Updating your home to be more energy efficient can save money, make your space more comfortable, help reduce emissions and improve air quality. Energy efficiency includes upgrades like installing new windows and skylights, insulating your walls, and upgrading gas appliances to efficient electric alternatives.
Although these upgrades can save a lot of money in the long run, costs can be expensive upfront. Thankfully, there are tax incentives and rebate programs available to help you improve your home without breaking the bank.
Federal and State Incentives
Tax Credits: Tax credits can offset your Federal tax liability. Through the Energy Efficient Home Improvement Tax Credit, you can receive a 30% tax credit on qualified energy efficiency improvements made to your home after January 1, 2023 and before January 1 2033. This credit is capped at $1,200 for most improvements; however, you can claim an additional $2,000 credit for heating and cooling system upgrades, including heat pumps, biomass stoves or biomass boilers. Check out the Rewiring America personal planner for more helpful information.
Coming Soon: Home Energy Rebates
The Inflation Reduction Act is allocating just over $101 million in funding to the State of Utah to support new Home Energy Rebates including Home Efficiency Rebates and Home Electrification and Appliance Rebates. These rebates are not yet available, but the Department of Energy expects many states will launch programs this year. Track where Utah is at in the process at https://www.energy.gov/save/rebates
Learn more about these incentives on Utah Clean Energy’s Energy Hub Website
Renters: Visit www.energy.gov/save/renters for a list of renter-eligible appliance and home improvement incentives that are available now or will be once the Home Energy Rebates Programs take effect.
Home Owners: Visit www.energy.gov/save/homeowners to learn what tax credits and rebates are available to you.
The Utah Weatherization Assistance Program (WAP) provides income qualified households with eligible cost-effective energy improvements that are identified through a home inspection and energy audit process. Examples of typical weatherization repairs include replacing incandescent lighting; repairing windows, doors, and furnaces; and insulating walls, floors, and ceilings.
WAP is eligible to households with income at or below 200% of the federal poverty level.
There are eight different government and nonprofit agencies that administer the program in different parts of the state. Visit https://jobs.utah.gov/housing/scso/wap/how.html to learn which agency you should contact to learn more and apply based on the county you live in.
Local Government Incentives
Salt Lake County’s Green and Healthy Homes Program strives to help families who have health conditions impacted by their home. The program targets different issues that can be found in a home, including poor energy efficiency. Homeowners in Salt Lake County who earn 80% of the area median income or below are eligible to apply. Learn more on Salt Lake County’s website.
Utility Incentives
The Rocky Mountain Power (RMP) Wattsmart Program offers incentives to residential customers to save on heating and cooling, appliances, smart accessories, and more. Visit https://wattsmarthomes.com/ to learn more
RMP also offers solutions for businesses to save on electricity through energy efficiency incentives, demand response payments, and more.
Dominion Energy’s Thermwise Program offers rebates to residents, businesses, and builders to help customers reduce their use of natural gas.
A Guide For Renters
In collaboration with the Utah Governor’s Office of Energy Development (OED), Utah Clean Energy created a Utah Renter’s Energy Efficiency Guide. This guide lists many different energy-saving actions renters can take to save money and improve the comfort of their homes. Each action is assigned a rating that describes how easy it is to adopt the action and the level of potential savings.
URC is committed to achieving a net-100% renewable electricity option for Rocky Mountain Power Customers in participating communities. By making our homes and buildings more energy efficient, we can help reduce emissions even more, increasing the positive impact we have on our air quality and environment.