Eco-friendly home improvements, particularly heat pumps, offer substantial financial returns due to their efficiency and incentives from the Inflation Reduction Act (IRA). Heat pumps, which provide both heating and cooling, operate by transferring heat inside or outside the home, using a single system to control the temperature more efficiently than traditional separate systems.
Although the initial installation costs between $4,000 and $8,000, the Inflation Reduction Act significantly reduces this burden through the High-Efficiency Electric Home Rebate program. This program offers full-cost rebates to low-income households and 50% to moderate-income households, plus a $2,000 tax credit over 10 years for energy-efficient upgrades.
Additionally, the Department of Energy notes that homes using electric heating systems like heat pumps can save approximately $1,063 annually on heating costs compared to those using propane and oil. EnergySage supports homeowners and contractors in choosing the best heat pump and navigating the rebate process, enhancing the accessibility and appeal of these eco-friendly systems.
