Government can be somewhat unpredictable, and by the time you read this, the programs listed here may be outdated. Hopefully, there will be even more incentives than I list here. Fortunately, the federal and state renewable-energy tax credits will be in place at least until 2016.
One welcome new incentive is the very significant Progress Energy Residential New Construction program. It offers $1,000 to $4,000 in cash incentives for high-performance homes and an optional heating-and-cooling cost guarantee. This will be a significant local driver in green building for new homes.
For detailed information on financial incentives, visit dsireusa.org.
Tax incentives
Individuals
Renewable energy
- Through the end of 2016, a 30-percent tax credit for solar water heat, photovoltaics, wind, fuel cells, geothermal heat pumps and other solar-electric technologies with no caps.
Businesses:
Energy efficiency
- A tax deduction of $1.80 per square foot is available to owners of new or existing buildings who install interior lighting; a building envelope; or heating, cooling, ventilation or hot-water systems that reduce the building’s total energy and power cost by 50 percent or more in comparison to a building meeting minimum requirements set by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1-2001. Deductions of 60 cents per square foot are available to owners of buildings in which individual lighting, building envelope or heating/cooling systems meet target levels that would reasonably contribute to an overall building savings of 50 percent if additional systems were installed. Available through the end of 2013.
- A flat $2,000 tax credit for builders who build energy-efficient homes was reinstated retroactively for 2012 and through Dec. 31, 2013. The credit is for builders who build homes projected to save at least 50 percent of the structure’s heating and cooling energy compared to an identical home built to meet the standards of the 2006 International Energy Conservation Code.
Renewable energy
- A 30-percent tax credit is available for investing in solar water heat, solar space heat, solar-thermal electric, solar-thermal process heat, photovoltaics, wind, biomass, geothermal electric, fuel cells, geothermal heat pumps, combined heat and power (CHP)/cogeneration, solar hybrid lighting, and direct-use geothermal and microturbines. Available through the end of 2016.
- Accelerated depreciation (Modified Accelerated Cost Recovery System — MACRS) for eligible renewable-energy technologies.
North Carolina
Individuals:
Renewable energy
- A 35-percent tax credit for passive-solar space heat, solar water heat, solar space heat, solar-thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal heat pumps, solar pool heating and day-lighting. Available through the end of 2015. Caps vary by technology.
Businesses:
Renewable energy
- A 35-percent tax credit for passive-solar space heat, solar water heat, solar space heat, solar-thermal electric, solar-thermal-process heat, photovoltaics, landfill gas, wind, biomass, hydroelectric, renewable transportation fuels, geothermal heat pumps, spent pulping liquor, direct-use geothermal, solar pool heating, day-lighting, anaerobic digestion, ethanol, methanol and biodiesel. Available through the end of 2015. $2.5 million cap for all technologies.
Utility incentives
In 2007, the North Carolina legislature passed a Renewable Energy Portfolio Standard, which requires utilities to increase their use of renewable energy and offer incentives for energy efficiency. Utility providers are now offering impressive incentive programs to meet those requirements.
- N.C. Green Power will pay a per-kilowatt-hour rate for electricity generated from a renewable resource that is fed onto the grid
Progress Energy
Residential
- The Home Energy Improvement Program will pay rebates of $190 to $500 for a variety of energy upgrades, including ductwork sealing, air sealing and attic insulation, HVAC audits, HVAC replacement, high-efficiency window AC units and hot-water-heater replacement.
Progress-energy.com/HEIP - A 5-percent discount on electric bills for all ENERGY STAR-certified homes.
- New! The Residential New Construction program will pay $1,000 to $4,000 for new homes that comply with the new HERO code and receive low HERS scores. This program also has an optional heating-and-cooling cost guarantee. See ”Benefits You Can Measure” elsewhere in this guide.
- The SunSense program will pay $1,000 per kilowatt AC plus a monthly credit of $4.50 per kilowatt for installed photovoltaics. Progress-energy.com/Sunsense
Commercial
- The Energy Efficiency for Business Program offers rebates for everything from lighting replacement to energy modeling for LEED-NC in existing and new-construction commercial buildings. Rebates can pay for up to 75 percent of upfront project costs.
Duke Energy
Residential
- The SmartSaver program offers $200 rebates for upgrades of HVAC equipment on existing homes, a $50 rebate for an advanced tune up on heat pumps and central AC systems, and $75 to $250 for attic air sealing and insulating, duct sealing and duct insulating. duke-energy.com/north-carolina/savings/smart-saver.asp
- A 5-percent discount on electric bills for all ENERGY STAR-certified homes.
- Free in-home energy audit.
Commercial
- Commercial customers are eligible for rebates on upgrades of a wide variety of equipment, including but not limited to: lighting, HVAC, process equipment, pumps and motors.
PSNC
Residential
- Residential customers whose homes meet the EPA’s ENERGY STAR for New Homes guidelines are eligible for PSNC’s Residential Rate Schedule 102, which is a discount of 5 cents per therm.
- The company has implemented a $100 rebate for replacing older gas water heaters and furnaces with high-efficiency versions in residential buildings. psncenergy.com/rebate
- Residential customers with homes built before 1993 are eligible to receive a $25 in-home energy audit.
Commercial
- Commercial customers whose buildings meet LEED-NC certification are eligible for PSNC’s Rate Schedule 127, which is a discount of 5 cents per therm.
- A $100 rebate for replacing older gas water heaters and furnaces with high-efficiency versions in commercial buildings. psncenergy.com/rebate
Local government incentives
City of Asheville
- A $100 permit-fee rebate for N.C. HealthyBuilt Homes certification; $100 for ENERGY STAR certification.
- A $50 permit-fee rebate for each of the following: geothermal heat pump, solar-energy system, wind-energy system and stormwater/graywater collection device to be used for irrigation.
- 50-percent rebate for plan review fees for commercial projects seeking LEED certification.
Town of Black Mountain
- A $500 permit-fee rebate for buildings certified under the Green Built N.C. or LEED programs.
Catawba County
- A 25-percent permit-fee rebate for buildings certified under the Green Built N.C., ENERGY STAR, NAHB Green or LEED programs.
Matt Siegel is director of the WNC Green Building Council. He can be reached at matt@wncgbc.org or 254-1995.