Do you hit the snooze button when someone starts talking about kilowatts, electricity usage, or energy efficiency? It’s true—sometimes these can be pretty dry topics. What if you could get serious 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 (think Energy Star-rated) heat pumps, water heaters, heating, and cooling equipment, appliances, and switching to an electric vehicle or adding a home charger or rooftop solar system.
More Money, More Comfort
So, how does it work? Federal tax credits of up to $3200 per year can be claimed with your federal income taxes for the year when the upgrades are made. Just 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 federal tax credits are managed by the IRS, federal energy rebates are handled by the states. Check here to see if your energy efficiency improvements qualify for a rebate. Keep in mind, you’ll need similar documentation and the total amount spent on the upgrades. Your wallet will thank you for the effort needed to get the cash back! Bonus! Beltrami Electric Cooperative has great rebates available for electric heating, water heating, and EV chargers
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 adios 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
Your local electric co-op 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.
Check out the DOE’s Energy Savings Hub on federal rebates.
ENERGY STAR resources can help you learn: