Unlock the Power of Federal Energy Incentives
Do you hit the snooze button when someone starts talking about kilowatts, electricity use, or energy efficiency? It’s true—sometimes, these can be pretty dry topics. What if you could get money back to make your home more energy efficient? And you could continue to keep more cash in your wallet every month because of those efforts?
Here’s the Scoop
Uncle Sam will pay you to make your home more energy efficient. If you’ve upgraded appliances or made home weatherization improvements to your primary residence since 2023, you may be eligible for tax credits or rebates for energy-efficient improvements.
Here’s a sampling of what’s covered: upgraded exterior windows and doors, insulation, high-efficiency (Energy Star-rated) heat pumps, water heaters, heating and cooling equipment, appliances, switching to an electric vehicle, and adding a home charger.
More Money, More Comfort
So, how does it work? Federal tax credits of up to $3,200 per year can be claimed with your federal income taxes for the year when the upgrades are made. Complete IRS Form 5695, follow IRS instructions, and include the form when filing your tax return.
You’ll need to know the total cost of the upgrades and include relevant receipts. Given how annual total limits are structured, consider spreading your home energy-efficiency improvements over a few years. Planning your upgrades can help maximize the annual credit amounts you can claim. As with any tax matter, consulting a tax professional is a good idea.
Don’t Leave Money on the Table
While the Internal Revenue Service manages the federal tax credits, federal energy rebates are handled by the states. Check to see if your energy efficiency improvements qualify for a rebate. Keep in mind, that you’ll need similar documentation and the total amount spent on the upgrades.
Your wallet will thank you for the effort required to get the cashback. Bonus! Escambia River Electric Cooperative (EREC) has additional incentives.
Play it Again
Let’s recap why it (literally) pays to amp up your energy-efficiency efforts. Energy-efficient upgrades typically reduce consumption, lower utility bills over time and lessen the environmental impact.
Not to mention, you can say goodbye to drafts and cold spots with energy-efficient windows and doors and hello to improved indoor air quality with cleaner heating and cooling systems. So, what are you waiting for?
The Bottom Line
EREC can help decode energy-efficiency incentives and rebates to max out savings and other benefits. After all, we’re all about helping our members save money and energy.
Contact us to learn more about how you can take advantage of these federal incentives and other ways to start putting more money back in your wallet.