The Inflation Reduction Act is a federal law that aims to control prices and wages and reduce inflation. In 2023, updates to the law will likely impact various industries, including the HVAC (heating, ventilation, and air conditioning) industry. These updates may affect the cost of equipment, installation, and maintenance for HVAC systems.
Homeowners, should stay informed about any changes to the law and its potential impact. In this article, we are providing the updates of the 2023 Inflation Reduction Act for the HVAC Industry.
This is a BIG (climate) deal. The rollout of the Inflation Reduction Act marks a significant step towards reducing energy consumption and promoting the adoption of domestically sourced renewable energy in homes. The act provides tax credits and discounts that can help offset the initial costs of a new system and potentially lower your energy bills.
If you have been considering HVAC or insulation upgrades, now is the time to act. The updated IRA includes an exciting new rebate program known as HEEHRA (High-Efficiency Electric Home Rebate Act), which provides instant savings when purchasing energy-efficient upgrades. These energy efficiency and electrification rebates take effect on January 1, 2023, and run through September 30, 2031.
The Home Owner Managing Energy Savings (HOMES) Rebate Program and the High-Efficiency Electric Home Rebate Act (HEEHRA) are two different programs under the Inflation Reduction Act. They both offer financial incentives for homeowners to make energy-efficient upgrades, but they have some differences:
HOMES Rebate Program:
- Focuses on performance-based rebates for whole-house energy efficiency
- Every household, regardless of income level, is eligible.
- Rebate amounts vary based on energy savings and household income.
- Covers upgrades like solar panels, new windows, and heat pumps.
HEEHRA:
- Offers rebates for replacing fossil fuel furnaces, boilers, water heaters, and stoves with ENERGY STAR-rated electric alternatives.
- Rebate amounts vary based on income levels and the type of upgrade.
- Covers heat pumps, heat pump water heaters, and electric upgrades (panel and wiring upgrades) related to heat pumps.
It’s essential to note that homeowners cannot receive both HOMES and HEEHRA rebates for the same upgrades. So, while both programs aim to promote energy-efficient upgrades in homes, they target different types of upgrades and have different eligibility criteria and rebate structures.
The Home Owner Managing Energy Savings (HOMES) Rebate Program offers performance-based rebates for whole-house energy efficiency upgrades in single-family homes and multifamily buildings. With about $292 million allocated for California alone, the program provides a great opportunity to make your home more energy-efficient.
Rebate Amounts:
- Single-family homes: Up to $8,000
- Multifamily buildings: Up to $400,000
Eligible applicants include homeowners and aggregators. Every household, regardless of income level, is eligible for the rebates. However, low- and moderate-income households and households demonstrating higher energy savings stand to receive higher rebate amounts.
The HOMES rebate program covers a variety of energy-efficient improvements, such as:
- Solar panels
- New windows
- Heat pumps
What is HEEHRA
It stands for High-Efficiency Electric Home Rebate Program (HEEHRA). Point-of-sale rebates for purchase and installation of qualified Energy Star appliances such as electric heat pumps for space heating and cooling. This includes rebates for panel upgrades, wiring, and insulation.
✅ Rebates for Heat Pumps:
One of the most significant rebates offered through HEEHRA is for heat pumps.
- Households below 80% of AMI (area’s median income) can get up to an $8,000 rebate for a new heat pump through HEEHRA.
- Households between 80% and 150% of AMI can get a rebate of 50% of the cost of a new heat pump installation, up to $8,000.
- Households above 150% of AMI can receive a 30% tax credit, up to $2,000, on a new heat pump through the Green Deal.
✅ Rebates for Insulation:
Insulation rebates are also available under the IRA. Homeowners can claim 30% off the cost of qualifying energy efficiency improvements like insulation, up to $1,200. By investing in long-term, sustainable solutions for your home and future, you can go green and act now!
By taking advantage of these rebates, homeowners can significantly reduce their carbon footprint while saving money on energy bills. With rising energy costs and increasing concern about the impact of carbon emissions on the environment, now is the time to act.
Heat pumps are an energy-efficient alternative to traditional HVAC systems, and they work by transferring heat from the outside air to the inside of your home. Unlike traditional heating and cooling systems that rely on burning fossil fuels, heat pumps are powered by electricity, making them much more environmentally friendly.
Similarly, insulation helps to keep your home cool in the summer and warm in the winter, reducing the amount of energy needed to maintain a comfortable indoor temperature. By upgrading your insulation, you can not only reduce your energy bills but also help to reduce your carbon footprint.
If you have been considering HVAC or insulation upgrades for your home, now is the time to act. With the rollout of the green deal – the Inflation Reduction Act – and the new HEEHRA rebate program, homeowners can save money while reducing their carbon footprint. By investing in long-term, sustainable solutions for your home, you can help to build a more energy-efficient and environmentally friendly future. So, go green and act now!
Think long-term solutions for an energy-efficient, sustainable home. Visit https://bit.ly/pacificaire_acreplacement
or call us at 8805-737-2564 to switch to an energy-efficient heat pumps for your home.
