Question: There’s so much stuff about “green this and green that.” Green sounds like just a fad to me. Seems everyone’s jumping on the green bandwagon. I drive a Prius and I use fluorescent bulbs, but this seems like small potatoes to me. Who’s going to make a real difference in America’s green scene? Can anyone bring about real change?
EcoWall: First, thank you for doing your part to reduce your energy use. If everyone replaced their incandescent light bulbs with fluorescents America would save hundreds of millions of barrels of oil a year.
Since the birth of the environmental movement right here in Santa Barbara back in 1969 there have been hundreds of green organizations in the US. The problem was there was no national effort given to address the country’s greatest energy hog – no, it’s not the car. It’s buildings.
Buildings consume more than 30% of the nation’s total energy and 60% of our electricity annually. The annual U.S. market in green building products and services was over $7 billion in 2005 – today it’s over $12 billion.
In 1993, the U.S. Green Building Council (USGBC) was founded to focus the building and construction industry’s vision for its own transformation to high-performance green building. Today, it includes more than 17,846 member companies and organizations. In the past five years USGBC’s membership has quadrupled.
The non-profit organization is composed of leaders from across the building industry working to advance buildings that are environmentally responsible, profitable and healthy places to live and work. It’s USGBC’s vision to make a change quickly, too. According to their website (www.USGBC.org), their goal is to “guide the creation of buildings and communities that will regenerate and sustain the health and vitality of all life within a generation.”
The kingpin program that will make this change come about is LEED certification, which stands for Leadership in Energy and Environmental Design. LEED provides a rating for buildings based on human and environmental health, sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality.
Nationally, more than 4.2 billion square feet of building space are currently involved with the LEED program. When buildings are built to LEED's rigid standards we will see significant improvement and outcomes in America's green efforts.
Question: Isn’t green building expensive? It doesn’t make sense during the economic crisis. Isn’t it just for the wealth homeowners?
EcoWall: No, the facts indicate the opposite. According to McGraw-Hill Construction's 2008 SmartMarket Report, "The Green Home Consumer," 70% of home buyers are more or much more inclined to buy a green home over a conventional home in a down housing market. That number is even higher, 78%, for those earning less than $50,000 a year, showing the increasing access to green buildings for all members of our society. In fact, 56% of respondents who bought green homes in 2008 earn less than $75,000 per year; 29% earn less than $50,000.
One of the best reasons to build green is economy. If a home is planned for green building in the initial design phase the total cost of construction may be 5% more. For a $300,000 construction cost that means building high-efficiency green may cost $15,000 more. This initial investment can be reduced with tax credits and energy company rebates.
When one considers that this completed home is saving 50% on energy costs the initial investment would be recouped in just five years. Every year after that is cash saved. Multiply these savings by millions of Americans and you are talking about a major reduction in reliance on foreign oil, as well as reducing the effects on global warming.
Building green is not only affordable, but it's the right thing to do.
Monday, March 16, 2009
Wednesday, March 4, 2009
"Show Me the Money!" (aka, Energy Tax Credits)
More has happened in President Obama’s first 50 days than happens in other Presidents' 4 years. A whirlwind of spending measures has pumped a dizzying amount of money into the US economy.
Like you, I’ve been saying, “Show me the money!" So, where’s YOUR stimulus check? When can you expect to see the benefits?
The simple answer is, "When you build, or rebuild, something green."
As a green architectural designer it’s my job to answer these questions. And the best place to look is in the horse’s mouth – the Federal Government’s own websites.
The Energy Star program, created by the US Environmental Protection Agency and the US Dept. of Energy, offers consumers plenty of information about incentivising green building by way of tax credits. They are encouraging homeowners and home builders to install "energy- and environmental-wise" building supplies, products, and processes that will protect the environment and reduce energy use. This in turn will reduce your utility bills now, as well as clean up the environment and reduce global warming later.
But in order for all this to happen, it’s key to understand the details of the Stimulus bill’s financial benefits. Here’s what it means for you in three easy-to-read FAQs:
Question: How has the new Stimulus bill affected the tax credits for energy efficient home improvements?
Answer: On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:
• The tax credits that were previously effective for 2009, have been extended to 2010 as well.
• The tax credit has been raised from 10% to 30%.
• The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
• The maximum credit has been raised from $500 to $1500 for the two years (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
• The $200 cap on windows has been removed, but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.
Question: What products are eligible for a tax credits for energy efficient home improvements?
Answer: On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made significant changes to the energy efficiency tax credits.
Tax credits are available at 30% of the cost, up to $1,500 total, in 2009 & 2010 (for existing homes only) for:
• Windows and Doors
• Insulation
• Roofs (Metal and Asphalt)
• HVAC
• Water Heaters (non-solar)
• Biomass Stoves
Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:
• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heater
• Small Wind Energy Systems
• Fuel Cells
Question: I want to build my own home, can I qualify for any of the tax credits?
Answer: A 30% tax credit (including labor and installation), with no upper limit, is available for consumers building new homes (through 2016) for:
• Photovoltaics
• Solar Water Heaters
• Geothermal Heat Pumps
• Small Wind Energy Systems
• Fuel Cells
To qualify for the fuel cell credit, the new home you are building must be planned as your principle residence. The credit for photovoltaic, solar water heaters, geothermal heat pumps, and small wind energy systems does not have to be for your principal residence; so, rental units, second homes, etc... are all eligible. See the Instructions attached to 2008 IRS Form 5695 to help you further with this provision.
The tax credit for these products is ONLY available for existing homes:
• Windows/Skylights
• Doors
• Insulation
• Roofs (metal and asphalt)
• HVAC
• Water Heaters (non-solar)
• Bio-mass Stoves
There is a $2,000 tax credit for building a new energy efficient home, but it is ONLY available to "eligible contractors"; therefore, owner/builders may not receive the builder tax credit unless employed as eligible contractors. Home builders who qualify as eligible contractors are eligible for the $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements. There is also a $1,000 tax credit to the builder of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program.
Remember, if you chose build your own home and act as your own general contractor and hiring subcontractors yourself you still need a professional set of architectural plans. The local building department still hasn't warmed up to approving sketches on a napkin. Be sure to call a qualified green designer, like Eccolo Design.
Like you, I’ve been saying, “Show me the money!" So, where’s YOUR stimulus check? When can you expect to see the benefits?
The simple answer is, "When you build, or rebuild, something green."
As a green architectural designer it’s my job to answer these questions. And the best place to look is in the horse’s mouth – the Federal Government’s own websites.
The Energy Star program, created by the US Environmental Protection Agency and the US Dept. of Energy, offers consumers plenty of information about incentivising green building by way of tax credits. They are encouraging homeowners and home builders to install "energy- and environmental-wise" building supplies, products, and processes that will protect the environment and reduce energy use. This in turn will reduce your utility bills now, as well as clean up the environment and reduce global warming later.
But in order for all this to happen, it’s key to understand the details of the Stimulus bill’s financial benefits. Here’s what it means for you in three easy-to-read FAQs:
Question: How has the new Stimulus bill affected the tax credits for energy efficient home improvements?
Answer: On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:
• The tax credits that were previously effective for 2009, have been extended to 2010 as well.
• The tax credit has been raised from 10% to 30%.
• The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
• The maximum credit has been raised from $500 to $1500 for the two years (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
• The $200 cap on windows has been removed, but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.
Question: What products are eligible for a tax credits for energy efficient home improvements?
Answer: On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made significant changes to the energy efficiency tax credits.
Tax credits are available at 30% of the cost, up to $1,500 total, in 2009 & 2010 (for existing homes only) for:
• Windows and Doors
• Insulation
• Roofs (Metal and Asphalt)
• HVAC
• Water Heaters (non-solar)
• Biomass Stoves
Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:
• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heater
• Small Wind Energy Systems
• Fuel Cells
Question: I want to build my own home, can I qualify for any of the tax credits?
Answer: A 30% tax credit (including labor and installation), with no upper limit, is available for consumers building new homes (through 2016) for:
• Photovoltaics
• Solar Water Heaters
• Geothermal Heat Pumps
• Small Wind Energy Systems
• Fuel Cells
To qualify for the fuel cell credit, the new home you are building must be planned as your principle residence. The credit for photovoltaic, solar water heaters, geothermal heat pumps, and small wind energy systems does not have to be for your principal residence; so, rental units, second homes, etc... are all eligible. See the Instructions attached to 2008 IRS Form 5695 to help you further with this provision.
The tax credit for these products is ONLY available for existing homes:
• Windows/Skylights
• Doors
• Insulation
• Roofs (metal and asphalt)
• HVAC
• Water Heaters (non-solar)
• Bio-mass Stoves
There is a $2,000 tax credit for building a new energy efficient home, but it is ONLY available to "eligible contractors"; therefore, owner/builders may not receive the builder tax credit unless employed as eligible contractors. Home builders who qualify as eligible contractors are eligible for the $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements. There is also a $1,000 tax credit to the builder of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program.
Remember, if you chose build your own home and act as your own general contractor and hiring subcontractors yourself you still need a professional set of architectural plans. The local building department still hasn't warmed up to approving sketches on a napkin. Be sure to call a qualified green designer, like Eccolo Design.
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