We have recently received many questions regarding the new HVAC Tax Credits in the Stimulus Package. To best explain the credits, we have pulled information from a variety of resources including EnergyStar.gov and the ACCA.  Below is a generalized summary of the tax credits.  Please keep in mind that the tax credits are for qualifying equipment only.  It is best to seek advice from your HVAC professional and tax professional regarding specific requirements and qualifying heating and cooling equipment.

For qualified improvements, homeowners may be able to claim tax credits equal to 30% of the installed costs (up to $1,500) provided the following criteria are met:

• must be “placed in service” from January 1, 2009 through December 31, 2010
• must be for taxpayer’s principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
• $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
• must have a Manufacturer Certification Statement to qualify
• for record keeping, save your receipts and the Manufacturer Certification Statement
• improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
• If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.
  
• The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two year term, not $1,500 each year.
• Homeowners may use the entire $1,500 tax credit limit on a single qualifying improvement.  The tax credit applies to the installed costs of the qualified equipment, which includes labor.  If 30% of the installed cost equals less than $1500, the homeowner can “bank” the remaining credit for additional improvements.
• The previous lifetime caps which limited the homeowner to $150 for a high efficiency furnace or $300 for a high efficiency central air conditioner or heat pump have been removed.  Any previous claims do not count against the current $1500 tax credit limit and homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit

As promised, here are some before and after pictures of the new system installation at my home that I spoke about in an earlier post.  To recap, we chose to replace our 10 year old Rheem system with a new High Efficiency Comfortmaker 15 SEER heat pump.  For more about the benefits we have experienced with our new system, read this post.

I thought I would share our experience with installing a new air conditioning system in our home in Vero Beach, Florida.  In December 2008, my wife and I decided to upgrade our system before facing the high energy bills of yet another hot Florida summer.  We chose to replace our 10 year old Rheem A/C system with a new high efficiency Comfortmaker 15 SEER Variable Speed Heat Pump with the new R-410A refrigerant.  To say the least, we are completely satisfied with our decision.  Not only is our new unit tremendously quieter but our utility bill was literally cut in half.

Before the new system, I would have to set the thermostat to 72 degrees to be comfortable… and at that, the system would run non-stop and the bedroom in the back of the house was always about 5 degrees warmer than any other room in the house.  I have to say that now, I keep my thermostat set around 78 degrees and my home feels much more comfortable at that temperature due to the increased humidity removal.  There are no more hot spots in our home thanks to the variable speed motor technology.

I have decided to include snap shots of our electricity bills to show the difference in the amount of kilowatts we use now versus this time last year.  (Remember to click on any picture for a larger version).

This is the energy used for the dates of March 17, 2009 to April 15, 2009:

Energy Used 3/17 - 4/15

I will continue to update our savings over the summer months and will also post some pictures of the new system installation.

For more information on how to save money on your utility bills, protect the environment, and feel more comfortable this summer, contact Star Quality Air Conditioning.

If The Better Business Bureau Doesn’t Have Any Complaints Against The Contractor, He Must Be Qualified.

This is a common and often costly misconception. In fact, just because a contractor doesn’t have any complaints with the BBB, does not mean you’re working with someone who is a reputable professional. You need to investigate the company further. Many contractors, though they have no BBB complaints, do not do a satisfactory job (much less, a superior job). To ensure you’re dealing with a reputable professional, use the BBB as a starting place, not the only place.

Also keep in mind, the BBB is not a government agency and it does not keep a record on every contractor in town. There are several very reputable contractors the BBB has no record of at all. To truly gain perspective on a contractor’s credibility, research beyond the BBB.

Going With The Lowest Price Saves You Money.

NO, not necessarily! Everyone tends to look for the lowest price. On a low estimate, you must ask yourself what is being left out or what shortcut is being taken. Let me explain…

One roofer had his re-roof job $300 cheaper than anyone else. The homeowner wanted to save money and accepted his proposal. After the job was completed, the old shingles and nails were still lying around the yard and the homeowner was upset. The contractor told them that he had not figured the clean-up in his proposal and that was why he could do the job so much cheaper than anyone else could.  When comparing quotes for a new air conditioning system for you home, make sure they are comparable in equipment brand, size, features, accessories, and warranties.

One of the most common signs of trouble ahead is someone offering to do work for much less money than others. Like anything else, you can’t get something for nothing. Be careful of choosing your contractor based upon the lowest price.

Doing It Yourself Saves Money.

Sometimes the “weekend warrior” can undertake small projects like painting, hanging wallpaper, routine repairs, etc. But beware of undertaking larger, more complicated projects. What starts out as an attempt to save money can turn into a costly mess. All too often, the job is botched and it costs more to have a reputable professional come in and fix what’s been done. According to an article in the Baltimore Sun, less than 20% of these do-it-yourself jobs work out - mostly due to lack of experience on the part of the homeowner. If you want to be assured your project will turn out the way you want it, call an experienced, reputable professional.

If A Person Claims To Have Many Years Of Experience, They Must Do Quality Work.

I can’t tell you how many people receive bad workmanship from contractors who’ve claimed to be in business or the trade for twenty years. Take experience claims with a grain of salt. Just because a contractor claims to have twenty years experience, does not mean you’ll get what you want. He could have done a poor job for twenty years. Remember that technology is always improving and when it comes to air conditioning and heating equipment, ongoing education about new equipment concepts and energy saving technology is key.  Investigate further to ensure you’re dealing with a qualified professional that is dedicated to continuing education in their field of expertise.

Hiring an air conditioning or heating contractor can be intimidating.  After all, replacing your central air conditioning system can be one of the most expensive home improvement projects.  Below are 10 common and necessary questions to ask your potential air conditioning contractor:

Are you licensed? Make sure your HVAC contractor is properly licensed.  In the State of Florida, all contractors MUST be either certified by the State (if they have a statewide license), or registered with the State (if they have a countywide license).  Anyone can say they are licensed.  Make the contractor prove it by either showing you the license or giving you a copy of it.  If you have any questions or doubts, call the Florida Department of Business and Professional Regulation, or the County Construction Industry licensing board.

Do you carry general liability insurance? Make sure your contractor carries general liability insurance.  This type of insurance protects your property in case of damage caused by the contractor and/or his employees.  The insurance company will pay for the cost of replacing and/or repairing any damage that occurs.

Do you carry workers’ compensation insurance? Make sure your contractor carries workers’ compensation insurance.  It protects you from liability if a worker is injured while on your property.  Be aware that if the contractor doesn’t carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor or any of his employees on your property.

Are you a member of a professional organization? Organizations include ACCA (Air Conditioning Contractors of America) and NATE (North American Technician Excellence).  In most cases, professional organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors.  In order to become a member, the contractor’s background and references are thoroughly investigated.

Will you pull all the required building permits? Make sure your HVAC contractor pulls all required permits.  This is very important.  When a contractor pulls the required permits, you know things will be done to “code”.

Do you guarantee your work? Your contractor should guarantee his work for at least one year from date of completion.  Some contractors guarantee their work for two or even three years.

Who will be in charge of the job? Make sure you know who to expect on the job whenever work is being performed - especially if sub-contractors will be used.

Will you provide me with written references or testimonials? A good contractor will be happy to provide you with references.  You should look for a well-established contractor who can give you several client  references from the last 6 months to one year.

What percentage of your business is repeat or referral business? When a significant source of a contractor’s business is derived from repeat and referral business, it usually indicates that his clients are pleased with the work they’ve received.

How do you handle “dirty work”? Make sure the HVAC contractor will make an honest effort to keep debris and dust contained, or notify you when the heavy debris generating operations will take place so you can place sheets over furniture or move sensitive belongings.  Make sure the contractor agrees to clean up and place all debris in a predetermined place or refuse container upon completion.< >< ><–>

A common term used in the heating and air conditioning world is SEER rating.  SEER stands for Seasonal Energy Efficiency Ratio and is defined by the Air Conditioning, Heating, and Refrigeration Institute.  For a homeowner looking to invest in a new system, the SEER rating of an air conditioning system would be comparable to the Miles Per Gallon to rate a vehicle.  A vehicle that gets 23 MPG would be considered much more efficient than a vehicle that only gets 13 MPG.

Simply put, the higher the SEER rating, the more energy efficient the equipment is and the less it will cost to operate.  All residential air conditioners sold in the United States must have a minimum SEER rating of 13 and Energy Star qualified systems must have a SEER rating of at least 14.   SEER ratings of up to 20 are available and are achieved by the development of newer and better technology, resulting in a higher initial investment for the homeowner but will significantly lower monthly heating and cooling expenses.

The SEER rating is calculated by dividing the Btu’s per hour (the amount of cooling supplied by the air conditioner) by the watts (or the power) used by the unit under a set of specific seasonal guidelines.  This calculation is performed in a laboratory under the exact environmental conditions required by the US Department of Energy which allows for a rating that can be used to measure equipment efficiency from different manufacturers.

It is important to remember that only the performance of the evaporator equipment and condenser are rated using the Seasonal Energy Efficiency Ratio.  However, the installation of a complete heating and cooling system requires many additional procedures, parts, and materials.  There are many factors that can effect a system’s operational SEER rating.  The following field mistakes can cause equipment to operate lower than its rated SEER:

• improperly sized or designed duct system
• duct system that is not sealed
• improperly sized copper tubing
• incorrect refrigerant pressures
• improperly matched air handler and condenser

It is important to choose a reputable HVAC contractor that will design a system for your needs and install the system according the the manufacturer standards to ensure proper SEER rating and proper air flow.  A contractor should be able to provide you with an ARI Certificate from the Air Conditioning, Heating, and Refrigeration Institute that will confirm the SEER rating of a specific air handler model installed with a specific condenser model.

According to Energy Star, the average household spends about $2,000 annually on utility bills.  Almost half of this amount comes from heating and cooling your home.  Installing a programmable thermostat is an inexpensive and simple way to save money on your heating and cooling expense.  On average a properly installed programmable thermostat can save you $180 per year.

The key to a programmable thermostat is to maintain specific temperature settings according to your family’s schedule that allow for savings without sacrificing comfort.  A heating and cooling specialist can help you establish a program that automatically reduces heating and cooling in your home when you are not at home and do not need as much heating or cooling.  Example schedules include:

7 day - provides a schedule that is similar every day of the week

5+2 day - provides a setting for weekdays and another for weekends

5-1-1 day - one schedule for weekdays, and one for Saturdays and Sundays

These automatic settings not only help eliminate unneccessary heating and cooling, but are also very convenient.  Imagine your home’s temperature automatically adjusting to your liking before you go to bed at night and then again before you return home from school or work.  When you are away, the temperature will adjust to reduce the amount of heating or cooling to save energy.  A couple of things to remember:

1. Properly setting your thermostat is the key to energy savings - programmable thermostats have many complex settings and features, maximize its potential by allowing  a professional to set your thermostat properly.
2. Make sure your thermostat is installed properly by a professional to ensure accurate settings and saving potential - when installing a programmable thermostat, there are proper guidelines to consider for safety and proper operation.  It is best to contact an HVAC professional to install your thermostat.
3. Choose the right thermostat for you and your family - there are many types of programmable thermostats, talk to your heating and cooling professional for advice on which model is for you.

Most people do not think much about their home’s heating and cooling system, especially when it’s working.  I guess it is because it is not as pretty as a new big screen plasma TV or the new stainless steel refrigerator with the built in grocery list maker.  However, your home’s comfort system is one of the most expensive and most important appliance you will ever purchase.  A home’s central air conditioning system has a direct impact on property value, monthly utility expenses, the environment, and not to mention the overall comfort and indoor air quality of your most favorite place…your home.

On average, your home’s heating and cooling system runs about 3300 hours per year.  To put this into perspective, if a car was driven for the same 3300 hours at 65 MPH, it would travel 214,500 miles.  We all know that you would never consider driving this many miles with no oil change, routine tune-up, or without changing the tires!  We perform oil changes and tune-ups on our vehicles to extend the life of our investment and ensure the safety and reliability of the vehicle.  The same idea holds true for your air conditioning system.  Your home comfort system serves you more hours than your car, and like your car, it needs proper care to extend the life of the equipment and operate at its maximum efficiency.

For each year of operation without routine maintenance, an air conditioner will lose about 5% of it’s original efficiency.  This means that a 13 SEER system that was purchased just a few years ago may be functioning like a 9 or 10 SEER system today. It is proven that regular tune-ups will not only allow for a unit to maintain up to 95% of it’s original efficiency but they will usually pay for themselves in one season of energy savings.

A typical tune-up should include the following:

• Disinfect and deodorize unit
• Clean and inspect relays and contactors
• Clean heat exchanger or elements
• Clean and adjust heat pump
• Monitor refrigerant pressures
• Test starting capabilities
• Test safety controls
• Clean or replace air filters
• Clean and adjust blower components
• Measure for correct air flow
• Measure temperature difference
• Tighten all electrical connections
• Measure volts/amps
• Lubricate all moving parts
• Adjust thermostat calibration
• Clean evaporator coil if accessible
• Clean outside condenser coil
• Clean condensate drains
• Apply a protective coating to the outside condenser

How do you know when you should repair or replace your central air conditioning system? It is a common question in any home when household appliances begin to show their age.  Should you repair or replace them?  The average life expectancy of a central heating and air conditioning system depends considerably on where the system is located and if the system has had proper maintenance.

Generally speaking, if your air conditioning system is still under manufacturer warranty and is less than 5 years old, it is more economical to repair the system.  However; if your system is not covered under the manufacturer parts warranty and you are beginning to experience multiple costly breakdowns, there will be a couple of things for you to consider before jumping the gun on a costly repair.  Below are a couple of questions to ask yourself when faced with a decision to repair or replace:

1. Has your system had proper maintenance performed semi-annually? - It is a well proven and documented fact that proper maintenance prolongs the life of the equipment, results in fewer emergency repairs, keeps the equipment cleaner, and increases cooling and heating efficiency.
2. Do you live near the ocean? - Systems that are located on or near the ocean tend to have more break downs and a shorter average life span due to high salt content.
3. What is the age of the system? - The average life span of air conditioning and heating equipment is 8-12 years.  At this point, replacement parts can be more difficult to find and are not covered under the manufacturer warranty resulting in higher repair costs.
4. What is the operating SEER rating on the system? - As a system ages, it loses operating efficiency and new technology has enabled the creation of air conditioning systems that use far less energy than older models.  By upgrading to a higher efficiency unit, the amount of money that can be saved on costly repairs, monthly heating and cooling expenses, and available tax credits will pay for the investment in a short period of time.  More on SEER Ratings here.
5. Is the system noisy? - Noisy equipment may indicate an inefficient heating and cooling system.
6. Do you notice excessive dust or areas of your home that are more warm or cool than others? - Excessive dust and hot spots can be easily corrected and are indicators of an inefficient system.  Higher efficiency systems with variable speed motors can help eliminate the inconvenience of having rooms that are more warm or cool than other areas of your home.
7. Does you system run constantly or cycle on and off frequently? - If your system is having a difficult time cooling or heating your home to your desired temperature and is using an excessive amount of energy, it could be time to consider the savings and increased comfort of a new system.

As a general rule of thumb, continuing to repair is recommend if your system is under 10 years old, performing to your expectations, has been properly maintained, on/off cycling is not excessive, and only minor repairs are needed.  On the contrary, if your system is over 10 years old, has had repeat problems, excessive on/off cycling, is not performing to your expectations, and costly repairs are needed, I would strongly consider upgrading to a new heating and cooling system.

If you have any questions or would like a free equipment and energy evaluation please contact Star Quality Air Conditioning.

We recently had the opportunity to visit NASA’s Kennedy Space Center in Florida to perform a repair on one of the air conditioning systems.  It was an awesome experience to see the facility and the shuttle launch pad.  Check out the pictures: