With winter coming up, you might already be dreading the cost of heating your home, but home energy tax credits and rebates offered through the Inflation Reduction Act can make it a lot cheaper to stay warm.
By upgrading your HVAC system — or whatever you use for heating and cooling — to an energy-efficient heat pump, you can stay comfortable year-round with just one piece of equipment while saving big bucks on electric bills.
Here's how you can snag up to $2,000 in federal tax credits and beyond to make the switch.
The scoop
You might be wondering how something called a heat pump can also cool your home, but don't let the name fool you.
A heat pump is a temperature control technology that moves heat from inside to outside your home, and vice versa, rather than generating it. In the summertime, heat pumps function like traditional air conditioners.
When winter comes around, they work in the opposite manner to keep your house cozy, all while reducing your electricity use for heating by about 65%.
How it's helping
Along with the massive energy savings, IRA tax credits and rebates can keep more money in your pocket and make it easier to afford the upfront cost.
Heat pumps typically run from about $4,000 to $8,000, but the IRA tax credit of up to $2,000 — with no income limitations, meaning all Americans who pay federal taxes are eligible — could cut the cost of buying one in half. Plus, low-income households could be eligible for an additional $8,000 to make the switch.
If you want more information about these amazing appliances, EnergySage's Heat Pump Marketplace is a one-stop shop for all your heat pump-related needs. The organization allows you to compare quotes from vetted contractors and see what credits or rebates you can get to install a heat pump.
In addition to keeping your home comfortable at a fraction of the cost, heat pumps are much better for the planet since they reduce the amount of pollution released into the air from furnaces, thus helping to bring Earth's temperature down.
💡Save thousands with a heat pump
A heat pump can save you thousands of dollars in heating and cooling costs — but first you have to find the right installer at the right price.
Use EnergySage's free tool today to find local options, compare prices, and see how much you can save.
The Cool Down may receive a commission on signups made through links on this page, but we only promote partners we vet and believe in. For more cool tips like this one, check out our solutions list here.
It's easy to see why 300,000 people have decided to invest in heat pumps (although that doesn't necessarily mean they all received credits or rebates to install them).
However, if you're not in the market for a heat pump or they're simply not a good fit for your home, you can also reduce your energy use by installing insulation, smart home technologies, or solar panels.
Organizations like Arcadia and WattBuy can help you find great deals on community solar or rooftop solar systems in your area as well.
What people are saying
Reddit users and TCD members alike have nothing but good things to say about the HVAC heroes.
"Even made it through -13F with just a brief shiver — like all our flame-based neighbors. Our energy use for heat has fallen over 75%," one Reddit user said.
"My unit kept our house warm all the way down to -30C (-22F) during a polar vortex a few years ago," another shared.
"We had a massive heat wave a few years ago and needed to install A/C but opted for a heat pump so we could get more efficient heating and cooling. I love that it's fast to cool or heat, super quiet and very efficient," one of The Cool Down's members said.
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