7 Energy Rebates That Turn Your Appliance Splurges Into Great Deals
With energy prices up 17.9% over the last year, according to the BLS, homeowners are scrambling to cut costs wherever they can, including replacing older, inefficient appliances. While energy efficient appliances can save you money over time, they can cost quite a lot up-front. This is where energy rebates come in. Here are seven rebates that can help cover the cost of your efficiency upgrades.
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1. Furnace/Heat Pump (HEAR)
The Home Electrification and Appliance Rebates (HEAR) established by the Inflation Reduction Act offers up to $8,000 in immediate savings for homeowners replacing their furnace or other primary heat source.
The catch? It’s only available to low to moderate income homeowners. Households earning less than 80% of the area median income (AMI) qualify for a 100% rebate, while those earning 80%-150% of AMI qualify for a 50% reduction.
Funded by the federal government, these rebates are administered by states, and the amount is limited.
As utility expert Jason Turner of Incenva explained, “Phase I ran through its funding, so now states like California are moving to Phase II, funded with another $152 million in rebates."
Turner said to "claim this rebate before it ‘sells out’ too.”
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2. Heat Pump Water Heater (HEAR)
Likewise, the same program allows up to $1,750 for new heat pump water heaters.
These water heaters use 70% less energy than traditional electric water heaters per Energy Star, saving the average family of four $550 a year. As electricity prices keep skyrocketing, that savings will only increase.
3. Heat Pump Clothes Dryer (HEAR)
The HEAR program also allows rebates up to $840 for a heat pump clothes dryer. These closed-loop, ventless dryers are up to 28% more energy efficient than traditional vented dryers, according to Aztec Appliance.
4. Electric Range (HEAR)
Homeowners swapping out their stove for an electric induction range can apply up to $840 in instant rebates against the cost as well.
Just beware that you need compatible pots and pans for an induction range. Factor that into your total cost before splurging.
5. Electric Panel Upgrades (HEAR)
New appliances sometimes require upgrades to your electric panel and wiring.
“The good news is that you can tap into a rebate of up to $4,000 for electric load service centers and $2,500 for wiring upgrades,” Turner said.
6. Insulation and Air Sealing (HEAR or HOMES)
You can take advantage of either the $1,600 instant HEAR rebate for insulation and air sealing improvements or apply for the larger but delayed and not-guaranteed HOMES rebate. Unlike HEAR, the HOMES rebate is performance-based, not income-based.
“Homeowners can get up to $4,000 back if you save between 20%-35% on energy bills from the upgrade, and up to $8,000 if you save 35% or more,” said financial advisor Cody Schuiteboer of Best Interest Financial. “Low-income households receive double the rebate, up to $16,000.”
7. Stack Local & State Rebates
While you can’t stack HEAR and HOMES rebates with each other, you can stack state and local rebates on top of federal rebates.
“In New York for example, the Clean Heat Program offers several thousand dollars in rebates through utility partners,” Schuiteboer said. He goes on to point to Massachusetts' Mass Save program, the Georgia Environmental Finance Authority rebate program, and New Hampshire’s rebates up to $6,250 on their HVAC upgrades as just a few examples.
Start with the Database of State Incentives for Renewables and Efficiency as you hunt for local rebates. Then check the Energy Star Rebate Finder for additional rebates. Finally, try the Energy.gov home upgrade center to search for additional tax credits or rebates.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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