Although heating oil and gas prices have eased somewhat, it still makes sense to conserve energy. Through federal, state, and local tax credits, utility subsidies, and loans, you can afford to make your home more energy efficient.

The federal government recently renewed the Federal Energy Efficiency Tax Credit that expired in 2007. This federal income tax credit can be applied to 100% of the cost of energy property, such as energy-efficient hot water heaters, furnaces, boilers, heat pumps, and air-conditioning units. It can also be applied to 10% of the cost of energy improvements to the building envelope, such as insulation, windows, doors, and reflective, energy-conserving roofs. This tax credit is a one-time credit that can be used for work completed in 2009.

The federal government also renewed the Residential Renewable Energy Tax Credit. This tax credit applies to solar electric, solar water heat, fuel cells, small wind, and geothermal installations and is in effect from January 2006 to December 2016. Please refer to our discussion of renewable energy for more details.

On the state and local levels, the Commonwealth of MA has passed the Residential Renewable Energy Income Tax Credit, which applies to solar hot water, solar space heat, photovoltaics and wind power. The Massachusetts Technology Collaborative also provides subsidies for photovoltaics, wind, and microhydro projects. The specifics of these programs are presented in our discussion of renewable energy.

Local utilities provide the largest subsidies for conservation. Take the NStar Utility Rebate Program, for example. NStar gives a $300 to $500 dollar rebate for EnergyStar-rated central air-conditioning units. A rebate of $150 is given to downsize an existing unit. An EnergyStar-rated room air-conditioning unit is $30; energy-efficient light fixtures, $10-$15; and a clock thermostat, $25. Efficient-furnace rebates are $100 to $400. Boilers with an annual fuel efficiency rating (AFUE) better than 90% receive rebates of $200 to $1000 and boilers with an AFUE better than 90% and an indirect, on-demand hot-water heater receive rebates of $1300. EnergyStar-rated windows are subsidized at $10 each. Finally, weatherization expenditures and insulation work allow for rebates up to $1500.

In lieu of utility rebates for energy efficiency, MassSAVE has established the Heat Loan Program to save energy. The Heat Loan is available for energy-efficient water heaters, furnaces, boilers, heat pumps, programmable thermostats, duct and air sealing, building insulation, windows and solar hot water heating. The Heat Loan Program allows eligible homeowners to borrow up to $10,000 for to seven years at interest rates as low as zero (income affects eligibility and interest rates).

These subsidies are explained in more detail at MassSAVE or your local utility website. A list of programs available for conservation and renewable energy can be found at DSIRE.org.