According to the United States Department of Energy (DOE), water heaters make up 25 percent of the total energy use in the typical home. The DOE also states that the average water heater lasts for 13 years before it needs to be replaced. If you are looking to improve the energy efficiency of your Lincolnwood, IL, home, now is the perfect opportunity to take advantage of water heater rebates offered by the Internal Revenue Service (IRS). If you purchase and install your new water heater by December 31, 2013, you may be eligible for a tax credit of $300. This also applies to qualifying equipment purchased in 2012.
Water Heaters Eligible for a Tax Credit
The 25C federal tax credit program, which expired in 2011 and has been reinstated until the end of this year, is available for the following types of water heaters:
- An electric heat pump water heater with a 2.0 or higher energy factor.
- A water heater that is powered by natural gas, propane or oil and has a minimum thermal efficiency rating of 90 percent or a minimum energy factor of 0.82.
When you purchase a new water heater from Gartner HVAC Heating & Cooling and have it installed by us, we provide you with all documentation you need to claim a credit on your 2013 tax return.
What is a Water Heater Energy Factor?
The DOE requires that all new water heaters manufactured in the United States include a label with an energy rating that is in plain sight for the consumer. The water heater energy factor rating has a decimal point that is followed by two numbers. The energy factor range for electric water heaters is .75 to .95. For gas water heaters, the range is .50 to .70. In general, electric models are more energy efficient. However, this may not be true if it is less expensive to use gas than electricity in your area.
How to Know When it is Time to Replace Your Water Heater
When your water heater gets to be about 10 years old, it is usually better to replace it than repair it. Some indications that your water heater may need to be replaced soon include:
- Water has a cloudy appearance.
- There is less hot water available or it takes longer to get hot.
- Water pools on the bottom of the tank or there is noticeable corrosion.
- The unit makes frequent loud banging noises.
Save More Money with a Tankless Water Heater
Tankless water heaters save homeowners money because they don’t store hot water and only operate on an as-needed basis. Depending on the amount of hot water you use in a day, you could potentially increase your energy efficiency by as much as 50 percent. Gartner HVAC Heating & Cooling also both types water heating units available.