3 WAYS TO TAKE ADVANTAGE OF INFLATION REDUCTION ACT FUNDS
The Inflation Reduction Act (IRA), which was signed into law this year (2022), includes both rebates and tax credits to help you offset your households energy costs.
Rewiring America estimates that a typical home can save $1,800 per year by going all-electric. But how do you know where to start?
For residential customers, the IRA has two main incentives: federal tax credits, and state-allocated rebates. In general, the rebates seem to make sense for low-to-moderate income folks and the tax credits seem to make sense for moderate-to-high income folks.
Some of the details won’t be available until summer 2023, like whether or not you can apply for both rebates and tax credits, or how the duration of your project might affect your incentive strategy. But regardless of how the policy shakes out – and don’t worry, I’ll keep you updated on that – there’s no time like the present to get started with your electrification journey. We can start small, and postpone the most difficult electrification projects until the IRA info is settled.
To that end, my main goal here is to help you identify fun and attainable goals to start. If you set goals that are too big or difficult, you might find yourself unable to follow through. I really don’t want that to happen with your electrification journey! A better plan is to start small with more attainable goals. Here are three ideas.
Get an E-bike
Ok, so this one isn’t covered under IRA funds. But more biking = less gasoline. And e-bikes are one of the least expensive, most fun ways to join the electric revolution. You already know how to ride a bike, so just… electrify it!
I got a secondhand e-bike on Facebook Marketplace for $1,200 and it was absolutely the best purchase of the year for me. I use it to take my daughter to daycare, and she loves her “dada bike ride time.” It is also very fun for me to ride. Pedaling is easier, biking is faster, and guess what… if you’re feeling lazy you can just hold down the throttle and fly!
If $1,200 sounds like a lot of money, you can get them for even less. And keep in mind this is intended to offset some of the expense of driving a car. But don’t forget the main point: it’s more fun, healthier, and more exciting than a car.
2. Switch to an Induction Stove
My second tip for having a blast while improving your life in ways that you’ll notice every day: cook with induction. Potentially even cheaper than an e-bike, induction stoves are another completely fun way to kickstart your electrification journey. They make delicious food, they’re super efficient, and they don’t pollute your home like natural gas, aka methane.
Let’s talk turkey. Induction stove rebates are $420-$840, depending on your income. A brand new stove runs $900-$2,000+. So you can potentially complete this project for a few hundred bucks.
If you’re not ready to take the full plunge, you can get a countertop induction stove for just $50-100. This is what I did, and I easily replaced more than half of my gas cooking with non-polluting, energy-efficient cooking.
Quick science lesson! Induction stoves work by running an electric current through a coil. Due to the nature of electromagnetism, this generates a fluctuating magnetic field. This field doesn’t do anything until it touches your ferrous cookware. In your cookware, the magnetic field induces many (smaller) electric currents. Since iron is a poor conductor of electricity, these smaller electric currents produce heat in your pot or pan.
Induction stoves are a great second project because you’ll see it and taste its work every day. You’ll be reminded of the joy of electrification and inspired to continue on to your next project.
3. Consider an electric vehicle
I know I know, this is a big one. But hear me out. In almost all of the 3,000 counties in the US, electric vehicles (EVs) have a smaller carbon footprint than gasoline-powered cars. You can read more about the electric grid in my previous blog: What is Electrification.
Plus, this tip is in keeping with my theme: start with projects you’ll notice and be delighted by! If you’ve ever driven a Tesla, you know the acceleration is… *chef’s kiss*.
But what about the price tag? Nowadays, many manufacturers – including Chevrolet, Nissan, Volvo, and others – are offering more affordable electric vehicles. And the IRA is also stepping in to help reduce that initial investment.
The IRA is offering Clean Vehicle Tax Credits through the end of 2032. This includes credits for both new and previously owned EVs. Only certain EVs qualify, so read the fine print. Here’s how it breaks down:
$7,500 for purchasing a new EV; and
30% of the price of a used EV or $4,000 (whichever is less).
Purchasing an EV is a big investment, but the benefits – environmental, financial, and in terms of electrification happiness – are incredible. This is a step that may take a few years to plan for. Since the tax credit is available for ten more years, you have time to prepare. (If you want lots of details about the tax credits, check out this article.)
4. bonus ideas! heat pumps and heat pump water heaters
If you are feeling motivated to upgrade your home’s large machines (or if you get caught with a broken water heater, like I did this year), we need to talk about heat pumps. It’s time to swap your furnace and AC for a heat pump, and/or replace your water heater with a heat pump water heater (HPWH). Check out my article on HPWHs.
If you are reading this and think it’s time to make an action plan, I have great news for you! Green Projects Group is partnering with the awesome crew at My Next Electric to bring you electrification classes. In the upcoming course, How To Electrify Your Life, you’ll have a chance to attend a two-part virtual class to make a plan to electrify your home/vehicles.
GPG is so passionate about this project that we are covering half of the cost of the class. So when you sign up at greenprojectsgroupllc.com/electrification you’ll see your price go from $40 to $20 when you use promo code GPG50.
Together, we can make a difference.