The Energy Efficient Home Improvement Credit is the credit that applies to appliance upgrades for things like heat pumps for heating and cooling, like this one at a HVAC class at Community College of Allegheny County.
Reid Frazier / StateImpact Pennsylvania
Reid Frazier / StateImpact Pennsylvania
The Energy Efficient Home Improvement Credit is the credit that applies to appliance upgrades for things like heat pumps for heating and cooling, like this one at a HVAC class at Community College of Allegheny County.
Temperatures have dropped in recent weeks, causing many to reach for the thermostat.
There are ways to make sure you are heating your home efficiently and saving money this winter. Some upgrades may even qualify for a rebate or tax credit.
The two biggest items that contribute to home energy efficiency are usually the heating and cooling system and the “building envelope” or all the components that separate inside and outside, said Rachel Goodgal, government affairs manager at the Keystone Energy Efficiency Alliance,
“They work together, of course. The tighter your building envelope is, the less hard that your HVAC system has to work,” Goodgal said.
But before starting a big project like replacing a furnace or installing insulation, Goodgal said homeowners and renters can look to smaller measures to make their homes more comfortable.
Those include cleaning or replacing furnace filters, having the furnace inspected and serviced annually, and sealing air leaks around windows and doors.
PPL Electric offers tips to save on energy use. Its website says all the hidden air leaks from windows, doors, skylights, and other openings can equal a hole the size of an open window. Leaks can be sealed with caulk or foam weather stripping.
PPL also recommends using insulating curtains or blinds. On south-facing windows, drapes can be left open during the day to let sunlight in and closed at night to reduce chill and drafts.
If you’re not sure where to start, a home energy audit can provide guidance for which jobs to tackle first.
During an audit, a certified assessor will do a room-by-room examination, as well as a review of past energy bills. The U.S. Department of Energy says assessors may use equipment to detect sources of energy loss, such as blower doors, infrared cameras, furnace efficiency meters, and surface thermometers. After the audit, the assessor will provide a list of recommendations.
Energy audits, and the resulting upgrades, are often eligible for tax credits and rebates.
The Inflation Reduction Act expanded the Energy Efficient Home Improvement tax credit. Through 2032, the law allows people to claim 30% of the cost of the upgrade, up to certain dollar limits.
For example, people can claim a credit of up to $150 per year on home energy audits completed by a certified assessor. People can claim 30% of the cost to replace a furnace with an efficient heat pump, up to $2,000.
Goodgal said many electric utilities offer rebates to people who make efficiency upgrades.
“All of the large electric utilities … [are] required to have energy efficiency programs under Pennsylvania’s Act 129. Many of the gas utilities do have voluntary efficiency programs as well,” she said.
PPL offers rebates of up to $500 for attic insulation and up to $100 for a smart thermostat, among others.
The Weatherization Assistance Program can help Pennsylvania residents with upgrades if they have an income 200% or below the Federal Poverty Guidelines. For a family of 4, that’s $62,400 per year or less.
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