A reminder that there is a 30% upto $1500 Federal Tax Credit on Qualifying Gas, Oil, Propane Water Heaters as well as Electric Heat Pump Water Heater and Solar Water Heaters through 12/31/2010. If your water heater is on its last legs, you might as well upgrade now and save some money. New water heaters require less energy and time to heat water. Reduce waiting time between showers and doing laundry.

Gas, Oil, Propane Water Heaters must have Energy Factor >= 0.82 or a thermal efficiency of at least 90%.  Newer Hybrid water heaters are also available.

Consider an on demand Tankless Water Heater if your situation allows for it.  They need ready access to a good size gas pipe and exhaust vent for many models.

Electric Heat Pump Water Heater requirements are the same as ENERGY STAR: Energy Factor >= 2.0.

Solar Water Heaters are covered if at least half of the energy generated comes from the sun and the system is certified by the Solar Rating and Certification Corporation (SRCC).

AO Smith makes the Vertex 100 water heater that is very efficient but requires PVC pipe venting not normal metal venting. Also consider installing radiant floor heating instead of using a gas furnace as these newer water heaters support radiant heating.

This credit reduces the amount of tax you owe for 2009. The credit is a reduction of total income tax at the bottom of your return, up to $1500. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it!

Products must have been purchased between January 1, 2009 and December 31, 2010.  Solar water heater purchases are covered through 2016.

The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items. For instance, if a consumer claims $900 on a new stove, then he will have $600 to purchase additional energy saving products in the same tax year.

If a taxpayer uses the entire $1500 tax credit on a competing product then they cannot use it for a biomass stove in that same tax year.

$1500 seems like the total credit for both 2009 and 2010 combined. Beware that those affected by the Alternative Minimum Tax (AMT) in 2010 may not qualify for the rebate unless Congress passes an AMT patch.

Double dip! Local utilities like PGE have their own rebates for Energy Efficient Appliances purchased in 2009.  PGE has a $30 rebate for energy efficient water heaters. Gas water heaters with Energy Factor 0.62 or greater or Electric ones with Energy  Factor 0.93 or greater.

Note: It is difficult to find larger sized water heaters with Energy Factor’s this high.

Be sure to check out our reduce water heater use, water saving tips and ways to save energy.

Nissan Leaf Electric Car, the first affordable mass-market zero emissions electric car, is now available for ordering with a whopping $7500 Federal Tax Credit on New Qualified Plug-In Electric Drive Motor Vehicles through December 31, 2011. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified plug-in electric drive vehicles have been sold by that manufacturer for use in the U.S. The credit is available against the alternative minimum tax.

The drops the price to as little as $25,280 after-tax savings. California adds a Electric Vehicle Purchase Rebate $5000 rebate while funds last dropping it even further to $20,280! See what type of conventional car you can buy for $20k. Check your local state for its rebates. The Chevy Volt unfortunately does not qualify for this level of rebate. Georgia also has a $5000 rebate.

It is all electric, not a hybrid car and is rated for a 100 mile range on a single charge, although this might be optimistic. This car is not for everyone. The Leaf is made in Japan and Tennessee. Nissan makes it, so you don’t have to worry about an unknown new company that may go out of business in a couple years. The car is partly made of recycled materials and they use wind power to power a portion of their factory.

The Leaf comes with a home charging dock that requires a 220/240V 40AMP dedicated electric circuit, so additional costs of approximately $2200 (50% tax credit available via Alternative Fuel Vehicle Refueling Property Credit) will be incurred to upgrade your garage. Charging the battery to 80% of its capacity with a special rapid 440V charger takes about 25 minutes.

A full battery charge occurs in eight hours with 220/240V charging and cost approximately $2.28 in electricity. (Approx 19 kWH of charging, average per kW of electricity an expensive $0.12/kW in California) Nissan’s ads quote 38 miles travelled for one dollar of cost vs 19 for a Toyota Prius Hybrid. Kiplinger listed Nissan Leaf fuel cost at an optimistic 2 cents per mile, Prius 6 cents, VW Jetta Diesel 9 cents, and Honda Accord 11 cents. The Leaf is projected to use 0 – 76g of Carbon Dioxide (CO2) per mile driven compared to 153-229 for a Prius Hybrid.

Someday more electric vehicle charging infrastructure will be available to allow charging of the car while you’re outside the home. Map of California Charging Places.

photo credit: cote

Fall is in the air and temperatures are dropping. Wood burning stoves that heat specific rooms are popular and are aggressively being marketed.

A reminder that there is a 30% upto $1500 Federal Tax Credit on Qualifying biomass fuel stoves or Wood Heat Stoves, Pellet Stoves, Fireplace Inserts.

Pellet stoves burn compressed sawdust and typically hold 24 hours worth of pellets. Look for easy to load and clean openings in Pellet stoves. These stoves are more efficient than wood burning models, but need power to run circulation fans.

In 2009, burning pellets costs about 15% less than oil and 40% less than electrical heat, but 25% more than natural gas. Prices change yearly though.

The Government has a powerful renewable energy incentive designed to reduce our reliance on foreign oil and increase clean, efficient home heating with wood logs and pellet fuels. The stoves must have a thermal efficiency rating of at least 75% as measured using a lower heating value.  Vendors have labeled which of their products qualify. Regency Fireplace products has a list of products that qualify.

This credit reduces the amount of tax you owe for 2009. The credit is a reduction of total income tax at the bottom of your return, up to $1500. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it! Credit details.

Products must have been purchased between January 1, 2009 and December 31, 2010.

The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient  items. For instance, if a consumer claims $900 on a new stove, then he will have  $600 to purchase additional energy saving products in the same tax year.

If a taxpayer uses the entire $1500 tax credit on a competing product then they  cannot use it for a biomass stove in that same tax year.

$1500 is the total credit for both 2009 and 2010 combined. Beware that those affected by the Alternative Minimum Tax (AMT) in 2010 may not qualify for the rebate unless Congress passes an AMT patch.

Be sure to place carbon monoxide and smoke detectors near the stoves to ensure safety.

A reminder that there is a 30% upto $1500 Federal Tax Credit on Qualifying Insulation. If you have been thinking about replacing these items, you might as well upgrade now and save some money. Improve the R-value of attic, wall, and crawl space insulation.

Insulation must meet 2009 IECC & Amendments. Rebate does not cover installation/labor costs. Do it yourself-ers can also get the credit.

Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.

Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:

• Weather stripping
• Spray foam in a can, designed to air seal
• Caulk designed to air seal
• House wrap

Energy Star has a store location finder to help you find local dealers.

This credit reduces the amount of tax you owe for 2009. The credit is a reduction of total income tax at the bottom of your return, up to $1500. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it!

Products must have been purchased between January 1, 2009 and December 31, 2010.  Solar water heater purchases are covered through 2016.

The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items. For instance, if a consumer claims $900 on a qualifying item, then they will have the remaining $600 rebate available for purchases of additional energy saving products in the same tax year.

$1500 seems like the total credit for both 2009 and 2010 combined.

Double dip: Many local utilities provide financial incentives for purchasing ENERGY STAR qualified windows, doors, and skylights. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

A reminder that there is a 30% Federal Tax Credit on Qualifying Geo-Thermal Heat Pumps, with no cap. If you have been thinking about replacing these items, you might as well upgrade now and save some money.

Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth’s natural constant heat, they are among the most efficient and comfortable heating and cooling technologies currently available.   This allows the system to reach fairly high efficiencies (300%-600%) on the coldest of winter nights, compared to 175%-250% for air-source heat pumps on cool days.

Units can cost from $5,000 to $10,000 installed and take about 5-10 years for payback.

All ENERGY STAR geo-thermal heat pumps qualify for the tax credit.  Criteria for heat pumps: Closed Loop: EER >= 14.1, COP >= 3.3,  Open Loop: EER >= 16.2, COP >= 3.6 , Direct Expansion: EER >= 15, COP >= 3.5.

Energy Star has a store location finder to help you find local dealers.

This credit reduces the amount of tax you owe for 2009. The credit is a reduction of total income tax at the bottom of your return. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it!

Products must have been purchased between January 1, 2009 and December 31, 2010. Units must be placed into service by December 31, 2016.

Double dip: Many local utilities provide financial incentives for purchasing ENERGY STAR qualified windows, doors, and skylights. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.