As part of the Inflation Reduction Act, the government is offering American homeowners big subsidies for installing a heat pump to heat and cool their homes. Making use of this hack could help you collect them before it's too late.
The scoop
The Inflation Reduction Act has provided tax breaks and incentives to help American homeowners upgrade their homes. Heat pumps are a great investment because they are an all-in-one HVAC system that can lead to major savings over time.
Research has found that, in many cases, heat pumps are the most affordable way to heat and cool a home and could save people more than $1,000 per year on heating bills.
That being said, heat pumps require an investment of $4,000 to $8,000 to install, which is too expensive for many people. However, the great news is that the government is willing to give you up to $10,000 to help cover the cost. This money is made available through the IRA, which offers up to $2,000 in tax credits to homeowners installing heat pumps, and a further $8,000 rebate is available for qualifying low-income households.
Using EnergySage's heat pump marketplace can help you take advantage of these savings and find all the information you need on heat pumps and local installers. This organization will help you find the best deals for upgrading your HVAC, saving you money now and in the future.
How it's helping
A heat pump is a highly efficient HVAC system that uses electricity to heat and cool your home. Heat pumps use the same technology as an air conditioner, which uses a refrigerant to cool your home, but they differ because they have a reversing valve, which enables them to heat your home when it gets cold.
Unlike traditional heating systems that rely on gas and oil, heat pumps run on electricity, which is increasingly being produced using renewable energy. This not only makes them cheaper to run but also means they contribute less to the heat-trapping gas pollution that is heating our planet.
What people are saying
The general reaction to the IRA has been positive, as millions of American homeowners have taken advantage of the incentives to make energy-efficient upgrades in their homes. In the first year of the program, 3.4 million Americans benefited from $8.4 billion in IRA tax credits for clean energy investments and home efficiency improvements, including solar electricity generation, heat pumps, and insulation.
Regarding heat pumps in particular, the trend is clear: Nonprofit RMI notes that this HVAC tech has outsold gas furnaces each year since 2021. This is only expected to grow in the future.
🗣️ Do you think all new homes should use heat pump technology?
🔘 Definitely 💯
🔘 Let each state decide 🇺🇸
🔘 Let homeowners decide 🏘️
🔘 No way 🙅
🗳️ Click your choice to see results and speak your mind
However, President-elect Donald Trump has repeatedly said he wants to eliminate the subsidies. While any big change to the IRA would require an act of Congress, the future of the program is unclear. Taking advantage of these incentives sooner rather than later could help ensure you save thousands of dollars while the program is still available.
💡Save thousands with a heat pump
A heat pump can save you thousands of dollars in heating and cooling costs — but first you have to find the right installer at the right price.
Use EnergySage's free tool today to find local options, compare prices, and see how much you can save.
The Cool Down may receive a commission on signups made through links on this page, but we only promote partners we vet and believe in. For more cool tips like this one, check out our solutions list here.
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
