The promise of green energy home improvements is long-term energy savings in exchange for one up-front cost. These eco-home renovations are designed to lower your carbon footprint and save you money, benefitting both your bank account and the environment. What’s not to like?
What’s more, the recently passed Inflation Reduction Act (IRA), which offers funding designed to help Americans reduce energy costs and adopt clean energy, is making eco-friendly home improvements more affordable. The new law includes incentives — rebates and tax credits — to transition to green energy, helping owners save money both over the short term and the long term as well.
Still, some eco-friendly home improvements are naturally more costly than others, and affording the initial investment can be a struggle for homeowners, especially when the returns might not be seen for years. So which green home improvements should you prioritize for the best savings? And how should you go about financing them? Luckily, with a little research, those questions are easy to answer.
The Inflation Reduction Act’s clean energy incentives
The Inflation Reduction Act is widely seen as one of the most significant legislative measures in the country’s history when it comes to addressing the climate crises and providing Americans with assistance transitioning to clean energy.
The law, which earmarks more than $300 billion for energy and climate reform, includes a range of useful and noteworthy rebates and tax credits, with a focus on those who are lower- to middle-income. The aim of these incentives is to help consumers reduce the high cost of energy and make it more affordable to upgrade homes to more eco-friendly technology. The law includes incentives to buy energy efficient appliances and systems, clean vehicles and solar rooftops.
Here are some of the key rebates and incentives included in the law.
- Home energy rebates: The Inflation Reduction Act provides $9 billion for consumer home energy rebate programs. The rebates, which return specific sums for specific initiatives, are aimed at low-income consumers and can be used for electrifying home appliances and energy efficient retrofits.
- Tax credit for energy efficiency projects: The new measure also includes a decade of consumer tax credits earmarked for making homes more efficient via transitioning to clean energy. The tax credits are designed to make expenses such as solar roofs, heat pumps, electric HVACs and water heaters, more affordable. There’s a 30 percent tax credit included in the IRA specifically to help offset the cost of installing solar panels and battery storage systems.
- Electric vehicle tax credits: Up to $7,500 in tax credits for a new electric vehicle purchase and $4,000 for …….