I just saw this solar standing-seam metal roof system in one of my trade magazines!  Not only does it look great, but it will qualify for federal stimulus rebates of up to 30% of the cost.

FusionSolar™ is a thin-film solar laminate for commercial and residential applications that’s integrated with standing seam metal roof panels. Manufactured for Custom-Bilt Metals by Uni-Solar®, the world leader in thin-film technologies and solar electric laminates, FusionSolar is bonded directly to the standing seam roof panels in the factory. The flexibility and durability of the laminate makes it ideal for metal roofs, where expansion, contraction and curving are considerations. No roof penetrations are required, and because the material is lightweight, no additional structural support is required.

A COMPLETE SYSTEM

FusionSolar is installed as a complete system with all the necessary components. It includes all the electrical components, detailed schematics and specifications that an electrical subcontractor needs for installation.

No specialized solar installers are required. Sheet metal and roofing professionals install the standing seam roof with the thin film already attached. Then an electrical subcontractor completes the installation.

Once installed, the system will begin generating clean, renewable and dependable electric power. Working together with public utilities, the system draws electricity from the grid if needed. Those in the structure use electricity as they do now, and won’t notice any difference.

HIGHLY DURABLE

The laminate bond that’s created between the thin film and the metal roof has been tested to withstand winds of 160 mph. Once installed, the laminate can be safely walked on without causing damage.

FASTER RETURN ON INVESTMENT

Offering a lower cost-per-watt than roof-mounted polycrystalline panels, FusionSolar will pay for itself in 10 years or even less. Once installed, it’s a fixed cost that’s immune from rate hikes.

AESTHETIC DESIGN

The thin-film laminate can cover all of a standing seam roof or just a portion. Lying flat and flush with the surface, the thin film flows with the roof profile, even on curved designs.

NO ROOF PENETRATION REQUIRED

Unlike large polycrystalline panels that are attached by drilling through a roof, FusionSolar is fused directly to the standing seam panel. There’s no roof penetration or possibility of leaking as a result of the installation.

HIGHLY EFFICIENT

Compared to other solar technologies, FusionSolar thin-film laminate achieves a higher relative efficiency under high temperatures and low light.

ENVIRONMENTALLY SAFE

Electricity generated by FusionSolar produces no pollution, replacing electricity that is most often created by burning coal.

Really?   That’s what President Obama said when promoting new tax credits for energy efficiency. He was talking about the so-called “Cash for Caulkers” program (more officially known as Homestar). It’s a program that’s been proposed by both venture capitalist John Doerr and former President Bill Clinton that would offer homeowners money for weatherization as part of another stimulus package. The program would give tax breaks to pay for upgrades and energy audits.

It’s a great idea — it creates business, therefore creates jobs and makes homes more efficient. People like to talk about building more energy efficient homes, but the reality is that even building every one of the 500,000 or so homes being built more efficiently will make only a tiny dent in energy usage compared to the potential of upgrading the millions of existing homes. Supporters of the program, which is apparently being considered at the White House, say it would lead to retrofits of 5.9 million homes and create 500,000 jobs.

The Home Star program — or “Cash for Caulkers” as some have dubbed it — could provide a big boost to home energy efficiency through billions in tax credits and other incentives over two years. President Obama came out in favor of the program in December as part of the administration’s plan to drive job creation, but the final approval has to come from Congress. The exact size of the program is uncertain, but Efficiency First, a trade association started in early 2009 for home energy-efficiency contractors that helped craft Home Star, put the price tag at about $23 billion.

What would the money go for? Here’s how Efficiency First breaks it down:

•$6 billion in funding for homeowner incentives for those who do at least two significant weatherization projects from a list of 10 eligible project types such as air sealing or insulation. Completing two projects would result in up to $2,000 in subsidies and completing four could earn $3,500, capped at 50 percent of project cost.

•$12 billion for homeowners who undertake a weatherization project that reduces energy consumption by at least 20 percent. A 20 percent reduction would earn a $4,000 subsidy and each additional 5 percent would result in another $1,500 subsidy, with funding capped at 50 percent of project cost.

•$2 billion for program administration, including audits of some projects to confirm they’re meeting the energy improvements

•$3 billion in incentives to encourage retailers to support the program to build awareness and educate consumers

Efficiency First says the program would result in 5.9 million residential energy retrofits and create more than 500,000 jobs new jobs in construction and related industries. “Unemployment in the construction industry is double the rest of the economy,” says Matt Golden, founding president of Efficiency First. “Considering the underreporting in this industry, it’s probably really up in the 20s. These really are smart jobs, because they’re long-term.”

The National Association of Home Builders estimates that 11,000 jobs; $527 million in wages and salaries; and $300 million in business income are generated by every $1 billion in new remodeling and home improvement activity. “That’s a huge impact just in the short run, and in the long run, the energy savings for participating homeowners can be quite significant,” says NAHB Chairman Joe Robson.

(Adapted from an article in Professional Remodeler Magazine)

“We anticipate that through the end of our first year of operation we’ll be able to meet all of the demand for residential application,” said Jack Ruderman, director of the state’s Sustainable Energy Division. “If you’re a homeowner and you want to get a system, you’re in great shape. After July (of 2010, when the program must be renewed), it’s harder to predict.”

The total installed capacity of the applications is 641 kilowatts, or more than half a megawatt.  This is tiny by utility standards: A small power plant has a capacity of 15 megawatts, or 23 times the total of all these applications, while a big one like Public Service of New Hampshire’s Merrimack Valley plant in Bow can generate almost 800 times as much electricity.

On the other hand, it is a huge expansion of the amount of the state’s “distributed power,” a term for electricity generated at the site it is used rather than by large, centralized power plants. Aside from the pollution benefits of coming from solar or wind power rather than burning fossil fuels, this electricity can reduce the need to build more power lines to carry power from power plants.

These are different from large-scale alternative energy programs like the 25-megawatt Lempster Mountain wind farm or the 51-kilowatt solar array that PSNH placed on its Manchester headquarters.

In the Nashua region, 15 applications had been turned in by mid-December, totalling 44 kilowatts; all but one are for solar panels. They are requesting $73,000 in rebates, roughly one-fifth of the total $378,000 cost of the projects.  Requests for applications came in from all over the state – from Nashua to Newfields, Lyndeborough to Laconia, Pelham to Portsmouth.  Facilities ranged in cost from $3,600 (a tiny, 960-watt solar system in Gorham) to $52,422 (a wind tower in Orange).

Most applicants will receive the maximum rebate of $6,000, although no rebate could be more than half the installed cost.  Money for the rebates comes from the state’s renewable portfolio standard, which gets money from the state’s utilities, mostly through what are called alternative compliance payments.  The total amount collected is about $4.5 million, so there’s more than enough to cover all home rebates, Ruderman said.

That money also will be used for future commercial rebate programs, which are going to be far more expensive, and perhaps even projects contracted out by the Sustainable Energy Division.

 David Brooks,  Nashua Telegraph.

Geothermal Heat Pumps:

Use of geothermal (from Greek roots geo for Earth and thermos for heat) for heating and cooling has been around for hundreds of years. But public interest in climate issues, the 2009 tax credits, refined equipment and technology, and an awareness on the part of the industry to help consumers understand the technology have helped geothermal heating and cooling to become a real option for many U.S. homeowners.

“It’s how other countries have heated for a long time; we’re just refining it to best suit our market’s needs,” says Brian McVay, general manager of Neil Kelly Designers/Remodelers’ home performance and home repair division, in Portland, Ore. “It’s a fantastic way to heat and cool a house, with huge energy savings.”

The ground just below the Earth’s surface is a fairly constant, comfortable temperature. There are three geothermal systems that can take advantage of that temperature: In a closed-loop system, the ground either heats or cools a water and antifreeze solution held in buried plastic pipes, which is then used to heat or cool the air in a structure; an open-loop system uses water in a pond or well as a heat source; and direct expansion uses a buried coil of copper tubing as the heat exchanger. Any of these systems may be eligible for tax credits as long as it meets Energy Star specifications (see the chart).

“A geothermal heat pump is twice as efficient as a regular heat pump and [costs] a little under twice as much to install,” says Matt Hoots, owner of The Hoots Group, a green builder, renovator, and performance contractor in Atlanta. “But you’re immediately saving money. It makes sense without the tax incentives and it makes even greater sense with them.” (Systems placed in service in 2008 are eligible for tax credits but are subject to earlier legislation and, therefore, tax credits for that equipment are capped at $2,000.)

Though geothermal requires electricity to run, it doesn’t use as much electricity as your standard furnace, and it runs at a much lower speed, thus conserving energy.

As with any home system, before installing a geothermal heat pump, do your homework. With geothermal [as opposed to one run on fossil fuels] the system has to be sized correctly. It has to be big enough, but it’s critical not to make it too big.”

The key to making geothermal efficient is to upgrade the home’s envelope. Though it’s not a requirement for the tax incentives, one builder uses a network of trade partners to conduct energy audits. They want to make sure that the building loses as little heat as possible before installing geothermal.

A qualified geothermal heat pump nets a taxpayer a 30% tax credit. The system may be installed in a new home or as part of a remodel, and the home need not be the homeowner’s principal residence. Equipment used only for heating pools or hot tubs is not eligible. In cooperatives or condos, owners/shareholders are entitled to a tax credit based on their share of the spending.

Solar Water Heaters: Benefits Begin to Outweigh Costs

Investments in renewable energy, such as solar water heating, should prompt home­owners to do good while doing well. Doing good is reducing your carbon footprint by installing solar. Doing well has to do with what your savings are actually going to be.

Despite system costs sometimes upward of $12,000, “doing well” is getting easier. Taxpayers can stack state, local, and utility-level incentives on top of the 30% federal tax credit created by the American Recovery and Reinvestment Act, offsetting initial costs by thousands of dollars.

Individuals may claim a tax credit of up to 30% of the total cost of a solar water heating system (including labor, piping, wiring, etc.) installed from 2009 to 2016. To qualify, the system must be Solar Rating and Certification Corp. certified, and must provide at least half the energy used by the home to heat water. Systems used to heat swimming pools are not eligible.

Solar: Does it really offer a golden opportunity?

Welcome to the new frontier. “The solar industry is in its infancy and it’s a tremendous opportunity for remodelers,” says Jeff Shubert, director of global marketing for Suntech Power, a solar panel manufacturer. Yet, despite a 20% to 25% price drop for solar panels and the passage of the American Recovery and Reinvestment Act (ARRA) with its tax credit incentives, demand has been low. Consumers are holding off, nervous about the still shaky economy. The hope is that as awareness of environmental issues grows along with interest in the “green” movement, the tax incentives will help push consumers into investing in sustainable and renewable energy.

The ARRA creates investment tax credits for “residential energy efficient properties,” such as solar, wind, and fuel cell power generators, and geothermal heat pumps.

Taxpayers are eligible for a 30% tax credit on the cost of qualified solar systems (also called photovoltaic or PV systems) used to generate electricity for their primary residence in the U.S. (Solar pool heaters are not eligible.) There is no cap on the credit amount (as there was in earlier bills).

The “cost” to the consumer on which the credit is based includes site preparation, assembly, original installation, and piping and wiring that might connect the device to the home, as well as labor and markup. According to the April IRS notice 2009-41, “the credit applies to residential energy efficient property placed in service before January 1, 2017.”

While there’s no Energy Star–label equivalent for solar panels, they must have a UL or OSHA certification. Although there is no set standard for efficiency, currently the best panels have about 15% efficiency, i.e., 15% of the energy attracted from the sun is converted into electricity. To get the credit, consumers should keep a copy of a manufacturer’s certification in their files and fill out IRS form 5695 [PDF]. Tom Chiavetta, a CPA and director at Freed Maxick Battaglia based in western New York, who has been focusing on the ARRA, says that consumers should “show their accountants contractor backup support with regard to the work done and any paperwork they received from the manufacturer that shows the property meets the standards for the credit.”

Yes, solar systems have come down in price, but it still could be considered an expensive endeavor for many homeowners. According to the Solar Electricity Global Benchmark Price Indices, in May 2009 a standard 2 kWh roof-mounted residential unit, installed, cost about $17,645. (In addition, the index breaks out prices for a sunny climate at 36.88 cents/kWh and a cloudy climate at 81.14 cents/kWh). “The average home,” says Ron Kenedi, vice president of Sharp Electronics’ solar energy solutions group, “requires about 4,000 watts [or 4 kW] in solar panels.”

“Most people cannot afford to install the amount of solar PV that they would need to offset their current energy bill,” says Bob Fleming, president of Classic Remodeling & Construction, in Johns Island, S.C., who is about to launch a new company focused on energy audits and upfits.

But price is not the only deciding factor. With all the paperwork as well as the learning curve for both consumer and remodeler, prospective clients will be looking for professionals who they feel confident in and who can offer them a hassle-free experience.

To install PV systems, you need to “look at the sun, the home’s electric bill, the size of the house,” Shubert says. “There’s a skill to designing the system that is right for the property without taking advantage of people.” Remodelers need to take care to hire out work to qualified installers.

 “Installations and the tax credit processing is too much of a burden for a small contractor,” says John Berger, CEO of Standard Renewable Energy, an energy services company based in Houston. “Putting on a solar system is not as straightforward as you think.” SRE has a staff that deals with all the administration involved — permits, tax rebates, communications with local utilities, licenses, accreditations, manufacturer’s certifications, financing.

Homeowners are eligible for a 30% tax credit on the cost of qualified solar systems for their primary residence. There is no cap on the credit amount (as there was in earlier bills). The “cost” to the consumer on which the credit is based includes site preparation, assembly, original installation, and piping and wiring that might connect the device to the home, as well as labor and markup. According to the April IRS notice 2009-41, the credit applies to residential energy-efficient systems placed in service before Jan. 1, 2017. While there’s no Energy Star–label equivalent for solar panels, they must have a UL or OSHA certification. To get the credit, consumers must keep a manufacturer’s certification for their records and fill out IRS form 5695.

Wind: Shorter Payback, Limited by Nature

Soaring at least 30 feet above everything within a 500-foot radius and requiring abundant open land, residential wind turbines are too self-limiting by nature, among other factors, to become the granite countertops of renewable energy. But generous tax credits make wind an attractive option for certain remodeling clients in key markets.

A small wind energy system typically costs $3,000 to $5,000 per kilowatt for a grid-connected installation, according to the American Wind Energy Association (AWEA). The American Recovery and Reinvestment Act of 2009 (ARRA) is “a real important milestone” for residential wind power, says Mike Bergey, president of Bergey Windpower, of Oklahoma, whose small turbines are installed in all 50 states and over 100 countries.

Federal tax credits that had been capped at $4,000 can now be as much as $15,000 when applied to a 10 kW Bergey turbine that powers a 2,500-square-foot home. Even without state incentives, that credit alone can yield a payback within 10 to 30 years, depending on wind resources and electricity prices, Bergey says.

U.S. sales of “small wind” — turbines with capacities of 100 kW or less — were $77 million in 2008, 78% higher than 2007, and will grow 30-fold within as little as five years, says the AWEA. By 2010, 13 million U.S. homes will be candidates for the turbines: that is, connected to the utility grid, on at least a half-acre of land, and with a Class 2 or better wind resource.

Besides public acceptance, Ron Stimmel, the AWEA’s small-wind advocate, identifies three policy issues that can hinder residential growth: absent or restrictive permitting regulations, utilities’ net metering policies, and grid interconnection rules and policies.

Bottom Line

The ARRA provides a 30% uncapped investment tax credit on the purchase and installation of qualifying small wind electric systems with rated capacities of 100 kW or less. Systems must be installed between Jan. 1, 2008 and Dec. 31, 2016. Other provisions, such as a manufacturing tax credit, are expected to indirectly benefit residential wind power through increased competition and lower prices.

(Exerpted from Remodeling Magazine)

HVAC Systems

The American Recovery and Reinvestment Act’s energy-efficiency tax credits include HVAC systems. Installers should recommend a system based on several factors, including the orientation and shading of the house, the window coverings, and the homeowner’s lifestyle.

Remodelers and homeowners should also consider the effect of the HVAC installation on the home’s air quality and comfort, especially when planning an addition or a major remodel.

Efficiency Levels

The efficiency level for qualifying HVAC equipment is high — in most cases higher than current Energy Star standards — and comes with a premium price tag. HVAC contractor Jim Firszt, HVAC consultant with Mid-American Heating & Air Conditioning, in Spring Grove, Ill., says that customers who have just begun to understand Energy Star ratings may be confused about the tax credit standards. Some experts say that the higher cost of stricter-than-Energy-Star equipment is limiting.

Manufacturers and contractors say that due to the coverage and promotion of the larger stimulus package, homeowners are generally aware of tax incentives for energy-related improvements. Before the tax credits, most homeowners who chose high-efficiency equipment were owners of large custom houses. Now, for many people who are ready to do projects, it’s getting them to make the jump to the next level. The $1,500 credit takes a big bite out of the $6,000 to $7,000 cost of an average system.

Bob Swilik, senior manager of residential and light commercial systems product strategy for Carrier Corp., in Farmington, Conn., says that, on average, the high-efficiency equipment might cost 30% to 40% more than less-efficient equipment but the efficiency trade-off is worth the premium. He says that upgrading from a 13 SEER to a 16 SEER air conditioner provides about 25% better efficiency. “But, when you’re replacing a system, you are typically replacing an existing 8 SEER or 10 SEER. Then you’re looking at a 40% to 50% saving on utility bills,” Swilik says.

In addition to the tax credits, homeowners can also take advantage of HVAC manufacturer rebates and contractor discounts and incentives.

ADVANCED MAIN AIR CIRCULATING FANS: The IRS has yet to clarify an issue with this item, which is listed as qualified for the tax credit. An advanced main air circulating fan, also known as an ECM fan, is a variable-speed blower fan used in gas, propane, or oil furnaces.

For 2009, the advanced air circulating fan is still listed as a separate item that qualifies for the 30% credit under the $1,500 cap. However, says Charlie McCrudden, vice president of government relations for the Air Conditioning Contractors of America (ACCA), some homeowners could claim that an 80% AFUE furnace equipped with the ECM fan qualifies for a credit of the full 30% of the cost of the furnace up to the $1,500 cap.

In response to a question about this on its website, Energy Star says: “If the fan is qualified, but the furnace is not, you will most likely NOT be able to take 30% off the cost of the entire furnace. This FAQ will be updated as soon as the IRS issues guidance on this issue.”

ACCA has also asked the IRS for clarification on whether homeowners can claim the full invoice for an HVAC installation, even if some of the equipment does not qualify. If a contractor installs a qualified furnace but unqualified A/C, does the IRS need an itemized invoice? How does the taxpayer treat the situation with multiple installations, some qualified, some not qualified?

This could happen for certain geographic locations. For example, in Michigan where it is cold, it makes sense to install a 95% AFUE furnace, but an owner might not choose to pair it with a 16 SEER A/C. Most HVAC contractors provide a single invoice for the full installation and may want to avoid itemization. However, another option is to create two separate invoices. The tax credit applies to both the materials and installation of HVAC systems.

Many manufacturer websites have lists of qualifying equipment. In addition, the Air-Conditioning, Heating, and Refrigeration Institute has a directory (www.ahri.org) where contractors can enter specifications and confirm that equipment meets the standard.

EFFICIENCY LEVELS: HVAC consultant Jim Firszt points out that air conditioning equipment must meet both the SEER and EER to qualify. “If it meets 13 EER, it will automatically meet 16 SEER. But not the other way around,” he says.

FURNACE CHOICE: According to Firszt, the 95% efficiency level for a gas furnace is easiest to reach, but it’s not always the best choice, based on climate. “In the northern states, [clients] get their money back sooner, but for southern states, A/C or heat pumps are better.”

SYSTEM COMBINATIONS: Contractors need to install the right combination of HVAC equipment to meet the efficiency levels. For example, matching the A/C condenser outside with the right furnace or air handler inside.

SPACE CONSIDERATIONS: John Hurst, vice president of product management with Richardson, Texas–based Lennox, says that many product installations have space constraints, particularly for the furnace and air handler. Local codes governing chimney size for venting and make-up air will also affect installation parameters. Frederick Air sales manager John Poyle offers an example: “If my house has a 3-ton air conditioner, and I want a 20 SEER unit, a manufacturer will say, this unit comes up to 20 SEER. But I may need a 5-ton coil to get that 20 SEER efficiency from the unit. But that coil is massive and won’t fit in my basement because of the low ceiling.”

To choose the best solution for the customer, make sure that the HVAC contractor reviews existing conditions, including the orientation of the house, shading, and existing insulation, as well as lifestyle considerations such as how the customer uses the system and what changes they plan for the future.

Water Heaters

In many homes frequent and liberal hot water use is essential, but reducing energy consumption is becoming a priority. Homeowners who want to upgrade equipment when those paths cross will have several tax credit–friendly options available.

Tankless units are likely lead water heater retrofits, simply by virtue of availability. Few gas storage tank or condensing water heaters on the market currently qualify for tax credits. “Most tankless models qualify, but few manufacturers have a conventional-style product that qualifies,” says David Chisolm, brand manager for AO Smith. The company is one that does offer a residential storage-type water heater that meets the legislation’s thermal efficiency requirements.

Natural gas, propane, or oil residential water heaters with an energy factor of at least 0.82 qualify (higher is better). Some units may alternatively be measured by thermal efficiency, which must be at least 90% to qualify. These requirements apply to storage-style or tankless heaters. Electric heat pump water heaters with an energy factor of 2 or higher are also eligible. Homeowners can claim the standard tax credit and recoup 30% of the cost, including labor, up to $1,500.Doing

While many storage water heaters meet Energy Star’s 0.67 energy factor requirement, units must meet a higher energy factor of 0.82 to be tax credit–eligible. Currently, no Energy Star–rated storage water heaters meet that specification.

Some storage models do meet a different tax credit requirement of having 90% thermal efficiency. Energy Star does not give consideration to thermal efficiency, which is traditionally used to rate commercial units. Manufacturers stress that commercial water heaters should not be installed residentially, for safety reasons. According to the Consortium on Energy Efficiency, commercial units are not required to have flammable vapor ignition resistance (FVIR) features, which provide safety in residential settings.

That said, there do exist storage water heaters that are measured by thermal efficiency and that meet all necessary residential codes. Two models are in AO Smith’s Vertex line. “The technical definition of a ‘residential’ unit is a water heater operating at 75,000 BTU and below,” explains brand manager David Chisolm. “Our models in this category are over 75,000 BTUs, which is why they are rated with thermal efficiency instead of energy factor. However, they were designed specifically for residential applications, and meet all codes to be installed residentially.”

Chisolm adds that while the company’s Vertex products do not feature FVIR, neither do many tankless water heaters. Tankless units and others like the Vertex models use advanced heat exchangers that place them in different categories from traditional storage tank water heaters, and thus have different safety requirements.

Venting is particularly important with installation, for functionality and cost reasons. Jack Banker, tankless product manager for Rheem, says that the stainless steel venting used with most tankless units often increases the cost. Homeowners will notice this increase when they compare it to tank models they see in stores, which cost less and use less expensive PVC for venting.

(Exerpted from Remodeling Magazine)

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)

But what, exactly, does the legislation say? Do the credits apply only to principal residences? Can owners of condominiums or cooperatives qualify? Does the Internal Revenue Service define “cost” to include labor as well as materials? And what kind of documentation is required to claim the credits?

The posts our section on the Stimulus answer these and a host of other questions relating to the ARRA. Our posts will include a detailed description of requirements in three major categories:

1. Building envelope (roofing, insulation, and window and door replacement)
2. HVAC systems (boilers and furnaces, biomass stoves, and water heaters)
3. Renewable energy systems (geothermal heat pumps, and solar-, wind-, and fuel cell–powered electricity generators).

The chart summarizes requirements for each category, which are treated in more detail in separate sections. Expanded coverage, including IRS rules updates and interpretations, can be found at www.thestimulussource.com. 

Used properly, the ARRA gives remodelers a way to jump-start their businesses while helping you, the homeowner, to not only save money but create a more energy-efficient future.

(Excerpted from an article from Remodeling Magazine)