Green Savings

Green Savings, Week 6: Heat Pump Water Heaters

/ Walter Clarke / Leave a comment

This week, let’s look at a different kind of heat pump: a water heater. 

Last week, we introduced you to government programs that can help you fund converting your home to a heat pump air conditioner and heater.

This week, let’s look at a different kind of heat pump: a water heater. 

What’s a heat pump water heater?

“Heat pump water heaters (HPWHs) are similar to heat pumps for space heating, except they produce hot water instead of hot air. In other words, HPWHs use electricity to pull heat from the surrounding air and transfer it into a hot water tank.” – Rewiring America

Heat pumps have a number of benefits:

“HPWHs transfer heat instead of creating it, and they don’t combust fossil fuels. As a result, they are 2-3 times more efficient than most current hot water systems. These efficiency gains translate to hundreds of dollars per year in savings for an average household.” – Rewiring America

The Inflation Reduction Act (IRA) provides savings if you decide to purchase a heat pump:

  • A 30 percent nonrefundable tax credit for traditional heat pumps and heat pump water heaters, capped at $2,000 per year.
  • A 30 percent nonrefundable tax credit up to $600 for an electrical panel upgrade, but only if it’s upgraded in conjunction with another upgrade covered by the IRA (like a heat pump).

Wait. What’s a tax credit?

“A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe.

If a taxpayer’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. For nonrefundable tax credits, once a taxpayer’s liability is zero, the taxpayer won’t get any leftover amount back as a refund.” – IRS.gov

And, if your income is low to moderate, the IRA will cover 50 percent of your HPWH costs up to $1,750. Check out Rewiring America’s calculator to see if you qualify for a rebate.

In addition to these benefits from the IRA, you can also take advantage of PSE&G’s rebates on the purchase of efficient HPWHs. Check out their site to see which models qualify. EnergyStar’s site can also help you compare models to choose the best one for you.

Most of our old SOMA houses have gas-powered water heaters—so as with heat pump air conditioning and heating, you’ll want to find a knowledgeable service provider to help you with your conversion to a HPWH. EnergyStar’s provider listings can help you find someone qualified.

To claim your heat pump water heater benefits:

  • Connect with a qualified service provider to plan your HPWH conversion.
  • Use Rewiring America’s calculator to understand whether you qualify for income-dependent rebates.
  • Check out PSE&G’s site to find HPWH models that qualify for rebates.
  • Select your heat pump and work with your contractor to install it.
  • Save your receipts.
  • Follow the IRS’s instructions when you file your 2023 taxes.


These resources provide lots of info about IRA and PSE&G HPWH discounts, and how to take advantage of them:

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That’s a wrap for this summer’s Green Savings for South Orange series! We hope our posts have given you the information you need to make your home more efficient and claim government incentives.

Additional home clean energy rebates will become available later in 2023, and we’ll be back then to walk you through them. Stay subscribed to our emails, Facebook, and Instagram to be the first to know about these new types of savings.

Green Savings, Week 5: Heat Pump Air Conditioning and Heating

/ Walter Clarke / Leave a comment

This week, let’s dig into heat pump air conditioning and heating, and how to save on these emerging alternatives to fossil-fuel-powered home infrastructure.

Last week, we introduced you to government programs that give you money to help pay for powering your home with solar. This week, let’s dig into heat pump air conditioning and heating, and how to save on these emerging alternatives to fossil-fuel-powered home infrastructure.

What’s a heat pump?

“A heat pump is a single electric appliance that can replace both your traditional air conditioner and home heating system (like a furnace or boiler). At the simplest level, heat pumps use electricity to move heat from one place to another. In cooling mode, a heat pump acts like an air conditioner, moving the heat from inside your home to the outside. In heating mode, heat pumps go into reverse and pump heat from the air outside your home to the inside.” – Rewiring America

“Geothermal or ‘ground-source’ heat pumps function much like every other type of heat pump, by capturing and moving heat between indoors and out. The primary difference is that geothermal systems transfer heat with the earth, through long loops of liquid-filled pipe buried in the ground. – Rewiring America

Heat pumps have a number of benefits:

“Heat pumps are often far less expensive to run than other heating systems, which translates to hundreds of dollars per year in savings for an average household.”

“Heat pumps don’t burn fossil fuels — they’re electric! When paired with clean electricity sources like rooftop or community solar, heat pumps warm your home without warming the planet.”

“Heat pumps can dehumidify the air on hot summer days and filter the air all year long.” – Rewiring America

In general, geothermal heat pumps are more expensive to install than traditional heat pumps, but geothermal models are likely to be more efficient and therefore save you more money on heating and cooling over time.

The Inflation Reduction Act (IRA) provides savings if you decide to purchase a heat pump:

  • A 30 percent nonrefundable tax credit for traditional heat pumps and heat pump water heaters, capped at $2,000 per year.
  • A 30 percent nonrefundable tax credit up to $600 for an electrical panel upgrade, but only if it’s upgraded in conjunction with another upgrade covered by the IRA (like a heat pump).
  • An uncapped, nonrefundable 30 percent tax credit for a geothermal heating installation.

Wait. What’s a tax credit?

“A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe.

If a taxpayer’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. For nonrefundable tax credits, once a taxpayer’s liability is zero, the taxpayer won’t get any leftover amount back as a refund.” – IRS.gov

And, if your income is low to moderate, the IRA will cover 50-100 percent of your heat pump costs up to $8,000. Check out Rewiring America’s calculator to see if you qualify for a rebate.

In addition to these benefits from the IRA, you can also take advantage of PSE&G’s rebates on the purchase of numerous heat pump models (regardless of your income). Check out their site to see which models qualify.

Heat pumps come in a few forms:

  • Ducted – An exterior unit that connects to ducts throughout your house. (If you have central AC, your existing duct system will probably work with a heat pump.)
  • Ductless mini-splits – An interior wall or ceiling unit that connects to a corresponding outdoor unit via a small hole in an exterior wall. In general, a mini-split unit will heat and cool one room or zone, but not an entire house.
  • Geothermal heat pumps – An interior unit connects to underground pipes to generate hot and cold air, and connects to ducts throughout your house.

Real talk: Converting to heat pump cooling and heating is more complex if your home currently uses a boiler and radiators for heat, which many of our older South Orange houses do. It’s possible to use a heat pump with radiators! But you’ll need to work with a knowledgeable contractor to design your new system. Here are a few resources to check out if you’re considering making the switch: 

Because the heat pump is still a relatively new technology, one challenge you may encounter is finding a knowledgeable service professional with heat pump installation and maintenance experience. These resources can help you find someone with the right expertise:

To claim your heat pump air conditioner/heater benefits:

  • Connect with a qualified heat pump service provider to plan your heat pump conversion.
  • Use Rewiring America’s calculator to understand whether you qualify for income-dependent rebates.
  • Check out PSE&G’s site to find heat pump models that qualify for rebates regardless of income.
  • Select your heat pump and work with your contractor to install it.
  • Save your receipts.
  • Follow the IRS’s instructions when you file your 2023 taxes.


These resources provide lots of info about IRA and PSE&G heat pump discounts, and how to take advantage of them:

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This summer, the South Orange Green Team & Environmental Commission will walk you through the energy efficiency incentives available to you. (That’s free money, people!) Follow us to see our tips, and save money on electric vehicles, home weatherization, appliances, and more! 

Next week we’ll dive deep into benefits that can help you install heat pump water heaters. If you’d like to read ahead, check out Rewiring America’s heat pump water heater guide.

Green Savings, Week 4: Solar

/ Walter Clarke / 2 Comments

This week, let’s dig into solar power and how to save on rooftop solar, community solar, electrical panel upgrades to support solar power, and home batteries.

Last week, we introduced you to government programs that give you money to help pay for home weatherization.

This week, let’s dig into solar power and how to save on rooftop solar, community solar, electrical panel upgrades to support solar power, and home batteries.

“Rooftop solar uses solar photovoltaic (PV) panels to turn sunlight into electricity. PV panels can be installed on your roof, or even in your yard. They produce no carbon emissions, and can save you hundreds of dollars a year.” – Rewiring America

Rooftop solar has a number of benefits:

“Depending on how it’s purchased or financed, rooftop solar can save you hundreds of dollars a year. That’s because the electricity produced by rooftop solar is completely free! As you electrify your home and your electricity needs grow, rooftop solar may deliver even bigger savings.

Rooftop solar produces no carbon emissions! In many cases, this carbon-free electricity will flow back into the utility grid, where it will directly decrease the amount of fossil fuels burned by your utility company.” – Rewiring America

The Inflation Reduction Act (IRA) provides savings on rooftop solar installation:

  • An uncapped 30% nonrefundable tax credit for rooftop solar installation.
  • An uncapped 30% nonrefundable tax credit for an electrical panel upgrade if it’s upgraded in conjunction with rooftop solar installation.

And if you choose to get a home battery in tandem with rooftop solar, the IRA will provide an uncapped 30% nonrefundable tax credit for your battery purchase.

Wait. What’s a tax credit?

“A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe.
If a taxpayer’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. For nonrefundable tax credits, once a taxpayer’s liability is zero, the taxpayer won’t get any leftover amount back as a refund.” – IRS.gov

If your property isn’t well suited for rooftop solar (i.e., if you’ve got a lot of shade), if you’re a renter, or if you just don’t want to proceed with rooftop solar at the moment, community solar might be a great option for you.

“A community solar project is a central solar power plant, whose electricity is purchased by multiple community members. It’s a great option for people who can’t put solar panels on their own rooftop, such as renters and people who live in shared housing.” – Rewiring America

The IRA offers a benefit for community solar, too:

  • An uncapped 30% nonrefundable tax credit for partial ownership of a community solar project.

EnergySage can help you assess your property and get installer quotes for rooftop solar – or help you find a community solar project to power your home.

It’s also helpful to understand PSE&G’s rooftop solar approval process.

To claim your solar benefits:

  • Assess whether your home is a good fit for rooftop solar. If not, go with community solar!
  • Potentially update your electrical panel to support solar power, and/or buy a home battery to store solar energy.
  • Purchase or lease solar panels through a solar provider, who will also install the panels.
  • Save your receipts.
  • Follow the IRS’s instructions when you file your 2023 taxes.


These resources provide lots of info about IRA solar tax credits, and how to take advantage of them:

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This summer, the South Orange Green Team & Environmental Commission will walk you through the energy efficiency incentives available to you. (That’s free money, people!) Follow us to see our tips, and save money on electric vehicles, home weatherization, appliances, and more!

Next week we’ll dive deep into benefits that can help you install heat pump air conditioning and heating. If you’d like to read ahead, check out Rewiring America’s heat pump air conditioner/heater guide.

Green Savings, Week 3: Weatherization

/ Walter Clarke / Leave a comment

This week, let’s dig into weatherization and how to save on upgrades that protect your home and reduce your heating and cooling bills.

Last week, we introduced you to government programs that give you money to help pay for electric vehicles (EVs).

This week, let’s dig into weatherization and how to save on upgrades that protect your home and reduce your heating and cooling bills.

“Weatherization refers to improvements that reduce the amount of energy needed to keep your home comfortable, including air sealing, ventilation, and upgrades to insulation, doors and windows.”
– Rewiring America

And weatherization has some extra benefits:

  • Seals out allergens and pollutants.
  • Eliminate uncomfortable cold drafts.

The Inflation Reduction Act (IRA) provides savings on a weatherization upgrades:

  • Tax credits for 30% of weatherization purchases, up to $1200 per year.
  • Pro-tip: This tax credit resets every year, so you can use it for multiple projects over time.
  • If your income is low to moderate, you might qualify for weatherization rebates of up to $1600 through the IRA, and savings of up to $7500 from PSE&G! Visit Rewiring America’s IRA Savings calculator and PSE&G’s website to find out if you qualify for these added benefits.

Wait. What’s a tax credit?

“A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe.

If a taxpayer’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. For nonrefundable tax credits, once a taxpayer’s liability is zero, the taxpayer won’t get any leftover amount back as a refund.” – IRS.gov

And what’s a rebate?

“A rebate is an upfront discount that gives you cash back after you make a purchase, and typically more quickly than a tax credit. A point-of-sale rebate gives you that cash back when you make the purchase, effectively reducing the cost of the item purchased.” – CleanEnergyResourceTeams.org

To access weatherization benefits through the Inflation Reduction Act (IRA), you can choose from a set of pre-approved purchases. Visit EnergyStar.gov for specifics on each type of purchase.

  • Insulation & Air Sealing: The IRA provides a tax credit for 30% of insulation & air sealing purchases, up to $1200 per year.
  • Doors: The IRA provides a tax credit for 30% of new exterior door purchases, up to $250 per door, $500 total per year.
  • Windows: The IRA provides a tax credit for 30% of new window purchases, up to $600 per year.

Reminder: The IRA weatherization tax credit resets every year, so you can keep using it for weatherization purchases over time.

A home energy audit can help you decide which upgrades to do now, vs which upgrades can wait till next year and beyond. PSE&G provides free home energy audits to its customers. Visit their website to schedule.

To claim your weatherization benefits:


These resources provide lots of info about IRA and PSE&G weatherization tax credits and rebates, and how to take advantage of them:

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This summer, the South Orange Green Team & Environmental Commission will walk you through the energy efficiency incentives available to you. (That’s free money, people!) Follow us to see our tips, and save money on electric vehicles, home weatherization, appliances, and more! 
Next week we’ll dive deep into benefits that can help you install rooftop solar. If you’d like to read ahead, check out Rewiring America’s rooftop solar guide.

Green Savings, Week 2: Electric Vehicles (EVs)

/ Walter Clarke / Leave a comment

This week, let’s dig into EVs and how to save on a car, a charging station, and the electrical upgrades your home may need.

Last week, we introduced you to several government programs that will give you money to help pay for home energy efficiency upgrades:

  • The Inflation Reduction Act is the largest clean energy investment America has ever made, with strategic incentives to make the transition to clean energy and a decarbonized life easy and financially smart. Its home energy offerings include upfront discounts, tax credits, and low-cost financing.
  • New Jersey’s Clean Energy Program is a statewide program that offers incentives, programs, and services that benefit New Jersey residents, businesses, educational and non-profit entities, and government entities to help them save energy, money, and the environment.
  • PSE&G provides rebates to help you save on select high-efficiency products and equipment for your home.

This week, let’s dig into EVs and how to save on a car, a charging station, and the electrical upgrades your home may need.

“Electric vehicles are either partially or fully powered by electricity. Full electric vehicles (EVs or BEVs) are powered only by electricity, and plug-in hybrid electric vehicles (PHEVs) can use both gasoline and electricity.” – Rewiring America

An EV will save you money over time.

“Electric vehicles are much cheaper to operate than gas-powered vehicles. As gas prices get higher and more volatile, electric cars are now three to six times cheaper to drive than gas vehicles, which translates to hundreds of dollars a year in savings. EVs also typically cost half as much to maintain because they have fewer moving parts and don’t require oil changes.” – Rewiring America

The Inflation Reduction Act (IRA) provides savings on the purchase of a certain EVs:

  • $7500 non-refundable tax credit for a new EV 
  • $4000 non-refundable tax credit for a used EV 
  • To use a tax credit, keep your receipt from your purchase and follow the IRS’s instructions when you file your taxes early next year.

Wait. What’s a tax credit?

“A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe.

If a taxpayer’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. For nonrefundable tax credits, once a taxpayer’s liability is zero, the taxpayer won’t get any leftover amount back as a refund.” – IRS.gov

To access the EV tax credit through the IRA, you’ll need to choose from a set of pre-approved EV models. To find cars that qualify, check out:

You can plug an EV into a normal outlet. But if you’d rather install an EV charging station at your house, there are a few ways to save.

  • Low-income households can get a $1000 tax credit from the purchase of an EV charger through the Inflation Reduction Act (IRA). Get more info from Rewiring America.
  • When you purchase an EV, some car manufacturers will offer free or discounted EV chargers and installation. Get more info from your car dealership.
  • The State of NJ also has an EV charger rebate program, but it’s on pause for the rest of 2023. This program may come back for 2024. Get more info at Charge Up New Jersey.

And finally, for our older South Orange homes, charging an EV might overwhelm your electrical load. It’s a good idea to have an electrician assess your house before you purchase an EV. If you need upgrades, PSE&G offers a $1500 rebate on customer-side upgrades and a $5000 rebate on utility-side upgrades to prepare your home for an EV. Get more info from PSE&G.

To claim your EV tax credit:

  • Buy a qualified EV in 2023.
  • If needed, update your home electrical system and/or install an EV charger.
  • Save your receipts.
  • Follow the IRS’s instructions when you file your 2023 taxes.

These resources provide lots of info about the IRA EV tax credit, and how to take advantage of it:

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This summer, the South Orange Green Team & Environmental Commission will walk you through the energy efficiency incentives available to you. (That’s free money, people!) Follow us to see our tips, and save money on electric vehicles, home weatherization, appliances, and more! 


Next week we’ll dive deep into benefits that can help you weatherize your home. If you’d like to read ahead, check out Rewiring America’s weatherization guide.