Tax Credits, Rebates, Savings

Amount: This tax credit is valued at 30% of the cost paid by the consumer, up to $600. May be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality's program.

Why upgrade: Switching to high-efficiency air conditioners and taking other actions to keep your home cool could reduce energy use for air conditioning by up to 50%

Considerations: A heat pump is another option for energy-efficient home cooling. Heat pumps provide both air conditioning and heating. Tax credits and rebates exist for both air-source and geothermal heat pumps, which could save you additional money in the long run.

Amount: ENERGY STAR-certified electric heat pump clothes dryers may be eligible for either:A Home Electrification and Appliance Rebate of up to $840, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.Other clothes dryers may be eligible for your locality's Home Efficiency Rebates program.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: ENERGY STAR clothes dryers use 20% less energy than conventional models. For even more savings, consider ENERGY STAR-certified heat pump dryers — they can save 20-60% more energy than conventional clothes dryers. 

Considerations: When shopping for a new clothes dryer, look for one with a moisture sensor that automatically shuts off the machine when your clothes are dry. Not only will this save energy, it will also save wear and tear on your clothes caused by over-drying. You may be eligible for a Home Electrification and Appliance Rebate in your locality for a heat pump clothes dryer that is: a) for a newly constructed home; b) replacing a non-electric clothes dryer; or c) a first-time purchase of a heat pump clothes dryer.

Amount: An ENERGY STAR-certified electric stove, cooktop, range, or oven may be eligible for either:A Home Electrification and Appliance Rebate of up to $840, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: An electric stove is about three times more energy efficient than a gas stove, and an induction stove is even more energy efficient. Learn how to save energy in the kitchen.

Considerations: You may be eligible for a Home Electrification and Appliance Rebate in your locality for an electric stove, cooktop, range, or oven that is: a) for a newly constructed home; b) replacing a gas or dual-fuel gas-electric stove, cooktop, range, or oven; or c) a first-time purchase of an all-electric stove, cooktop, range, or oven for the dwelling unit.

Amount: This tax credit is valued at 30% of the cost paid by the consumer, up to $600. May be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Your home’s heating system typically uses more energy and costs more money than any other system in your home – on average, making up about 30% of your utility bill.

Considerations: Heat pumps are another option for energy-efficient home heating. Tax credits and rebates exist for both air-source and geothermal heat pumps. A trusted professional who specializes in heat pump installation can help you decide which is best for your home and budget.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer, up to $2,000 per year, including installation for air-source heat pumps. For geothermal heat pumps, the tax credit covers up to 30% of the cost paid by the consumer. An ENERGY STAR-certified electric heat pump for space heating and cooling may be eligible for either:A Home Electrification and Appliance Rebate of up to $8,000, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Today's heat pump can reduce your electricity use for heating by approximately 65% compared to electric resistance heating such as furnaces and baseboard heaters. Because they transfer rather than generate heat, heat pumps can efficiently provide comfortable temperatures for your home.

Considerations: There are different types of heat pumps, including air source and geothermal. You may be eligible for a Home Electrification and Appliance Rebate in your locality if the heat pump is: a) for a newly constructed home, b) replacing a non-electric heating unit, or c) a first-time purchase of a heat pump for space conditioning in an existing home and is installed to be the household's primary heating and cooling source.

Amount: This tax credit is valued at 30% of the cost paid by the consumer, up to $600. May be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Water heating accounts for about 20% of the average home's energy use and is the typically the second-largest energy expense in any home.

Considerations: Tax credit is subject to a cumulative annual cap of $1,200. Heat pump water heaters are another option for energy-efficient home heating, and they are eligible for both tax credits and rebates. A trusted professional who specializes in heat pump water heating installation can help you decide which is best for your home and budget.

Amount: An ENERGY STAR-certified induction cooktop may be eligible for either:A Home Electrification and Appliance Rebate of up to $840, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Induction appliances are up to three times more efficient than gas stoves, and up to 10% more efficient than conventional smooth top electric ranges.

Considerations: Induction stoves are also free of the indoor air pollutants that come from gas stoves. An induction cooktop heats up your cookware – and your food – more efficiently because it heats your cookware directly. You may be eligible for a rebate in your locality for a induction cooktop that is: a) for a newly constructed home; b) replacing a gas or dual-fuel gas-electric stove, cooktop, range, or oven; or c) a first-time purchase of an all-electric stove, cooktop, range, or oven for the dwelling unit.

Amount: May be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Smart technology like programmable thermostats allows you to adjust the times you turn on the heating or air-conditioning according to a pre-set schedule. You can save as much as 10% a year on heating and cooling by simply turning your thermostat back 7°-10°F for 8 hours a day from its normal setting. Programmable thermostats have generally not been recommended for heat pump systems, but recently, some companies have begun selling programmable thermostats for heat pumps, which make setting back the thermostat cost effective.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer, up to $2,000 per year. An ENERGY STAR-certified electric heat pump water heater may be eligible for either:A Home Electrification and Appliance Rebate of up to $1,750, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Water heating accounts for nearly 20% of the average home's energy use and is typically the second-largest energy expense in any home, after heating and cooling. Installing an efficient water heater can save you hundreds of dollars every year on your utility bills.

Considerations: Choose a system that provides enough hot water for your family and is also energy efficient. Heat pump water heaters have lower operating costs, and you may be eligible for a tax credit and/or a rebate. You may be eligible for a Home Electrification and Appliance Rebate in your locality for a heat pump water heater that is: a) for a newly constructed home; b) replacing for a non-electric water heater; or c) a first-time purchase of a heat pump water heater. A trusted professional who specializes in heat pump water heating installation can help you decide which is best for your home and budget.

Amount: This tax credit is valued at 30% of the cost paid by the consumer for solar water heaters, and up to 30% of the cost paid by the consumer, up to $600 per year, for energy-efficient non-heat pump water heaters. May also be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Water heating accounts for nearly 20% of the average home's energy use and is typically the second-largest energy expense in any home, after heating and cooling. Installing an efficient water heater can save you hundreds of dollars every year on your utility bills.

Considerations: Water heaters meeting the Consortium for Energy Efficiency’s requirements are considered energy efficient. For example, a water heater may be natural gas-powered but energy efficient. Solar water heaters can be a cost-effective way to generate hot water for your home. Learn more.

Amount: This tax credit is valued at 30% of the cost paid by the consumer, up to $2,000 per year. May also be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: You can choose from a new generation of wood- and pellet-burning appliances that are cleaner burning, more efficient, and powerful enough to heat many average-sized modern homes. Reduce your energy bill and air pollution by upgrading.

Considerations: Biomass consumers have a $2,000 annual limit in total for tax credits on heat pumps, heat pump water heaters, and biomass stoves/boilers. For example, if you claimed $1,000 for a heat pump and $1,000 for a biomass stove, you could not also claim a 30% credit for a heat pump water heater in the same year. However, you could claim up to $1,200 for other incentives like windows, doors, or an electric panel, for a total of up to $3,200 in credits for the year.

Amount: This tax credit is valued at 30% of the cost paid by the consumer.

How to access: Submit IRS Form 5695 if you meet the requirements details by the IRS.

Why upgrade: Batteries work by storing energy produced at one point for use at a later time. That means having your own source of backup power even during outages. What’s more, when paired with a residential solar energy system, you can store solar energy generated during the day to use later when the sun isn’t out.

Considerations: You may want to consider battery storage if 1) you are concerned about maintaining power during outages, 2) you are installing solar in an area that does not have one-to-one metering, and/or 3) if your utility company has you on a time-of-use or demand-charge rate. Learn more from Energy Sage or call your utility company.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer, up to $600. Subject to a cumulative annual cap of $1,200. May be eligible for either: A Home Electrification and Appliance Rebate of up to $4,000 for an electrical panel, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: In some homes, a panel upgrade may be needed to add new electrical equipment, such as an electric heat pump.

Considerations: These incentives can be especially important when considering other upgrades around your home, such as switching to an electric or induction cooktop or charging an electric vehicle. To take advantage of this tax credit, the upgrade must be installed along with other efficient equipment or materials that qualify for the efficient home improvement tax credit and enable their use.

Amount: This tax credit is valued at 30% of total cost, up to $1,000.

How to access: Submit IRS Form 8911 when filing your taxes if you meet the requirements detailed on IRS.gov.

Why upgrade: Reduce the time you spend charging your EV at public ports by charging it at home when you don’t need to be on the road. Learn more about charging at home.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer, up to $500 per year (up to $250 per door). Not renter eligible. Subject to a cumulative, annual cap of $1,200. May also be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Your home's exterior doors might be leaking air and wasting energy, especially if they are old, uninsulated, improperly installed, and/or improperly air sealed. Upgrade to a new, energy-efficient door to save on your home’s heating and cooling costs.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer. Not renter eligible. Subject to a cumulative annual cap of $1,200.May be eligible for either: A Home Electrification and Appliance Rebate of up to $1,600, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Your air ducts are one of the most important systems in your home—carrying heat and cool air to rooms. But in a typical house, about 20%-30% of the air that moves through the duct system is lost due to leaks, holes, and poorly connected ducts. Save energy usage by ensuring your ducts are properly sealed.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer.

How to access: Submit IRS Form 5695 if you meet the requirements details by the IRS.

Why upgrade: Fuel cells are another source of heat and electricity for buildings and electrical power for vehicles and electronic devices. Fuel cells work like batteries, but they do not run down or need recharging. They produce electricity and heat if fuel is supplied. Learn more.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer. Not renter eligible. Subject to a cumulative, annual cap of $1,200. May be eligible for either:A Home Electrification and Appliance Rebate of up to $1,600, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Reducing the amount of air that leaks in and out of your home is a cost-effective way to cut heating and cooling costs, improve durability, increase comfort, and create a healthier indoor environment.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer, up to $600. May also be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Energy-efficient skylights can help against unwanted additional heat in summer and loss of heat from the inside of the home in the winter.

Considerations: The tax credit is not renter eligible. Skylights are considered windows for the purposes of this tax credit, so the $600 cap would be cumulative if installing both.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer.

How to access: Submit IRS Form 5695 if you meet the requirements details by the IRS.

Why upgrade: There are many benefits of getting solar panels for your home. 1) You power your home with clean energy 2) It will often increase the value of your home 3) You can save money on utility bills 4) When paired with a battery storage system, you can use solar energy-generated power even at night and during power outages. Read the homeowner’s guide to going solar.

Considerations: If you are considering adding solar panels to your property, you should also explore whether battery storage is right for you. A credit exists for battery storage.

Amount: May be eligible for either:A Home Electrification and Appliance Rebate of up to $1,600, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Proper ventilation is necessary maintain a healthy and comfortable indoor environment, control moisture, and reduce chances of mold growth and structural damage.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer, up to $600 per year. Subject to a cumulative, annual cap of $1,200. Skylights are considered windows for the purposes of this tax credit, so the $600 cap would be cumulative if installing both.May be eligible for a Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Tax Credit: Submit IRS Form 5695 if you meet the IRS requirements. Rebate: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: Heat gain and heat loss through windows are responsible for 25%-30% of residential heating and cooling energy use. By upgrading your window and making it energy efficient, you can save energy spent on heating and cooling your home.

Amount: This tax credit is valued at up to 30% of the cost paid by the consumer.

How to access: Submit IRS Form 5695 if you meet the requirements details by the IRS.

Why upgrade: If you have enough wind resource in your area and the situation is right, small wind electric systems are one of the most cost-effective home-based renewable energy systems—with zero emissions and pollution. They can lower your electricity bills by 50%-90% and help you avoid the high costs of having utility power lines extended to a remote location.

Considerations: Small wind electric systems require planning to determine whether there is enough wind, the location is appropriate, wind systems are allowed, the system will be economical. Learn more.

Amount: May be eligible for either:A Home Electrification and Appliance Rebate of up to $2,500, orA Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Why upgrade: In some homes, a wiring upgrade may be needed to add new electrical equipment, such as installing an electric heat pump in a home that didn't previously use electric heating equipment.

Considerations: These incentives can be especially important when considering other upgrades around your home, such as switching to an electric or induction cooktop or charging an electric vehicle.