Virginia Energy Efficiency Improvements

by Joel Barkman

As of the first of this month, Virginia homeowners and businesses can request to reserve energy efficiency rebate funds to get a free energy audit and 50 percent off energy efficient improvements to their home or building. These are serious incentives that offer further payoff in utility bill savings and increased comfort.

New tax credits just announced by the State of Virginia greatly change the economics of energy improvements. This is good news for homeowners and business owners who could get a professional energy audit for free and half off many efficiency upgrades - from basic air-sealing and insulation to high-performance equipment and renewable energy installations.

It also is very good news for the struggling construction industry. Contractors and trades who understand these credits, who understand the incredible cost-saving potential in 99 percent of the housing stock, and who understand the science behind making effective improvements should have a huge new market opening up to them.

This is a jobs initiative: putting people to work making real improvements to the state's building stock. It improves property values, lowers utility costs, makes occupants more comfortable and productive, and reduces our dependence on dirty fossil fuels. Everybody wins.

Preferably, any energy upgrade process will start with an energy audit by a building science expert (RESNET or BPI certified). This will ensure that the most cost-effective improvements are tackled first.

Local building science expert, Andrew Grigsby of Commonwealth Sustainability Works, explains that "Property owners should resist relying on the hype about any particular gadget or even their own experience with some product 10 years ago. Building technology is changing rapidly. The smart money will obtain an un-biased "house-as-a-system" inspection from a qualified expert. And since the state tax credit of $250 makes a basic audit free, there's nothing to lose by seeking professional advice."

The state tax credit is worth up to $2000 ($4000 for commercial) for "energy efficiency improvements and retrofits made by Virginia homeowners for replacement of major systems equipment". This includes materials and labor expenses for insulation, windows, HVAC equipment, water heaters, etc.

The value of the credit is 20 percent of the installation cost. For renewable energy installations including solar water heating, solar electric panels, and small wind turbines there are comparable credits - with no cap.

When added to the Federal tax credit of 30 percent of installation costs - up to $1500 - this means that a homeowner could get a credit of up to $3500 - half off a $7,000 project. Note that the Federal credit applies only to the equipment - not labor. For renewable energy projects, the Federal formula is a credit of 30% of the cost of the installation.

The state tax credit of up to $250 for a professional energy audit is available to homeowners and businesses. In most cases this would cover completely the cost of a walk-through audit by an accredited building scientist - who would provide clients with a prioritized list of the most cost-effective energy improvements required by their home or building.

Currently the state tax incentives are funded with Recovery Act dollars - and are limited. So these credits are available only on a first-come, first-served basis.

For households, homeowners, and renters with incomes of less than 60 percent of the state median, up to $6500 of weatherization services are available free to those who apply.

As the market reacts to the impending first-time home buyer tax credit deadline the local economy would welcome a much needed boost to keep us headed in the right direction. Perhaps these new state incentives, coupled with the existing federal incentives will encourage homeowners and businesses to invest their dollars as close to home as possible.

Staying informed can earn you incentives, improve the economy, and may even help save the planet. Just "Ask a Builder."

For more information about energy audits and state and federal incentives e-mail joel@goldenrulebuilders.com, or call 540-788-3539, or as always, write to "Ask a Builder" at P.O. box 294, Catlett, VA 20119.

Barkman is president of the Fauquier Chapter of The Northern Virginia Building Industry Association

Barkman is president of the Fauquier Chapter of The Northern Virginia Building Industry Association.

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