Energy efficiency upgrades are gaining in popularity, in part because they save homeowners money but also because incentives, some of which are set to expire, have sweetened the deal.
The most common, and cost effective, upgrades are sealing air leakage and adding insulation, according to companies that regularly test and make energy efficiency upgrades. Many homeowners making those upgrades in the past couple of years have been eligible for federal tax credits that help with the costs.
The non-business energy property credit gives homeowners 30 percent, up to a maximum of $1,500, for certain energy-saving fixes, including some heating and air conditioning systems, water heaters, windows and some insulation. Theresidential energy efficient property credit gives homeowners 30 percent of what they spend on solar electric systems, solar hot water heaters, geothermal heat pumps and wind turbines. Both federal tax credits expire at the end of this month.
Earlier this week Eddie Paul, who lives in a 2,600-square-foot house in Conway, had Carolina Green Energy Systems come to his house and do an energy audit so he could find trouble spots and fix them as he renovates the house.
"[I want to] get the most bang for my buck. That's what it comes down to," Paul said. "I want to maximize my return."
He said he'll be happy if he saves 20 percent monthly in energy costs as a result of the upgrades, which will focus on sealing air leakage from the ducts in his heating and air conditioning system and improving some insulation.
Paul won't be applying for the federal tax credit for energy efficiency upgrades for these projects because he used them already to replace his roof.
"I spent a little more for the roof because of the tax credit," he said. "I went ahead and got an Energy Star roof."
The energy audits are key in determining the best upgrades a homeowner can make, said Bennie Marshall of Carolina Green Energy Systems. At the end of an audit, homeowners get a detailed report about what should be done and what the return on each investment would be, he said.
Sealing air leaks, like in Paul's house, and replacing insulation tend to be the easiest and cheapest fixes that can save homeowners the most money, Marshall said.
The company does about 1,000 energy audits a year, Marshall said, and only about 10 percent of customers have asked about the tax credit.
"It's a cost benefit [issue] whether you have the tax credit or not," he said.
But Rebecca Griggs, the public outreach coordinator for the S.C. Energy Department, said the recent state and federal incentive programs have helped consumers spend the extra money on energy efficient upgrades.
"This has given people a chance to look at that as an option. Before, people were turned off at the high prices, now it's given them a chance to look at it," she said.
The incentives have also educated residents so more homeowners now know about the possible savings. Once the rebates and credits run out, it is unclear if homeowners will be willing to make the investment given the still-rocky economy, Griggs said.
Evelyn Lyons, who will get the federal tax credit after adding insulation and a heat barrier in her attic, said that the savings even without the incentive would be worthwhile.
She immediately felt the difference in her house, and her electric bill dropped more than $20 last month.
"It cut the drafts ... from the day he did it to the next day," Lyons said.
The tax credit helped her decide to make the upgrades but the savings on her energy bills was the main factor, she said. With the money from the tax credit and big savings in the colder months, Lyons estimates she'll have the money she spent on the upgrades back in less than two years.
Reid Hilliard, the owner of Green Innovations of South Carolina Inc., who did the energy audit and improvements on Lyons' house, said most of his customers have been aware of the tax credit.
"That's definitely one of the things they want to take advantage of. They've known about it, and they've asked about it and they're going to take advantage of it," he said.
Hilliard said that often customers ask him about replacing windows, which are not the most cost effective or efficient fix. His first recommendation to homeowners is typically to add insulation in attics because it's fairly inexpensive and can really reduce the power bill, especially in older homes.
Most sealing and insulation projects on a typical 1,500- to 2,000-square-foot house can be finished in a day, and costs vary based on the types of materials needed. In most cases, several hundred dollars will cover the testing and project costs, he said.
Hilliard said even once the tax credits expire, there are other incentive programs that can help reduce homeowners' costs as they upgrade to more energy efficient systems. Some of those programs are coming from utility companies that are pushing customers to make the improvements.
"We are seeing a big interest among our customers," said Mollie Gore, spokeswoman for Santee Cooper.
Santee Cooper launched a group of energy efficiency initiatives called Reduce the Use South Carolina in September 2009, and in the first year customers had saved more than 49 million kilowatt-hours, about enough energy to power 37 houses for a year.
"With the focus of keeping energy costs low, to the extent that we can get customers to demand less electricity, that is less electricity that we have to generate and in the future less electricity that we have to build for," she said. "It saves money when [we're] collectively practicing energy efficiency."
Santee Cooper has some rebates but also a low interest loan program that allows homeowners to borrow money to pay for improvements and pay it back on their monthly utility bill.
The Electric Cooperatives of South Carolina, a group that represents the electric co-ops, has been working with South Carolina's congressional representatives to get a program passed that will provide federal money to utilities to make similar loans for energy efficiency upgrades. The bill that would approve the program is stuck in the Senate, said Van O'Cain, the director of member and public relations for the group.
Encouraging residents to install energy efficient equipment saves the residents - and the co-ops - in the long run, he said.
"Energy efficiency is the best available measure we have to help our members. It's one thing we can control," O'Cain said.
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