Residential energy-tax-credit eligibility: a case study for the heat-pump water heater

Technical Report · Wed Sep 01 04:00:00 EDT 1982

DOI:https://doi.org/10.2172/6905022· OSTI ID:6905022

Cohn, S M; Cardell, N S

Described are the methodology and results of an analysis to determine the eligibility of an energy-efficient item for the residential energy-tax credit. Although energy credits are granted only on a national basis, an attempt to determine the tax-credit eligibility for an item such as the heat-pump water heater (HPWH) analyzing national data is inappropriate. The tax-credit eligibility of the HPWH is evaluated for the ten federal regions to take into consideration the regional differences of: (1) HPWH annual efficiency, (2) existing water heater stocks by fuel type, (3) electricity, fuel oil, and natural-gas price variations, and (4) electric-utility oil and gas use for electricity generation. A computer model of consumer choice of HPWH selection as well as a computer code evaluating the economics of tax-credit eligibility on a regional basis were developed as analytical tools for this study. The analysis in this report demonstrates that the HPWH meets an important criteria for eligibility by the Treasury Department for an energy tax credit (nationally, the estimated dollar value of savings of oil and gas over the lifetime of those HPWH's sold during 1981 to 1985 due to the tax credit exceeds the revenue loss to the treasury). A natural-gas price-deregulation scenario is one of two fuel scenarios that are evaluated using the equipment choice and tax-credit models. These two cases show the amounts of oil and gas saved by additional HPWH units sold (due to the tax credit during 1981 to 1985 (range from 13.9 to 23.1 million barrels of oil equivalent over the lifetime of the equipment.

• Research Organization: Oak Ridge National Lab., TN (USA)
• Sponsoring Organization: USDOE
• DOE Contract Number: W-7405-ENG-26
• OSTI ID: 6905022
• Report Number(s): ORNL/CON-71; ON: DE82021109
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101* -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
APPLIANCES
BUILDINGS
COMPUTERIZED SIMULATION
DEREGULATION
EFFICIENCY
ELECTRIC POWER
ENERGY CONSERVATION
ENERGY SOURCES
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUEL OILS
FUELS
GAS FUELS
GASES
HEAT PUMPS
HEATERS
LIQUID FUELS
NATURAL GAS
OILS
ORGANIC COMPOUNDS
OTHER ORGANIC COMPOUNDS
PETROLEUM PRODUCTS
POWER
PRICES
RESIDENTIAL BUILDINGS
SIMULATION
TAX CREDITS
WATER HEATERS