The Biggest Home Renovation Discounts You Can Get From the Government

The Inflation Reduction Act provides for more than just tax breaks. For big home upgrades that use less power, it has big discounts that you should take advantage of. The two rebate programs that most homeowners can qualify for, from cooktops to HVAC, are called HOMES and HEEHRA. These two federal programs can save you a lot of money on repairs and help pay for appliances, which will cut your utility bills.

HOUSE discounts

If you have made renovations to your home since August 16, 2022 that have reduced your energy use by 35% or more, or if you plan to make those upgrades before 2031, you must qualify for the $4,000 HOMES rebate. For low- or middle-income households, the discount for a covered upgrade is doubled. This applies to solar panels, insulation, heating, water treatment, appliances, windows and lighting, which together reduce overall energy consumption by 35%.

HEEHRA discounts

The HEEHRA rebate program targets home appliance electrification and will reimburse middle- and low-income households up to $14,000 for major system and appliance upgrades. This includes replacing gas stoves and ovens with electric burners or adding an electric heat pump dryer at an $840 discount, as well as a whopping $8,000 discount on installing an electric heat pump. Other discounts you can get through HEEHRA are $1,750 for an electric heat pump water heater, $4,000 for an electricity service center load upgrade, $2,500 for the price of electrical wiring, and $1,600 for insulation, air sealing, and ventilation. Since these discounts are set as a homeowner discount at the point of sale, you will not be able to access retroactive payments as you would with HOMES discounts.

Updates that can be 100% covered by HEEHRA

If you are upgrading your HVAC system to run on a heat pump, your entire project may be covered by the HEEHRA discount. Since a heat pump typically costs between $2,500 and $10,000, you can get a free upgrade with this program. If you choose to add a heat pump water heater, you can get a double deal as installing a heat pump water heater typically costs between $1,500 and $3,000, and you can qualify for up to $1,750 off for that upgrade. Keep in mind that your repair can be significantly (up to $30,000) more expensive if you don’t have existing ducting for the forced ventilation system.

Combining renovations with HOMES discount

The HOMES Act will reimburse you for up to $8,000 in energy improvements, including insulation, if it reduces your energy use by 35%. Since the average cost to insulate a 2,000-square-foot home is between $3,000 and $10,000, and your energy savings will average around 15%, the discount won’t work unless you also replace the windows for an additional 16-24% energy savings. . These repairs can be expensive, depending on the size and age of your home, so it’s best to speak with a professional to determine potential savings over installation costs.

Keep this in mind when planning

When you do the math on your renovation, it’s important to keep a few things in mind:

• You cannot combine discounts, so if you want to qualify for both, you must separate your projects with a separate budget as well.
• Discounts are valid only when replacing an old, less efficient or gas or liquid fuel system. They won’t cover a new electric stove to match the rest of your kitchen renovation if your old one was an efficient electric stove.
• Rebate programs are not yet fully rolled out, so the qualification process is still unclear. Sign up to receive updates from energy.gov here .