Posts Tagged ‘Federal Tax Credits’

Why homeowners today are replacing their oil boilers with high-efficiency gas boilers. Does it make sense for you, too?

Monday, November 9th, 2009

We’ve been getting a lot of calls recently from homeowners who are interested in replacing their boilers and we’re answering questions specifically about the differences between using a fuel oil boiler versus natural / propane gas boiler.  So we thought we’d share some general information about today’s boilers and the differences between them in order to help you make the right decision for your home and budget.

With some exceptions, gas boilers – which can be run with natural gas or propane – are generally more energy efficient, cleaner burning, quieter, less expensive and qualify for both Federal tax credits and VA state tax rebates.  Simply stated, those are the reasons most homeowners are switching to gas boilers – higher efficiency and better economically.  But homeowners should be careful in switching to gas as not all gas boilers carry the same AFUE or high efficiency rating – we only recommend those that are 95% AFUE.  Call us at 804.323.0189 for answers to any other questions you may have.

 Q.  Are fuel oil boilers energy efficient?

 A.  The general answer is no.  Most oil boilers run in the low 80 percent of energy efficiency and most homeowners want systems that run higher, as you should.  However, Marshall Mechanical is the only HVAC contractor in the Richmond area that is authorized to both purchase and install the Buderus GB125BE/35 High Efficiency Oil Fired Hot Water Cast Iron Boiler which runs at 91% efficiency or AFUE (Annual Fuel Utilization Efficiency).  This system is not affordable for all homeowners but if you want to replace your oil system with another oil system, then this high-efficiency unit should be considered because of its far superiority and energy efficiency as compared to other oil boilers.  For various reasons – expense and efficiency the most common —  many homeowners who currently have oil boilers are switching to gas boilers.

 Q.  Are all gas boilers energy efficient?

 A.  No, not all gas boilers carry high efficiency ratings or AFUE.  We often see other HVAC contractors recommend 80% AFUE gas boilers as they are easy to install and lower price point for consumers. In reality, they are not a good investment for consumers because they don’t qualify for tax credits and they cost more each month in utility bills.  Therefore, they are not cheaper in the long run.  A homeowner can purchase a high efficiency unit and pay the same net investment as a low efficiency boiler but then continue to save about 15% each month over a lower efficiency

Boderus GB-142 is 95% AFUE High Efficiency boiler

Boderus GB-142 is 95% AFUE High Efficiency boiler

model which makes much more sense.  We recommend high efficiency natural gas or propane (LP) boilers such as the Buderus Ultra-Efficient 94%+ AFUE GB142 which is also whisper quiet, Utica 95% AFUE Modulating Condenser UB95M boilers and the  Triangle Tube PE110, a 95% AFUE Condensing Stainless Steel Wall Mounted Gas Boiler with a built-in “Tank-in-Tank” Indirect Fired Water Heater.

 Q. Do oil boilers qualify for Energy Efficiency Federal Tax Credits?  What about Virginia State Energy Efficiency Rebates?  Do gas boilers qualify?

 A.  The only oil boiler that is energy efficient enough to qualify for Federal Tax Credits and Virginia State Rebates is the one we mentioned, the Buderus GB125BE/35 because it runs as a 91%+ efficient oil boiler.  Other oil boilers do not qualify for tax credits and rebates.  But the natural gas boilers we mentioned above like the Boderus GB-142 run at 95% efficiency and therefore DO qualify for both Federal tax credits and Virginia State rebates.  The bottom line is that a boiler has to be above 90% AFUE in order to qualify for either Federal Tax Credits or Virginia State Rebates.

 Q.  How much are the tax credits and rebates?

 A.  Federal tax credits for energy efficiency are now running at up to $1500.  Virginia state rebates are up to $2000.  Combined, these tax credits as a result of President Obama’s stimulus plan, benefit the homeowner by offering up to $3,500 in tax credits and rebates.  This allows the homeowner to purchase high-efficiency units for a much lower net cost than ever before.  It is yet another reason (and a very important one to most homeowners in this economy) to replace your oil boiler with one that runs at over 90% AFUE.  Many of the gas products we mentioned like the Boderus GB142, the Utica UB95M series or the Triangle Tube PE110 run at 95% AFUE and are considered high efficiency which is why it makes more sense to purchase.

 Q.  What about maintenance costs?  Are oil boilers expensive to maintain?  How do they compare to natural gas?

 A. Maintenance costs are traditionally higher with oil boilers.  Aside from being less efficient, oil tends to be a dirty fuel and therefore oil boilers (and furnaces) absolutely require annual maintenance.  The cost of not maintaining an oil appliance can be upwards of $2,000 just to clean a boiler and get it up and running if it has been neglected for a just a year or two.   Natural gas boilers should be inspected annually in order to maintain energy efficiency but maintenance costs are minimal in comparison.

 Q. Are there any environmental issues for a homeowner to be concerned with?

 A.  Oil boilers require an oil storage tank.  Many homeowners do not like the environmental issues that arise as a result of maintaining their storage tanks and therefore opt for a natural gas boiler instead for that very reason.  Natural gas is clean burning at 95% efficiency.  The only environmentally-conscious oil boiler we recommend is the Boderus GB125BE/35 but gas boilers — natural gas in particular — should be considered if you are concerned about the environment both in and around your home.

 Q.  What is the cost factor involved in comparing an oil boiler to a gas boiler?

 A.  Aside from the fact that an oil boiler is more expensive to maintain each year, natural gas is currently costing home owners significantly less than fuel oil on a monthly basis.  We find that homeowners are weighing this factor heavily when considering their monthly utility bills and calculating cost savings.  We can help a homeowner run calculations and savings for their individual situation based on various units so they can do their own cost calculation.

 Q.  Our oil boiler seems to always make noise.  We get used to it but we’re wondering if there are other options that would help us with noise reduction?

 A.  Yes, most oil boilers will be noisy when the unit heats up — you’ll always know its running because you’ll hear it.  Gas boilers, however, run quieter – probably quieter than your refrigerator.  Significant noise reduction is another reason why homeowners who have oil boilers have switched to gas boiler systems.

 Q.  Are there installation differences between oil and gas boilers?

 A. High efficiency boilers must be piped differently than lower efficiency boilers.  Most high efficiency boilers require a primary/secondary loop.  Utica is the only manufacture that doesn’t require a primary/secondary loop and that’s why we often recommend the 95% efficiency, UB95M-200 gas-fired, condensing, hot water boiler depending on your home’s situation. 

 Q.  Do you have a recommendation on where I can get basic information about how boilers work? 

 A.  We think this consumer brochure from Boderus is the most helpful.  Click here.

 Q.  What if I want to get an estimate and comparison of replacing my oil boiler?

 A.  The experts at Marshall Mechanical – your Richmond area HVAC contractor and partner – are always available to answer any further questions you may have, visit your home at a time convenient for you and to give you an accurate estimate of energy efficiency, product and installation cost.  Simply call us at 804.323.0189 today.

With Lennox® Fall HVAC promotion plus Federal Tax Credits, homeowners can save up to $2,700 on new heating and air conditioning system.

Tuesday, September 1st, 2009
Lennox Indoor Comfort Systems. Innovation never felt so good.

Lennox Indoor Comfort Systems. Innovation never felt so good.

Today’s cooler temperatures means it’s perfect timing to kick off the 2009 Lennox Fall heating and air conditioning consumer rebate promotion!

Lennox has given us the ability to customize a heating and air conditioning system based on your personal home comfort requirements.  Which means we can create a Lennox HVAC system from a range of qualifying products from Lennox’s outdoor, indoor, healthy climate and temperature control lines and the homeowner will be then eligible for a rebate of up to $1,200 for buying one qualifying product in each category.

The rebate includes up to $1,000 for select systems purchased and installed by November 30, 2009, with a $200 Early Bird bonus rebate if system is purchased and installed by September 27th, 2009.

Or, as an option, you can choose the 12-month, no payment, deferred interest financing through GE Money  –  available for qualified applicants.* 

As you probably know, the stimulus plan has provided for Federal tax credits on energy-efficient products. This means that homeowners can qualify for tax credits in addition to the Lennox rebate program. In addition to either the up to $1,200 in rebates OR the 12-months zero percent financing options, you can also receive Federal Tax Credits of up to $1,500, for all qualifying HVAC equipment installed in 2009 and 2010 in existing homes.

So if you replace your HVAC system with a Lennox Comfort System before September 27th, you can be eligible to receive:

  1. Up to $1,200 in Lennox product rebates OR 12-months same-as-cash financing, AND
  2. Up to $1,500 in Federal Tax Rebates.

Which gives you a total savings of up to $2,700!  Early bird offer expires September 27th!

And what’s more is that you continue to save on your heating and air conditioning bills each and every month with a new, more energy-efficient HVAC system that will provide you with comfort all year long.  We can show you how much you’d save compared to your current system with a simple savings calculator.

So don’t wait to take advantage of the 2009 Lennox Fall Rebate offer. Please call your Richmond heating and air conditioning professionals at Marshall Mechanical today at 804.323.0189. For more details, you can click on our website’s home page — see “home” button above.