Did you know that the Inflation Reduction Act of 2022 contains $500 billion in new spending and tax breaks, a significant chunk of which is aimed to boost clean energy in households across the U.S.?
Examples
1Energy-Efficient Appliances
High-efficiency washers, dryers, refrigerators, and HVAC systems can qualify for rebates and tax credits.
2Solar Panels
Rooftop solar panels convert sunlight into electricity, reducing energy costs. Federal tax credits often apply.
3Insulation
Upgraded home insulation reduces heat loss, lowering energy consumption. Many utilities offer rebates.
4Energy-Efficient Windows
Double-pane windows with special coatings can significantly reduce heat loss, with incentives available.
5Low-Flow Fixtures
Water-saving toilets, showerheads, and faucets can qualify for rebates from local utilities.
6Electric Vehicle Charging Stations
Installation of home charging stations for electric cars may be incentivized to promote e-mobility.
Pros
- Cost Savings: Utilizing financial incentives can significantly reduce the initial cost of energy-efficient appliances or systems. Over time, lower utility bills from reduced energy consumption can result in net savings, compared to traditional alternatives.
- Environmental Impact: Upgrades incentivized by these programs often reduce carbon emissions and water usage, supporting the global fight against climate change, a benefit that alternatives often can’t match.
- Home Value: Energy-efficient upgrades can increase property value, providing a solid return on investment if you plan to sell.
Cons
- Upfront Costs: Despite incentives, the initial costs for some upgrades, like solar panels or insulation, can still be substantial compared to standard models.
- Time & Effort: Researching, applying for incentives, and managing home renovations can be time-consuming.
- Eligibility Restrictions : Some programs may have specific eligibility requirements or limited funds, making access competitive compared to readily available alternatives.
Costs
1New Construction
Constructing a new home with energy-efficient designs and technologies can result in savings of 15-30% over traditional home construction. For example, with a 30% federal tax credit, a homeowner installing a $15,000 solar energy system could save $4,500.
2Existing Home - Hiring a Contractor
For an existing home, hiring a contractor to install energy-efficient upgrades such as insulation, HVAC systems, or solar panels can result in energy savings of 20-50%. For instance, a high-efficiency HVAC system can save up to $200 per year in energy costs, and the cost may be offset by a $500 utility rebate.
3Existing Home - DIY
If you have the skills to install upgrades yourself, you could save on labor costs, which can make up 20-50% of project costs. DIY projects like sealing air leaks or installing a programmable thermostat could save 10-20% on heating and cooling bills.
Hiring Pros
- Use Trusted Websites: Start your search with trusted websites such as those found in our resources.
- Contact Your Utility Provider: Many offer rebates for energy and water efficiency upgrades. Check their website or give them a call.
- Consult Local Government: Your city or county may have additional programs, especially for water conservation in arid regions.
- Work with Energy Efficiency Experts: Professionals such as energy auditors or certified contractors often know about less-publicized programs and can ensure your upgrades meet eligibility requirements.
- Keep Records: Save all receipts and document the model and efficiency rating of equipment installed. You’ll need this information when applying for incentives.
Do It Yourself
- Get Informed: Start your search with trusted books & websites such as those found in our resources.
- Don’t miss Rewiring America! See link below.
- Contact Your Local Utility Provider: Many offer rebates for DIY energy-saving upgrades such as insulation, weatherstripping, and low-flow fixtures.
- Understand the Rules: Ensure you meet all requirements for DIY installations. Some incentives may require professional installation.
- Keep Detailed Records: Document every step of your project, including costs and equipment details, as this will be crucial when applying for rebates and tax credits.
Tips for Renters
Convincing a Landlord:
1Present the Financial Case
Highlight how incentives can offset the cost of upgrades and how lower utility bills can make the property more attractive to potential renters.
2Stress Increased Property Value
Energy-efficient upgrades can boost the property’s market value.
3Highlight Sustainability
Emphasize the growing demand for eco-friendly living and how green upgrades can position their property as a leading choice for environmentally-conscious renters.
Tips for Designers & Builders
For the Design Team:
1Incorporate Efficiency from the Start
Plan your designs around energy-efficient technologies and sustainable materials. Not only does this provide a better product for clients, but it also opens the door for financial incentives related to energy conservation and renewable energy utilization.
2Stay Updated on Programs
Plan your designs around energy-efficient technologies and sustainable materials. Not only does this provide a better product for clients, but it also opens the door for financial incentives related to energy conservation and renewable energy utilization.
3Collaborate with Builders
Work closely with your building team to ensure they understand the design’s energy-efficient elements and how to implement them correctly. Their execution is critical to qualify for financial incentives.
For the Builder:
1Understand Eligibility Requirements
Make sure you know the specific requirements for each incentive program, such as installation procedures and efficiency standards. Failure to meet these can result in lost incentives.
2Leverage Professional Certifications
Certain incentives require work to be completed by a certified professional. Invest in training for your team to increase the range of incentives you can utilize.
3Document Thoroughly
Keep detailed records of the products used, their energy ratings, and the installation process. This documentation is often required when applying for financial incentives. Remember, successful participation in these incentive programs not only saves money but also enhances your reputation as a green builder.
1Incorporate Efficiency from the Start
Plan your designs around energy-efficient technologies and sustainable materials. Not only does this provide a better product for clients, but it also opens the door for financial incentives related to energy conservation and renewable energy utilization.
1Understand Eligibility Requirements
Make sure you know the specific requirements for each incentive program, such as installation procedures and efficiency standards. Failure to meet these can result in lost incentives.
2Stay Updated on Programs
Regularly consult resources like the Database of State Incentives for Renewables & Efficiency (DSIRE, www.dsireusa.org). The incentives available can change annually and may influence your designs.
2Leverage Professional Certifications
Certain incentives require work to be completed by a certified professional. Invest in training for your team to increase the range of incentives you can utilize.
3Collaborate with Builders
Work closely with your building team to ensure they understand the design’s energy-efficient elements and how to implement them correctly. Their execution is critical to qualify for financial incentives.
3Document Thoroughly
Keep detailed records of the products used, their energy ratings, and the installation process. This documentation is often required when applying for financial incentives. Remember, successful participation in these incentive programs not only saves money but also enhances your reputation as a green builder.
Resources
Blogs:
- “Save Green by Going Green” by Sonja O’Claire (see “Blog” in footer below).
Books:
“Live in a Home that Pays You Back: A Complete Guide to Net Zero and Energy-Efficient Homes” by Anna Desimone.
Websites:
-
Go Electric Oregon – Incentives & Rebates (https://goelectric.oregon.gov/incentives-rebates)
- Puget Sound Energy – Rebates & offers (https://www.pse.com/en/rebates)
- Rewiring America- The leading electrification nonprofit working to electrify our homes, businesses and communities (https://www.rewiringamerica.org)
- Seattle City Light – Home Energy Solutions (https://www.seattle.gov/city-light/residential-services/home-energy-solutions)
- The Database of State Incentives for Renewables & Efficiency (DSIRE) (https://www.dsireusa.org)
- U.S. Green Building Council (USGBC) (https://www.usgbc.org/resources/inflation-reduction-act-buildings-provisions)
