Energy Efficiency – Federal Tax Credits, Incentives, and Utility Rebates for Homeowners

Understanding and taking advantage of the tax credits, in combination with utility rebates, paves the road to an affordable transition to a clean energy future for homeowners. 

Under the Inflation Reduction Act of 2022, several federal income tax credits for energy efficiency home improvements will be available through 2032. 

The best way to begin your own journey toward an affordable clean energy future is to schedule a Home Energy Audit, also known as a Home Assessment. A Home Energy Audit is an inspection and written report which identifies the most significant and cost-effective energy efficiency improvements with respect to the residence, including an estimate of the energy and cost savings with respect to each such improvement, and is conducted and prepared by a certified home energy auditor.

Federal Tax Credit $150, DTE Rebate $50, Consumers Rebate up to $200

Upon the completion of an Energy Audit, the combination of air sealing techniques and insulation upgrades offers a cost-effective way to cut heating and cooling costs, improve durability, increase comfort, and create a healthier indoor environment. These weatherization services offer quick returns on investment.

Air sealing includes the caulking and weatherstripping of air leaking areas identified by the Energy Audit. Upgrading your home’s insulation involves installing more insulation to increase the insulation’s R-value and the resistance to heat flow. The effectiveness of an insulation material’s resistance to heat flow also depends on how and where the insulation is installed, which is why performing an Energy Audit is the best way to begin. When you combine air sealing with insulation upgrades you can reduce the annual energy use of an older home by 15% or more.

Federal Tax Credit up to $500, DTE Rebate up to $500, Consumers Rebate up to $500

The Investment Tax Credit (ITC) provides a 30% tax credit to residential solar and storage system installations. If you require a main electrical panel upgrade as part of your solar and storage installation, you can also claim 30% of the main electrical panel cost.

Federal Tax Credit 30% of Project Cost