How to Drastically Reduce Your Heating Bill with New Windows
Are you considering new windows for your home?
In our post on drafty windows, we focused on ways to test your windows and doors for leaks and inefficiency. There are certainly ways to help a little bit with those heating bills in cold Michigan winters, but what if your windows are old, broken down or ugly, and you are ready to get them replaced?
All New Windows Not Created Equal
Vinyl windows for an average 2500 square foot house can cost around $15,000. Sometimes you can get the same energy savings up front by investing about $1000 in sealing leaks, insulating, and repairing your windows.
Old windows, however, are not likely to get any more energy efficient over time. There is a broad range in both pricing and effectiveness in energy efficient windows.
The low end of the price spectrum could cost $270 to $800 per window with installation and are less energy efficient than at the higher end. You can expect to see the savings on your energy bill – if you’ve replaced old double-pane windows – at around 15%.
However, keep in mind that this can vary widely depending on the temperature and climate outside.
In addition, this is about more than just energy savings. Even if you aren’t planning to sell your home, for average-quality vinyl windows, you may get over 70% of your cost back in added value to your home. That could be as much as $9,000 if and when you sell your home. A small loan may make this a good investment if you’re planning to sell in a few years.
Nonbusiness energy property tax credit
The IRS has put out a list of “qualified energy efficiency improvements” tax credits associated with improving the energy efficiency of your home. The materials used have to qualify by meeting technical efficiency standards set by the Department of Energy.
A manufacturer or licensed contractor can tell you which materials meet this standard. The IRS distinguishes between two types of upgrades:
Qualified energy efficiency improvements
- Home insulation
- Exterior doors
- Exterior windows and skylights
- Certain roofing materials
Residential energy property costs
- Electric heat pumps
- Electric heat pump water heaters
- Central air conditioning systems
- Natural gas, propane or oil water heaters
- Stoves that use biomass fuel
- Natural gas, propane or oil furnaces
- Natural gas, propane or oil hot water boiler or oil furnaces
Tax Saving Credits Limits
There are some limitations for claiming of these tax credits, but you may be able to claim 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. Here are the limits:
- This credit is worth a maximum of $500 for all years combined, from 2006 to the present.
- Of that combined $500 limit, a maximum of $200 can be for windows.
- For a furnace circulating fan, the maximum tax credit is $50.
- For a furnace or boiler, the maximum credit is $150.
- The maximum credit for any other single residential energy property cost is $300.
Consult a Professional
If you are considering new windows, make sure you consult a company who knows what they’re doing, and that has many new window installations under their belts. Not only will it be worth it for the money you will save on your energy bill every month, but you could end up getting some of your money back for the installation too.
Now might be the time to take the plunge! Please contact Renovations Roofing & Remodeling, Inc. today.