If it's good for the planet, it's now good for your wallet, too. The government passed the 2022 Inflation Reduction Act to incentivize several climate-forward initiatives, including rewarding Americans with lucrative rebates for migrating their homes to clean energy sources.
From switching to clean energy sources like solar panels to making your home more energy-efficient, these changes will lower your energy bills and earn you major savings.
For homeowners, one possible area of improvement you don't want to miss is the chance to upgrade your breaker box. The breaker box is the part of a home electrical system that manages the flow of electricity and prevents grid overloads. However, if a breaker box is old and inefficient, it can result in massive energy waste and higher-than-necessary bills. It can also lead to dangerous situations, short-circuiting, and sudden electricity losses.
However, with an upgrade to a smarter, modern panel, you'll be getting a win-win, both preventing losses and potentially hazardous situations as well as enjoying tax credits of 30% of the project cost for a maximum of $600 back from the IRA. Families who qualify as low- and moderate-income households could get up to $4,000 back on a new breaker box alone.
Similarly, homeowners who upgrade to a heat pump water heater — more efficient and cleaner than traditional HVAC systems — can receive up to $2,000 in tax credits, with no income requirements, and as much as another $8,000 through income-based tax rebates. Changing out appliances like washers, dryers, and stoves can add up to thousands more in savings.
Not only are these changes great for the wallet, but they're also better for your health and that of your loved ones. The dirty energy that powers many outdated systems — like gas-fueled stoves — has been correlated with increased indoor air pollution and exposure to known toxins and carcinogens. Upgrading to clean versions, like an induction stove, is cheaper and healthier for your long-term well-being.
The rewards extend beyond the home, too. One of the best ways to take advantage of the IRA is to make your next vehicle an EV; you can expect up to $7,500 back to help cover the cost of the upgrade.
These upgrades will lower your planet-warming pollution, contributing to a cleaner and more sustainable future. Global heating has been linked to threats ranging from severe natural disasters to a loss of biodiversity and a destabilized food chain.
All in all, Americans who fully commit to upgrading their energy systems, vehicles, and appliances can expect to receive tax benefits from the IRA that total upward of $20,000. To calculate your potential savings with the IRA, check out the nonprofit Rewiring America's Incentive Calculator and other tools here.
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