DOE Launches $8.8B Program To Lower Home Energy Costs Amid Mixed Data on Electricity Inflation
Considering energy efficiency upgrades for your home? It’s the perfect moment to begin electrification, enhance home performance, and achieve zero net energy goals! Many improvements, such as insulation and solar panels, qualify for valuable tax credits and incentives. The Clean Energy Connection is ready to assist you in maximizing your home improvement budget. Explore our top energy efficiency rebates and incentives for 2024 below!
According to Clean Energy Connection, the federal government offers tax credits for a variety of energy efficiency services and renewable energy systems. In 2022, the Inflation Reduction Act revitalized two aging tax credits—the solar tax credit and the energy efficiency home improvement tax credit—and turned them into the most prominent federal incentives for 2024.
The Federal Solar Tax Credit
Installing a home solar system is one of the best ways to reduce your carbon footprint and save money on your energy bills. If you’re thinking about going solar, the Inflation Reduction Act solar panel tax credit can make your installation more affordable.
The solar tax credit in 2024 is worth 30% of your total solar installation costs—if you spend $15,000 on your solar installation, you can reduce your federal tax liability by $4,500! It will be available from 2022 until 2032 and covers all types of solar installations, including rooftop solar, off-grid solar, and solar battery storage.
The Energy Efficient Home Improvement Tax Credit (25C)
The Energy Efficient Home Improvement tax credit allows homeowners to claim a 30% tax credit (with annual limits that vary by service) on qualifying energy efficiency home improvements, including:
Ducted heat pumps and ductless mini splits
Heat pump water heaters
Energy audits
Energy efficient windows and doors
Insulation and air sealing
Electrical panel upgrades
Upgrades like these save energy, which reduces fossil fuel consumption and saves you money. Making energy efficient home improvements can also help you prepare for a home solar installation—the less energy you use, the fewer solar panels your home will need.
Check out our Guide to the Energy Efficient Home Improvement Tax Credit to learn more.