When it comes to making energy upgrades for your home, sooner is almost always better than later. It may seem sensible to wait for rebates, like the new Inflation Reduction Act rebates, to become available before making upgrades. But, the cost of waiting may even be higher than the potential savings energy efficiency rebates offer.
Here’s why it’s better to act now rather than wait to make electrification and home performance upgrades in California.
It’s Unclear When Inflation Reduction Act Rebates Will Start
The Inflation Reduction Act of 2022 created two new energy efficiency rebate programs—the High-Efficiency Electric Home Rebate Act (HEEHRA) and the Homeowner Managing Energy Savings (HOMES) rebate program. Both programs will offer rebates for a variety of home performance and electrification upgrades, but it’s unclear when the Inflation Reduction Act rebates will be available. The Department of Energy is expected to provide guidelines to state energy offices in July of 2023, and rebates won’t be available to homeowners until late 2023 at the earliest.
When incentives do become available, it’s very possible that there will be a bottleneck of homeowners who are all waiting to make upgrades. As a result, you could find yourself waiting several additional months, on top of the wait for rebates, because contractors are so backed up due to the demand.
The Sooner You Act, the More Energy You Save
One of the main benefits of energy efficiency and clean energy upgrades is savings—the more energy efficient your home and its systems are, the greater the opportunity for energy bill savings. Every month you wait to make energy efficiency improvements is a month with higher amounts of wasted energy!
Climate Action Is Needed Now
Switching to carbon-free energy sources reduces your home's fossil fuel consumption, which is one of the best ways for individuals to help fight climate change, and the planet can’t wait! Reducing fossil fuel consumption is also the first step toward a zero net energy home.
There are Many Incentives Available Now!
The HOMES and HEEHRA Inflation Reduction Act rebates aren’t the only clean energy incentives out there. There are several other incentive programs that are currently available in California, including:
Inflation Reduction Act Tax Credits
There are Inflation Reduction Act tax credits available for all of the best energy-saving home improvements:
- 30% tax credit for heat pumps and heat pump water heaters (up to $2,000)
- 30% tax credit for insulation, air sealing, energy audits & more (limits apply)
- 30% tax credit for solar PV and battery storage
Local Utility Incentives
Several California utilities offer their own rebate programs for clean energy upgrades, including:
- SMUD energy efficiency rebates for heat pumps, heat pump water heaters, and more
- California Golden State Rebate Program (for customers of SDG&E, PG&E, SoCalGas, and SCE)
Start Your Clean Energy Upgrade Today with the Clean Energy Connection
Ready to start your clean energy home upgrade? The Clean Energy Connection is at your disposal. Our free directory makes it easy to find highly rated clean energy contractors near you in California for everything from insulation and air sealing to heat pump installation to solar panel and battery installation. You can search the directory by location, available rebates, services offered, and more to find the perfect contractor for your project.
Start your energy efficiency home upgrade today.