In 2022, U.S. Congress set in motion their largest investment in climate action to date: the Inflation Reduction Act. The 10-year plan includes $8.8 billion in rebates and tax credits for American homeowners who make clean home energy upgrades.
In addition to these benefits, upgrading to more efficient home energy products saves homeowners money by reducing their power bills. Whether your home could use better insulation or an efficient induction cooktop stove, thousands of dollars in savings are available to you via the IRA.
Two different Home Energy Rebate programs within the IRA offer savings for different upgrades. The Home Efficiency Rebates program is useful for those embarking on a comprehensive list of actions to advance their home energy efficiency and offers up to $8,000 in rebates.
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The Home Electrification and Appliance Rebates program can help those upgrading appliances and equipment within their homes. This program offers up to $14,000 in rebates and covers up to 100% of the costs for low-income families. Up to 50% of costs are covered for moderate-income families.
Making energy upgrades and electrifying your home, vehicle, and appliances is one of the best ways to save money in the long term and set yourself up for a more sustainable, affordable future. It also makes a huge impact on the environment as these upgrades cut down on pollution output.
With so many efficiency upgrade options like rooftop solar, induction cooktops, and smart thermostats, it can seem overwhelming to figure out where to start. A quick visit to Rewiring America can simplify your options and clarify what savings are available to you.
The website has free tools like their Incentive Calculator to help people navigate available tax incentives, find contractors, and make upgrading their homes way cheaper.
Home energy efficiency is beneficial for homeowners and their bank accounts, and with so much money available via IRA rebates and tax credits, it's never been a better time to upgrade. To further emphasize that, it's worth noting that President-elect Donald Trump has stated he'd like to eliminate large portions of the IRA, which could impact people's ability to benefit from the incentives. So taking advantage sooner rather than later could save you thousands of dollars.
Bill McKibben, one of the nation's leading environmental journalists, said in a press briefing, "In essence, the IRA creates an $8,000 bank account for every American household … if people figure out how to access it and use it."
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