If you're an American homeowner, you might not realize just how much the Inflation Reduction Act can do for you. It's not just for big companies: There are tons of benefits in the act for American households, especially low-income families. One major benefit is the subsidies for installing a heat pump in your home.
What is a heat pump?
Heat pumps are versatile HVAC equipment that can heat and cool your home — and do it more efficiently than your existing furnace. Heat pumps don't generate heat; instead, they move it around, from the home exterior to the interior or vice versa. This allows them to provide more heat energy than the amount of energy used to operate them.
To do this, heat pumps use a refrigerant that is compressed and decompressed. When it's compressed, it gives off heat, and when it's decompressed, it absorbs heat. By moving it inside or outside the home before compressing or decompressing it, the heat pump controls where the heat goes — either into the home or out of it.
That's great from a savings perspective, because you can get highly efficient heating and cooling from a machine that doesn't cost much to run, and you only need to buy one HVAC system for both functions instead of a separate heater and air conditioner.
Where does the Inflation Reduction Act come in?
A heat pump can lead to major savings over time, but it takes an up-front investment of $4,000 to $8,000. It's understandable that homeowners might balk at that price tag, but the great news is that you don't have to! The IRA will cover a major chunk of the cost.
The IRA offers up to $2,000 in tax credits to homeowners who install a heat pump, potentially shaving installation costs in half. And if you're from a qualifying low-income household, there's a potential rebate of up to $8,000 available.
What you can do to get started
To get a heat pump and start outperforming traditional HVAC systems on energy efficiency, plus take advantage of all the financial incentives the IRA affords, check out EnergySage's heat pump marketplace. This organization, which has earned multiple grants from the government over the last decade to help Americans find energy-saving products and upgrades, will help you compare deals in your area and help you navigate rebate options to save money now and in the long run.
Rewiring America makes it easy to get info about upgrading your home with tax credits. Sign up today to learn more about helping yourself while helping the planet.
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