Grand County Living Magazine - The Green Parade: Renewable Energy Rebates

THE GREEN PARADE:
Renewable Energy Rebates - Where Locals Can Get $$ Back
By Cyril Vidergar

Green Profiles Icon Integrating high-efficiency and renewable energy systems into residential or commercial construction is not a new frontier. Use of such systems as a viable alternative, however, has become more attractive through recent state and federal income tax credits and upgrade cost rebates. In Colorado, the state has also partnered with many local jurisdictions and utilities to encourage lowenergy consumption and retro-fit installations through these rebates and tax credits.

The Governor’s Energy Office (GEO) has $9.5 million available to fund Energy Efficiency and Conservation Block Grants (EECGB) for Colorado’s Non-Eligible Communities from ARRA (American Recovery and Reinvestment Act). New interest groups have formed, researching issues such as solar, home weatherization, biomass, hydro, geothermal, and wind power.

Xcel customers may receive rebates under the GEO’s Insulate Colorado Program, as well as Xcel’s own rebate programs. Available federal incentives include exemption of utility rebates from the definition of “taxable income,” and direct tax credits under the ARRA and the Energy Improvement and Expansion Act.

Insulate Colorado is a turn-key rebate program for existing home insulation projects, rebating up to 20 percent of job costs or $300 on insulation to R-value 38 (attic) and R-value 13 (exterior wall). Xcel’s rebates revolve around installation of 92 percent AFUE-rated (U.S. Dept. of Energy Annual Fuel Utilization Efficiency rating) furnaces and 84 percent AFUE boilers, rebating up to $250 per installation to residential or small business customers.

An additional $25 is available for programmable thermostat installs. The GEO and Xcel programs all require a state-certified contractor to purchase and install the specific products. Locally, at least two contractors are already GEO-certified or are seeking certification to process the rebates: Alpenglow Heating and Simply Efficient, LLC.

Federal income tax credits up to 30 percent of the upgrade cost are available from the IRS for energy-efficient improvements within a home’s footprint, as well as HVAC and water-heating equipment installations, up to an aggregate cap of $1,500. (These incentives apply to equipment purchased during or after 2009.) Performance and quality standards vary by applied technology, from electric heat pumps to biomass stoves; customers should visit Energy Star resources listed for further details.

Federal income tax credits up to 30 percent of upgrade costs are also available from the IRS for residential renewable energy improvements. Credits ranging from $2,000 to $4,000 and a few that are not limited to a percentage of upgrade costs, e.g., wind turbines and geothermal installs, are offered for use in technologies ranging from solarelectric systems to fuel cells with a minimum of 0.5 kilowatt capacity.

Most of the federal incentives survive until 2016, but the GEO’s offerings generally sunset sooner. Local residents are also encouraged to petition Grand County and Mountain Parks Electric officials to follow the lead of other western slope jurisdictions in partnering with the GEO to provide broader local incentives for sustainable building practices.

This article provides only brief summaries of certain available options; it should not be considered legal or tax advice. Customers should consult tax professionals and appropriately qualified contractors, e.g., Colorado Solar Energy Industries Association (CoSEIA) and GEO-certified professionals, as well as the specific agencies and program details, before beginning any project. All things considered, though, it’s better to have options and a little carrot to pursue than to watch your hard-earned dollars go down the drain, out an unsealed door or window, or overlooked as an income tax break.

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