The Inflation Reduction Act, the most significant climate legislation in U.S. history, is a $370 billion clean energy investment brimming with green incentives for anyone considering home energy efficiency upgrades like new electric appliance purchases or energy-saving retrofits.
Consumers are eligible for up to $14,000 in direct rebates and a host of tax credits for items like electric heat pumps, rooftop solar and home batteries as well as panel upgrades, electrical wiring and weatherization.
While many incentives make financial sense for homeowners, property managers and businesses, renters who buy portable appliances like window-unit heat pumps, heat pump dryers and induction cooktops can benefit too.
“The IRA is like a free bank account that provides every American household with thousands of dollars they can use to electrify their lives,” said Noah Goldmann, a policy associate at Rewiring America, an electrification nonprofit that advocated for the law.
“If your A/C or furnace dies, a $2,000 tax credit [or up to an $8,000 rebate, if you qualify] can be the difference between locking yourself into 20 more years with another gas-powered appliance — and the high fuel prices and indoor air pollution that go with it — or purchasing a clean, efficient electric heat pump,” he said.
The Inflation Reduction Act’s two consumer rebate programs, HEEHRA (High-Efficiency Electric Home Rebate Act) and HOMES (Homeowner Managing Energy Savings) are implemented through state and tribal governments and offer the steepest discounts for income-qualified households.
They won’t roll out until the end of the year at the earliest. California's IRA Residential Energy Rebates are projected to launch in 2024.
But beware — rebate funding could run out before the programs end on Sept. 30, 2031. Experts say when planning projects, build in time to work with a contractor and start with a home energy audit.
Federal tax credits kicked in Jan 1, so homeowners can apply them to investments made this year.
Rewiring America has an online IRA Savings Calculator that helps determine which incentives you qualify for based on income and location.
Tricky? A little. But the potential rewards — for your wallet, your home’s energy footprint and the planet — are significant.
Southern California Edison and California's other investor-owned utilities also offer a wide range of home electrification cost-saving opportunities.
Home Electrification Rebates and Incentives
- The Golden State Rebates program offers instant rebates covering many home appliances.
- The Switch is On campaign provides information, tools and resources to support Californians seeking to electrify their homes and connect with contractors.
- The state-administered GoGreen Financing program provides low-interest financial solutions to help spread the cost of qualifying upgrades over time.
- SCE also partners with Grid Alternatives and the California Center for Sustainable Energy to offer the Disadvantaged Communities — Single-family Solar Homes (DAC-SASH) and Solar on Multifamily Affordable Housing (SOMAH) programs. These initiatives provide incentives for the adoption of rooftop solar systems for families with limited incomes and affordable housing properties.
“The incentives available today to electrify our homes are unprecedented and will help accelerate the clean energy transition for Edison's customers and all Californians,” said SCE Director of Electrification Chanel Parson. “A decarbonized future will benefit all of us for generations to come.”
To learn more about cost-effective, energy-efficient appliances for your home or business, visit sce.com/classes and take a free online or in-person class at SCE's Energy Education centers.
