Tax Credits for Cheap Energy: Is it Really a Bargain?

There is of course the solar panel option that is out there as we move forward in this “green” economy. Under the 2007 Energy Bill that was passed you as the consumer can earn up to 2,000 dollars in tax credits by installing photovoltaic panels. Forbes magazine says this can account for about thirty percent of your installation costs. It is questionable as to whether thirty percent of your installation costs is really worth it at this juncture. This being the case you may want to hold off until the costs of these panels goes down. I still don’t see many average Joes in my neck of the woods investing in this energy efficient tip.

Geothermal is another thing that the Congress seems to love to promote nowadays as well. With the 2007 energy bill that was mentioned above Congress approved a deal for it. This was stirred by private sector entities like Google who decided to invest over ten billion in more geothermal friendly companies. Installing geothermal heating pumps in your house can save you up to five hundred dollars during the two year long tax credit extenders. Five hundred dollars over two years doesn’t sound like much, but according to EnergyStar over time installing a popular form of energy like geothermal to heat your home can cut down on your energy costs by as much as ten percent each month. Insulation itself can also be eligible for a credit, but please make sure that the person who promises to put in the insulation actually does it, check the walls with your own hands, eyes and common sense. Don’t just take someone’s word for it. Geothermal is becoming more and more popular as the option of natural gas and that steam rising out of the ground becomes more viable.

According to another law passed in 2006 a tax payer can receive a ten percent credit for buying an EnergyStar approved metal roof as noted by the Internal Revenue Service. Most people I know have to take out a pretty hefty loan just to get a new roof of course so the return on your investment would be very poor more then likely. Roofs can cost more and more depending on what the weather is like and how hot the weather is. The working crew is going to ask for more money if the temperature is uncomfortable.

Storm windows/storm doors were also eligible for a five hundred dollar credit until December 2007, but Congress for whatever reason seemed to want to drag their feet on extending these. The windows and doors are the least expensive items on this list so here he would see your best bargain. Storm doors can run to three or four hundred dollars, but if you live in an area with a lot of rough weather they can be bothersome to replace of course and thus expensive.

Sources:

Ashlea Ebeling. “Do Solar While The Credit Shines.” Forbes Magazine.

http://www.forbes.com/business/forbes/2005/1212/192.html

Eric Johnson. “Green activists: Thank heaven for four dollar gas.” Wall Street Journal.

http://blogs.wsj.com/environmentalcapital/

Internal Revenue Service. “Treasury and IRS Provide Guidance for Energy Credits for Homeowners.” IRS.gov

http://www.irs.gov/newsroom/article/0,,id=154657,00.html

Tax Incentives “Tax Incentives Assistance Program.” TIAP.

http://www.energytaxincentives.org/consumers/insulation_etc.php