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3 Energy Efficiency Rebates to Take Advantage of Today

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Every day, we all try to be more energy efficient. Some days we try a little and make sure that the lights are not left on when we leave a room. Other times, we try a lot and replace every door and window in the house to help lessen the burdensome heating and cooling bill. Wouldn’t it be nice to be rewarded more for your efforts? Well, there are many federal and state energy efficiency rebates that will provide deep savings you for your efforts.

How to take advantage of energy efficiency rebates

Energy efficiency rebates come in many different forms. You can apply for money-saving grants, or access services created by federal/state governments that will help offset the costs of energy efficiency projects around the house. There are multiple ways these programs can save you money.1

Rebates

Many state governments, local governments, and utility companies offer cash rebates for the purchase of energy efficient products. Some manufacturers put on sales or special offers that will make it even more affordable to purchase their power-saving products. Currently, the federal government does not give cash rebates for buying energy efficient products.

Tax Credits

Credits are claimed when you file taxes for the previous year. If you made a purchase of energy efficient items that are approved by the government during that year, you can deduct that amount when you file your taxes with the government. All eligible products are labeled with the EPA’s Energy Star certification.

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Energy Efficient Financing

There are many financing options available from local governments, banks, and utility companies that can help you purchase your energy efficient products. This is a great option if you are strapped for cash but looking to purchase your home solar system outright.

What are federal solar incentives?

A great way to get your energy savings started is through the EPA’s Energy Star program. Energy Star is a U.S. Environmental Protection Agency (EPA) labeling program designed to promote energy efficient products. When purchasing new appliances, windows, or other household items, you can simply look for the Energy Star approval stamp to know you are buying a product that will help increase the energy efficiency of your home. Energy Star also offers up rebate programs2 that can help with the cost of your energy efficient product purchases.

The federal solar tax credit was created in 2006 by the federal government. Currently, the federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax equal to 30% of the final cost of solar energy systems you install on your home. Starting in 2020, the tax credit will step down to 26%, and then again to 22% in 2021. After 2021, the tax credit for residential solar ends. 

Energy efficiency rebates by state

In addition to the federal solar tax credit, many states offer additional tax and cash rebates. Currently, there are several states with rebate incentive programs4 that will help you pay for a new solar system. There are also multiple programs in every state that will help you offset your solar system and the cost of making your house more energy efficient. You can find the most up-to-date list of all energy incentives available on the DSIRE website.5

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