If you want to upgrade your home with the latest green tech and save big on your electric bills, the government might soon give you $8,000 in free money — depending on your income — to do just that.
While it may sound too good to be true, the Inflation Reduction Act has already helped many Americans save money on solar panels and electric vehicles thanks to tax incentives and credits covering 30% of home project costs.
The IRA is expected to offer up to $8,000 in rebates to homeowners and renters who make home energy upgrades as part of an initiative to transition to cleaner technologies while helping people reduce their energy bills.
The Home Efficiency Rebates program rewards households for switching to planet-friendly appliances such as induction stoves, heat pumps, and Energy Star-certified dryers. The rebates can also be used for other retrofits, such as insulation, triple-paned windows, and weatherization improvements.
According to the Department of Energy, this program is "recommended when you're taking a comprehensive set of actions to reduce your energy usage." The DOE adds that "all households are potentially eligible, with the largest rebates going to those with lower incomes."
"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," Bill McKibben, one of the nation's leading climate journalists, said during a climate press briefing last year.
The electrification nonprofit Rewiring America indicates that the funds are becoming available state-by-state, with the organization expecting most states to roll out the rebates next year. The DOE maintains a tracker on its website. In the meantime, you can still apply for tax credits or see if your state or utility offers incentives for certain home energy upgrades.
Or, if you live in Wisconsin or New York, you might access up to $14,000 in rebates through the Home Electrification and Appliance Rebates program — another IRA-supported initiative focused on equipment upgrades and low-income or moderate-income households. The programs offer homeowners money back at the point of sale when they purchase energy-saving appliances.
For example, according to Energy Star, you could get up to $1,750 to install a heat pump water heater and up to $8,000 for a heat pump for space heating and cooling, via HEAR. Unlike the Home Efficiency Rebates program, HEAR does not specify reducing energy usage in your home by a certain amount.
As of August 5, 50 states and territories have applied for at least preliminary funding on their programs, and 23 have either submitted or been approved for full funding, per the Department of Energy.
No matter how you electrify your home, vehicle, or appliances, upgrades will help you save money and reduce harmful pollution.
If you're feeling overwhelmed with all the information out there, Rewiring America can help you navigate the various tax incentives and find contractors when you're ready to make the switch. Its free tools can simplify the process and help you get more bang for your buck with clean energy technology.
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