In light of recent events regarding the Inflation Reduction Act and its initiatives toward green energy home comfort solutions, we thought it'd be interesting to delve into the benefits and savings the heat pump can bring you!
In a recent article by Ella Nilsen of CNN, she speaks of a retired couple in Maine who converted their oil-based home heating system to the new electric heat pump a few years ago.
One of the couples, George mentions how the costs have drastically decreased after the switch. He mentions how the rising costs of heating oil from 2008 to 2022 made him “pay $5 a gallon, that’s almost $1,000 a month to heat your home.”
Now, his highest ever monthly winter electricity bill came to an estimated $420 - and that's $100 higher than it usually is on average for his home!
Heat Pumps vs. Current Heating/Cooling Systems
Heat pumps hold an advantage over the currently used traditional forms of ACs and furnaces in that they don't use energy to heat or cool the air but rather use that energy to move the heat in or out of the house.
Looking Forward: The Inflation Reduction Act
The article gives a rough outline of eligibilities and rebates for homes converting to the heat pumps.
The law provides tax credits to cover 30% of the cost of installing highly efficient ACs, water heaters, furnaces and other cooling and heating equipment. Households can receive up to $600 for each piece of equipment, and up to $1,200 total per year. There is also a special credit of up to $2,000 for electric heat pumps.
The subsidies get even larger for low-income families. The law gives low- and moderate-income households rebates of up to $14,000 to buy electric appliances – which would go a long way to cover a heat pump – as well as much of the cost of electric water heaters, stoves and ovens and clothes dryers, as well as upgrading the home’s breaker boxes and electric wiring.
With the Inflation Reduction Act providing so many rebates and incentives for switching to more energy and cost-effective solutions, I think it's time to look towards a greener and more efficient future, just like George and Cathy!
If you'd like to learn more about heat pumps, you can read the article by Ella Nilsen using the link below: