We have good news! If you’ve been wanting to invest in more energy-efficient home systems but have put them off due to rising prices, help is available.
The Inflation Reduction Act (IRA) went into effect on January 1, 2023, and offers Southeast Michigan homeowners the opportunity to improve their plumbing, heating, cooling, and electrical systems and save money. With tax credits and rebates of up to $14,000, you can make your home more energy-efficient and help combat climate change at the same time.
Talk to one of our heating & cooling specialists today to learn how to save thousands of dollars on purchasing certain appliances and reduce your energy bills.
What Is the Inflation Reduction Act?
Also known as the climate bill, the IRA invests nearly $400 billion in clean energy sources and technologies that improve energy efficiency. Its goal is to tackle climate change and help the country meets its sustainability goals by 2030 by cutting greenhouse gas emissions by up to 41%. It’s estimated that the bill will also create up to 1.5 million jobs countrywide, with over 165,000 right here in our state.
Sample rebate opportunities for a two-person Michigan home include:
- Water heaters: $1,750 for gas or electric heat pump water heaters, central air, heat pump, gas or propane water heater, hot water boiler, or biomass boiler
- HVAC: $2,000 toward a heat pump
- Electric panels: $4,000
- Electrical wiring: $2,500
- Insulation & weatherization: $1,600
- Home energy audits: $150
Low-income households qualify for further rebates, and there are additional tax credits for all homeowners for items like solar battery storage installation, EV chargers, and electrical panels.
How Will This Affect Me?
The IRA provides numerous financial incentives to homeowners throughout Michigan, including the Hartland, Milford, and Wixom areas. Many families could see their expenses lowered through:
- Reduced energy costs and rebates that cover anywhere from 50% to 100% of the price of buying and installing energy-efficient appliances, including water heaters, heat pumps, clothes dryers, and more.
- Rebates for repairs and improvements in single- and multi-family residences that increase energy efficiency.
- A tax credit of 30% for solar panel installation and battery storage systems.
- A 30% tax credit for home improvements that reduce energy leakage.
- A tax credit of 30% for heating and cooling equipment upgrades.
The IRA also provides tax credits for community solar projects and other electrical and clean energy improvements at affordable housing units.
What Are the Available Rebates & Tax Credits?
Michigan’s Energy Smart program offers rebates that make energy-efficient choices more affordable for more people. And the Michigan Saves program offers homeowners a convenient way to finance their energy-saving improvements.
Rebates for residential customers cover numerous Energy Star® appliances, including:
- Electric clothes dryers
- Programmable thermostats
- High-efficiency heat pump water heaters
- And more
The state’s utility companies also offer various utility rebate programs. Contact your provider to learn more.
What Changes Can I Make To Get the Rebate?
There’s never been a better time for Michigan homeowners to invest in energy-efficient plumbing, heating, cooling, and electrical improvements to their homes. Along with the items mentioned above, the IRA also covers upgrades such as:
- ENERGY STAR® windows, doors, and skylight installation.
- Purchase and installation of highest efficiency tier central air conditioners and other qualified electric, gas, and propane HVAC systems.
Need help figuring out how to get started? Ask your power company or a professional plumbing, heating, cooling, and electrical company about performing a home energy audit to learn how to save money through energy-efficient home upgrades and improvements.
One last note. While DIY projects qualify for some incentives, others require working with a professional installer. Since 1985, Robin Aire Service Company has been delivering high-quality HVAC, plumbing, and electrical services to Southeast Michigan homeowners, ensuring lasting home comfort.
Contact us online or call to learn more about the IRA and rebates and tax credits available in your neighborhood.
