Is Now the Time to Build Home Renewable Energy Systems?

The past few months have seen the world price of crude oil rise from the mid-thirty-dollars per barrel range to the mid-sixty-dollars per barrel range. This has been during a time of historic economic lethargy with very little growth in worldwide energy demand. It is not difficult to imagine what world energy prices will do once the economy gets back on its feet and the world goes back to work.

The important question is how you can best protect yourself and your family from future energy price bubbles and supply disruptions. This may be the perfect year to finally undertake those projects you have been contemplating to decrease your reliance on the utility

company to keep your home warm (or cool) and lighted.

The economics of home renewable energy systems look better all the time as up-front costs decrease and prices for fuel rise. And, if you live in the United States, you can now take advantage of renewable energy tax credits which were restored and expanded in the "economic recovery" legislation passed in 2009.

You can significantly reduce your own utility bills by installing small scale solar and wind energy systems on your property. You can get the quickest payback from investments you make in reducing your energy use, such as adding insulation to your attic.

Since laws and tax regulations are subject to change, you should consult with your tax advisor before claiming energy tax credits, but following is a short summary of the credits available as of late spring 2009:

A federal tax credit up to 00 for 30% of the cost of adding insulation, installing new windows, caulking cracks, and other expenditures for "tightening up" your house to conserve energy. This credit applies to investments you make by 12-31-2010.

A similar credit and deadline for investing in more efficient heating, air conditioning, and ventialation systems for your home.

A federal tax credit with no cap for 30% of costs incurred by 12-31-2016 for investments in renewable energy systems for your home,including solar thermal, solar electric, wind power and biomass fuel systems.

A federal tax credit for purchasing diesel, hybrid and electric cars.

The tax credits should not be your only motivation for greening up your home, but they will go a long way towards making the economics of the investments look good.

About the Author

If you are handy and want to increase your energy independence and save money in the process, you can build your own do it yourself home solar power and home wind energy systems for your home or business. Visit the following link for a review of three excellent DIY home energy systems instruction kits: Home Renewable Energy

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