How to make the fireplace more efficient

Don't want to freeze your buns off this winter but want to save money? You may want to look into buying a high efficiency wood stove, fireplace or fireplace insert.

In fact, U.S. homeowners can get a 30 percent tax credit of up to $1,500 for purchasing a qualifying heating systems, which also includes pellet stoves and inserts, before Dec. 31, 2010.

Many people have discovered the benefits to heating all or part of their home with wood, particularly if they have access to free or inexpensive cord wood. "Financial benefits are derived for years to come with significantly reduced heating costs," says Karen Smeltz, brand manager for Hearth & Home Technologies, maker of Quadra-Fire and Harman stoves. "Burning wood in a high efficiency stove also has environmental benefits. In addition to producing low air particulate matter, it is considered carbon neutral since the same amount of carbon is released into the air when burnt as during the growing and decomposition process in the forest."

However, old-school fireplaces can be one of the more inefficient heating systems around. According to the EPA, a lot of the warm air is lost in the chimney with only 10 to 20 percent actually coming from traditional wood logs.

An eco-friendly alternative? Try artificial products like java logs made from coffee grounds, vegetable paraffin and petroleum-based binders. Also, make sure the fireplace is updated with the latest heat-retaining features including blowers, intake tubes, radiant grates and inserts.

Most important, close the flue damper when the fireplace isn't in use. This will save you an estimated $190 a year, and 1650 pounds of CO2.

Heat your home on the cheap this winter

It's getting chilly outside. Is your home ready for the frigid winter months? With energy costs at an all-time high, savings can be accumulated by making simple upgrades to your residence ... some with little to no cost.

According to the U.S. Department of Energy, reducing drafts in your home can lower your energy costs from 5 to 30 percent.

We've compiled the ways you can save this winter from Consumer Reports:

Upgrade insulation
Insulation is important in order to keep the cost of heating your home down. Bob Markovich, home and yard editor of Consumer Reports writes, "According to our recent nationally representative survey, of more than 2,000 Americans, only 12 percent added or upgraded their home's insulation in the past three years and just five percent had insulated their heating and cooling duct work -- quick fixes that save you money for years to come."

So what should you do? Fix your insulation! If it's not time for new insulation, seal the cracks and duct work. This is a simple task that can save you big. Spend $500 once, and save $400 a year.

Buy a programmable thermostat
A programmable thermostat can save you 20 percent off your heating costs. This thermostat lowers the heat by five to 10 degrees during the day when no one is home.

Fix the drips in your faucet
A leaky faucet is guaranteed to cost you more money than you thought on your water bill. A Consumer Reports article states "Almost four in five states anticipate water shortages by 2013, which could lead to steeper rates and penalties for excessive water use." Stopping the leak is the easiest way to save $70 per household a year.

Buy energy-saving bulbs
Purchase a compact fluorescent bulb to save money on your electricity. Consumer Reports recommends a variety of CFLs that range in price from $6 for a four-pack to $13 for a two-pack. Each life of a CFL bulb will save you $56. Again, a CFL bulb is worth the investment.

NJ Natural Gas offers savings on heating costs

Customers of New Jersey Natural Gas will get some relief with their heating bills over the next two months thanks to the recent drop of wholesale natural gas prices.

According to the New Jersey natural gas utility here, the average New Jersey consumer will save 20 percent on their gas bill from Feb. 1 to March 31 with credits for the typical residence totaling about $89.

Additionally, the company received a greenlight to continue its Conservation Incentive Program (CIP), which enables the utility to promote conservation coupled with energy-efficiency improvements. The CIP has been extended to Sept. 30, 2013.

“The rate credits announced today as well as the extension of our Conservation Incentive Program are two examples of the steps we are taking to help our customers during these challenging economic times,” says Laurence M. Downes, chairman and CEO of NJNG.

Downes continues, “We are able to provide financial relief during the months when customers’ bills can be at their highest and continue to offer energy-saving information and programs that benefit our customers, company and state.”

Click here for the lowdown.