How to Pay for It … You CAN Afford It

Weatherization does take an initial investment.  Many very effective projects, however, are relatively low-cost and easy to install--meaning you can see a quick return on that investment.  If you have a particularly difficult time paying energy bills, you may be qualified to receive funds through the Weatherization Assistance Program.  Federal tax credits are also available for weatherization projects.

Weatherization Assistance

Through the Weatherization Assistance Program, low-income households save an average of $437 a year on energy bills depending on fuel prices.  The Weatherization Assistance Program (WAP) helps low‐income North Carolinians save energy and reduce utility bills by educating people about energy efficiency, providing professional audits, and completing minor weatherization repairs for clients.  The program is administered through the North Carolina Energy Office in the N.C. Department of Commerce. Program funding includes $9.7 million annual funding from the U.S. Department of Energy and nearly $132 million from the federal Recovery Act.

Weatherization assistance is available for families with incomes below 200% of poverty guidelines, or those receiving Work First or Supplemental Security Income (SSI) assistance.  It is also available for single‐family homes, apartments, condominiums, and mobile homes. You DO NOT have to own your own home to be eligible. Renters MUST have written permission from their landlord.

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WAP Service Providers Can do the Following:

Home energy audit

• Test for gas leaks, carbon monoxide, and other health and safety issues.
• They will check combustible appliances such as stoves, furnaces, and water heaters.
• Tuning, repairing, or replacing heating equipment.
• Install compact flourescent lights and carbon monoxide detectors.

Projects

• Educate clients in safety and energy efficiency .
• Insulate walls, floors, and attics as neede.
• Tune, repair, or replace heating and air systems as needed.

Final Inspection

WAP will NOT:

• Make major home repairs (new roof, plumbing, etc.).
• Replace doors or windows.
• Paint.
• Mold remediation.

To find out more information on what WAP will and will not do, and to find out if you are eligible, download this informational brochure.

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Here is a list of WAP Frequently Asked Questions.

The WAP service provider for the Piedmont area is Regional Consolidated Services.  They use WAP funds to offer weatherization services to Forsyth, Guilford, Davidson, Randolph, and Rockingham counties.

Federal Tax Credits

Some home improvements qualify for a federal tax credit.  For details and to determine if your weatherization projects qualify, go to: www.energystar.gov/taxcredits. 

A tax credit is more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. 

Projects eligible for a tax credit and general eligibility guidelines:

Insulation
Energy efficient windows and doors
Roofs, asphalt and metal
Electric heat pump water heaters (installation included)
Energy efficient heating and air conditioning systems (installation included)

Credits are also available for products that air seal (weatherstrip, caulk, house wrap)

• The total credit equals 30% of the amount paid for materials but is limited to $1,500.  This is a one-time award, meaning even with multiple purchases, you can only receive up to this max amount.
• Must be installed in a principal residence between January 1, 2009, and December 31, 2010.
• Must have the product's receipt.
• Keep the Manufacturer’s Certification Statement for your records.
• Credits cannot be rolled over to following years.
• Only applies to existing homes, not new construction.

Larger projects eligible for a tax credit and general eligibility guidelines:

Solar hot water or photovoltaic systems
Geothermal heating systems
Wind energy systems
Biomass systems
Fuel cells (the credit maximum is up to $500/0.5 kilowatt of capacity)

• Credit for these projects are not limited to $1,500 and unused credits can be carried forward to the next tax year.
• This program is offered through 2016.
• Project can be on a principle residence or secondary home. Rentals still do NOT qualify.
• The tax credit will apply to new construction.

Additional Points to Note:

• An expenditure will be treated as made when the original installation is completed, except that an expenditure in connection with the construction or reconstruction of a structure will be treated as made when the taxpayer's original use of the constructed or reconstructed structure begins.
• The equipment cannot be used to heat a swimming pool or hot tub. 
• The equipment must be expected to last for at least five years.

For a list of tax credit Frequently Asked Questions, go here.

For a list and summary of the federal and state tax incentives, Go Green 1 contains an easy-to-use chart detailing various potential projects, requirements the project must have to qualify for the incentive, as well as an alert to particular fine print.

You will document the approved credit on your IRS Form 5695.  For additional information see The American Recovery and Reinvestment Act of 2009 and IRS Form 5695 – Residential Energy Credits.

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There are more incentives if you choose to take the next steps to make your home more energy efficient.  While not for weatherization projects, state tax credits and rebates reward energy efficient homes, products, and practices.

State Tax Credits

For information about state energy-related tax incentives, visit the Database for State Incentive for Renewables and Energy Efficiency.  Here, you can see a list of various incentives by category, as well as a brief overview and summary so you can see if you qualify to pursue it.

Rebates

Duke Energy provides rebates for some investments in energy efficiency.

Progress Energy has a Home Energy Improvement Program, which gives cash rebates. Visit their website or call (866) 990-4347 for more information. 

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