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Since the invention of air conditioning this question’s been around.  What will save me more, to leave my air conditioning on when I’m away, turn up the thermostat, or turn it off completely?

A conundrum indeed.  And, one you’ve likely heard different people give different answers to.  Here are some of the variables and factors that make this not a black and white issues, but rather a custom answer for your home.

One, is the size of your home.  Smaller homes will draw less energy and take less time to cool down.

Another factor is the size, efficiency, and insulation of your system and home.  This was likely determined by whomever built your home and installed your system.  In the linked article, Bob Vila gives a thorough analysis of the impact of HVAC system size and proper insulation can have to your home energy costs.

Another, and probably the most important variable, is the outside temperature.  This is pretty basic, but if the weatherman tells you it’s going to be a high of 75 vs. a high of 85, your decision becomes easier.  If it’s 75 outside, it’s not going to get hotter inside, and thus cooling your place when you get home will not take as much time and not take as much energy.

However on those muggy 85 degree days that we face in Central Indiana, the choice may not be clear.  So, we suggest doing a little experiment.  Requirements: pen, paper, ability to read electric meter.  On two three like days do the following:

1. Note the reading on your meter before leaving work
2. Day 1: leave A/C at your preferred temperature (for my wife and I it’s 72 degrees)  Day 2: Turn your A/C up to a higher temperature like 80 degrees  Day 3: Turn off A/C completely.
3. For days 2 and 3, return your thermostat to comfortable temperature on your return home.
4. After thermostat returns to your desired temperature, or a few hours after your return home, go back to meter and note its reading.

At this point, just do the addition to see how much electricity you’ve used to get back to comfortable.  Whichever uses less energy, saves you the most money, and is the customized answer to the age old question.

* A side note and helpful hint is that for every degree above 80, you save roughly 3% on energy.  Ergo, and move from 80 to 85, should save roughly 15%.

Tags: air conditioning, money savings

If you’re a homeowner and you’re anything like me, you have no clue what a heat pump is.  You might think something called a heat pump solely pumps heat.  If you think that, you’d be wrong.  Homesense’s Operations Manager, Jesse Cross, explains:

A Heat Pump looks exactly like an outdoor A/C condenser. The difference is that both the heating and cooling take place inside the Heat Pump. This is different than a split system where the cooling takes place in the outside condenser and the heating takes place in the indoor furnace. The most efficient system is a heat pump with a indoor gas furnace, but this is also the most expensive. In Indiana, most homes have a split system (A/C and indoor Gas Furnace).

The issue with some homes is that the electrical power is insufficient.  A Heat Pump is all electric and does not require gas. Many smaller homes electrical panels are only 100AMP and need to be upgraded to 200AMP to safely accomodate a Heat Pump.”

So as you undertake what promises to be a balmy Indiana summer, you may have to make the decision – air conditioning condenser or heat pump?  So hopefully now you won’t be thinking, “why on earth would these people be asking me if I want a heat pump in July?”

Tags: air conditioning condenser, gas furnace, heat pump

Hoosier homeowners, a Homesense public service announcement… In your property tax bill you recently received there was a pink form that is your Homestead Property Tax Exemption.  In order to receive the deductions you’re used to getting, you need to fill this out.  While you have until January 1, 2013, why wait?  No reason to do so.  If you need the details, check out the Indiana Homestead Fact Sheet.

As of last week, the House of Representatives moved forward the Homestar Energy Retrofit Act of 2010 with a vote of 246 to 161.  What it means for homeowners once it gets passed through the Senate is an extension of the popular “Cash for Caulkers” program of 2009.  The provisions provide up front rebates of up to $3,000 for the installation of specific energy-saving technologies, including insulation, duct sealing, windows and doors, air sealing, and water heaters.  If you go all out and get an energy audit and reduce your total energy usage by 20% the Gold Star program allows for up to $8,000 in tax credits.

At Homesense Heating | Cooling we want to be the go-to contractor for residential real estate investors. After a few months behind us, we can say that our combination of quality work and fair price has given us some great partners in this area. But, there’s always room to improve. So we reached out to some local experts to find out what investors are looking for.

We asked, if you are flipping a home or renting it out, or advising someone in this process what are you looking for in a contractor, and how should you interact once you find a good contractor? Here’s what they’ve had to say:

“As far as contractors go it is important to treat them like kings. I say this because once you’ve find two(2), not 1 that you like it is important to keep them busy. In return they will (hopefully) put you at the top of priority lists and start cutting you more deals on prices which in turn helps your profits. It’s the small things like people skills and loyalty that can help turn profits in this business.”

- Mark Forcum, is a realtor with Prudential Indiana Realty Group specializing in making amazing investments in real esate. Find out more about real estate investment in Indiana on his facebook fan page.

Next, we spoke to an experienced investor. He shared a variety of advice for potential investors, including:

- Your HVAC system is one of the most important investments you make with your investment property, consider having a licensed contractor do an HVAC Condition Report in advance of making the purchase.

- Once you had tenants, make it mandatory that they make for biannual maintenance on the heating and cooling system. And have accountability in place to make sure they actually do it.

- Expect availability from your contractors. Issues have a way of happening at inopportune times, so your contractors need to be available on nights and weekends. If they are not, then I’ll go to the next name on the list.

- Make sure your gutters and downspouts get regularly cleaned. Nothing can damage a property more quickly than water damage caused by failure to do this regular and easy maintenance.

- Bob Kort is best known in Indianapolis as the owner of Kort Builders. Other businesses in the Kort empire include Midwest Wireless and Commerical Awning Contractors. As Bob has grown different businesses, he has invested in real estate for rental, to flip, and to hold.

Any more ideas to share? We want to hear from you. Email us at trusthomesense@gmail.com

Tags: heating cooling indianapolis, hvac, Investment Properties, Shopping for Contractor

There has been alot of publicity about the Federal tax credits up to $1500 for high efficiency heating and air conditioning units. On top of that, Indiana now offers the below rebates of up to $1,000 per household until the budgeted $6.1 Million runs out. Act fast!

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Indiana – Residential Energy-Efficient Appliance Rebates

Incentive Type: State Rebate Program

Eligible Efficiency Technologies: Furnaces , Boilers, Heat pumps, Central Air conditioners

Eligible Renewable/Other Technologies: Geothermal Heat Pumps
Applicable Sectors: Residential

Gas Furnace (92% AFUE or greater): $300
Gas Boiler(ENERGY STAR 85% AFUE or greater): $500
Air Conditioner (ENERGY STAR qualified, 14.5 SEER or greater): $150
Air-Source Heat Pump (ENERGY STAR qualified): $500
Geothermal heat pumps (ENERGY STAR qualified): up to $1000

Maximum Incentive: $1000

Equipment Requirements: All equipment must be ENERGY STAR rated and new and must replace older, less-efficient equipment.

Installation Requirements: Must use an Indiana contractor

Program Budget: $6.1 million

Funding Source: The State Energy Efficient Appliance Rebate Program (SEEARP) of the
American Recovery and Reinvestment Act (ARRA)

Tags: high efficiency heating air conditioning, Indiana tax rebates

Marking the first time the Department of Energy has ordered a company or manufacturer to halt production because of a products violation of minimum efficiency standards, AeroSys was told to end production of an air condition and a heat pump earlier this week.

According to the Consumer Affairs article, DOE General Counsel Scott Blake Harris said, “The department ‘will act aggressively to remove any products from the market that are violating national appliance standards. We will continue to take the steps necessary to protect American consumers and the environment from wasteful and inefficient appliances.”

The minimum standard for the air conditioning unit is 10.9 SEER, which stands for Seasonal Energy Efficiency Ratio. The AeroSys product (THDC-24T) missed the minimum by 8 percent, while the heat pump (THHP-24T) missed by 4 percent.

More news will be sure to come.

Home Heating & Cooling Equipment

What are the incentives for home heating & cooling equipment?
Please note that these incentives have changed as of February 17, 2009. If you installed home envelope components between January 1 and February 16, 2009.

Purchasers of highly efficient heating, cooling, and water heating equipment can take tax credits of 30% of installed cost for purchasing qualifying equipment, as detailed below. These credits are available for systems placed in service from January 1, 2009, through December 31, 2010. There is a $1,500 cap on the credit per home, including the amount received for insulation, windows, air and duct sealing.

What types of equipment qualify?

- High-efficiency gas, oil, and propane furnaces and boilers
- High-efficiency central air conditioning units, including air-source heat pumps
- NEW – Ground-source or geothermal heat pumps
- High-efficiency fans for heating and cooling systems
- High-efficiency water heaters, including heat pump water heaters

What are the efficiency requirements to qualify for the credits?
- Manufacturers and retailers should be able to help you tell whether a specific product qualifies.

The qualification specifications are:

- Furnaces and Boilers: Natural gas & propane furnaces must meet an Annual Fuel Use Efficiency (AFUE) 95 or higher, oil furnaces and gas, oil and propane boilers must meet an AFUE of 90 or better.

- Central Air Conditioning Units: Central air conditioning units and air-source heat pumps must meet the highest tier standards set by the Consortium for Energy Efficiency (CEE) as of Janurary 1, 2009, which in most cases requires a Seasonal Energy Efficiency Ratio (SEER) of 16. SEER measures performance throughout the cooling season. More information on the CEE specification.

- Biomass Stoves: Stoves must have a thermal efficiency of 75% as measured using a lower heating value, and be used to heat a dwelling unit or heat water for use in the same. The law defines biomass fuel as anything from agricultural crops, trees, wood wastes & residues to pellets, plants, grasses and fibers.
While the new tax credit takes effect immediately, the Internal Revenue Service has not issued the guidelines for determining which stoves meet the efficiency requirements to qualify for the credit or how a manufacturer will qualify their products. These guidelines are expected by the later part of May 2009, however the credit applies to all qualifying stoves sold in 2009. Once the IRS guidelines are issued, wood and pellet stove manufacturers will test their stoves and will notify their retailers regarding which models qualify.

- Fans for heating and cooling systems: fan uses no more than 2% of total heating system energy use, as defined by DOE test procedure. For more information, see the Air-Conditioning, Heating and Refrigeration Institute web site . It is still unclear how the 2009 Stimulus legislation has impacted this incentive – it seems reasonable to assume that the cost basis will be the reasonable cost of the fan, not the entire furnace. IRS has yet to issue specific guidance on this issue.

- Water Heaters: Gas or propane water heaters—Energy Factor of at least 0.82, or a thermal efficiency of at least 90%. Heat pump water heaters—Energy Factor of at least 2.0

Where must the equipment be used?

Under guidance issued by the IRS, equipment is eligible if installed in a home occupied by a taxpayer as their principal residence at the time the equipment is installed. This implies that equipment in new homes is generally not eligible since in new homes equipment is generally installed prior to occupancy. However, efficient equipment in new homes can help that home qualify for the new home tax credit.

What do I need to do to qualify for the incentives?
Under the IRS rules, manufacturers need to certify that specific measures are eligible. Homeowners should obtain a copy of this certification when buying these products from the manufacturer, contractor or retailer. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions. Homeowners should also make notes on when each eligible measure is installed- only measures “placed in service” in 2009 or 2010 are eligible.

Click here to access IRS guidance on qualifying energy-efficient property.
I don’t think I qualify for the incentive – where can I find information on state-level incentives?

To apply for the incentive, use IRS form 5695. Please note that this version of the form is for 2008, and so does not include line items for the incentives discussed on this page. There will be a section for these incentives on the 2009 iteration of the form which will likely be available in late 2009 or early 2010.

All information from energytaxincentives.org

Tags: equipment tax credits, heating cooling indianapolis, hvac tax credits

Talking to my good friend Nila Nealy from TwentyTwo this morning, I was reminded why there are so few great brands.

In just a few minutes of conversation, we identified multiple layers of adoption that are required for a brand to be lived out by an organization. The more people a company has, the more challenging.

It first takes an engaged leader, who believes that brand is something beyond the product or service offered. That the character, personality and values an organization believes in, transcends the “what” of the business and is an essential part of what keeps consumers coming back. Within that process, that leader must have the discipline to acknowledge what his company is and isn’t. And, within an economy where revenues are dwindling, the courage to declare the “isn’t” is increasingly rare.

If the leader is at this point, managers and staff must then decide if they’re going to adopt whatever brand is true to the organization.

It can’t be overstated how important employee adoption is. These are the ambassadors of the brand, that are interacting with clients, customers and friends. This is where the advent of social media outlets like twitter and facebook have so much impact on the public’s perception of a brand. Every time and employee speaks, even if it’s not related to the topic of your business, he or she is representing your brand. Does this individual’s character, personality and values match what your organization stands for?

The reality is that most companies are still trying to get employees to show up and do the basics, to be focusing on a conscious representation of their organization’s values.

As we build Homesense, we want trust to be the essence of what our customers feel within every interaction. We know that it takes consistency over time to build that feeling, and only a few missteps to lose it. As customers of products and services, what activities would help a company build trust with you?

Tags: adoption, brand, Indianapolis, trust

“You play to win the game. Hello? You play to win the game!” – Herman Edwards

You’ve won all your games, clinched home field advantage throughout the playoffs, and technically have no benefit to gain from winning any additional games. We all know by now that this is the predicament faced by the Indianapolis Colts, and likely soon the New Orleans Saints. Both are 13-0. Both could spend the next month in Cabo, and still show up in week 2 of the playoffs at home. With ESPN Uno through Ocho covering the sports analysis, I won’t add another talking head on the football decision, but how does this story translate into our day to day?

Every week we run up against competition where we have to make the decision of what level of game we’re going to play. We have our Peyton Manning’s and Drew Brees’s within our staff or processes that we have to choose to utilize or sit. It may be how quickly we follow up with a customer’s question, the attitude we take into a client meeting, or a thousand other touchpoints. Does your team focus on perfection or just winning?

There are many teams that go to the playoffs every year. There are a few that make it all the way to the Super Bowl, and have been 43 winners of the championship. But in all the years, only the 1972 Miami Dolphins have been perfect.

In your business, where do you see yourself? Do you have the ability, desire, and focus to go after perfection? No answers here on what’s right. As the Saints and the Colts have proven, it has to be right to the individual. As for me and my business, I’m with Herm Edwards.

Tags: business, customer service, drew brees, herman edwards, indianapolis colts, new orleans saints, peyton manning, pursuit of perfection