New Rebate Available for Home Energy Efficiency, Solar, and Electric Vehicles
Posted on June 8, 2023 by Charlie Krouse
Tags, Energy, General Interest
The Inflation Reduction Act provides incentives for people to switch to more energy-efficient solutions in their homes. It provides these incentives while supporting local businesses that provide these alternative solutions. In this blog, we’re going to highlight where this historic bill works to support you to lower your home’s switch to energy use.
President Biden Signed the Inflation Reduction Act in August of 2022. The Inflation Reduction Act covers a multitude of issues including targeting reduction in fossil fuel dependency and investing in clean energy.
The Inflation Reduction Act and You:
The Inflation Reduction Act is aimed to help everyday Americans transition to clean energy in their everyday lives.
The act covers support in:
- Transitioning to solar power
- Making your appliances more energy efficient (electric heat pumps, heat pump water heaters, etc.)
- Investing in electric vehicles
You can read more about income qualifications for rebates by visiting whitehouse.gov.
Making Your Home More Energy Efficient
With the Inflation Reduction Act, the average home has access to a tax credit to cover 30% of the costs of certain energy-efficient improvements. Low-income households have access to up to 100% of the costs covered.
Energy efficiency incentives can include:
- Home energy audits
- Electrical upgrades
- Home heating/cooling systems (heat pumps)
- Heat pump water heaters
- Induction stoves
- Clothes dryers
- And more!
Home Energy Audits
If you are not sure where to start in ensuring your home is more energy efficient, the Inflation Reduction Act has you covered. Families can claim a credit of up to $150 for a home energy audit. The average home energy audit can cost anywhere between $208-$675. Depending on the audit, this incentive could cover more than 50% of the cost.
Heating and Cooling: Electric Heat Pumps
If you are wanting to switch your heating and cooling system, you’re now able to claim up to $8,000 in credit for installing an electric heat pump.This discount can cover up to 100% of project costs (including purchase and installation) for low-income households.
The Inflation Reduction Act provides rebates of up to $4,000 for electrical upgrades in your home to integrate new heat pumps. You can also now claim up to $1,200 in credit each year just for adding insulation or installing efficient windows and doors.
State programs are also offering rebates for electric appliances and home retrofits. In Multnomah County, residents can swap their wood stove or fireplace for an electric heat pump. Applicants receive a subsidy from $3,000 to the full costs of the replacement depending on eligibility and income. Renters also qualify for this subsidy.
The Energy Trust of Oregon is also providing additional incentives for making the switch to a heat pump. Learn more about Energy Trust incentives.
Other Home Appliances
Low and moderate-income households can even access rebates covering up to 100% of the costs of installing electric appliances. These appliances can be heat pumps, water heaters, clothes dryers, induction stoves, and more.
Rooftop Solar
The Inflation Reduction Act provides a tax credit to cover 30% of the costs of installing rooftop solar. The credit covers systems that are paired with battery storage as well as standalone battery storage installed without solar. There are no income restrictions for this rebate and no cap on the total cost of the project.
Considering that the average cost of installing solar panels in 2023 is $16,000, this tax credit can help you save an average of $4,800.
Low-income and moderately-income Oregonians are also eligible for a rebate through Oregon Solar + Storage Rebate Program. This program is run by Oregon’s Department of Energy. You could qualify for up to $5,000 for installing a solar electric system and an additional $2,500 for an energy storage system. Lower-income Oregon residents have access to even more incentives through Energy Trust of Oregon.
Electric Vehicles & Home Charging
Electric cars are becoming more cost accessible with the Inflation Reduction Act. Buying a new car isn’t cheap and this bill has made it easier to make the switch. Families are now able to use tax credits to buy an electric car.
Buying Electric Vehicles
For new vehicles, qualified households now have access to a tax credit of up to $7,500. Your annual income cannot exceed $300k if you are married or $150k if you are a single tax filer.
To ensure the Inflation Reduction Act invests in American businesses, your new car must be assembled in North America. If you are purchasing a truck, van, or Sport Utility Vehicle (SUV) it cannot cost more than $80k. If your vehicle is a car or sedan, it cannot cost more than $55k. If you are purchasing a used electric vehicle, you are eligible for a tax credit of up to $4,000.
When purchasing an electric vehicle in Oregon, you may receive your rebate at the time of purchase. The Department of Environmental Quality has an interactive map to locate dealerships that provide this perk.
Home Chargers for Electric Vehicles
In Oregon, electric utilities are now providing rebates for residential electric vehicle home chargers. This includes both for-profit and public electric utilities. Find out what vehicle charging rebate your utility offers.
Now that you have access to these rebates, let’s make the switch and electrify Oregon!
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06/08/23 | 0 Comments | New Rebate Available for Home Energy Efficiency, Solar, and Electric Vehicles