A recent article in a trade magazine served as a good reminder that there are a number of green HVAC products on the market that can also provide significant tax savings. While going green can be more expensive upfront, research shows they can deliver significant cost savings long-term and provide optimal comfort.
Thanks to Energy Star federal tax credits, you could recoup 30 percent or more of your green heating or cooling investment (including installation). What are some of the products that must meet certain requirements?
- Advanced Main Air Circulating Fans must use no more than 2 percent of your furnace’s total energy and if the fan qualifies, but not your furnace, you may only claim the cost of your fan on your taxes.
- Air Source Heat Pumps split systems must have a heating seasonal performance factor (HSPF) of at least 8.5, an energy efficiency ratio (EER) of at least 12.5, and a seasonal energy efficiency ratio (SEER) of at least 15. Whereas package systems must have an HSPF of at least 8, an EER of at least 12, and a SEER of at least 14.
- Central Air Conditioning split systems must have a SEER of at least 16, and an EER of at least 13 and package systems must have a SEER of at least 14, and an EER of at least 12.
- Gas, Propane, or Oil Hot Water Boilers must have an Annual Fuel Utilization Efficiency (AFUE) of at least 90.
- Natural Gas or Propane Furnaces must have an AFUE of at least 95.
- Oil Furnaces must have an AFUE of at least 90.
If you’re unsure whether your purchase qualifies for this tax credit, or to see other qualifying non-HVAC Energy Star products, please refer to the U.S. Environmental Protection Agency’s Energy Star web site.
Do you know your company, building or home’s energy rating? Here’s how you can find out.
- Annual Fuel Utilization Efficiency (AFUE) – a furnace rating that represents the percentage of heat produced for every dollar of fuel consumed. The current minimum is 78% AFUE
- Seasonal Energy Efficiency Ratio (SEER) – is a measure of a central air conditioner’s efficiency and performance or how much electricity it consumes. Typical SEER ratings range from 13 to 18.
- Heating Seasonal Performance Factor (HSPF) – is the heating efficiency rating for heat pumps. The current minimum is 7.7 HSPF
- Energy Efficiency Ratio (EER) – This is a measure of the instantaneous energy efficiency of cooling equipment. EER is the steady-state rate of heat energy removal (e.g., cooling capacity) by the equipment in BTU divided by the steady-state rate of energy input to the equipment in watts.
Here’s how you can save even more green for your home or building.
- Upgrade your gas furnace to an Energy Star-labeled unit with an AFUE rating of at least 90
- Upgrade central air conditioner to an Energy Star-labeled unit with SEER rating of at least 12
- Install Optiflow balance valves that allow for the highest possible efficiency of chillers, condensing boilers, coils and heat exchangers
- Upgrade insulation to DOE-recommended levels
- Replace windows with low-emissivity, argon-filled units
- Insulate and seal forced air heating and cooling ducts
- Install an ecocirc circulator that uses an ECM (Electronically Commutated Motor) to use 68 percent less energy
- Install an Energy Star-labeled programmable thermostat
- Upgrade gas water heater to a unit with an Energy Factor = 0.66 or higher
What products are you using to green your building or home?