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Inflation Reduction Act

Power Up Your Savings: Inflation Reduction Act Home Energy Rebates

The Inflation Reduction Act (IRA) has some incredible benefits on the horizon to help you save big on energy costs and upgrade your home comfort. It sounds too good to be true, right? Well, hold onto your hats – it actually is that good but you’ll need to be patient!

Let’s break down the IRA’s Home Energy Rebates in three easy parts:

What is it?

The IRA is a game-changer for clean energy, and that includes making your home more energy-efficient. The act allocates a whopping $8.8 billion for rebates to help American families invest in upgrades that can significantly lower their energy costs. Think of it as a government helping hand to make your home greener and your wallet happier.

How does it work?

The IRA offers two rebate programs to target different areas of home energy use:

  • Home Efficiency Rebates: This program is perfect for Arizona homeowners! Our hot summers put a strain on HVAC systems. This program can help you with upgrades like air sealing, insulation improvements, and most importantly, energy-efficient heating and cooling systems. By getting a comprehensive energy audit and making improvements based on the recommendations, you can qualify for significant rebates on these projects. Consider replacing your old, inefficient air conditioner with a high-efficiency model – it can make a huge difference in your energy bills.
  • Home Electrification and Appliance Rebates: Want to ditch the gas guzzlers in your home? This program offers rebates for switching to high-efficiency electric appliances like modern HVAC, Heat Pumps, and Mini-Splits.  Heat pumps are fantastic for Arizona's climate. They can efficiently cool your home in the summer and provide heat in the winter, all while potentially saving you money on electricity bills with HVAC and Mini-Split models that have that technology built-in.

Who Qualifies?

The good news is that the IRA Home Energy Rebates are designed to be accessible! The programs aim to help a wide range of homeowners, with a particular focus on low- and moderate-income households. Here’s a breakdown of the eligibility:

  • Low-income households (those with a total annual income less than 80% of the Area Median Income (AMI) for your location): This group can qualify for up to 100% of the rebate amount for approved electrification projects.
  • Moderate-income households (those with a total annual income between 80% and 150% of AMI): This group can qualify for up to 50% of the rebate amount for approved home electrification projects.

Not sure about your AMI? Don’t worry! The Department of Housing and Urban Development (HUD) provides resources to look up AMI statistics by area. You can find them by following this link: www.huduser.gov

Important to Note: Specific eligibility requirements and rebate amounts may vary depending on the state and the chosen program.

Can’t wait that long? Even now there are rebates available that can bring down your project price significantly. Want to know more about the possibilities available today or want to be alerted when the Inflation Reduction Act becomes active in Arizona? Click here. 

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