If you want to reduce your electricity bill, consider green home renovation. Install a wind turbine, for instance. According to the American Wind Energy Association (AWEA), a wind turbine can lower a home's electricity bill by 50 to 90 percent. Now is the perfect time to install a residential wind turbine. The federal government is currently offering homeowners a tax credit of up to 30 percent of green home improvement costs.

Determine How Much Credit Your Can Get
You can get a tax credit of up to 30 percent of the cost of installing a wind energy system. Eligible costs are inclusive of product costs (the cost of equipment) and professional installation costs. There is no upper limit to the tax credit. If you spend $40,000 on a residential wind energy system, you can conceivably get back 30 percent of this or $12,000 as federal tax credit.

Install a Wind Turbine as Early as Possible
To claim the tax credit, the residential wind turbines must be in place before December 31, 2016. Your tax credit can be carried over to the next tax year if your tax credit exceeds your current tax liability. The tax credit will be continuously carried over to succeeding years (up to 2016) until it has been completely used up. If you install your wind turbine now, you can be certain of using up your tax credit before the tax credit incentive expires.

Evaluate Your Location
Location is important in wind energy systems. Wind speeds must be adequate and sustained. Generally speaking, an average annual wind speed of 9.8 to 11 mph (according to AWEA) is adequate. Wind turbines also need to be elevated and must be far enough from potential wind barriers. Before installing a wind turbine, therefore, consult a professional contractor who has expertise in wind energy technology.

Take Note of Required Wind Turbine Specifications
To qualify for the tax credit, your wind turbine's nameplate capacity must not exceed 100 kW. The most economical way of installing a wind energy system is to install equipment that will generate no more than what you need. If you don't need a 100-kW turbine, you should opt for a lower-capacity turbine. A single installation, moreover, is also more economical than multiple installations.

Insulate Your Home
You must also make your home energy efficient before you install your wind turbine. By improving your home's insulation and by opting for energy-efficient appliances and fixtures, you can reduce your overall energy consumption. Thus, you won't need as much power from your wind turbine. Your wind turbine can even possibly generate enough electricity to power your whole home.

Green home improvements and installations also come with non-federal incentives. Until December 31, 2010, for instance, the state of Maine is giving a rebate of $2,000 (max) for residential wind energy system installations. Check with your local government to see if there are local incentives for renewable energy systems installation and green home renovation.

By Jinky Bagagnan