How to Get a Discount on Energy-Efficient Appliances and Home Upgrades
The Inflation Relief Act provides a rebate program for homeowners who purchase certain energy-efficient appliances or other upgrades, including a heat pump water heater, a heat pump HVAC system, solar panels, and replacing gas appliances such as furnaces.
How to Find Discounts You’re Eligible for
The inflation-reduction legislation itself is confusing, and the money is distributed among states, counties and local governments rather than under one unified system. This means it can be difficult to determine what rebates and rebates you may be eligible for, but there is a tool from the nonprofit Rewiring America that can help you determine what programs are available to you in your area.
If you want to see what discounts and incentives you’re eligible for, you can enter your zip code, family size, household income and residence type, and the tool will sort through a variety of programs to find the ones that are right for you. You’ll get a list of upgrades such as water heaters, solar panels, electric vehicles, and electrical panel wiring, and then you can select the options you want to learn more about. The menu will give you a summary of what financing is available for your project and what type of discount. For a more complete guide to each discount or rebate, you can click on the Learn More feature.
The Federal Energy Department also has a Home Retrofitting section on how homeowners can apply for energy rebates. In addition to a search tool that can be sorted by state, the website also provides a list of specific retrofit projects that you can match. Since there is no one set of guidelines for who qualifies or what specific upgrades are eligible, the website can help you understand the specifics of your state and specific project.
Other things to keep in mind
If you’re planning to replace your water heater, you may qualify for up to $2,000 in rebates on installation costs. The rebate is a 30% tax credit, capped at a certain amount depending on your state, on an electric heat pump or heat pump water heater. To find the right device, you can look for the Energy Star logo. While there is no rule that states must use the same qualifications as Energy Star, this certification is a federally recognized efficiency standard, so it is a good place to start.
If you have a new heat pump water heater installed or are choosing to upgrade your electrical panel, check with your contractor first to make sure the upgrade you’re doing is right for your home. You may also be able to find out about other discounts or rebates you didn’t know about from a professional electrician or HVAC specialist.
In addition to up to a $2,000 tax credit, upgrading your heat pump can save you money on your utility bills. According to Energy Star , the average water heater accounts for about 20% of your home’s energy use. A heat pump water heater can save a family of four about $550 per year or $5,600 over its lifetime in energy savings.