That qualification is and was based on ratings certified by the National Fenestration Rating Council. NFRC’s ratings take into account some or all of five criteria: U-factor, solar heat gain coefficient, visible light transmittance, air leakage, and condensation resistance.
In 2006 and 2007, “Energy Star–qualified” meant a window was eligible for the $200 federal tax credit available at the time. Many windows qualified. According to the DOE, Energy Star–qualified windows have a 53% share of market. One reason is that Energy Star takes a flexible approach: It qualifies windows by matching NFRC ratings with one of four specified climate zones.
But to be “energy efficient” enough to qualify for the federal tax credit under the ARRA, climate zones are beside the point and only the U-factor and solar heat gain coefficient matter:
U-factor measures resistance to heat flow on a 0 to 1.2 scale. The lower the rating, the greater the resistance. To qualify for tax credits, a window or door’s U-factor must be 0.30 or less, regardless of climate zone.
Solar heat gain coefficient measures how well the window blocks heat gain from the sun. SHGC is measured as a number between 0 and 1. The closer to zero, the more efficient the window. To qualify for credits, the SHGC of the unit must be 0.30 or less.
The “0.30 / 0.30” standard is stringent. So stringent, in fact, that skylights, which make up between 2% to 3% of the total fenestration market, have been all but eliminated for tax credits.
As for storm doors and storm windows, some manufacturers assume their products qualify because they did so under the 2006/2007 act. Others are more cautious. A final IRS ruling is expected later this year.
And when it comes to windows, it is estimated that only between 15% to 20% of available product types qualify for tax credits using 0.30 / 0.30. But, for homeowners, the low cost of a window job relative to more expensive renovations means that tax credits are a powerful incentive. If it’s a $5,000 project and they’re getting $1,500 back, that could really influence a decision.
To ensure that the door or window you are ordering qualifies, check for the NFRC label or check the NFRC’s directory of certified products. Another place to look is your door or window supplier’s website. Many provide rating information for individual products.
Some, such as Ohio door maker ProVia Door, feature downloadable NFRC labels. When the homeowner goes to file IRS form 5695 [PDF], they will need to submit that label. The supplier may also offer a letter certifying that the windows or doors qualify for tax credits under the ARRA. Those letters are recommended but are not required by the IRS.
The tax credit is applied to the amount of the sale minus installation cost, so homeowners need to know that installation cost. Some window replacement companies already post those costs on their websites. For example, 1-800-Hansons, a windows and siding company in Madison Heights, Mich., states on its site that “16% of the contract price of Hansons’ installation jobs is typically allocated to installation labor.” So for a $10,000 job, the tax credit would be applied to $8,400, and result in a $1,500 credit.
Insulation and Weatherization
Dollar for dollar, insulation and weatherization deliver more bang for their energy-efficiency buck than almost any home improvement. Happily for homeowners, the American Recovery and Reinvestment Act’s $1,500 tax credit can be applied, in theory, to a broad array of materials and methods — batts, spray foam, loose-fill; wraps, sealants, tapes, and flashing; even structural insulated panels — that are primarily designed to reduce the heat loss or gain of the nation’s estimated 80 million under-insulated homes.
On its surface, the insulation provision is simple: Homeowners can take a tax credit of 30% of the cost of materials only, to a maximum of $1,500, for insulation work performed this year and next. That’s triple the credit available since 2005. The sum of the resulting “insulation material used in layers” must meet the R-values prescribed by the 2009 International Energy Conservation Code (IECC). The recovery bill is a great opportunity to move forward toward a more energy-efficient housing stock.
Things start to get sticky with the IECC. Published by the International Code Council (ICC) and based on goals set by the U.S. Department of Energy, the 2009 IECC will produce 15% in energy-efficiency gains over the 2006 version, according to the DOE.
Regarding insulation, the 2009 IECC is considerably tougher than the previous version, particularly in colder parts of the country, where R-values (thermal resistance) are now as high as 21 for wood frame walls, 38 for floors, and 49 for ceilings and attics. The new code requirements make it tough for builders to do things as usual and still meet the code. This is especially true in remodeling, when insulation is sometimes compressed into small cavities, potentially compromising R-value.
Numerous products meet the specified R-values, including fiberglass and cotton batt insulation with ratings of R-21 or higher that can be installed in a 2×6-framed wall cavity, plus several loose-fill products using fiberglass, cellulose, or other materials that can be installed behind netting in open framing or used to fill cavities in existing walls. Such products likely won’t be as inexpensive as the old mainstays, however, or necessarily prove as easy to find, at least based on a few calls to building supply retailers.
In some cases, in fact, meeting the prescribed R-values becomes almost cost-prohibitive. Ironically, it may even deter homeowners from choosing what many green remodeling advocates believe are the best (but most expensive) insulating products: water-based spray foams that expand to fill gaps and holes.
There are also concerns about the labor component of the ARRA — more specifically, the absence of a labor component. Why the tax credit doesn’t cover labor costs mystifies some industry sources. It’s still a wonderful credit, but insulation materials don’t get to the effective R-value without labor.
Perhaps more importantly, from the safety and efficacy perspectives, insulating existing homes is different from insulating new homes, where there are no obstructions or hidden conditions. The wrong product can be selected for the wrong location, or placed too close to the recessed lights, or not blown to the specified depth. Gaps, cracks, and openings are left unsealed. Inadequate ventilation can allow harmful substances to build up. Installers have to be a lot more attentive when they’re doing retrofit work. Besides having enough knowledge to be able to specify the right insulation product — and even know about new products — insulating in conjunction with remodeling work takes more time, and the right kind of person.
The federal tax credit is 30% of the cost of materials only, up to $1,500, per household for insulation and other improvements combined. Labor is excluded, so the invoice should separate materials and labor. It must be installed between Jan. 1, 2009 and Dec. 31, 2010 and must meet the specifications of the 2009 IECC. The materials’ primary purpose must be to insulate, and must be expected to remain in use for at least five years or have a minimum two-year warranty. Check with manufacturers for eligibility and to obtain certifications for record-keeping.
Roofing: Tax credits can offset upgrades to energy-efficient metal and asphalt roofs
From mechanical equipment in the basement to insulation in the walls, there are plenty of opportunities for homeowners to invest in building products that will help them earn tax credits. At the top of the list, in many situations, are high-efficiency roofing materials. The American Recovery and Reinvestment Act (ARRA) legislation may inspire homeowners to upgrade their roofs because they want to — not because they have to.
For the purposes of the 2009 ARRA tax credit legislation, qualified roofing materials include metal roofing and asphalt shingles treated with coatings or cooling granules specifically designed to reduce heat gain.
Materials must be “placed in service” between Jan. 1, 2009 and Dec. 31, 2010, and must be expected to last for at least five years. Taxpayers may claim only materials costs for the tax credit. Labor is not included. All eligible products must meet Energy Star requirements for roofing materials, and all Energy Star roofing materials in the metal and asphalt categories qualify.
The energy efficiency of reflective asphalt shingles and metal roofing is built into the products themselves. Manufacturers say that installation for these materials is the same as with standard roofing products. Metal roofing can be installed over existing shingle roofs, eliminating the waste created by roof tear-outs. Metal roofing has a misperception of being very heavy. It’s actually one-third the weight of an asphalt roof in many cases. And by installing metal over an existing asphalt roof, it can be very environmentally friendly. It’s estimated that 22 billion pounds a year of asphalt shingles are put into landfills.”
With respect to the new legislation, upgraded roofing carries a green message, since a properly installed energy-efficient roof can reduce a home’s heating and cooling requirements. However, one aspect of the ARRA legislation that is not clear is whether other types of cool-roof products qualify for tax credits. Manufacturers GAF and CertainTeed, as well as many others, supply rolled roofing materials such as TPO membranes and other cool-roof products for installation on flat and low-slope roofs. The materials, which are often white, can be highly reflective and reduce roof and attic temperatures.
Because the legislation specifically calls out asphalt shingles and metal roofs, industry organizations such as the International Code Council, which developed the International Energy Conservation Code, say that those are the only categories eligible for the credit of 30%, up to $1,500.
That said, Diane Gola, marketing communications manager for GAF, recommends visiting the Resources page of the Cool Roof Rating Council’s website at www.coolroofs.org. The site’s Codes & Programs page lists states where local tax credits or utility rebates may be available for cool-roofing materials beyond the asphalt shingles and metal roofing products outlined by the ARRA 2009 legislation.
(Exerpted from Remodeling Magazine)
Tags: building envelope, energy efficiency, Remodeling, stimulus