Energy Credits

Energy credits more commonly referred to as Renewable Energy Credits or Green Tags are proof that you have made your bit of contribution in saving some energy and reducing carbon emission. It is very common these days to opt for energy efficient homes and reduce consumption of energy.
Energy credits have assumed immense importance.

And the Federal Government is offering incentive to the consumers to make use of renewable energy in a judicious manner. More and more homeowners are turning to green homes by renovating certain structures in their houses that will allow them to make optimum usage of energy.

Energy credits and their significance

If you renovate your home to make it more energy efficient, it helps you in a number of ways. For instance, it makes your house a better place to live. And above all, there is a larger cause for which you are working – you are saving the environment. In other words, you are making the environment green.
Not all types of renewable energy qualify for energy credits. Green power that qualify for energy credits include the following –
* Wind energy
* Solar energy
* Biodiesel
* Biomass
* Fuel cells etc

Government’s role in offering energy credits

When you are buying an energy efficient appliance, it indicates that you are supporting green power and trying to do your bit to curb carbon emission. In fact this trend has gained so much prominence that the Fed is offering tax credit to the consumers those who are supporting the concept of energy credits.
As per the American Recovery and Reinvestment Act 2009 (ARRA) offers incentives for the homeowners who make their homes greener. According to the law, if you are able to earn a certain percentage of energy credit, you can use the same either in increasing the tax refund you are entitled to receive or reduce the amount you have to shell out as tax.
However, find out what changes in your home can help you to qualify for energy credits and consequently allow you to shell out less when you file your tax return. If you are making the following structures in your home energy efficient, you may qualify for tax credits –

* Storm windows
* Skylights
* Geothermal heat pumps
* Exterior windows as well as doors
* Hot water boilers
* Heating and centrally air conditioning
* Using cooling granules on asphalt roof
* Fuel stoves that have thermal efficiency of 75% and more etc

Usefulness of energy credits

Experts are of the opinion that using energy efficient devices or changing your home into energy efficient homes has several advantages. It not only allows you to enjoy tax credits but it also helps you to save cash on your utility bills. So, if you have not made your home energy efficient as yet, opt for the same without delay. This is because the sooner you get your share of energy credits; the faster will you be able to reap the benefits of the same.