Save Money on Energy Bills

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Save Money on Energy Bills

Fuel costs are up, and so are your energy bills. What help is available?

Two federal programs help qualified people with their home heating and cooling bills, whether that’s oil, electricity, gas, or something else. They are the Low-Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program (WAP). If you don't qualify for these programs, you can save money—and get a tax credit—if you replace appliances and even light bulbs with the Energy Star® label. Plus you can do an energy audit to find the places you can stop energy waste.

Low-Income Home Energy Assistance Program (LIHEAP)
If you’re on a limited income and much of your money goes to paying to stay warm in the winter or to keep cool in the summer, you may be eligible for LIHEAP. LIHEAP pays a portion of heating and cooling costs for low income renters and homeowners. To find out about what help is available in your community call the National Energy Assistance Referral (NEAR) at 1-866-674-6327 or send an email to energyassistance@ncat.org. NEAR is a free service to help people connect with their local LIHEAP program. It’s up to the program in your community to determine who is eligible and how much help with energy costs can be given.

Apply early! One problem is that there never is enough money to go around. The funds frequently run out.

Weatherization Assistance Program (WAP)
You may also qualify to get a free energy audit and home repairs. If you’re qualified, WAP pays a contractor to visit your home to see if it better weather proofing can save you money. If your home is drafty and the heat you have paid for is escaping, WAP pays the contractor to add insulation, caulking, or weather stripping to keep your heating and cooling bills down. They may even replace your furnace or air conditioning to improve your health and safety. There is no cost to you but you must be eligible. Each state runs its own program so you will need to check with your state program on how to apply.

These home energy improvements have helped over 5 million people spend less on utility bills and have safer homes. It also cuts back on how much fuel we use—and waste—each year.

ENERGY STAR® Products
Energy Star is a government program that encourages homeowners, manufacturers and home contractors to look for ways to save energy and protect the environment. One of its program rates products that are designed to be more energy efficient—products that will save you money. When you shop for replacement windows, a furnance, air conditioner or even light bulbs, look for the Energy Star label on the product.

For all electrical products there are two price tags: the one-time cost to buy it and the long-term cost to keep it running. You can reduce your energy bill by as much as 30 percent when you buy energy efficient products.

Energy Star also recommends that you can save money and energy with these heating and cooling tips.

Service your heating and cooling equipment annually.
Replace air filters regularly.
Use a programmable thermostat that turns back the heat or air conditioning while you are away or asleep. This is one of the most energy-savings investments you can make.
Add insulation to places where energy is leaking out of windows or doors.
Caulk and seal air leaks where plumbing, ducting or electrical wiring go outside.
Keep the thermostat on your hot water heater at 120º.
New Tax Credit for Home Energy Improvements
You can start getting tax credits for energy-saving items you put in your home after 2005 and before 2008. There's a $500 lifetime limit. The credit amount equals the sum of 10% of your expenditures for a qualified energy efficiency improvements to an existing home plus 100% of your expenditures for qualified residential energy products.

The 10% part of the credit for qualified energy efficiency improvements covers these items:

Metal roofs coated with heat-reduction pigments.
Exterior doors.
Exterior windows including skylights (the lifetime credit for windows is limited to $200).
Insulation materials designed to reduce heat loss or gain.
The 100% part of the credit for qualified residential energy products covers money spent on these things:

Qualified electric heat pumps, electric heat pump water heaters, geothermal heat pumps, and central air conditioners. The credit for these can't exceed $300.
Qualified natural gas, propane and oil furnaces, and qualified hot-water boilers. The credit for these can't exceed $150.
Advanced main air circulating fans. The credit for these can't exceed $50.
Energy Audits
An energy audit is a good way to figure out where you can save energy costs. It's an examination of what energy you are using in your home and where you can conserve. You can do it yourself with one of the "walk-through" guides listed in the Resources or have a professional come to your home. Some utility companies will do an audit for free or low cost. Call the number on your utility statement to find out.