A handful of states should soon use federal funds from the Inflation Reduction Act to offer homeowners rebates to make energy-efficiency upgrades to their properties, CNBC reported.
The outlet announced that New York was the first state to gain approval for the funding and launch a program, offering $14,000 to homeowners for energy-efficiency projects. It also reported that several more states are expected to follow suit by the end of summer. The money is being provided to states as part of two Home Energy Rebates programs included in the IRA that seek to help homeowners reduce or offset the costs of energy-efficient upgrades.
New York's first set of rebates are part of the Home Electrification and Appliance Rebates program, which is available to lower- and middle-income homeowners. Qualifying purchases include air sealing, insulation and ventilation, electrical service upgrades (panel boxes), electrical wiring upgrades, heat pump water heaters, and heat pumps.
Kara Saul Rinaldi, CEO and founder of AnnDyl Policy Group, a consulting firm focused on climate and energy policy, said the launch "is a milestone," adding, "Over the next year we'll be seeing these programs roll out across America."
Making energy-efficient upgrades can save homeowners serious cash aside from the rebates. For instance, installing a heat pump can save $1,000 per year, while replacing a regular water heater with a heat pump water heater could save $550 annually.
Plus, these upgrades also help reduce our dependence on dirty fuels such as oil, gas, and coal, which are to blame for more than 75% of planet-heating pollution, according to the United Nations. If we do nothing, scientists expect disastrous consequences due to the overheating of our planet, from more frequent and severe droughts that could threaten global food supplies to sweltering heat waves that will put lives in danger.
In addition to legislative efforts such as the IRA, a number of countries, states, and cities are trying to slash their planet-warming pollution. For instance, India is placing solar panels over its canals to increase access to clean energy while also conserving space and water, and a New York law will require all Lyfts and Ubers to be electric vehicles by 2030.
You can take advantage of the tax breaks and credits in the IRA even if you don't live in New York. Need help navigating tax incentives or finding a contractor? Rewiring America has free tools and provides resources that will make upgrading your home even cheaper. You can also reduce your dependence on dirty energy by changing the way you get around and going green when it comes to your investment strategy.
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