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Time is running out for Americans to get a federally funded discount on energy upgrades that can lower their utility bills and make their homes healthier and more comfortable.
The GOP tax and spending law passed in July swiftly phases out tax credits that help households afford heat pumps and other energy-saving electric appliances. The credits were supposed to last about a decade; now they sunset Dec. 31.
To meet this use-it-or-lose-it moment, electrification advocacy nonprofit Rewiring America last week launched the Save on Better Appliances campaign. It’s a nationwide effort to help homeowners and renters lock in the incentives — the Energy-Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D) — before they’re gone.
“Most people don’t think about this stuff every day,” said Ari Matusiak, CEO of Rewiring America. “We’re talking about five or six purchasing decisions that you make only several times over in your whole life. … So making sure people have the resources and information available about [this] technology that is better and can save them money, is really important.”
The tax credits enable households to save thousands of dollars on their federal taxes when they invest in energy-slashing home upgrades, including electrical panel retrofits, weatherization improvements, and installations of solar panels, heat pump heater/air conditioners, home batteries, and heat-pump water heaters.
Such measures are especially salient as households grapple with inflation, tariffs, and rapidly rising electricity costs. President Donald Trump promised to lower power bills, but experts expect his administration’s anti-renewables agenda will keep them climbing.
Efficiency upgrades also help put a dent in planet-warming pollution. More than 40% of U.S. energy-related emissions stem from how people heat, cool, and power their homes and fuel their cars, according to Rewiring America.
With the long lead time often needed to get quotes and book contractors, households realistically need to decide if they’re going to pursue clean energy projects in the next several weeks to get the federal discounts, Matusiak said.
Accordingly, the campaign, which runs until the end of October, is a full-court press of resources and tailored support. Rewiring America is also coordinating with elected officials, manufacturers, utilities, and grassroots groups on the effort. Among those partners is the U.S. Climate Alliance, a bipartisan coalition of 24 governors, which last month committed to helping constituents take advantage of the tax credits.
“It’s really disheartening to see the federal government take away financial assistance from Americans at a time where they need it more than ever,” said Casey Katims, U.S. Climate Alliance executive director.
Rewiring America has set up a central hub where homeowners and renters can launch their electrification journey. The nonprofit’s Personal Electrification Planner allows users to estimate how much an upgrade is likely to cost up front and save them on their energy bills over time. Individuals can also search for independently vetted contractors and look up incentives with the nonprofit’s savings calculator, which lists federal as well as local rebates and tax credits in 29 states.
For people looking for more support, Rewiring America is holding weekly drop-in Zoom sessions with certified, trained “electric coaches.” They’re volunteers who can offer free, impartial guidance to help people troubleshoot the gnarly complexities of making energy-efficient home upgrades. The first session is on Wednesday, Sept. 3.
Rewiring America is also securing deep discounts on heat pumps for homeowners — in Rhode Island and Colorado, to start. The organization has teamed up with manufacturers and contractors to drive costs 20% to 30% below standard market pricing by pooling customers together — an approach national nonprofit Solar United Neighbors has used for years to get better deals on solar panels. A Rewiring America spokesperson declined to specify how many households have enrolled so far.
Rewiring America had longstanding relationships that made these two states particularly fertile testing grounds, Matusiak said. But if it succeeds, the organization plans to expand the group-purchasing initiative. In a few places, others are also leveraging collective market power, including installer Vayu in the San Francisco Bay Area and Los Angeles and Laminar Collective in the Boston metro area.
Overall, “the goal here is to create broad awareness for people to take advantage of incentives that are theirs to take,” Matusiak said. For individuals open to going electric, “we hope they access our resources — and do that right away.”
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