Residential News
Chart of Predicted Energy Savings
With the recent increases in natural gas prices, consumers are looking for ways to reduce the costs of operating their natural gas heating systems.
One of the options available to consumers is the replacement of their older and less efficient heating system with a new higher efficiency system.
When considering this option, the cost of replacing the older system with a higher efficiency system must be compared to potential energy savings achieved from operating a higher efficiency system.
Below is a table which can be used to predict the potential energy savings from operating higher efficiency heating systems.
It's official - Suburban is now a Premier Lennox dealer! Suburban's ability to meet the requirements and guidelines set by Lennox has awarded us this prestige status. Some of these guidelines include:
- Independent consumer satisfaction program
- Extensive training & testing for technicians and installers
- Full office staff
- Employment of NATE-certified technicans and installers
- CompleteCare Plus extended warranty and Lennox financing programs
- Participation in national and local consumer promotions
As a Premier Dealer we are able to continue to offer exceptional customer service to all of our customers as well offer our customers new services.
The NATE exams reflect a unified opinion of what technicians and installers need to know in order to effectively service and install today's sophisticated HVAC systems. This certification is nationally recognized throughout the HVAC industry. Now that Suburban employs NATE-certified technicians and installers, customers can feel even more confident that they are receiving unparalleled service.
SEER, or Seasonal Energy Efficiency Ratio, is the number that describes how well air conditioning equipment works. The SEER rating is determined by taking the amount of cooling supplied by the air conditioning equipment and dividing it by the power being used by the equipment under a particular set of seasonal conditions. The higher the SEER rating, the more efficient the equipment.
On January 23, 2006 the U.S. Department of energy began implementing new regulations on energy efficiency for residential central air conditioning equipment. They have raised the efficiency standards from a 10 SEER minimum to a 13 SEER minimum. This means a significant increase in energy efficiency in addition to significant environmental benefits. This increase can save the consumer hundreds of dollars each year on utility bills.
For the consumer, if your current equipment has a rating of less than 13 SEER, new regulations do not require you to purchase new equipment. Replacement parts to 10-12 SEER systems will be available for many years so repair and maintenance can continue as needed. New equipment, however, can no longer be produced that does not meet these minimum standards. Equipment rated below the new minimum may still be available if currently in manufacturers inventory.
If you decide to replace your existing AC system with a system that has a 13 SEER or higher rating you may want to consider cost. The initial cost is more expensive but the overall value needs to be taken into consideration - money savings in the long run. In order to maximize this benefit, you need to make sure that when replacing the equipment that the indoor unit and outdoor unit are appropriately matched. So be sure to check with your dealer before installing any new equipment.
The Emergency Economic Stabilization Act of 2008 (EESA) passed the U.S. House of Representatives and within hours was signed into law by President George W. Bush. Providing for the $700 billion governmental bailout of several failing bank assets, the new law also contained extensions to both current and expired HVAC tax incentives. The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) commended Congress on including the incentive extensions in its economic bailout.
“Though several attempts were made during the 110th Congress to extend these credits and incentives, those attempts failed due to disagreement over funding issues,” said Bill Harrison, ASHRAE president. “These credits are essential for the energy independence of our nation.”
One of the significant extensions was the time frame on the Commercial Building Tax Deduction (CBTD) to 2013. For five years, building owners are allowed to claim a deduction of up to $1.80 per square foot for HVAC, lighting, or envelope upgrades resulting in 50 percent savings over ANSI/ASHRAE/IESNA Standard 90.1-2001.
“This extension provides a more realistic time period for building owners to take advantage of the incentive,” said Stephen Yurek, president of the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). “It takes, on average, five years from commissioning to completion of a new building, but the deduction, which was included in the Energy Policy Act of 2005, only gave building owners two years to take advantage of it, severely limiting the value of the incentive.”
Other incentive extensions included:
• The credit for energy-efficient improvements to existing homes for 2009. This includes biomass fuel stoves (maximum of $300 credit), and clarifies the efficiency standard for water heaters.
• The manufacturers’ EE appliance tax credits through 2010 for appliances that are U.S.-produced — 3-year extension.
• The credit for energy-efficient improvements in new homes through 2009 — 1 year extension — that achieve a 30 or 50 percent reduction in heating and cooling energy consumption relative to a comparable dwelling. The credit equals $1,000 for homes meeting a 30 percent efficiency standard and $2,000 for homes meeting a 50 percent standard.
• The Renewable Energy Production credit for wind to 2010; biomass, geothermal, solar, and hydro to 2011; and added a marine/tidal credit through 2012.
• The credits for solar energy property, fuel cell property, and microturbines through 2016.
• Residential tax credits for energy-saving appliances, energy-efficient homes, and onsite renewables.
“Incentives work because they offset the initial purchase cost, while paving the way to greater energy savings down the road, which is good for consumers, the economy, and the environment,” said Yurek.
UNCLOGGING FINANCES
The law also extended several programs and established some new ones. The program providing tax-exempt bond designation to designated green building and sustainable design projects on brownfields was extended, along with the expired business research credit.
Provisions were established for Energy Conservation Bonds issued by states or localities to conduct energy conservation projects, and an accelerated depreciation period for smart meters and smart grid systems were added.
According to the Air Conditioning Contractors of America (ACCA), this legislation will allow the U.S. Treasury to unclog the financial system by clearing the most toxic assets being held by banks and other lending institutions.
“As a result, more funds will be available for lending to small businesses that need to make payrolls, purchase inventory, and address short-term emergencies,” said the association.
“By passing this important piece of legislation, Congress is encouraging growth of renewable energy and the small businesses across the country that support it,” said Phil Albertson, international vice president of sales and marketing for WaterFurnace International Inc., Fort Wayne, Ind.
According to WaterFurnace, the legislation offers a one-time tax credit of 30 percent of the total investment for residential ground loop or ground water geothermal heat pump installations, with a maximum credit of $2,000 for a single residence. The legislation also provides a credit of 10 percent of the total investment, with no maximum credit, for commercial system installations.
ASHRAE’s Harrison further lauded the economic bailout legislation and its emphasis on supporting energy efficiency economically. “While the banking industry may be visibly suffering now due to these economic times, we will all suffer if we don’t find ways to take advantage of alternative energy sources and make our buildings more efficient,” he said.
Publication date: 10/27/2008
Angela D. Harris
News & Legislation Editor. E-mail her at angelaharris@achrnews.com.
