Make Your Home or Work Energy Efficient

Not sure what changes you need to make to make your home or workplace more efficient or which ones to prioritize? A home energy audit is a good place to start. The Inflation Reduction Act even offers a $150 tax credit to help you pay for it, though some states and utilities offer free energy audits.

A home energy audit is a process that helps you understand how much energy your home uses, where your home is inefficient, and which problem areas and fixes you should prioritize to save energy and improve the comfort of your home.

A home energy audit can help you identify areas where you can save energy, which can lead to lower energy bills. It can also help you identify energy-efficient upgrades that can increase the value of your home, while at the same time helping you reduce your home's carbon footprint.

Once your home energy audit is complete, you know what needs done to improve your home’s efficiency and are ready to start making improvements to your home. And there’s never been a better time to do so – there are numerous tax incentives and rebates available through the Inflation Reduction Act to help you electrify your home and make improvements that elevate the comfort of your home, save you money, and help fight the climate crisis.

The Inflation Reduction Act (IRA) provides a number of tax incentives and rebates for home efficiency.

The Residential Energy Efficiency Tax Credit “incentivize(s) household electrification by lowering the total cost of qualified electrification upgrades.” It is worth 30% of the cost of qualifying home improvements, up to a maximum of $3,200 per year.

Qualifying improvements include insulation, windows, doors, heat pumps, and water heaters. Of that $3,200, the annual total credit for heat pumps and heat pump water heaters is capped at $2,000, with the annual total credit for other upgrades capped at $1,200.

Of that $1,200 credit for other upgrades, it can be spent on insulation (up to $1,200), doors ($500), and windows ($600). There is also up to $600 available for electrical panel upgrades if they are performed in concert with and to enable the use of a heat pump or heat pump water heater.

Additionally, the IRA includes electrification rebates that “provide point-of-sale consumer discounts to enable low- or moderate-income households across America to electrify their homes.” On the efficiency side, this can include $1,600 for weatherization, which includes insulation, air sealing, and ventilation. Additional rebates are available for upgrades to breaker boxes, electric wiring, electric stoves and cooktops, and more.