MILLTOWN — Residents can now earn rebate dollars by choosing higher efficiency appliances.
The borough is accepting applications from residents whose appliances qualify as higher efficiency models. Residents can receive monetary rebates that are directly proportional to the Seasonal Energy Efficiency Ratio (SEER) of a given heat pump, air conditioner, refrigerator or similar unit.
Borough Business Administrator Richard Rydstrom said the borough started the program a few months ago after several residents had called to ask about an old rebate program offered by PSE&G, the previous utilities supplier for the borough.
"The ordinance is modeled after a [PSE&G] program that is no longer offered," Rydstrom said. "A lot of people were calling to ask for [a similar program]."
Rydstrom said it is a one-time rebate per appliance which is based on the energy rating of the given unit. For a central air-conditioning system that has a SEER of 10.5 to 10.99, the rebate would be $3 per 1,000 British Thermal Units (BTUs). If the unit has a SEER 12 or greater, the rebate jumps to $10 per 1,000 BTUs.
According to Steve Hollander, of Hollander Electrical Co. in Milltown, the borough rebates can amount to hundreds of dollars, depending on whether the customer knows to request the higher efficiency unit.
"Every contractor and his brother offers a 10 SEER system (the minimum SEER required) unless the customer specifically requests something else," Hollander said.
According to Hollander, the typical household central air conditioning unit is around 36,000 BTUs, which at 10 SEER translates to a $108 rebate. However, if the customer pays the extra money for a 12 SEER system, they would qualify for a rebate of $360.
Hollander said that the rebate may not make up for the added cost of buying the higher efficiency unit, but that the customer would also realize a monthly savings over time since the system uses less energy.
According to Rydstrom, the borough is under contract with the Public Power Association. That group buys the energy on the borough’s behalf from a provider, such as PSE&G. Since it buys power in bulk, it can offer the energy to its members at a substantially lower rate.
"Electric rates are up 20 percent elsewhere; ours are 20 percent lower," Rydstrom said.
The borough recently signed a contract that stabilizes the rates until around 2007.
Rydstrom said he supports the rejuvenated rebate plan.
"Any time you can offer people savings, they appreciate it," he said.