Last year, the home heating industry was poised for a revolution, as homeowners embraced (like they never had before) the idea of clean, green, energy-efficient heating systems. Oil prices reached an all-time high, with households locking in at nearly $5 a gallon. Action against global warming was prevailing. And it seemed every politician, scientist, and economist was advocating the resounding need to “reduce our dependence on foreign oil.”

In 2009, the economy is sullen. Oil prices have plummeted. Concern for the planet was replaced by worry over finances. The renewable energy push was weakened by fears of upfront costs and an urgency to squirrel away precious funds that may have been once intended for an energy efficiency makeover.

“It’s a tough time for any product,” says Marcia Olenych, co-owner of Mountain Flame in Arkville, a distributor and builder of Tulikivi stone fireplaces and wood stoves. “I think everyone’s having a hard time selling anything at the moment. People have just been very afraid.”

So why is now a good time to upgrade your home’s heating system?

“I believe if you polled the general public, they would say that it’s a temporary relief we’re getting with oil prices,” says John Wright, vice president of Hudson Valley Clean Energy in Rhinebeck. “There’s no disputing that we’ve reached peak oil…The fact that we’re extracting it from tar sands in Canada shows that we’re desperate.”

And it’s not just low oil prices that have an expiration date. The unprecedented financial incentives currently available for energy-efficient upgrades certainly won’t last long.

“Now is the time to act, because you never know what energy prices are going to be down the road,” says Ryan Moore, project manager with the New York State Energy Research and Development Authority. “We’re seeing prices slowly creep up again—especially at the pump. We’re encouraging people to do it now. Do it while the incentives and tax credits are still there.”

As part of the 2009 American Recovery and Reinvestment Act, federal tax credits are available for 30 percent of the cost, or up to $1,500, in 2009 and 2010 for energy-efficient upgrades to insulation or HVAC; the installation of non-solar water heaters; as well as biomass stoves (wood, corn, or pellet).

However, which items qualify for the tax credit differs for new and already-existing buildings as well as for primary and secondary/vacation homes.

“There’s so many rules…There’s a lot of things that people don’t understand, and you’ve got to make sure they understand it, or the IRS is going to come after you,” says Mountain Flame’s Olenych, adding that most Tulikivi models are above the efficiency rating needed for the tax credit. “If you’re going to claim that tax credit, you really have to know if you qualify or not.”

But there is a tax credit available for both new and existing homes—again, at 30 percent of the cost, but with no upper limit—for the installation of geothermal heat pumps, solar water heaters, small wind energy systems, and fuel cells. These credits are available until 2016.

New York is an especially advantageous state for home heating system upgrades; the New York Energy $mart Loan Fund offers loans of up to $20,000 (or $30,000 for Con Edison service customers). The state also offers low-interest financing or 10 percent cash back for energy-efficient equipment installations, or even up to $5,000 back if you’re income-eligible, Moore says.

Many utility companies are also hopping on board by offering their customers rebates for energy efficient heating. Central Hudson Gas & Electric, for example, is offering energy-efficient heating and cooling equipment rebates of up to $1,000 for residential customers.

However, if you’re still not swayed, experts ask that consumers consider the future of their planet.

“It’s worth it to do it, not only for your wallet and pocketbook, but for the environmental benefits,” says Moore. “Everybody’s about going green nowadays, and this is one easy way to do it.”

Ultimately, another expert says, investment in sustainability is not just for your own fortune—but for ensuring a healthy Earth for future generations.

“There is an old saying that goes ‘the best time to plant a fruit tree was 20 years ago, the next best time...is now,’” says John Abullerage, president and owner of Advanced Radiant Design. “It’s like planting a fruit tree for the future. Once you increase your energy efficiency, you reap the fruits of that investment forever. Some years you get more fruit, some years you get less. However, if you never plant the tree, you get no fruit. Now is the best time to increase your energy efficiency in order to secure your energy future.”

For more information on federal tax credits, visit energystar.gov. For more information on New York State incentives, call (877) NY-SMART.