Anyone who reads the Eco Friendly Cheapass knows I love tax credits and rebates. So I was really excited to see not only are the Federal Energy Tax Credits back, but they’re retroactive from 12/31/2017!
So for your primary residence there’s a variety of rebates for installing high efficiency heating/cooling systems, water heaters, insulation upgrades, etc.
My favorite (yes, I have favorites) is the heat pump water heater rebate of $300 which can stack on top of your utility rebate. I’ve written about these units a number of times but here’s the short version:
- You can get one on sale starting around $1000 (regularly $1300)
- They can be DIY installed by a handy homeowner
- Utility rebates commonly run $250-500
- Federal rebate is $300
- The typical homeowner will save $300-400/year replacing a conventional electric water heater with a heat pump water heater
You can literally have a 1 year ROI on a heat pump water heater now and save thousands over the life of the unit.
For more information about these rebates check out this Energy Star page.
CYA – this does not constitute tax advice, please see your tax professional to ensure you qualify.