HVAC Cost-Savings to Help During Tax Season

Very few people look forward to tax season, and it's very easy to understand why. We thought it'd be a good idea to help you lighten the burden a little by teaching you some HVAC cost-savings techniques that you can begin implementing right now.

Upgrade to a Programmable Thermostat

Moving your thermostat up and down on a regular basis can increase your monthly energy costs. A programmable thermostat allows you to put your equipment on a schedule so that you'll have better and more consistent control over your energy usage.

Look for Air Leaks and Seal Them

Every home has air leaks, but if you have too many, then you're very likely wasting energy by forcing your HVAC equipment to run longer than it should. Seal any leaks you find with weatherstripping, spray foam, or caulk. Common areas to find leaks are around the edges of your doors and windows.

Lower the Water Heater’s Temperature

Many homeowners don't realize that their water heater's temperature is cranked up higher than it really needs to be, which will obviously lead to a waste of energy. The standard default setting from the manufacturer is very often 140° F, but most people are comfortable moving it down to 120° F.

Install a Zoned System

Traditional cooling systems aren't exactly efficient, because they're forced to treat the entire home even when only one or two rooms are occupied. A zoned system, which includes multiple thermostats and the ability to concentrate your cooling efforts on specified areas of your home, will help lower your energy costs.

Switch to Fluorescent Bulbs

In recent years, there's been a huge push to switch from traditional light bulbs to fluorescent models. It isn't difficult to see why: Not only do incandescent bulbs use more energy, but they also give off more heat, which will increase your cooling needs.

We hope these HVAC cost-savings strategies will help you get started toward lowering your energy bills. If you're in need of service, the team at Air Assurance can help. We've been fielding HVAC needs for Broken Arrow and the surrounding areas since 1985.

HVAC Upgrades that Qualify for Tax Credits

If you're considering replacing the heating or cooling equipment in your Broken Arrow home, you may be able to take advantage of federal tax credits when you choose energy efficient models. A knowledgeable local HVAC contractor can give you personalized advice about the specific equipment and efficiency level to best suit your needs and budget that might qualify you for extra savings like:

Tax Credits on Solar Energy Through 2021

Having a solar-ready heat pump or air conditioner installed in your home before December 31, 2021 may qualify you for a federal tax credit of up to nine percent of the equipment's cost. There's also an additional credit available on the solar module used to generate electricity for your new HVAC components:

• Until the end of 2019, the credit is thirty percent of the module cost and installation, with no dollar limit.

• In 2020, the available credit will be reduced to 26 percent, and for 2021 it drops to 22 percent.

The credits are available for equipment installations in existing and newly-constructed homes that are either principal or second residences (rental property doesn't qualify).

Tax Credits on Efficiency Improvements Through 2020

In December 2019, Congress passed legislation that renewed the tax credits for 2020 and made them retroactive back to 2018. For qualified HVAC improvements, homeowners may be eligible to claim the federal tax credits equal to 10% of the installed costs; a maximum tax credit of $500.

If you purchased a system from Air Assurance in the past, or are thinking of purchasing another system from us in the recent future, you could be qualified for up to $500 in additional savings in the form of tax credits for 2018, 2019, and 2020! The tax credit is retroactive.

Of course, we’re not tax professionals, so be sure to consult your tax advisor before filing your taxes. We just don’t want you to leave any money on the table! 

Here is a website for you to see for yourself:  Read About 2020 Tax Credits

For updated information from the IRS, you can visit their recently released information.

• Instructions for Form 5695

• Form 5695

 If you purchased a 95%+ AFUE Furnace, 16 SEER or above AC unit, 15 SEER or above Heat Pump, 14 SEER or above Package unit, or a tankless water heating system, or many other energy efficient home enhancements, you could qualify for an additional $500 off your taxes! 

Prior Tax-Savings on Energy Efficient HVAC Equipment

Through December 31, 2016, the federal government offered tax credits for different types of high-efficiency HVAC systems. They applied to Energy Star-qualified equipment installed in an existing home/principal residence, and the amount varied depending on the equipment type:

• Central air conditioners, packaged units, heat pumps and ductless mini-split systems qualified for a credit of up to $300.

• Propane, natural gas and oil furnaces and boilers qualified for a tax savings of up to $150.

• Geothermal heat pumps qualified for a credit of 30 percent of the cost, with no upper limit.

While the above-mentioned tax-saving credits have expired, they could be reinstated at some point in the future, so it's worthwhile checking for available credit updates on the federal government's Energy Star program website.

If you're thinking about upgrading to new energy-efficient HVAC equipment for your Broken Arrow home and you'd like to explore your options or learn whether there are tax credits available, contact us at Air Assurance.

Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). For more information about HVAC upgrades and other HVAC topics, call us at 918-217-8273. Credit/Copyright Attribution: “stevepb/Pixabay”

Time-Variant Pricing & Energy Efficiency

More and more electric utilities across the country are offering time-variant pricing to residential customers. It’s not only a money-saver for those who take advantage of this new pricing method, it also makes basic energy efficiency habits pay off more than ever.

In years past, electricity was typically priced at a flat rate: no matter what time you used it, you paid the same price. Time-variant pricing, however, means electricity costs more in high-demand periods of the day and substantially less during periods of low consumption. By synchronizing electricity use to take advantage of lower-priced periods — as well as taking common sense measures to increase home energy-efficiency — you can realize meaningful savings on your monthly electrical bills.

Most time-variant plans divide electricity prices into three levels:

• Peak hours. This is typically daylight hours from late morning through early evening. Rates are higher during this period.

• Off-peak hours. Usually beginning at around 8 p.m. and continuing overnight, off-peak pricing provides electricity at bargain rates.

• Critical peak periods. During limited periods of unusually high consumption—for example, a severe heat wave—utilities may temporarily impose above-market electricity rates. However, customers who keep consumption below specified levels during the period will frequently be exempt from critical peak cost increases.

To maximize the benefits of time-variant price scheduling, here are a few suggestions:

• Check with your utility to determine the exact timing of each price level, then set your programmable thermostat accordingly to enhance savings. For example, you may want to bump up the A/C thermostat setting a few degrees during the peak pricing period and lower it during off-peak hours.

• Schedule high-consumption activities—like running the washer and dryer or using the dishwasher—to take advantage of off-peak hours at nights and on weekends.

• If critical peak pricing takes effect, try to keep consumption below the trigger point that imposes special increased rates. Open windows at night for cooling, run efficient ceiling fans to keep air moving, turn off lights, etc.

For more ways to make the most of time-variant pricing, ask the professionals at Air Assurance.

How Planting Trees Can Lead to HVAC Savings

We all know that shade trees make a difference when it comes to keeping cool in the summertime. But did you know that planting trees can also boost HVAC savings on your energy bill? Read on for how the trees you plant today can earn their keep by saving on your HVAC energy bill in the future.

Keeping Cool With Trees

Shade trees keep the temperature down in your home in two ways. They block solar radiation from entering the home, sure, but they also cool the air around them through a process called transpiration. The trees pull water through the roots, which changes from a liquid to vapor as it is released through the leaves. As the vapor enters the air, a cooling effect takes place. A dense planting of shade trees can cool the air around them by as much as 6 degrees.

Where to Plant Trees

Think carefully about where you want to plant trees. Shorter shade trees work well on the eastern and western sides of the home, since that's where the sun will shine closest to the horizon. Taller trees on the south face of the home offer midday cover and can keep the walls and roof cool.Don't plant trees too close to the home -- 10 to 20 feet away from exterior walls is recommended. Planting trees too close can cause foundation problems. You may also have to do extensive trimming to keep limbs from damaging the roof during storms.

Choosing Trees

If you aren't particularly tree savvy, talk to a nursery professional before you choose trees based on looks alone. Avoid trees that are too fast growing, as these species may be subject to disease or breakage before they grow big enough to shade your home. Ask about maximum height, growth habit and the tree's ability to flourish in the microclimate that your home will provide. Don't choose trees that shed fibers or seeds that might clog your outdoor condenser unit.

We've got more tips on HVAC savings at Air Assurance of Broken Arrow.

Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). For more information about other HVAC topics, call us at 918-217-8273.

What Affects Your Home's HVAC Costs?

If you're thinking about upgrading the HVAC equipment in your Broken Arrow home, you're probably wondering what might affect the price you'll pay for a replacement. Here's some helpful insight into the main factors that typically affect HVAC costs:

Equipment Capacity

Generally, the capacity or size of new HVAC equipment directly affects its cost, so it's vital to determine the size needed to properly heat or cool your home. To avoid purchasing oversized, more costly equipment unnecessarily, you should have an experienced HVAC contractor perform a detailed load calculation to learn the correct capacity required.

Efficiency Ratings

The equipment's energy efficiency rating is another key factor in the cost of a new HVAC system. Higher-rated equipment costs more up front, but it uses less energy so it can save you money on heating or cooling. To help you make an informed choice, ask your HVAC pro about potential energy savings versus upfront cost for all the models within your budget.

Equipment Options and System Add-Ons

Specific equipment features and system add-ons can also affect the HVAC costs you pay. Advanced options like a variable-speed air handler, two-stage compressor or ECM motor will raise the system's price tag, but they'll also reduce your operating costs. System extras like UV lamps, or an air cleaner, dehumidifier or smart thermostat will increase the overall cost as well, but the benefits they offer can outweigh the added expense.

Duct System Changes

If the current ducting design won't work well with new, more efficient equipment or the ductwork has deteriorated, there'll be an additional expense to alter or replace it. How much this adds to the total price depends on the extent of the alterations, or how much it costs to fabricate/install new ductwork.

Installation Labor Charges

Labor charges for an HVAC installation can differ dramatically, but don't base your decision on who to hire on price alone. It's wiser to consider reputation, years of experience and workmanship quality and make price a secondary consideration.

Contact us today at Air Assurance to learn more about what can affect HVAC costs in your Broken Arrow home.

Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). For more information about HVAC costs and other HVAC topics, call us at 918-217-8273. Credit/Copyright Attribution: “3dman_eu/Pixabay”

Regional Efficiency Standards: A Settlement Has Been Reached

Recently, regional efficiency standards for HVAC equipment have been changed by the industry and the Department of Energy. Let's go over what this means for your household.

In 2006, the standard SEER (Seasonal Energy Efficiency Ratio) for air conditioners and heat pumps was raised from 10 to 13. In 2010, equipment manufacturers partnered with efficiency specialists to develop new regional efficiency standards, accounting for different climate conditions throughout the US. In the South and Southwest, SEER requirements were raised to 14, while they remained at 13 in the North.

Equivalent regional efficiency standards and adjustments have also been set for other equipment, such as gas furnaces.

However, the proposed January 2015 adjustments posed a few issues for manufacturers and distributors, so a new agreement has been reached with the DOE. It affects different equipment and regions in different ways.

Before we jump into the new rules, let’s go over a few terms. SEER we’ve already discussed. HSPF is related to heat pump efficiency, and stands for Heating Seasonal Performance Factor. AFUE is for furnaces, and stands for Annual Fuel Utilization Efficiency.

These new regional efficiency standards apply to all equipment manufactured after January 2015.

• Split system air conditioners: SEER 14 (This number applies specifically to the South, including Oklahoma.)

• Single package air conditioners: SEER 14

• Split system heat pumps: SEER 14, HSPF 8.2

• Single package heat pumps: SEER 14, HSPF 8.0

• Small-duct, high-velocity systems: SEER 13, HSPF 7.7

• Space-constrained air conditioners and heat pumps: SEER 12 (Heat pumps must meet an HSPF of 7.4.)

• Gas-fired furnaces: AFUE 80%

While these numbers will become regional efficiency standards as of January 2015, there’s an 18-month grace period for distributors to sell through equipment manufactured before then.

These developments don't mean you’ll be forced to upgrade your equipment. They do mean that if you purchase new equipment made in 2015 or later, it will comply with these standards, saving you money and reducing your impact on the environment.

Let us know if you have questions. Air Assurance has been serving the Greater Tulsa metro area since 1985, and we’ll be happy to help.

Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). 

Image courtesy of Shutterstock