The Easy Way to Take Advantage of Inflation Reduction Act Heating and Air Conditioning Incentives
Mitsubishi Electric Trane HVAC US ready to help Americans cash in on heat pump incentives
SUWANEE, Ga. – November 22, 2022 – The Energy Information Administration (EIA) estimates, on average, space heating and air conditioning account for over half of an American household’s annual energy consumption as of 2015. Household-level decisions, including home and vehicle energy use, drive 40% of energy-related carbon emissions.
Many Americans can help reduce greenhouse gas (GHG) emissions while saving on operation costs and enjoying greater comfort control when they choose to use an all-electric, all-climate heat pump, like those from Mitsubishi Electric Trane HVAC US LLC (METUS), instead of an existing air conditioner or fuel-burning furnace. By doing so, U.S. households can contribute to a cleaner environment while keeping utility bills low.
The Inflation Reduction Act of 2022 (IRA), a new federal law, offers eligible Americans unprecedented opportunities to potentially save money on qualified heat pumps and home energy improvement projects with tax credits and rebates.
What should U.S. consumers know?
- 98% of U.S. households could cut their carbon emissions by installing an efficient, all-electric heat pump.
- If all single-family homes in the U.S. adopted heat pumps, the total annual emissions reduction would be at least 160 million metric tons by 2032, the equivalent of taking 32 million cars off the road.
- Modern variable-capacity, all-climate heat pumps are designed to help conserve energy all year, reduce GHG emissions and lower operating costs.
- Homes in all climate zones can appreciate heating performance from a variable-capacity heat pump with hyper-heating capabilities.
- Hyper-heating, variable-capacity heat pumps are designed to provide reliable heating at temperatures as low as -13° F and are now used in some of the coldest regions of the U.S.
- Efficient homes can help the community by drawing less electricity from the power grids they share.
Mitsubishi Electric’s INVERTER-driven compressor technology was introduced 20 years ago, revolutionizing the heat pump. Now, these variable-capacity, all-climate heat pumps deliver reliable cold-climate performance, efficiency, and precise comfort control using a smartphone app. Mitsubishi Electric has continuously improved this technology, while METUS has educated utilities, local governments, public officials, non-profits, homeowners, and private sector collaborators on the environmental and economic advantages of all-climate heat pumps.
“The IRA’s passage is a landmark moment for American homeowners,” says Mark Kuntz, chief executive officer, Mitsubishi Electric Trane HVAC US LLC. “The law vastly expands the opportunities for many more American homeowners to experience the comfort, environmental and efficiency benefits of all-climate heat pumps.”
Highlights of consumer incentives in the IRA include:
- $4.5 billion High Efficiency Electric Home Rebate Program (HEEHRP) administered by state energy offices and Indian Tribes for qualified electrification projects.
- This national rebate program is intended to support low and moderate-income homeowners.
- Qualified households can receive a rebate of up to $14,000 with a rebate for specific equipment up to:
- $8,000 to offset qualified heat pump (for space heating or cooling) costs.
- $4,000 to offset the cost of electric panel upgrades.
- $2,500 for electrical wiring upgrades.
- HEEHRP provides up to a $500 rebate per project for heat pump installers.
- Significant extension and expansion of the Energy-Efficient Home Improvement Credit (25C), starting in January 2023, allows qualified households to deduct 30% of the costs for buying and installing a qualified heat pump, up to $2,000 annually through 2032.
- HOME Energy Performance-Based, Whole-House Rebates
- Allocates $4.3 billion in rebates for home energy efficiency improvements based on Department of Energy-approved modeling tools.
- Rebate levels:
- Homes with energy reduction of 20% to 35% are eligible for maximum rebate of $2,000, or half the cost of the retrofit project (whichever is less).
- Homes with energy reduction of at least 35% are eligible for maximum rebate of $4,000 or half the cost of the retrofit project (whichever is less).
- Rebates are higher for lower-income homes.
Now, under the provisions of the IRA, qualified homeowners across America have the opportunity to reduce their carbon footprint, achieve better comfort, and realize lower operating costs thanks to Mitsubishi Electric’s variable-capacity, all-climate heat pumps. Visit MitsubishiComfort.com/IRA to learn more.