The Inflation Reduction Act is known to help conscientious consumers make more affordable decisions like switching to an electric vehicle or installing solar panels, but there is another lesser-known rebate that could award homeowners up to $14,000 for making energy-efficient electrical upgrades.
What is the IRA, and which electrical upgrades does the rebate cover?
The Inflation Reduction Act took effect in 2022 to help Americans make energy-efficient and bill-reducing upgrades to combat the effects of inflation and rising global temperatures. In other words, outdated appliances, cars, and other equipment require more energy and thus more money and pollution-causing fuel to operate.
The IRA incentivizes changes that will help build a future fueled by clean energy. One part of this is paying back homeowners who make eco-friendly, albeit sometimes costly, changes to their homes.
The Electrification Rebates Program provides point-of-sale consumer discounts — up to $14,000, according to Rewiring America — to enable households across America to electrify their homes.
As Energy Star helpfully explains, many of its environmentally friendly products are eligible for the IRA tax credits. This includes heat pumps, heat pump water heaters, and certain weatherizing features. Depending on your choice, they may also include appliances like eco-friendly washers, dryers, and ovens.
Why is electrifying your home important?
Moving away from appliances that rely on dirty energy sources and toward cleaner choices is one of the best ways to save money and help stop the rapid overheating of our planet.
Swapping out outdated, polluting appliances can save you thousands of dollars while keeping large amounts of planet-warming pollution from entering the atmosphere.
Some of these dirty energy–run appliances are proven to pollute the air inside our homes and cause health problems. For example, experts have linked gas stoves to an increased risk of asthma and the benzene they release — a chemical also found in cigarette smoke — to certain types of cancer.
How to get in on the action
Sold on making the switch, but don’t know where to start? Whether you own your home or rent, free tools like the nonprofit Rewiring America’s savings calculator can guide you through which rebates are right for you and how to make the most of them. It can even connect you with contractors and expert advice to ensure your transition is both painless and profitable.
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