DSC_0523Winter heating bills are around the corner, so it’s time to look into ways to save yourself some money. There are plenty of do-it-yourself options, of course, but last year’s economic stimulus package can also give you a hand in at least three ways:

Low-income weatherization programs. If your income is 200% or less of the poverty level–$21,660 for a single person, $44,100 for a family of four—you may qualify for help weatherizing your home thanks to the stimulus package’s $5 billion infusion into the U.S. Department of Energy’s Weatherization Assistance Program. Eligibility varies by state, but you are automatically eligible if you receive Supplemental Security Income (SSI) or Aid to Families with Dependent Children and you may have priority if you have children, a disability or you’re over 60. For details, check out the program’s Web site.

Credit for energy improvements. The stimulus also seriously sweetened the deal for homeowners who add insulation, replace old windows and install energy-efficient heating and air condition systems in 2009 or 2010. The recovery act essentially tripled the credit to 30% of the cost (up from 10%) with a maximum credit value of $1,500 (up from $500).

But the act also raised the bar for energy efficiency, so make sure your improvements qualify before you install them. Not all new windows, for example, make the cut, even when they claim to be energy efficient.

One relatively inexpensive project to consider: Adding insulation. Most houses don’t have enough, and adding more can make a sizeable difference in your energy bills. A do-it-yourself project might cost a few hundred dollars to insulate an attic, while a contractor might charge $500 to $1,500.

Solar power. Another stimulus-created tax credit offsets 30% of the cost of installing solar systems and other alternative energy equipment, including geothermal heat pumps and wind turbines. Even with the credit, the payback period for a full solar system can be lengthy—10 to 20 years is common, depending on the equipment, costs and state and other tax breaks. Payback for a solar water heater is usually more like five years, so could be a better investment if you don’t plan to remain in the home for decades.

Looking for more ways to reduce your bills? Check out:

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