How to harness the incentives that are making electrification more affordable than ever.
The Inflation Reduction Act is the largest clean energy investment America has ever made, and includes upfront discounts and tax credits that provide money for every household to electrify the machines you rely on to drive, heat the air and water in your home, cook your food, dry your clothes and get your energy — regardless of your income level.
The IRA provides you with a personal fund for electrification: the average American household will receive $10,800 in benefits. The up-front discounts (available in mid 2024) will cover up to 100% of purchase and installation, depending on your income, while the tax credits (available now) reduce by 30% the cost of swapping out your old appliances for new, clean, efficient electric ones. They can also help with the cost to rewire your house and upgrade your electric meter, if needed.
So how do you make the most of these incentives? Here are our top 5 tips:
- Check out the IRA Calculator from Rewiring America to see what incentives are available to you. Knowledge is power. Put a few details into this online tool and get a helpful, personalized overview of how the IRA can help you with the upgrades you’re hoping to make to your home.
- Plan your upgrades to fit into the yearly tax credit limits. Efficiency upgrades are divided into three groups, each with a separate annual allowable limit for how much you can claim. You can use the maximum tax credit for each group every year, so it’s worth planning your projects accordingly to get all the tax credits your upgrades qualify for.For example, there is a maximum yearly credit of $1,200 for the group including energy audits, electric panel, doors, windows, and insulation. There is a separate maximum yearly credit of $2,000 for the group including heat pumps and heat pump water heaters. In year one, you might upgrade your electrical panel and install a heat pump, and then in year two upgrade your insulation and windows and put in a heat pump water heater, so you can claim the max in both groups for each year. For more info, check out this great Electrify Now Fact Sheet
- Work with a trusted contractor who is knowledgeable about incentives. You don’t have to navigate this on your own! A quality contractor should help you plan and sequence your project to get the most from available incentives. They’ll also work with you to ensure that the equipment you install is efficiency enough to qualify for incentives; not all heat pumps qualify!
- You may also qualify for Energy Trust Incentives. And yes, you can double-dip on incentives from the IRA and the Energy Trust!
- Renters can also take advantage of the IRA’s up-front discounts (coming in 2024) and tax credits (available now!). Upgrades such as portable heat pumps, induction cooktops, and heat pump clothes dryers can be used in a rental and taken when you move. Renters also qualify for the used and new EV tax credits.
Meet the Plug-in Heat Pump Water Heater that changes the game for gas water heater replacements!
The 120-volt plug-in heat pump water heater is an exciting technology that allows homes with existing gas water heaters to easily convert to efficient heat pumps for water heating. This water heater plugs into a standard 120-volt outlet and heats all the water an average home will need. Join Electrify Now on Wednesday, October 25th at 2pm Pacific for a webinar on this game changing decarbonizing technology.
Portlanders get excited about powering their homes with clean energy at our first annual Electrify Portland!
On Saturday October 7th, nearly 800 Portlanders gathered to learn about transitioning their homes to clean renewable electricity.
Over 30 local exhibitors shared tips, answered questions, and inspired ideas for how to get started. We gave out almost 500 Ruby Jewel ice cream sandwiches, cooked hot dogs and beignets on induction cooktops powered by an electric Ford F-150 Lightning truck. We powered live music and two bouncy castles with the OSU solar trailer! Senator Merkley, Sam Baraso from PCEF, Brian Stewart from ElectrifyNow, and other local experts spoke at the event – and chef Cassie demonstrated induction cooking and handed out tasty samples. Folks smiled as they took e-bikes and e-scooters for a spin around the parking lot. Most importantly, we saw firsthand the growing momentum and excitement towards clean energy. The sense of community and enthusiasm was profound. Thank you to EVERYONE who made this event possible. We can’t wait to do it again!
Our event wouldn’t have been possible without the support of our generous sponsors. Thank you to: Sun Glow Home Services • Arcadia • Elemental Energy • GreenSavers Great Northwest Installations • Rewiring America A&R Solar • Birdsmouth Design-Build • Climate Control City of Portland Bureau of Planning & Sustainability • PGE • Fireside Home Solutions • The Heat Pump Store • Power Northwest Clever Cycles • Climate Solutions • Community Energy Project • Fidelity • Ruby Jewel Multnomah County Office of Sustainability • New Buildings Institute • Prunus • Verde • Metro
Feeling inspired to electrify your home? Sign up for ElectrifyPDX!
By signing up today, you’re joining thousands of Oregonians who are taking the biggest climate action they can, while also making their homes healthier and more comfortable. Join the movement, and inspire others to take action, too!
Here’s how it works: Sign up for a yard sign and helpful resources. As you clean up your electric supply and electrify each system in your home, apply badges to your sign. Get certified when your home is 100% powered with clean energy!
Your home doesn’t need to be electrified or powered by clean electricity for you to join our program. We welcome everyone, whether you’re still making plans or are nearly done! Join ElectrifyPDX to get contractor recommendations, resources and advice.
Try Canopy—an Easy Online Tool That Helps You Electrify Your Home.
Wondering how to get started on your home electrification journey? Looking for a little guidance?
You might like Canopy, a free online tool that gives you a personalized plan based on some basic information about your home, car, and where you live.
Just answer a few questions, then get a personalized dashboard with recommendations for upgrades, as well as info about incentives, contractors, and product guides. You can also schedule a free 30-min call to get your specific questions answered.
Canopy is an independent company, not affiliated with any contractors. They’ve offered a local version of their program for free to ElectrifyPDX participants. Try it out and let us know what you think!