HICKORY Blog

Make Energy-Efficient Upgrades With the Inflation Reduction Act

If you haven’t heard about it yet, you may want to brush up on what’s included in the Inflation Reduction Act, passed last year. Part of this legislation is focused on helping families save money while making energy-efficient upgrades to their homes.

If you want to save some money on your project this year, check out our blog below to learn how you can!

What Upgrades Can I Make?

Getting started can often be the hardest part, especially with remodels or renovations in your home. Consider getting the opinion of industry professionals or having an energy audit done. This can help you pinpoint the areas of your home that are using up a lot of energy and could benefit from an efficiency upgrade.

Once you decide what project you want to tackle, the IRA can help you save money through tax credits and various rebates. The tax credit is added to your 2023 taxes, so you will see the monetary benefits next year. However, the energy efficiency will be immediate and you will see a lower energy bill more quickly.

Some projects that qualify for the tax credit are:

• Solar panels
• New insulation
• New appliances
• Upgraded heating and cooling equipment
• Air sealing services

The cap for this credit is 30% of the cost of the project up to $1,200, but that money can offset the cost of your project in a very impactful way. This credit is supposed to last for a few years, so you can stack these projects and do one every year.

Does My Project Qualify for a Rebate?

The rebate portion allows a more direct cash back option. Various rebates are available to help low- to moderate-income families drastically reduce the cost of their energy-efficient upgrades.

Many of the same projects that qualify under the tax credit qualify for a rebate, so just do your research to figure out which route will be more beneficial for you.

Depending on your income level, your project could be 100% covered by one of these rebates! This program doesn’t have a single limit like the tax credit does. Rather, it calculates how much you qualify for based on the project you choose and your income. The more money you are projected to save over the life of the upgrade, the more money you will get back!

How Do I Know What Projects Qualify in North Carolina?

While the IRA can benefit anyone across the country, certain rebates and specifics are different from state to state. Check out this helpful guide for North Carolina.

In addition, the Database of State Incentives for Renewables & Efficiency is another great resource for researching project options. Search through the site and find what works for your home and budget and get to saving!

Of course, if you determine that insulation or air sealing is the project you want to tackle this year, give us a call. Our team can help install the right insulation for your home that will give you energy savings every day.

Let us help you understand the best way to take advantage of the Inflation Reduction Act. Contact us at Koala Insulation of Hickory to get started.