If there is any doubt that NOW is the time to start an insulation company, then consider this real-life scenario! Eric, a homeowner in the Denver, Colorado area recently upgraded the insulation in his home. As a homeowner, he was restricted from insulating his home. He had to hire an insulation company. Here is how he ended up paying only $70 for a $700 job!
A “perfect storm” of rebates and credits combining to make this a reality for homeowners. Homeowners can take advantage of 3 rebates for insulation AND air sealing programs.
- Recharge Colorado: Depending on the cost of the project, you can get 40% of the money back from the State of Colorado.
- Excel Energy: An energy company in CO, MI, WI, ND, SD, TX is giving 20% back.
- Federal Tax Credit: Combine these with the tax credit from the Federal government (Tax Form 5695) to save an additional 30%!
Homeowners save 90% of the cost when they upgrade their insulation and seal their homes. This means that insulation companies will be busy!
Eric will receive the following:
|Cost for Insulation Work||$700.00|
|Recharge Colorado Mails a Rebate Check (40%)||-$280.00|
|Xcel Energy Mails a Rebate Check (20%)||-$140.00|
|Federal Tax Credit (30%)||-$210.00|
|TOTAL COST FOR ERIC||$70|
Colorado’s Energy Office is giving homeowners a rebate check when improvements are made to insulation and air sealing (among other things). This provides an insulator an opportunity to not only improve the insulation of homes but to wrap ducts and provide energy audits. For those in the heating/cooling business who are looking to expand, this is a perfect opportunity! Notice the following rebates offered for:
- Gas Condensing Furnaces: Up to $500
- Energy Audits: Up to $100
- Insulation & Air Sealing Up to $600
- Duct Sealing: Up to $150
- Energy Monitor: Up to $100
- ENERGY STAR New Homes: $300
These are just a few of the rebates available! There may be other rebates available to you! A successful program like this will certainly be entertained in other states.
XCEL Energy is a utility company that provides electricity and natural gas to Colorado, Kansas, Michigan, Minnesota, New Mexico, North Dakota, Oklahoma, South Dakota, and Texas. As an initiative, they are currently offering an insulation rebate to their customers in Colorado.
If homeowners make the following improvements, they can receive this rebate:
- Attic insulation (where existing is R-19 or less) to an R-value of 40 or greater
- Attic insulation (where existing is R-20 or more) to at least R-25 higher than existing
- Wall insulation to an R-value of 13
- Air sealing and weather stripping
What this means for future insulation contracting work
These programs require that qualified contractors perform the work. This means a “wave of opportunity” is available to insulation contractors. Now is the time to prepare for the market.
Having been involved in the insulation trade for 30 years, we have seen both soft and good economic conditions. Whether times are good or bad, economically, homeowners are always looking for a way to reduce their energy costs! The perfect combination of credits and rebates have already increased the amount of work in Colorado. Plan to “ride this wave!”