If you're looking to make energy-efficient home upgrades but don't know where to start, we've got you covered.
Learn how you can take advantage of government rebates offered through the Inflation Reduction Act — which could essentially give you an $8,000 bank account to remodel your home with some upgrades, depending on your income and location. Other IRA-supported incentives, such as tax credits, can allow you to save in additional ways.
The scoop
Under the Inflation Reduction Act, the most significant climate action in U.S. history, homeowners and renters are eligible for thousands of dollars to electrify their homes and vehicles while saving money on electric bills in the process.
The government divided the rebates into two separate programs: the Home Efficiency Rebates program and the Home Electrification and Appliance Rebates program. The former could provide up to $8,000 to homeowners who make a set of upgrades that improve their homes' efficiency, while the latter is aimed at offering low- and moderate-income households up to $14,000 in rebates for certain appliances, at the point of sale.
For example, through the HEAR program, you could receive up to $8,000 for an Energy Star-rated electric heat pump for space heating and cooling, $1,600 for insulation and air sealing, and up to $840 for an ultra-efficient induction stove.
Programs have started rolling out in different states — the Department of Energy maintains a tracker to see where your state is in this process.
Not only will these upgrades be better for your wallet, but they'll also be doing the planet a huge favor. Electrifying your home and vehicle has never been easier, especially with the help of the nonprofit Rewiring America. Its free tools can help you figure out what tax incentives you qualify for and find reliable contractors when you're ready to have work done.
How it's helping
The IRA rebates put more money in your pocket and also help you save on energy bills over time. For instance, Energy Star reports that a four-person family could save around $550 per year by purchasing an energy-efficient heat pump water heater. Weatherizing your home and installing a smart thermostat could cut your energy costs by an extra $300 or more a year.
No matter what energy hacks you decide to implement, you're contributing to a cooler, cleaner future by reducing pollution generated from dirty energy sources such as coal, oil, and gas. Organizations like Tesla and Arcadia can also help you unlock a greener future with their solar solutions such as the Tesla Solar Roof and community solar platform, respectively.
What everyone's saying
Many of TCD's members have attested to the benefits of going green.
"We installed a heat pump last year and were able to claim $2,000 on our taxes for 2023 … [We] saved all the invoices and were able to submit and get the credit without much trouble!" one reader said on taking advantage of the IRA tax credits.
"I LOVE my heat pump water heater. It is helping us save money because it's more efficient, got the gas out of our house, and has worked like a charm," another said on how they lowered their utility bills.
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