I don't want to cause too much fear of missing out – but have you heard about all the money available to people through the Inflation Reduction Act?
You may need to take action sooner rather than later to benefit from the policy. However, there are many ways to do this, such as replacing old HVAC systems with better technology.
The shovel
According to the U.S. Treasury Department, in 2023, 3.4 million households received over $8 billion in IRA tax breaks for energy upgrades.
Would you like to be there next year? Installing heat pumps that outperform traditional HVAC systems is a great way to get a piece of the pie.
The technology is a two-for-one device: heating and air conditioning in a single housing. It uses a substance called refrigerant that creates or absorbs heat depending on whether it is compressed or decompressed.
The best part? These machines are more efficient, cleaner and less expensive to operate than gas furnaces and window air conditioners. This means that once installed, heat pumps provide homeowners with savings every month while reducing the homes' environmental impact.
Still, replacing such a large portion of a home can be overwhelming. Luckily, EnergySage offers a heat pump marketplace where you can learn which option is best for your space, compare prices, and find local installers.
How it works
The long-term savings are one thing, but you may be wondering: What about the initial transition to heat pumps? What does this cost?
The upfront investment can be high, typically between $4,000 and $8,000. But homeowners can get away with paying just a fraction of that with the IRA's tax breaks. There is an immediate $2,000 credit and an additional $8,000 is available for certain low-income households.
🗣️ Should the government continue to provide tax incentives for energy efficient home renovations?
🔘 Absolutely 💯
🔘 No 🙅
🔘 Depends on upgrade 🤔
🔘I don't know 🤷
🗳️ Click on your selections to see the results and express your opinion
However, these deals with the government, at least in their current form, are unlikely to last long. With President-elect Donald Trump clear about his intentions to eliminate the subsidies, the thousands of dollars up for grabs for each home could soon be on the chopping block, so to speak. Any final decisions must be made by Congress, but the future of this policy is uncertain at best.
Do you already have your heat pumps? There are many other ways to capitalize on IRA cash while it's available, from upgrading appliances to weatherizing homes to switching to electric mobility on the road.
What everyone says
“The cost difference when including government rebates is significant – to the point of being 'too good to be true,'” one Redditor wrote on r/home, explaining how he was weighing options for replacing a broken oven.
“My heat pump is great, it saves me money and keeps me comfortable,” one reader responded in the comments.
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“It's the best thing since sliced bread, toast or bread and butter… It's so good,” another added.
