Cooling, heating, power, and water usage savings can quickly add up to big savings not only for household budgets, but also for helping do your part to protect our planet for future generations. With Congressional recent approval of the 2022 Inflation Reduction Act, homeowners can receive incentives to adopt energy efficient options that are powered by clean, green energy. The incentives revolve around tax credits and rebates for replacing fossil fuel water heaters, furnaces, boilers, heat pumps, and stoves for renewable energy choices, such as rooftop solar, electric HVAC, EV cars, and induction ovens. In other words, home efficiency will likely be changed forever by this sweeping legislation.
What’s in The Reduction Act
The act provides $9 billion in total energy rebates with $4.28 billion set aside for the High-Efficiency Electric Home Rebate Program. Consumers are eligible for up to $8,000 to purchase heat pumps, which can both cool and heat houses. There is included in the bill a rebate up to $1,750 for installing a heat-pump water heater. You may qualify for up to $840 for buying a heat-pump clothes dryer or an electric stove such as a high-efficiency induction range.
Some houses will need to have electrical panels upgraded to be able to handle these new appliances. The program will provide up to $4,000 for the upgrade. Savings that will show up in reduced monthly utility bills from your local energy provider. According to the organization Rewiring America, a household with an efficient electric heat pump for space heating and cooling, a heat pump water heater, one electric vehicle, and solar panels would save at least $1,800 a year. Over 10 years, these savings from electrifying home appliances and going solar, will grow to over $30,000 and $140,000 after 25 years (assuming an 8% annual return on investment).
There are other programs including a rebate of up to $1,600 to insulate and seal your home, and a rebate of up to $2,500 for improvements to electrical wiring depending on household income.
Call us today at 480-968-5652 to learn more about the benefits of the Inflation Reduction Act for Home Energy – as well as all of your HVAC needs.