Homeowners can reduce greenhouse gas emissions and take advantage of stimulus credits by upgrading to new propane appliances
Attachment: Propane
Web Site Helps Homeowners See More Green (pdf)
WASHINGTON (May 8, 2009) — Homeowners looking to enjoy both cost and energy savings as they upgrade their home heating and water heating systems can now visit www.usepropane.com
to learn how energy-efficient propane appliances qualify them for a combination of federal tax credits, state tax credits and other incentives.
Roy Willis, president and CEO of the Propane Education & Research Council (PERC), told attendees of the National Association of Home Builders (NAHB) Green Building Conference that for the millions of homeowners who live beyond the natural gas main, propane can be the key to creating the green home they need with the comfort and amenities they want — while reducing their homes’ energy costs and carbon footprints for years to come.
As a result of the American Recovery and Reinvestment Act of 2009 (more commonly known as the Stimulus Package), homeowners can take advantage of significant incentives for new purchases of energy-efficient propane appliances. As part of this plan, federal tax credits are available in 2009 and 2010 at 30 percent of the installed cost — up to $1,500 — of high-efficiency appliances.
“The incentives in the Stimulus Package present homeowners with a range of choices for improving the energy efficiency of their homes,” said Willis. “Not only must they consider the options of window replacement and new insulation versus home heating and water heating, they also have a choice of energy sources. This is where homeowners need to do their homework.”
According to the U.S. Department of Energy, home heating and water heating represent two of the biggest draws on home energy use,1 so improving efficiency in these two areas can mean significant savings for homeowners. The key, said Willis, is to look beyond the amount of the federal tax credit to the net cost of making a home improvement.
While some solar water heaters, geothermal heat pumps, and wind energy systems qualify for higher tax credits than gas appliances, the necessary investment in both equipment and installation make such choices impractical for many homeowners. But applying the maximum tax credit to the cost of purchasing and installing a new propane furnace could provide an energy-efficient upgrade for a net cost of as little as $3,500.
Willis said some homeowners can further reduce appliance costs by taking advantage of state tax credits for energy efficiency upgrades and appliance rebates available through their state propane association. To learn what incentives are available where they live, homeowners can visit www.usepropane.com.
Environmental Benefits of Propane Appliances
In addition to providing the reliability, comfort, and versatility that homeowners desire, energy-efficient propane offers these environmental benefits:
- Natural gas and propane furnaces are the lowest emitters of greenhouse gases. Electric heat pumps, fuel oil furnaces, electric baseboards, and electric furnaces all produce significantly higher greenhouse gas emissions.2
- Energy Star-qualified propane furnaces are 15 percent more efficient than standard electric models and emit nearly 70 percent less CO2. A propane furnace can heat air up to 25 degrees warmer than electricity and last 15 to 20 years, which is five to 10 years longer than the average electric heat pump.
- Each propane tank less water heater installed to replace an electric-powered storage water heater eliminates 35,000 pounds of greenhouse gas emissions over 10 years.2 In addition, according to Energy Star, expected energy savings over the lifetime of a tank less water heater can equal up to $1,800.3
“It’s important to note that these tax credits won’t be around forever,” Willis said. “The convergence of financial incentives with the latest in efficient propane technology has created a timely opportunity for energy- and cost-conscious homeowners to upgrade their homes, while saving money on their investment.”
For additional information about energy-efficient propane appliances, visit PERC at booth 323 at the 2009 NAHB Green Building Conference or visit www.usepropane.com.
1 U.S. Department of Energy, http://www.energysavers.gov/your_home/water_heating/index.cfm/mytopic=12770.
2 Energetic Inc., Propane Reduces Greenhouse Gas Emissions: A Comparative Analysis.
3 High Efficiency Water Heaters, http://www.energystar.gov/ia/new_homes/features/WaterHtrs_062906.pdf.