Are you thinking about making energy efficiency improvements to your home? Now is a great time to get started with electrification, home performance, and zero net energy upgrades! Most energy efficiency and clean energy upgrades, from insulation to solar panels, qualify for tax credits and incentives.
The Clean Energy Connection is here to help you make the most out of your home improvement budget. Keep reading for our list of the best energy efficiency rebates and incentives for 2024.
Federal Tax Credits
The federal government offers tax credits for a variety of energy efficiency services and renewable energy systems. In 2022, the Inflation Reduction Act revitalized two aging tax credits—the solar tax credit and the energy efficiency home improvement tax credit—and turned them into the most prominent federal incentives for 2024.
The Federal Solar Tax Credit
Installing a home solar system is one of the best ways to reduce your carbon footprint and save money on your energy bills. If you’re thinking about going solar, the Inflation Reduction Act solar panel tax credit can make your installation more affordable.
The solar tax credit in 2024 is worth 30% of your total solar installation costs—if you spend $15,000 on your solar installation, you can reduce your federal tax liability by $4,500! It will be available from 2022 until 2032 and covers all types of solar installations, including rooftop solar, off-grid solar, and solar battery storage.
The Energy Efficient Home Improvement Tax Credit (25C)
The Energy Efficient Home Improvement tax credit allows homeowners to claim a 30% tax credit (with annual limits that vary by service) on qualifying energy efficiency home improvements, including:
- Ducted heat pumps and ductless mini splits
- Heat pump water heaters
- Energy audits
- Energy efficient windows and doors
- Insulation and air sealing
- Electrical panel upgrades
Upgrades like these save energy, which reduces fossil fuel consumption and saves you money. Making energy efficient home improvements can also help you prepare for a home solar installation—the less energy you use, the fewer solar panels your home will need.
Check out our Guide to the Energy Efficient Home Improvement Tax Credit to learn more.
TECH Clean California Rebates for 2024
Tech Clean California is a state-wide initiative that is accelerating the adoption of heat pump space and water heating systems in California homes. TECH Clean California offers generous rebates for heat pump water heaters and heat pump HVAC systems that can significantly reduce the cost of a heat pump installation in 2024*.
Heat Pump HVAC System Rebates
Heat pump heating and cooling systems are eligible for a $1,000 rebate per unit, with up to two incentivized systems allowed per home. Learn more about TECH Clean California heat pump rebates.
Heat Pump Water Heater Rebates
Heat pump water heaters are eligible for rebates starting at $3,100! Large heat pump water heaters that can hold more than 55 gallons are eligible for up to $3,800 in rebates. TECH Clean California also offers a bonus rebate for electrical work that may be needed to prepare your home for a heat pump water heater installation. The bonus rebate is worth 50% of your total project costs, up to $2,000.
In many cases, TECH Clean California water heater rebates will cover the full cost of a heat pump water heater installation!
*Offers are subject to change or cancellation. Visit TECH Clean California for up-to-date rebate & incentive amounts.
California Utility Incentives For Energy Efficiency Upgrades
Many California utility companies, including SMUD, PG&E, and SCE, offer rebates and incentives for certain energy efficiency upgrades. Depending on your utility, you could qualify for heat pump rebates, energy efficient appliance rebates, thermostat rebates, heating and cooling rebates, solar battery rebates, and more.
To qualify for most utility rebates, including SMUD rebates, your project must be completed by a qualified contractor. So how can you find a local company that not only specializes in green home services but can help you navigate the many available incentives?
Use The Clean Energy Connection To Find A Contractor
The Clean Energy Connection makes it easy to find a qualifying clean energy contractor that can help you maximize your incentives! Our free online directory connects homeowners with vetted, experienced, and highly rated clean energy contractors in California. It’s easy to use and can be filtered by location, services, incentives, and more so you can find the right contractor to help electrify your home and make it better for the environment. Just visit the directory and refine your search based on the services and incentives you’re interested in. You’ll be directed to a list of local contractors that can help you qualify. It’s that simple!
Save on clean energy upgrades with tax credits and incentives.