The Best California Clean Energy Rebates and Incentives for 2024
The federal government offers tax credits for many 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.
According to Clean Energy Connection, 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 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.