From Solar Panels to Heat Pumps: Unlock Tax Credits and Rebates for Your Home

Are you looking for ways to save on energy costs while making your home more eco-friendly? Home energy upgrades not only improve efficiency but also qualify for tax credits and rebates, putting money back in your pocket. From solar panels to insulation, we’ve compiled everything you need to know to start saving today.

 

Start with a Home Energy Audit

The first step in improving your home’s energy efficiency is identifying problem areas with a home energy audit. Many power companies or local professionals offer this service, which typically costs between $200 and $600. The good news? You can get a $150 tax credit to help offset the cost.

 

Go Solar and Save Big

Installing a solar energy system is one of the most impactful upgrades you can make. With a 30% tax credit available and no spending cap, you can save $10,000 to $30,000 over the lifespan of your solar panels. Plus, adding battery storage for your solar system increases energy reliability and qualifies for additional savings.

 

Upgrade to a Heat Pump HVAC System

Heat pumps are among the most energy-efficient options for heating, cooling, and even water heating. Although heat pumps cost between $10,000 and $18,000 upfront, they reduce energy costs by up to 50%. Starting January, you can take advantage of a $2,000 tax credit and rebates for qualified homes, as well as a 30% incentive for geothermal systems.

 

Invest in a Heat Pump Water Heater

Heat pump water heaters are another energy-saving upgrade eligible for a $2,000 tax credit. Many models cost less than the credit amount, and installation is becoming more accessible with options like Rheem’s 120V model. Additionally, lower-income households can use a $1,750 rebate to cover upfront costs, making this upgrade even more affordable.

 

Don’t Forget Electrical Panel Upgrades

Some energy-efficient upgrades may require an electrical panel upgrade. Starting in January, you can claim a tax credit or receive a $4,000 rebate for new panels and $2,500 for wiring. Moderate-income households can also qualify for partial rebates.

 

Improve Insulation with Weatherization

Adding insulation to your home, especially in the attic, can save up to 15% on heating and cooling costs. Starting in 2023, a $1,200 annual tax credit is available for insulation upgrades. For low-income households, a $1,600 weatherization incentive can help cover costs, making your home more energy-efficient year-round.

 

Upgrade to Energy-Efficient Exterior Doors

Replacing old, inefficient exterior doors with Energy Star-compliant options not only improves energy efficiency but also qualifies for a $250 tax credit per door. There’s a $500 cap for upgrading multiple doors, making this a simple yet impactful way to lower energy bills.

 

Switch to Energy-Efficient Appliances

Starting January 2023, low-income households can receive an $840 rebate for upgrading to an electric stove. This switch reduces greenhouse gas emissions, improves indoor air quality, and enhances energy efficiency, particularly in homes with poor ventilation.

 

 

Leverage Whole Home Performance Rebates

The Whole Home Performance program, run by state energy offices, offers generous rebates based on overall energy savings:

• Save 20-35% energy: Get 50% of project costs back, up to $2,000.

• Save 35%+ energy: Get 50% back, up to $4,000.

• Low-to-moderate income households: Get 80% back, up to $8,000 for significant energy savings.

 

Multifamily buildings can also qualify, though this rebate cannot be combined with others for the same upgrade.

 

Conclusion: Start Saving Today

Energy-efficient upgrades are more accessible and rewarding than ever, thanks to tax credits and rebates. Whether you’re adding solar panels, upgrading to heat pumps, or improving insulation, these improvements can reduce energy bills and make your home more eco-friendly.

 

Take the first step today by scheduling a home energy audit and exploring the best upgrades for your needs. With the right incentives, you’ll save money, reduce your carbon footprint, and enjoy a more comfortable home. At Tytum, we’re here to guide you through the process, from identifying eligible upgrades to maximizing your savings with available incentives. Let us help you transform your home into a model of efficiency and sustainability.