American homeowners are getting help with rising energy costs thanks to the U.S. government's relatively newly effective law in many states, which in turn helps the environment.
In 2022, Congress passed the Inflation Reduction Act, a sweeping law that combats the overheating of the planet while including tons of tax breaks to encourage homeowners to make upgrades that help reduce energy costs while going green. The IRA helps cover installation and labor costs for these changes and encourages contractors to participate in more electrification projects.
The IRA's home electrification and efficiency upgrade programs are routed through the state level and are beginning to roll out in many states across the country, with California the latest to go live earlier this month. The U.S. Department of Energy has a map keeping track of state availability here.
In Arizona, Maine, and Rhode Island, you can already earn a $1,600 rebate for improving the weatherization of your home by upgrading insulation and ventilation and properly sealing your home. Even just caulking and adding weather strips are a low-cost and easy option to prevent air leaking in and out of your home, which makes your heating and cooling appliances work harder than necessary.
Weatherization can also help slash bills by $283 per year, according to the Department of Energy, and is especially beneficial for lower-income households, which spend 16.3% on energy bills compared to 3.5% in other homes. Navigating these kinds of changes can feel overwhelming, but resources like Rewiring America are available to help further understand the tax incentives and locate contractors to do the work on your home for a good price.
The Environmental Protection Agency also estimates you can save 15% on heating and cooling costs by making these kinds of upgrades — a huge win for your wallet. Improving energy efficiency in the home also helps reduce energy use and pollution like heat-trapping greenhouse gases that can contribute to climate change.
The more people move toward switching to electric options for their homes, including appliances and cars, the less we'll rely on fossil fuels, which contribute to pollution and damage the environment.
By making green changes financially beneficial, the IRA is contributing to the ongoing push to improve the environment inside and outside of American homes.
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