Colder Weather, Wood Pellets & Tax Credits

About a year ago, I took a look at the growing market for renewable heating products. I talked to wood pellet producers and users as well as those in the ground-source heating space. One of the most common points they made was that the federal government should be doing more to encourage the use of these and other renewable heating technologies.

Well in addition to tax credits that exist for solar hot water and geothermal systems, homeowners can now take advantage of a federal consumer tax credit that can cover 30 percent of the cost of an efficient wood stove or and fireplace insert, up to a maximum credit of US $1,500.

The tax credit applies to stoves or fireplace inserts purchased between January 1, 2009 and December 31, 2010 that...

• Burn a biomass fuel source like wood or renewable pellets
• Will be installed during the eligibility period in an existing principal residence
• Meet a minimum 75% efficiency rating as certified by the manufacturer

Purchasers of qualifying stoves and inserts can claim the credit on their federal tax return. Installation and venting costs are included in calculating the credit's total value, as long as professional installation is required.

To help consumers learn more and find the right stove or fireplace insert for their home, the Hearth, Patio & Barbecue Association (HPBA), not a trade association we talk about a lot here at RenewableEnergyWorld.com, has developed a special website with very helpful tools that include a guide to figure out what technology would be right for your home, as well as the process to take advantage of the tax credits

"Fall is here, and most families will be looking for ways to cut their home heating bills," said Jack Goldman, president of the Hearth, Patio & Barbecue Association (HPBA). "Fireplaces and stoves have always been a great option for saving money because they reduce energy costs and add value to homes. But with this new tax credit, there's never been a better time to buy."

In addition to the HPBA, you can check out WoodPellets.com and the Biomass Thermal Energy Council for more information on wood pellets, and pellet stoves.

If you're interested in some of the other renewable heating technologies out there, check out the video below.