Your water heater is one of your home’s biggest energy users because they’re in use day and night – as you take showers, wash dishes, and do your laundry.
In fact, according to energystar.gov, water heating is the second largest energy expense in your home, accounting for about 18% of your utility bill.
For that reason, heat pump water heaters can be appealing. Though the initial cost of installation can be higher, they are more energy efficient than traditional water heaters.
And now, the Inflation Reduction Act of 2022 can help you save money on a new water heater for your home.
You can receive up to $1,750 in rebates or $2,000 in tax credits when you buy a heat pump water heater. Read on to learn more about heat pump water heaters, and how the Inflation Reduction Act can help.
What is the Inflation Reduction Act?
President Biden signed the Inflation Reduction Act into law last summer to offer consumers tax credits and rebates for buying eco-friendly cars and appliances, and who make efficiency upgrades to their homes.
According to the IRA, households will get rebates when they buy certain efficient electric appliances, including up to $1,750 for a heat pump water heater.
What are heat pump water heaters?
Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. This means they can be two to three times more energy efficient than conventional electric resistance water heaters, according to the U.S. Department of Energy.
You need to install heat pump water heaters in areas that remain in the 40 degree to 90 degree Fahrenheit range all year, and they require at least 1,000 cubic feet of air space around the appliance. The heaters won’t operate efficiently in a space that is too cool, because they usually cool the space they are placed in, the Department of Energy explains.
Contact Benjamin Franklin Plumbing at 1-877-BEN-1776 or online today for if you’d like to install a heat pump water heater.
How can I take advantage of the new tax credits and rebates?
Tax credits, which are in effect through 2032, can be redeemed when you file your taxes the next year, while rebates lower your upfront cost of installation of the water heater.
However, CNBC reports that some of the rebates might not go into effect until later this year.
States will have to establish their own individual rebate programs and determine who qualifies, depending on income, then apply for federal grants through the Department of Energy. People who earn less than 80% of an area’s average income may see all of their costs covered. People who earn between 80% and 150% of an area’s income will likely see part of their expenses covered.
How Ally Financing can help
Even with the prospect of rebates and tax credits, an unexpected plumbing expense can be stressful! Benjamin Franklin Plumbing is happy to offer financing options through Ally Lending to help ease the burden. Learn more about the loans for home repairs and renovations that Ally provides here.Contact Benjamin Franklin Plumbing for additional money saving tips.