Deep Dive On Government Energy Incentives
With new environmental studies coming out on a near daily basis, homeowners across North America have gained a greater appreciation for the amount of waste and greenhouse gas emissions produced by common household devices. Common culprits include air conditioners, electrical outlets, and more. However, transforming your residential property into a more energy efficient space can be an expensive, strenuous process. In that, it is unrealistic to expect the average property owner to invest in a greener future without the introduction of financial incentives. As a response to this problem, the U.S. and Canadian governments have created a host of strategic energy incentives that encourage homeowners to explore energy efficient replacements for their current systems.
At Innovation Home Services, we specialize in solar energy equipment that supports all your household needs. Our energy efficient solutions range from air conditioning to heating & ventilation, water filtration, and more. Energy incentives make it possible for our clients to enjoy our industry-leading technology at affordable prices. Continue reading for an in-depth overview of the energy incentives that all North American residents should know about.
Federal Residential Solar Energy Tax Credit
In the United States, the Federal Residential Solar Energy Credit was created as a tax incentive specifically for those who invest in solar photovoltaic systems. PV systems work by absorbing energy from the sun via solar panels, and using it to power electrical systems inside the home. Completed residential PV system installations are eligible for retroactive and future tax credits ranging from deduction rates of 22-30%, depending on the year in which the installation has taken place. Currently, this tax credit is only confirmed to be available for homeowners until 2024. Therefore, if you have been thinking about investing in solar panels, now is the time to do it.
Renewable Energy Tax Credits
Another type of incentive that is available in the United States is called a Renewable Energy Tax Credit. This broad category addresses a range of equipment used in both commercial and residential settings. These options extend far beyond the aforementioned PV systems. Some of the most relevant, qualifying pieces of equipment on this list for residential property owners are geothermal heat pumps. These alternative HVAC systems are far more energy efficient than their non-geothermal counterparts due to their use of heat from the ground. For this reason, the U.S. Energy Star program has included these devices on their list of equipment purchases that are eligible for tax credits.
Ontario Electricity Rebate
Another type of energy incentive that is offered by various provincial governments in Canada is an electricity rebate. To demonstrate this common program, we will use the example of the OER (Ontario Electricity Rebate). The Ontario government has created a simple process whereby homeowners can instantly receive a 17% reduction on their electricity bills. To automatically qualify for this, stand-alone residential property owners must use under 50 kilowatts of electricity during each bill cycle. More complex are multi-family residential properties, where energy usage must be divided between the number of units in each building. Those residing on properties such as these can manually access the OER Self-Declaration form online and receive the same benefits as stand-alone property owners.
Canada Greener Homes Grant
The Canada Greener Homes Grant is an initiative that was created by the Canadian government to fund residential EnerGuide evaluation services and installations of energy-efficient systems. Grants of up to $5000 are available to cover the costs of windows, home insulation, and other retrofits. As a part of this program, loans are also available to fund projects for which the cost surpasses available grant amounts. To qualify for these grants and loans, property owners must apply online, confirming their identity, home ownership, primary place of residence, and results from their EnerGuide evaluation.
Tax Credits for New Home Builders
All of the aforementioned energy incentives are incredibly useful for those who already own residential properties. North American governments have also, however, implemented incentives for those who have recently built a new home using energy-efficient systems. Unfortunately, the tax credits for new home builders that were first established in the U.S. have since expired, however homeowners who completed their building projects before the end of 2021 may still be eligible to retroactively collect these reimbursements. Grants of $1000 and $2000 are available to owners of manufactured homes and new builds respectively. Eligibility depends on whether the final product meets Energy Star guidelines and can prove a minimum of 50% in energy savings when compared to the standard rate of consumption in residential properties. Despite the expiration of this energy incentive, it is likely to be renewed or replaced by a similar policy in the coming years.
If you are looking for creative ways to save money on eco-friendly home renovations, there are many other regionally-specific incentives to be explored. Regardless of your unique requirements, rest assured, our team at Innovation Home Services will be there to supply you with the energy-efficient equipment you need. Contact us today to learn more.