If your old furnace or water heater are in need of replacement, replacing them with new, energy efficient units will save you money every month through the heating season. Chicago area residents can also save money on the purchase cost of new systems by taking advantage of 2011 federal tax credits on new, energy efficient furnaces and water heaters. The rebates vary depending on the type and efficiency of the unit, but can cover 10% of cost up to $500 or a specific amount from $50 - $300.  

To quality for these savings you must purchase your new furnace or water heater before December 31, 2011. For more information on federal energy tax credits for new, energy efficient furnaces, visit:http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.

2011 Changes to Federal Tax Credits

Federal tax credits on qualifying, high-efficiency HVAC equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:

The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, will be reduced from $1,500 to $500.

The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.

All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.
The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed:

The State of Illinois is not offering  energy efficiency rebates for home heating or water heaters at this time.

ENERGY STAR® Rated Home Heating Systems

Natural gas, propane and oil furnace style home furnaces can qualify with an AFUE greater or equal to 95. AFUE. AFUE stand for Annual Fuel Utilization Efficiency. Indicated as a percentage, your furnace's AFUE tells you how much energy is being converted to heat. For example, an AFUE of 90 means that 90% of the fuel is being used to warm your home, while the other 10% escapes as exhaust with the combustion gases. The Carrier Performance 95, 96 and Infinity Series furnaces all have a AFUE greater than 95.

ENERGY STAR® Rated Water Heaters

With water heating  accounting for 14%–25% of the energy consumed in the average Chicago area home, choosing an efficient model can have a significant impact on your energy costs.
Gas, oil, propane and electric heat pump water heaters with an Energy Factor greater or equal to  0.82 OR a thermal efficiency of at least 90% can quality for a $300 tax credit.

Remember, the most important day in the life of your furnace or water heater is the day it's  installed. Your ABC Home Comfort Specialist will help you choose right energy efficient furnace or water heater for your family's needs and budget. With a profesional installation and the ABC Worry Free Guarantee, you will be comfortable in knowing that your new furnace or water heater will provide years of efficient, trouble free service.

Welcome to ABC's new series of tips to help you save energy and money. To get started with the series we'll be talking about energy audits.

What is an Energy Audit?

An energy audit is a series of tests designed to help to identify where your home is leaking energy and how well your heating & cooling system are working.  When performing an energy audit our heating experts will ask you some comfort questions about your home, perform a heat loss calculation, inspect and measure the homes duct work system.  By performing an accurate energy audit, we can help determine the right heating and cooling equipment for your home, how to maximize your homes energy efficiency and help even out the temperatures in your home.

According to the Environment Protection Agency (EPA), energy star, and consumer reports, a good heating and air contractor should perform these tests on your home before replacing your heating and cooling system.  In fact, the EPA notes “be leery” of any contract not willing to perform an accurate heat loss calculation on your home.

How do I get an energy audit for my home and what does it cost?

There are companies in the Chicago Illinois area that you can hire to perform an energy audit. The cost of an energy audit will depend on the company but we include them as complementary service when you request a quote to replace your heating and cooling equipment.

Can I do an energy audit myself?

Some Chicago are homeowners choose to do their own home energy audit.  From our experience it is very difficult to perform these tests on your own.  The software to perform an accurate test can be very expensive and tools aren’t readily available.  However, there are free basic versions available that can be used to double check your contractors work.

For information on do-it-yourself home energy audits, visit the The Home Energy Saver. The Home Energy Saver will help you compute your home's energy use with online based on methods developed at Lawrence Berkeley National Laboratory. By changing features on a model home, users can estimate how much energy and money can be saved and how much pollution prevented by implementing energy-efficiency improvements. All end uses (home heating, cooling, major appliances, lighting, and miscellaneous uses) are included. A detailed description of underlaying calculation methodsand data is provided in a special report.

I've had an Energy Audit, what's next?

Once you know where your home is losing energy there are many techniques you can use to prevent energy loss and save money. The rest of our Energy Savers Series will be a collection of tips and techniques that expert energy auditors use to help homeowners save energy and money.

Next up, saving energy with Programmable Thermostats