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The new legislation expected to be signed into law provides $9 billion in total home-energy rebates. Perhaps the most notable provision is the $4.28 billion High-Efficiency Electric Home Rebate Program that gives a rebate of up to $8000 for installing high-efficiency heat pumps and a rebate up to $1750 for installing a heat-pump water heater.
Homeowners can also apply for up to $840 to offset the cost of a heat-pump clothes dryer or a high-efficiency induction range. Obviously, many homes will need electrical upgrades to take advantage of the rebates and the Act offers up to a $4000 rebate toward electrical service and panel upgrades. There’s also money (up to $2500) for wiring upgrades for heating and cooling equipment and appliances, and for electrical-vehicle charging. Homeowners can also apply for up to $1600 for air-sealing and insulation improvements.
The legislation continues the current 30% tax credit for installing residential solar panels and extends the program until December 31, 2034. The tax credit decreases to 26% for PV panels put into service after December 31, 2032. Photovoltaic (PV) battery systems with at least three kilowatt-hours (kwh) of capacity also qualify for the tax credit.
The solar and home energy-efficiency tax credits are in addition to the $7500 for new electric vehicle purchases and $4000 for lower- and middle-income families to purchase a used EV. The program will be run by individual states through September 30, 2031. The Inflation Reduction Act allows a maximum of $14,000 in total rebates. Household income cannot exceed 150% of the area median income.
Fine Homebuilding regularly produces articles and videos to help builders and homeowners make energy-efficient updates to homes. Check out the articles below to start planning retrofits and upgrades and to utilize the cost reduction from the rebate program.
Heat Pumps & Water Heaters
Electrical Upgrades
Solar & Electric Vehicles
Air-Sealing and Insulation
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The best levelers are easy to insert and tighten without tools, apply enough pressure to keep adjacent tiles level, and break away cleanly when the thinset cures.
The designer and builder of the 2018 Fine Homebuilding House detail why they chose mineral-wool batts and high-density boards for all of their insulation needs.
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