| Incentives for Home Performance with ENERGY STAR® |
New incentives are available in 2010 to help Vermonters improve the energy efficiency of their homes. Efficiency Vermont offers up to $2,500 in incentives per household to help Vermonters pay for energy efficiency home improvements completed by a certified Home Performance with ENERGY STAR contractor. These incentives are funded by Efficiency Vermont and, for Green Mountain Power customers, the Green Mountain Power Energy Efficiency Fund.
Your Home Performance with ENERGY STAR contractor will assist you in understanding the incentives that may be available for your project, and will provide you with the paperwork you need to receive incentives from Efficiency Vermont. Working with a certified contractor also assures that the project results in real energy savings and is installed safely.
What is the average incentive amount, and how likely am I to qualify?
INCENTIVES | Step 1: Meet these minimum requirements in order to qualify for all other Home Performance with ENERGY STAR incentives. Many Vermont homes have the potential to reduce air leakage by 30% or more. In 2009, more than 90% of homes achieved at least a 10% reduction. | Energy Efficient
Home Improvement | Qualifying Criteria | Customer
Incentive | Minimum Requirement | Air leakage reduction ≥ 10% as measured by a pre- and post-blower door test* | $250 audit fee rebate | Install all recommended health and safety improvements including mechanical ventilation, CO detectors, or other essential health and safety improvements |
| Step 2: Complete additional energy efficiency improvements to increase your incentive. Not every home will qualify for an incentive in every category. Efficiency Vermont offers incentives for the energy efficiency improvements that save the most energy. In general, the less efficient your home was to start, the more opportunity there is to save. | Energy Efficient
Home Improvement | Qualifying Criteria | Customer
Incentive | Air Sealing | Reduce air leakage as measured by a
pre- and post- blower door test | 20-35% reduction | ≥ 35% reduction | $500 | $750 |
| Insulation | Install insulation meeting the
following R-value* criteria: | | Location | Existing Insulation | New Insulation | Attic flat | R-value ≤ R-16 | R-value ≥ R-49 | $0.50 per square foot of additional insulation | All other locations | R-value ≤ R-6 | R-value ≥ R-12 | $0.75 per square foot of additional insulation | R-values between 6 & 8 | R-value ≥ R-18 | R-values between 8 & 16 | R-value ≥ R-49 |
| Heat Distribution Improvement | Install at least $200 of duct sealing, leak repair, or other heat distribution improvements | $100 | Heat System Replacement | Replace an inefficient heating system with an efficient new system. See your contractor for details on qualifying criteria. | $500 |
| Step 3: See if you qualify for bonus incentives. Bonus incentives are for truly comprehensive projects that substantially improve the air tightness and insulation levels of your home. | Energy Efficient
Home Improvement | Qualifying Criteria | Customer
Incentive | Comprehensive Retrofit Bonus Package | Reduce air leakage ≥ 35% as measured by a pre- and post- blower door test | $500 | Install insulation in areas equivalent to at least 75% of the home's finished floor area (example: a 2000 sq. ft home could qualify by installing 1000 sq. ft of insulation in the attic and 500 sq. ft of insulation in the walls). Insulation must meet the above criteria for pre- and post- effective R-value. |
| Step 4: Calculate your total incentive based on the completed energy efficiency home improvements. | Maximum total incentive per project | $2,500 |
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A Federal tax credit of 30% of the cost up to $1,500 is available for installation of certain energy efficiency products, through December 31, 2010. Eligible products include qualifying insulation, HVAC equipment, and hot water heaters installed in 2009 or 2010. Products must be installed in an existing home that is your principal residence.
Note: The tax credit for insulation covers the cost of materials, but not installation and labor costs. Contractors should provide an itemized bill that separates out the cost of the product from the cost of the installation/labor. Insulation must be installed to the standards of the 2009 International Energy Conservation Code.
Additional information about the Vermont State incentives and tax credits that are available can be found using the Database of State Incentives for Renewables & Efficiency.
For more information on Federal tax credits for energy efficiency, consult your tax advisor or visit the following links:
ENERGY STAR Guide to Federal Tax Credits
The Tax Incentives Assistance Project
