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Electrification 101

Elephant Energy & Walden Mutual: Sharing Common Ground When it Comes to Local Impact

If you’ve been following along, you already know that we believe deeply that the path to a sustainable future is paved with many individual actions–we all get to choose how we spend our money, and those choices can impact climate progress. We also get to choose where we invest it. That’s why we’re thrilled to introduce our partnership with Walden Mutual Bank. Choosing to work with Walden was easy, because the overlap of our missions is so natural. We both stand on the common ground that individual choices have the power to drive significant collective change.

Curious about banking with Walden? Read on for a special opportunity to sign up for an individual account! 

Why Walden Mutual? A Line of Credit for the Planet

In need of working capital, we found a mission-aligned partner in Walden Mutual. Their understanding and support of our vision made them the ideal lender for us. Support from Walden marks a significant step in Elephant’s journey, and will enable us to confidently pursue our next phase of growth.

To understand why Walden’s philosophy is so unique, it’s important to first understand what a mutual bank is! Put simply, it’s a financial institution that’s owned by its own depositors (everyday people, like you and me) rather than shareholders, which in turn allows the bank to focus on serving the needs of its members and local community. So, while corporate banks continue to invest deposits in unsavory segments like the fossil fuel industry, Walden only lends to 100% mission-aligned borrowers with a focus on farms, local food businesses, nonprofits, and other sustainable businesses (like us!).
For context, the concept of a Mutual Bank model isn’t new – but it has also become increasingly uncommon. When Walden Mutual opened its doors in 2023, it was the first of its kind in almost 50 years.

The Walden Mutual Difference

A Partnership with Perks

Ready to reexamine where your money is being put to work? Opening an account with Walden may be for you. If you decide to open an account with Walden Mutual and use promo code ELEPHANT by May 31st, 2024, you’ll receive a $100 credit to spend at a range of Walden’s partner businesses, including right here at Elephant Energy.

Importantly, with Walden Mutual, your savings stretch much further than simply earning interest. They become an actionable tool for change when they are invested in renewable energy projects, sustainable agriculture, and local communities. Have questions? Check out Walden’s offerings here. 

Join Us

At Elephant, a key part of our mission is empowering homeowners to take personal climate action – knowing that the impact of that action spans so much further than the four walls of our own homes. Choosing to bank with Walden Mutual is another one of those choices–a choice that we have made, too. Using your savings not only to earn dividends, but also fund a more sustainable future, sounds like a win-win to us.

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Eager to make more climate-friendly choices? Check out our tool, Your Electrification Roadmap®. A few simple questions will get you a personalized plan for a sustainable home. Together, we can make choices that truly make a difference.

5 Ways to Hard Launch your Relationship (With your Heat Pump)

Valentine’s Day is a time of public declarations – when even those of us that typically refrain from PDA find the courage to tell the world, “hey, just in case it wasn’t clear, I really love this person!”. This can take many shapes and forms–engagement, marriage–and even the “hard launch”, which often happens on our social media feeds.

We’re here with a hot take: if you have a heat pump, it’s time to hard launch your relationship with it this Valentine’s Day.

Why? Well, put simply, personal climate action is contagious – in a good way! Research on solar panel adoption (replicated many times, in many geographies) shows that the biggest predictor of whether you will purchase solar panels is whether your neighbor has already done so! Why? As Katherine Hayhoe so eloquently explains, this lowers “the ‘cost’ of information”. Knowing that you can go down the street and ask who installed the equipment and how it went is, well, comforting.

This isn’t the only research that underscores the importance of social proof when it comes to home electrification, though. A study recently published in the journal Energy Policy about household energy decision-making and technology adoption in the U.S. found that the top two information sources homeowners sought after during their consideration process were (1) their own friends and family (~42% survey respondents), and (2) online reviews (~36% of survey respondents).

Here’s the tricky thing about heat pumps and heat pump water heaters though, though. These HVAC systems are hidden away in our basements, utility closets, and backyards – entirely out of sight from the neighbors, typically. Remember the old conundrum, “If a tree falls in a forest and no one is around to hear it does it even make a sound?” Feels pretty relevant here!

The point is, taking a public stand for personal climate action can dramatically accelerate the pace of progress in your orbit. By taking a few minutes to  “hard launch” your home electrification efforts, you have the opportunity to create a ripple effect of decarbonization far beyond the four walls of your own home.

How to “Hard Launch” your heat pump (on social)

Social media is a great place to share your story! We created these love notes to make it easy. What is an example of a hard launched relationship? Sending ’em a Valentine, of course!

They are yours to save, use, and share! You can tag us on any of these platforms (Facebook, Instagram, Threads, Twitter, LinkedIn, and TikTok).

 

How to Hard Launch your heat pump without social media

No social media? No problem! When should you hard launch a relationship? Well, we’re taking advice from our friends at VeryWellMind on hard launching your relationship without social media, and translating that to heat pumps.

  • Send a group text to your friends or family members. This can include the name and a photo of your partner. Yes this works great! “Heat Pump” has entered the chat.
  • Call your friends and family individually to discuss your relationship. Another strong option – share your reasons for why you went electric in a good ol’ fashioned phone call
  • Bring your partner out with you to meet your friends. Ehh, this one’s a little trickier…but snapping a selfie with your heat pump to share with friends might just do the trick!
  • Take your partner home to meet your family. This one’s even harder. Then again, dropping off information about a heat pump might be the move
  • Plan a gathering at which you’ll introduce your new partner to your social circle. This one is a gem! Throw a “meet my heat pump” party (and be sure to send us photos)!

So yes, make the cheesy post about your partner (seriously, always make the cheesy post), but don’t forget to also affirm your commitment to a cause that also needs your support now more than ever – the climate.

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Ready to get started? Join us in building a brighter future by electrifying everything, starting with homes. Your choice today shapes our collective tomorrow!

Federal Heat Pump Tax Credit – Understanding the 2023 Heat Pump Tax Credit

Is there a federal tax deduction for heat pumps? Yes! The 25C tax credit, under the Inflation Reduction Act, offers substantial benefits for individuals investing in heat pump systems, heat pump water heaters, electrical panel upgrades, select weatherization measures, and energy audits – including you, our customers! How do you qualify for the Inflation Reduction Act heat pump tax credit? Simply install and file the following year to receive the federal tax credit for your heat pump.

Notably:

  • Value: Enjoy a 30% heat pump federal tax credit on the total purchase of any combination of air source heat pumps and heat pump water heaters, capped at $2,000, other upgrades capped at $1,200 and electrical panel upgrades installed in conjunction with a heat pump or heat pump water heater will be eligible for a tax credit of up to $600. These federal tax credits for heat pumps are definitely worth it!
  • Installation Deadline: To claim the federal heat pump tax credit in a given tax year, you must have installed your heat pump with a SEER2 rating greater than or equal to 16 during that year (no need to search “what SEER rating do I need for tax credit qualification?”). To claim the federal tax credit for heat pumps or heat pump water heaters for the 2023 tax year, ensure your heat pump HVAC system or heat pump water heater installation was completed before December 31, 2023.
    • The credit limit is applicable on an annual basis, resetting each year, allowing for its reuse annually.
  • Property Requirements: Equipment must be installed in an existing home and your principal residence (the place you occupy most of the time). New construction and rentals do not apply for federal tax credits for heat pump installations, including federal tax credits for heat pump water heaters, too. The principal residence must be in the United States and may be a house, houseboat, mobile home, cooperative apartment, condominium, or a manufactured home to qualify.
  • Example: For instance, if your federal tax liability amounts to $3,000 and you qualify for the maximum $2,000 credit, your owed taxes decrease to $1,000 after applying the credit.
    25c Heat Pump Tax Credit

Energy Efficiency

Energy Efficiency investments qualify for the Energy Efficiency tax credit.

  • This credit is 30% of the project cost up to a maximum of credit value of $1,200
  • Upgrades that qualify:
    • Attic Insulation
    • Basement / crawlspace insulation

Home Energy Audits

A home energy audit for your main home may qualify for a tax credit of up to $150. In order to qualify, the home energy audit must:

  • Include a written report and inspection that identifies the most significant and cost-effective energy efficiency improvements with respect to the home, including an estimate of the energy and cost savings with respect to such improvement.
  • Be conducted and prepared by a home energy auditor

Disclaimer: While we provide guidance, it’s crucial to seek advice from a tax professional regarding individual tax situations. Our presentation doesn’t assume liability for your specific tax circumstances.

Wondering how much this will cost you with rebates and tax incentives included?

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How to Claim / File for the Heat Pump Tax Credit:

  • IRS Form 5695: Complete this form (specifically Part Two: Energy Efficient Home Improvement Credit) to outline your eligibility for the heat pump tax credit.
  • Fill out your Name, Social Security Number, and your main home’s address. 
    • PART I: ​​Residential Clean Energy Credit
      Form 5695 Residential Energy Tax Credits
    • PART II: Energy Efficient Home Improvement Credit
      • Continue filling out lines 17 through 32.
      • In Section A Line 18, enter the total invoice amount for insulation and air sealing. 
      • In Section B Line 25ab, enter the total invoice amount for electrical panel upgrades. 
      • In Section B Line 29abc, enter the total invoice amount for heat pumps and/or heat pump water heaters.
        Section A - Qualified Energy Efficiency Improvements
        Section B - Residential Energy Property Expenditures
    2. Integration with Form 1040: Add the relevant tax credit details to your standard Form 1040 during the tax filing process.
    3. Submission: Ensure Form 5695 is included when filing your taxes to claim the credit accurately.

    MORE DETAILED INSTRUCTIONS ON FILLING OUT THE FORM HERE.
    MORE INFO HERE.

    And once again, thank you for being a part of the Elephant Energy Herd!! We couldn’t be where we are without wonderful customers like yourselves. And in return, we’re here for you – before, during, and after your Climate-Friendly Home Upgrade.

    New Year, New Heat Pump: Don’t Wait to Take Climate Action in 2024

    Congratulations on surviving the holidays with your in-laws and diving head first into your New Year’s resolutions! Is upgrading to a climate-friendly home on that list? Here’s a friendly yet firm nudge: 2024 is not just another year, it’s a crucial time to consider upgrading to a heat pump or heat pump water heater.

    Why the rush? Well, it’s not only about enjoying a cozier home and smarter savings on your bills. We’re racing against time for the planet. The clock is ticking towards 2030, a year earmarked by experts as critical for reducing global carbon emissions. Every heat pump installed is a step towards that goal. Sticking with that old furnace or unreliable water heater? That’s not just a hassle waiting to happen; it’s a missed opportunity to join the fight against climate change.

    So, why not kick off the year by making your home more efficient and comfortable? What’s the best time of year to buy a heat pump? Don’t wait – the time is now!

    1. Accelerating the Tipping Point: Every Installation Counts

    What is the future of heat pumps? Well, we are approaching a critical tipping point in heat pump adoption. Every installation is a significant contribution, providing essential social proof that accelerates the transition to green energy. By installing a heat pump now, you’re not only taking a personal stand against climate change but also inspiring confidence in others to join this growing movement. Your action today is a powerful catalyst in this critical journey.

    2. The Slow Rebate Rollout: A Call to Act Now

    While the Inflation Reduction Act offers the promise of direct-pay rebates, its slow implementation—with only a few states expected to roll out rebates this year—suggests that waiting may not be the best strategy. If you’re in a position to install a heat pump without relying on these incentives, it’s prudent to proceed. Waiting could mean missing out on immediate benefits and potentially facing uncertainties regarding rebate qualifications.

    3. A Singular Opportunity for Long-Term Impact

    Choosing your next HVAC system is a once in every two decades decision. Opting for a heat pump now avoids the risk of being forced to select a less sustainable option in an emergency. A proactive choice today ensures that you are not contributing to another two decades of emissions. At what age should a heat pump be replaced? When well-kept, you can expect 15+ years out of your heat pump.

    4. Stay Ahead of the Demand Curve

    Demand for heat pumps is expected to surge, especially once rebates do become more widely available. As we’ve seen happen before, this increase in demand will likely lead to higher prices and longer installation wait times. By acting now, you avoid these pitfalls, start saving on energy costs immediately, and contribute to stabilizing market demand.

    5. Influence Your Community: Share Your Climate Journey

    Installing a heat pump gives you a unique opportunity to influence your community. Rather than boasting, use this chance to share your experience upgrading to a climate-friendly home. Your story can (and will!) inspire others to make similar choices, creating a ripple effect of positive environmental impact. Send us an email at hello@elephantenergy.com – we’d love to share your story.

    Conclusion: The Time to Act is Now

    In 2024, the message is clear: waiting comes with a cost, too. Installing a heat pump is a critical step towards a sustainable future. It’s a decision that benefits you, your community, and the planet. If you’re able to install a heat pump this year, don’t wait for a ‘better time’ or more incentives – the time to act is now.

    Ready to get started? Join us in building a brighter future by electrifying everything, starting with homes. Your choice today shapes our collective tomorrow!

    Resource Roundup for Your Climate-Friendly Home Journey

    WHEW, we made it. The home stretch, the last chapter, the grand finale—whatever you want to call it. It’s our seventh and final post in our climate-friendly home series. In this final edition, we’re sharing a roundup of all our favorite resources to help make your climate-friendly journey as simple as possible. Read on for a whole host of helpful guides, databases, toolkits, and more—and drop us a line if you think there’s something we should add. 

    Guides to Climate-Friendly Home Upgrades:  

    All Things Solar: 

    Incentives & Rebates 

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    Still looking for a resource to help you determine where to start your climate-friendly home journey? Look no further than Elephant’s tool, Your Electrification Roadmap®. By answering some simple questions and providing a few key details about your goals and preferences, you can get a personalized plan to simplify your journey to home electrification. 

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