Anyone who has made a trip to the gas pump in the last month has felt the squeeze of rising energy prices. With this increase comes higher demand for wood as a heating fuel. A recent study by the Alliance for Green Heat outlines how states are doing in their effort to balance between heating needs and health concerns.

The  grading criteria were chosen as an indication of a state’s commitment to supporting clean and responsible use of wood heat. These criteria were: outdoor wood boiler regulation, exempt wood stoves sales limits, incentive programs, strict regulations, educational websites, and change-out programs.

While there are limitations to the study, it does provide the best compilation I have seen to date on the ‘state of wood heat’ in the United States.

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December 31st, 2010.

That is the date that federal tax credit is scheduled to expire for the purchase of new energy efficient products, including high-efficiency wood boilers. With the purchase of a qualifying product, the government will credit you 30 percent of the cost (and installation), up to $1,500.

So, why is this a big deal? Well, a tax credit is much more valuable than a tax deduction.

A deduction is an amount you can subtract from your taxable income. However, a tax credit lowers your actual tax bill dollar-for-dollar, in this case by up to $1,500. So a tax credit has a bigger impact on the money left in your pocket at the end of the day.

So, whether you are considering a wood gasification boiler, air conditioner, water heater or windows time is running out.

For more information, BuffaloNews.com has a great article.

US Federal agencies purchased or produced 2.3 TWh of electricity from renewable sources in FY09, representing 4.2% of the Government’s electricity and surpassing the goal of 3% set by EPAct 2005. This represents a 2x increase over 2003. The goal increases this year to 5% of total electricity from renewable sources, and increases again in 2013 to 7.5%.

Perhaps what is most fascinating is that this figure does not include non-electric renewable energy purchased or consumed by the Federal government — sources like bio-thermal space heating or solar thermal hot water. However, according to a Kathleen Hogan, Deputy Assistant Secretary of the Department of Energy’s Office of Energy Efficiency & Renewable Energy (EERE) testimony, “The renewable sources of non-electric energy are often the most cost-effective means to displace fossil energy,” she explains.

With that acknowledgment, what steps can be taken to insure the adoption of these cost effective sources?

One way is increase subsidies to promote adoption, much like those in H.R. 5805: Thermal Renewable Energy and Efficiency Act of 2010. Unfortunately these are only focused on large scale applications. An alternative would be to look to other countries where these alternative technologies have been employed and implement their approach — incentives targeted at residential heating.

The State of New Hampshire’s Wood Pellet Boiler Rebate program is an example of such a program. It is narrowly focused on wood pellets, but removes much of the upfront cost of implementing a system that makes a homeowner energy self-sufficient.

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According to the New England Fuel Institute, an emergency home heating loan bill (H.R. 6920) has been introduced to the US Congress that would guarantee loans for up to $5,000 for consumers who did not exceed 150% of median household income for 2008 or 2009.

I recognize that these programs have their place and there are a number of families who truly benefit from them, but can’t we do more than a band-aid? Adding insulation, replacing old appliances, adding a renewable energy system are other ideas certainly worthy of consideration. Aren’t they!?!

That said, if you are one could benefit from this legislation, stay tuned. For the rest of you keep your eyes on DSIRE for other federal/state/local/utility incentives that promote renewable energy and energy efficiency.

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