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State Loan Programs for Green and Energy-Efficient Homes Drive More Savings

Topic: Environmental and Green LivingPublished December 20, 2012

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The global call for Earth-friendly, eco-friendly, green lifestyle, green-compliant, green-efficient living has become a hot topic these days. The recent environmental disasters have ravaged and brought down millions worth of properties not just in the United States but worldwide as well. Super storm Sandy, the tsunami in Japan, earthquakes in China, and US, typhoons are some manifestations of mother nature’s vengeful wrath. Such catastrophic impacts are very difficult to ignore and would take years to forget. As a result, many people have started caring about the environment and have embraced ‘living green’ concept into their everyday lives. I was fortunate to have known about this movement at a young age and have done my part in terms of simple things such as proper garbage disposal and recycling. However, I know that while such small things mean a lot, they’re not enough to make a difference on a global scale. With the constant yield in energy and fuel costs brought about by monopoly or scarcity of certain goods and trade, how can average people still thrive without going bankrupt and save the environment at the same time? This heightened my interest in ‘green homes’. To start, I went around the house and did a quick check on how we are currently utilizing energy. It seemed that the entire house plan, plumbing services and electrical circuitry were anchored on traditional means. How it translates to consumption and costs is something I have yet to research more on. During the course of my research, I came across The US Department of Energy site and found out about some advocacies encouraging green homes. The site gives information about state, local, utility, federal incentives and policies that promote renewable energy and energy efficiency. To strengthen this initiative, the government has launched loan programs that home owners may use to fund home remodeling and repairs that allow transformation of homes to earthy-friendly and efficient abodes. A few of the offered loan programs include the Austin Energy - Residential Energy Efficiency Loan Program and the Long Island Green Homes Program. These programs advance a certain amount for you to be able to buy or replace existing heat pumps, central air conditioners, sealant for duct/air passage or anything that has to do with making your house more energy efficient. For other states such as Texas, there are rebate programs offered to new home owners with new residential constructions. Home owners become eligible for rebates if the construction process proved to save at least 15% more energy. In New York, there is a Residential Solar Tax Credit for using solar power. Since my state still has these plans under way, I figured that I need to have a clear plan of which areas needed the most replacements or repair, to maximize incentive grants. rnBelow are some programs that homeowners can adopt which are offered by both the government and state to promote renewable energy and energy efficiency: Leasing Programs -- Homeowners can lease energy-efficient equipment or renewable energy systems over a certain number of years. Loan Programs – Offered financing for purchase of renewable energy or energy efficiency systems or equipment; state governments also offer low-interest loans for a broad range of renewable energy and energy efficiency measures commonly available to residential home owners. PACE Financing -- Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for renewable energy and/or energy-efficiency improvements. The fund borrowed is typically repaid over a period of years via a special assessment on the owner's property. Personal Tax Incentives – These include income tax credits and deductions offered by many states to reduce the expense of purchasing and installing renewable energy or energy efficiency systems and equipment. Property Tax Incentives – These incentives include exemptions, some exclusions, a few abatements, and credits. Some property tax incentives impose that the added value of a renewable energy system is excluded from the valuation of the property for taxation. For example, if a new heating system uses renewable energy that costs more than what a conventional heating system normally uses, the additional cost of the renewable energy system is excluded in the property assessment. Utility Rate Discounts - A few utilities offer rate discounts to encourage residential energy efficiency. Tenants owning homes that meet certain energy efficiency criteria are awarded a discount on his electric bills. These are just a few of the readily-available and functional programs geared to help not only home owners cut down long-term costs on utilities, but it also is a proven mechanism to contribute largely to environmental progress and prevent further devastation of ecosystems. I’m not saying that this is a process that can be deployed in a snap of a finger. By educating others and taking part in the eco-friendly movements, we can contribute a lot. We can start by replacing our normal bulbs with more durable LED lights that emit brighter lighting with less wattage -- which translates to reduction in electricity costs. In the coming months, it may be a bold move but a wise one at that to have my property assessed to see how I can further make my home more energy efficient. Instead of using custom wood cabinets in my future remodeling initiatives, I will purchase more affordable kitchen cabinets in laminates that are not only easier to assemble but also prevent deforestation. I know there are some leaks somewhere around the house and some appliances that emit too much heat. I also intend to have solar panels installed which gives almost a lifetime of free electricity. The costs aren’t cheap but the long-term benefit outweighs the initial costs. By adopting these simple mechanisms towards positive change, we provide our children with a much-safer earth to live in. So what are you waiting for? Make your home eco-friendly, it pays to go green.

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