Ways to reduce energy use and energy bills in your home or business:

· Improve insulation and weatherization

· Install energy-efficient electrical appliances and LED lighting

· Replace a fossil fuel-fired boiler or furnace with an efficient electric heat pump

· Install clean energy equipment such as rooftop solar panels

· Purchase an all-electric vehicle

Financial incentives for making these changes are offered by your utility and federal and state governments. These incentives are listed below.

First, determine the energy efficiency of your building

· PECO home energy assessment – see energy.gov for further discussion of home energy audits and do-it-yourself ways to save money.

· Commercial building energy assessment – The ENERGY STAR Portfolio Manager® is a free online tool that measures and tracks building energy performance.

Financial incentives for energy conservation and clean energy

• Federal incentives

The Inflation Reduction Act (IRA) of 2022 provides tax incentives and consumer rebates to reduce the cost of energy upgrades in homes and businesses. Renters can also use some of these incentives. IRA updates will be issued regularly.

• Federal tax credits

 Homeowners

• The 25C Energy Efficiency Home Improvement Credit provides up to $3,200 annually for up to 30% of the cost of energy efficient upgrades such as ENERGY STAR-certified appliances, heat pumps, central air conditioners, and improving insulation.

• The 25D Residential Clean Energy Credit provides an uncapped income tax credit of 30% of the cost of installing clean energy equipment, such as rooftop solar, geothermal heat pumps and battery storage.

Business owners

• The 179D Commercial Buildings Energy Efficient tax deduction offers $2.50 to $5.00 per square foot for businesses achieving 25 to 50 percent reductions in energy use over existing building performance standards.

Home builders

• The 45L New Energy Efficient Homes Credit provides up to $5,000 to developers to build or retrofit homes that qualify for the U.S. Department of Energy (DOE) Zero Energy Ready Homes standard.

Car owners

• The 30D Clean Vehicle credit gives a $7,500 tax credit for certain new electric vehicles and a $4,000 credit for used electric vehicles. See this IRS website for details.

• Federal rebates

Stay tuned! The DOE is expected to issue guidance on how state agencies will implement IRA rebates later in 2023. Check these 2 sites for updates.

Homeowners

• The High Efficiency Electric Home Rebate Program (Sec. 50122): This program will provide consumer rebates to low- and moderate-income households that install heat pumps and other efficient electric equipment, improve insulation and air sealing, and upgrade electric service. Use this online tool to determine your income category.

Use this calculator to estimate rebates for a given location, income level and family size. The total credit under the 25C and 25D Tax Credits is also estimated. 

• Home Energy Performance-Based Whole-House Rebates (Sec. 50121): This program will provide $2000 to $4000 rebates for whole home retrofits based on the reduction in energy use. The program is available for all income levels.

Public utility (PECO) incentives

• Homeowners

Rebates on ENERGY STAR efficient electric appliances and heating, ventilation, and air conditioning systems (HVAC). Use this rebate finder to find offers in your area.

• Business owners

Rebates and other incentives for energy efficiency upgrades, including HVAC, interior and exterior lighting, refrigeration and hot water systems.

• Home builders

Rebates up to $4500 for a new home that is more electrically efficient than a code-minimum reference home.

Pennsylvania energy financial assistance

• Homeowners

• The Homeowners Energy Efficiency Loan Program offers 1% fixed-rate 10-year loans between $1,000 and $10,000 to low-income residents for insulation, weatherization, HVAC, and roof replacement.

• The Weatherization Assistance Program provides grants to cover the cost of home weatherization, typically for families earning less than 200% of the federal poverty level. Funding per house or apartment is typically capped at an average of about $8,000. The weatherization agency that serves your county can be found here.

• Business owners

The Sustainable Energy Fund offers low-interest loans and other incentives for energy efficiency and renewable energy projects, such as Commercial Property Assessed Clean Energy (C-PACE) financing.