The Maryland $500 HVAC Appliance Rebate Program is ending soon.  The following was posted to the Maryland Energy Administration website on 10/21/2010.

Maryland Appliance Rebate Countdown

The Appliance Rebate Program is ending soon. To date, the program has expended 76% of funding, and has approximately $1.1 million remaining for consumer rebates. To get a rebate, download an application form below.
Last updated: 10/21/2010

Developed as a part of the American Recovery and Reinvestment Act (ARRA) and the Maryland Energy Administration, this program offers Maryland residents a rebate for new HVAC or Heat pump. This supplements rebates from the utilities that are funded through the emPower Maryland program.

Rebates are available on a first-come, first-serve basis and will be processed in the order they are received until the funding runs out. The incentives program, which is still managed by your local utility, offers rebates on purchases or installations of central air conditioning units ($500), air source heat pumps ($500), room air conditioners ($25), freezers ($100), Super-efficient clothes washers ($100), refrigerators ($50), and electric heat pump water heaters ($300).

The appliance must be purchased/installed on or after July 30, 2010 to qualify.  The appliance must meet efficiency standards, which are described on your utility's website.

Attention Pepco Customers:  You can combine the Maryland rebate with the Pepco HVAC Efficiency Program to save up to $800 on AC or $700 on Heat Pump replacements.

Program details, additional information and terms and conditions as well as rebate forms are available at http://energy.maryland.gov/appliancerebateprogram.asp.  From this site, customers of Allegheny Power, BGE, Delmarva, Pepco and SMECO can click on the link to their utility's website.

According to the Department of Energy, water heating can account for 14%-25% of the energy consumed in your home. But according to the ACEEE, about 30% of the energy used by a hot water heater is not lost in the faucet, but is dissipated directly through the walls of the hot water storage tank as standby heat loss.  The insulation of a water heater is a completely different issue than how efficiently it warms the water.  Thus, even if you can't afford the newer technology water heater, you can still purchase a well-insulated water heater to save on the stand-by heat loss and lower your bills over time.

If you are not ready to buy a new water heater, one good option is insulating your storage water heater tank with a special insulating blanket.  This is fairly simple and inexpensive, and it will pay for itself in about a year. According to the Department of energy, by adding insulation to a poorly insulated water heater's storage tank (you should target R-24 or higher) can reduce standby heat losses by 25%-45%. If you don't know your water heater tank's R-value, touch it. A tank that's warm to the touch needs additional insulation.

Here are Instructions for how to install your own insulation blanket 

ecobeco sells water heater blankets.  Click here to learn more.

Sizing your water heater makes a big difference.  Properly sizing your water heater so it only heats as much hot water as you need can further mitigate standby loss and improve efficiency by not heating excess water. For example, if you have a family of 4, you probably don't need an 80 gallon tank!  40 or 50 gallon tanks are plenty for most households.  Plus, after you install low-flow showerheads and Ladybug adapters, your water demand falls even further.

Insulating your hot water pipes reduces heat loss and can raise water temperature 2ºF-4ºF hotter than uninsulated pipes can deliver, according to the Department of energy, allowing for a lower water temperature setting. You also won't have to wait as long for hot water when you turn on a faucet or showerhead, which helps conserve water. The most critical section of pipe to insulate is the first 6 feet of pipe both leaving and entering your water heater. Insulate both the hot and cold water pipes!  You can get water heater pipe foam insulation at your local hardware stores.

Lowering your water heater temperature. According to the ACEEE, Each 10 °F reduction in water temperature will generally save 3-5% on your water heating costs. Most homes require a temperature of only 120 °F (usually around medium).  At this temperature, common bacteria cannot live.  When you are going away for an extended period, remember to "set back" your water heater just like you would your thermostat.

There are several things you can do to reduce the energy used by an existing hot water heater. With improved insulation, proper sizing, and setting temperature correctly, you can drastically reduce your energy bills and promote a sustainable lifestyle.