Finding gold in going green
By Vanessa Glavinskas, Environmental Defense Fund writer
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What if you could fight climate change and save money at the same time?
The combination of rebates and
tax credits included in the recently passed Inflation Reduction Act help you do
exactly that. In fact, one analysis estimates that the new law’s residential
tax credits alone could save more than 100 million households $37 billion a year on their
energy bills.
We found eight places around
your home where you could start saving money.
EDITOR'S NOTE: in addition to EDF's narrative below, I also downloaded the list of energy and money saving opportunities available in Rhode Island, at the end of this article. Don't miss it. - Will Collette
1. In the driveway
The new law rewards qualifying
electric vehicle buyers with a tax credit of up to $4,000 for the purchase of a
used EV and up to $7,500 for a new car. In 2024, the credit will be issued
through dealerships at the time of sale — and since some models already sell for
less than $30,000 — it makes EVs cheaper than ever, especially when you
consider that the average household spends hundreds of dollars per month on
gasoline. There are caveats. For example, EVs must have final assembly in North
America to qualify, so some brands will not be able to offer the credit until
their North American plants begin operating.
2. At your thermostat
Natural gas prices have taken
consumers on a wild ride over the past few years, with some households facing
astronomical heating bills during winter storms. The clean energy incentives in
the Inflation Reduction Act tackle this problem by supporting a grid-wide move
to cheaper, cleaner sources of electricity, reducing both the cost to consumers
and pollution. That means a typical American household will save up to $220 per year over the next decade without having
to change a thing.
How
the IRA will help families and communities outside the home too
3. In the utility room
To green your home’s
infrastructure, the new law offers rebates to help defray upfront costs,
prioritizing funds for families with low and moderate incomes. For example,
consumers who invest in an energy-efficient heat pump water heater will be
eligible for a rebate of up to $1,750. An upgraded breaker box (to help prepare
for an all-electric home) may be eligible for a $4,000 rebate. (However, it’s
important to note that, even with the rebates, advocates worry that some
households still will not be able to afford efficiency upgrades.) To find out
which discounts, rebates and tax credits your household is eligible for, consult this online calculator.
4. In the kitchen
A Stanford University study
recently found that gas stoves leak methane, a potent greenhouse gas, even when
they aren’t being used. The researchers estimated that stoves across the U.S. emit as much climate pollution as about
500,000 gas-powered cars. The Inflation Reduction Act provides for a
rebate of up to $840 for an electric stove, cooktop, range or oven to
make the purchase more affordable.
5. In the insulation
Adding insulation is a
tried-and-true way to prevent wasted energy and save money. With the passage of
the Inflation Reduction Act, some households are now eligible for a rebate of
up to $1,600 just for improving their home’s insulation and sealing energy
leaks — and that’s on top of the savings better insulation will yield on
monthly utility bills. (The rebate for households with moderate incomes covers
50% of these costs). Find out if you qualify here.
6. In the laundry room
Heat-pump clothes dryers, which
are popular in Europe, but rarely used in the U.S., are an energy-efficient
alternative to traditional dryers. Instead of releasing warm, humid air
outside, a heat pump dryer sends moist air through an evaporator, and then
recirculates the dry hot air. The process takes a bit longer to dry clothes but
only uses about half the electricity. The new law encourages consumers to
switch to an electric heat pump dryer with a rebate up to $840. Check if you’re
eligible here.
7. At the AC unit
What if there were a more
efficient way to keep your home comfortable? Consider a heat pump. It can both
heat and cool your home and uses less energy overall. Households can qualify
for a tax credit of up to $2,000 for the purchase of an electric heat pump. And
for households with low incomes, the new law provides a rebate of up to $8,000
on installation. (For the tax credit program, the incentives apply to equipment
installed on January 1, 2023, or later.)
8. On the roof
There has never been a better
time to add solar panels to your home. The Residential Clean Energy Credit included
in the new law provides a tax credit of up to 30% to households that invest in
clean energy such as solar, and it’s retroactive to the beginning of 2022.
Considering that the average cost of installing a residential rooftop
solar-powered system is about $19,000 — that’s $5,700 in savings. Beyond that,
the average solar-powered home saves about $300 every year on
electricity.
Timing and availability will vary by state. To find out which programs and incentives have been rolled out in your area, check here.
This article is part of an
ongoing series exploring the benefits of the IRA.
|
Name |
State |
Category |
Policy/Incentive Type |
Created |
Last Updated |
|
US |
Financial Incentive |
Grant Program |
03/16/2015 |
11/18/2022 |
|
|
RI |
Regulatory Policy |
Renewables Portfolio Standard |
07/06/2004 |
11/10/2022 |
|
|
US |
Financial Incentive |
Personal Tax Credit |
01/10/2006 |
11/08/2022 |
|
|
RI |
Financial Incentive |
Grant Program |
01/10/2013 |
10/21/2022 |
|
|
RI |
Financial Incentive |
Grant Program |
01/10/2013 |
10/21/2022 |
|
|
RI |
Financial Incentive |
Grant Program |
02/02/2017 |
10/21/2022 |
|
|
US |
Financial Incentive |
Corporate Tax Credit |
03/11/2002 |
09/09/2022 |
|
|
US |
Financial Incentive |
Loan Program |
09/12/2008 |
09/08/2022 |
|
|
US |
Financial Incentive |
Corporate Tax Credit |
03/15/2002 |
09/06/2022 |
|
|
US |
Financial Incentive |
Personal Tax Credit |
08/18/2021 |
08/29/2022 |
|
|
US |
Financial Incentive |
Personal Tax Credit |
08/26/2022 |
08/26/2022 |
|
|
Alternative Fuel Vehicle
Refueling Property Tax Credit (Corporate) |
US |
Financial Incentive |
Corporate Tax Credit |
08/18/2022 |
08/18/2022 |
|
US |
Financial Incentive |
Corporate Tax Credit |
08/18/2022 |
08/18/2022 |
|
|
Alternative Fuel Vehicle
Refueling Property Tax Credit (Personal) |
US |
Financial Incentive |
Personal Tax Credit |
08/18/2022 |
08/18/2022 |
|
US |
Financial Incentive |
Corporate Tax Credit |
01/10/2006 |
08/17/2022 |
|
|
US |
Financial Incentive |
Corporate Tax Deduction |
01/10/2006 |
08/16/2022 |
|
|
US |
Financial Incentive |
Personal Tax Credit |
08/10/2005 |
08/16/2022 |
|
|
National Grid (Electric) -
Residential Energy Efficiency Incentive Program |
RI |
Financial Incentive |
Rebate Program |
07/23/2008 |
07/27/2022 |
|
National Grid (Gas) -
Residential Gas Heating Rebate Programs |
RI |
Financial Incentive |
Rebate Program |
07/23/2008 |
07/27/2022 |
|
Residential Energy
Conservation Subsidy Exclusion (Personal) |
US |
Financial Incentive |
Personal Tax Exemption |
03/05/2002 |
07/20/2022 |
|
Residential Energy
Conservation Subsidy Exclusion (Corporate) |
US |
Financial Incentive |
Corporate Tax Exemption |
03/05/2002 |
07/20/2022 |
|
US |
Financial Incentive |
Grant Program |
09/27/2010 |
07/20/2022 |
|
|
US |
Financial Incentive |
Grant Program |
03/31/2015 |
07/18/2022 |
|
|
RI |
Regulatory Policy |
Community Solar Rules |
06/10/2022 |
06/10/2022 |
|
|
RI |
Regulatory Policy |
Net Metering |
01/01/2000 |
06/02/2022 |
|
|
RI |
Financial Incentive |
Other Incentive |
08/20/2021 |
01/08/2022 |
|
|
RI |
Financial Incentive |
Rebate Program |
06/19/2021 |
12/31/2021 |
|
|
Rhode Island Appliance and
Equipment Energy Efficiency Standards |
RI |
Regulatory Policy |
Appliance/Equipment Efficiency Standards |
06/05/2006 |
12/08/2021 |
|
RI |
Financial Incentive |
PACE Financing |
08/23/2013 |
11/04/2021 |
|
|
RI |
Financial Incentive |
Sales Tax Incentive |
08/16/2005 |
09/21/2021 |
|
|
RI |
Financial Incentive |
Property Tax Incentive |
08/01/2016 |
09/21/2021 |
|
|
US |
Regulatory Policy |
Green Power Purchasing |
02/19/2004 |
08/27/2021 |
|
|
RI |
Regulatory Policy |
Green Power Purchasing |
12/14/2015 |
08/26/2021 |
|
|
RI |
Regulatory Policy |
Public Benefits Fund |
01/01/2000 |
07/26/2021 |
|
|
RI |
Regulatory Policy |
Solar/Wind Access Policy |
01/01/2000 |
07/20/2021 |
|
|
US |
Financial Incentive |
Industry Recruitment/Support |
01/10/2006 |
07/14/2021 |
|
|
US |
Regulatory Policy |
Appliance/Equipment Efficiency Standards |
06/30/2006 |
07/07/2021 |
|
|
RI |
Regulatory Policy |
Generation Disclosure |
12/06/2005 |
03/06/2021 |
|
|
US |
Financial Incentive |
Loan Program |
03/21/2002 |
08/05/2020 |
|
|
RI |
Regulatory Policy |
Solar/Wind Contractor Licensing |
08/22/2014 |
07/18/2020 |
|
|
Local Option - Property Tax
Exemption for Renewable Energy Systems |
RI |
Financial Incentive |
Property Tax Incentive |
11/13/2007 |
07/11/2020 |
|
RI |
Regulatory Policy |
Building Energy Code |
07/27/2006 |
06/10/2020 |
|
|
RI |
Regulatory Policy |
Energy Standards for Public Buildings |
12/14/2015 |
05/12/2020 |
|
|
US |
Financial Incentive |
Loan Program |
05/28/2015 |
05/08/2020 |
|
|
RI |
Regulatory Policy |
Energy Standards for Public Buildings |
08/01/2006 |
03/02/2020 |
|
|
Office of Indian Energy
Policy and Programs - Funding Opportunities |
US |
Financial Incentive |
Grant Program |
05/01/2003 |
02/26/2020 |
|
USDA - Biorefinery,
Renewable Chemical, and Biobased Product Manufacturing Assistance Program |
US |
Financial Incentive |
Loan Program |
10/04/2012 |
02/25/2020 |
|
RI |
Financial Incentive |
Rebate Program |
07/23/2008 |
05/13/2019 |
|
|
National Grid (Electric) -
Small Business Energy Efficiency Program |
RI |
Financial Incentive |
Rebate Program |
07/23/2008 |
05/13/2019 |
|
National Grid (Electric)
Commercial and Industrial Rebate Program |
RI |
Financial Incentive |
Rebate Program |
05/08/2015 |
05/09/2019 |
|
National Grid (Electric) -
Large Commercial Energy Efficiency Custom Program |
RI |
Financial Incentive |
Rebate Program |
04/17/2006 |
05/09/2019 |
|
US |
Financial Incentive |
Loan Program |
10/23/2008 |
08/22/2018 |
|
|
USDA - Rural Energy for
America Program (REAP) Loan Guarantees |
US |
Financial Incentive |
Loan Program |
04/09/2003 |
08/21/2018 |
|
US |
Financial Incentive |
Grant Program |
04/09/2003 |
08/21/2018 |
|
|
US |
Financial Incentive |
Grant Program |
02/18/2015 |
08/21/2018 |
|
|
US |
Financial Incentive |
Corporate Depreciation |
03/15/2002 |
08/21/2018 |
|
|
US |
Regulatory Policy |
Energy Standards for Public Buildings |
06/19/2006 |
08/21/2018 |
|
|
US |
Financial Incentive |
Loan Program |
05/02/2006 |
08/15/2018 |
|
|
RI |
Regulatory Policy |
Interconnection |
09/14/2011 |
10/11/2017 |
|
|
RI |
Financial Incentive |
Performance-Based Incentive |
08/20/2014 |
07/13/2017 |
|
|
US |
Regulatory Policy |
Interconnection |
10/30/2007 |
07/27/2016 |
|
|
RI |
Regulatory Policy |
Public Benefits Fund |
07/13/2015 |
07/07/2016 |
|
|
RI |
Regulatory Policy |
Energy Efficiency Resource Standard |
12/16/2010 |
03/20/2015 |