If you spend a good amount of time at home, energy costs can add up fast. However, a set of rebates from the government is making up to $14,000 available to certain Americans who want to slash their utility bills by upgrading to energy-efficient technologies.
This is all made possible by the Inflation Reduction Act. The legislation, signed into law in 2022, is considered one of the most significant pieces of climate legislation in U.S. history.
The program that could offer up to $14,000 in rebates is the Home Electrification and Appliance Rebate program (HEAR), which "is focused on efficient electrification projects for low-to-moderate income (LMI) households," per Energy Star. It is related to but separate from the Home Efficiency Rebates program that has also been rolled out in different states. And both are distinct from tax credit programs that are already available.
"This gives people some very concrete and generous incentives … both in the form of tax credits and direct cash rebates," Lauren Urbanek, the Natural Resources Defense League's deputy director of the clean buildings team, told CBS MoneyWatch in 2022. "This is the biggest federal investment in buildings ever, at least one that is specified for climate change."
The exact savings and opportunities can vary depending on the state and tax incentives used during a year, among other things. Still, all Americans qualify for cash to improve their homes.
Not every environmentally friendly change has to be made simultaneously, either. According to the government-backed Energy Star, it may actually be smarter to spread out upgrades over time, and items are eligible as long as they improve energy efficiency.
This includes everything from heat pumps for heating and cooling to smart thermometers, weatherizing insulation, induction cooktops (which prevent cancer-linked fumes from spewing directly into your home), and more. Upgrading just one or two appliances can shave thousands off your electric bills annually.
With so many options on the table, it can be challenging to know where to start — or which incentives have rolled out in your state. For example, the U.S. Department of Energy notes that the Home Energy Rebates and HEAR programs are still ramping up.
However, tools like those from the nonprofit Rewiring America can help break things down. After entering a few details into its free savings calculator, you'll receive recommendations that can help you maximize the benefits of the IRA and begin moving toward a cleaner future. The nonprofit's tool can also connect you with trusted contractors experienced in electrification.
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