The Inflation Reduction Act: What We Know and How to Prepare

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The Inflation Reduction Act of 2022 (IRA) was signed into law this past August, which is exciting news for Mainers who want to upgrade their home’s energy efficiency. The IRA offers generous incentives that make energy efficiency home improvements like insulation and  air sealing, more affordable to homeowners. Improvements like these save energy, which means they can reduce your high energy bills and contribute to a cleaner environment at the same time. 

There’s a lot in the Inflation Reduction Act and there are still details emerging about many of its programs. Today, we’re going to break down everything we know about Inflation Reduction Act rebates and incentives and how Maine homeowners can take advantage of them. 

The Inflation Reduction Act of 2022: A Summary

The Inflation Reduction Act is a landmark federal law that was signed into United States law in August of 2022. The law directs billions of dollars in federal spending toward reducing carbon emissions and is the largest investment the United States has ever made in climate change. The funds will be delivered through a variety of avenues, including tax credits and rebate programs for consumers. 

How Can the Inflation Reduction Act Save You Money? 

Maine homeowners can save money on a variety of energy efficiency and clean energy projects by taking advantage of IRA energy efficiency and renewable energy incentives including: 

  • The Solar Investment Tax Credit 

  • The Energy Efficiency Home Improvement Tax Credit 

  • The HOMES (Home Owner Managing Energy Savings) Rebate Program 

  • The High-Efficiency Electric Home Rebate Program

The Solar Investment Tax Credit (ITC)

The ITC, also known as the federal solar tax credit or the IRA renewable energy tax credit, allows homeowners who install solar panels to reduce their federal tax liability by 30% of their installation costs. There is no cap on the solar tax credit and it can make renewable energy installation significantly more affordable for your home. The 30% solar tax credit is available from 2022 until 2032. 

The Energy Efficiency Home Improvement Tax Credit 

The Energy Efficiency Home Improvements Tax Credit is a revival of an old tax credit you might be familiar with—the Nonbusiness Energy Property Tax Credit. The new IRA energy efficiency credit has been increased from 10% to 30% (with a $1,200 annual cap on most services) and will be available from 2023 until 2032. Qualifying projects completed in 2022 are eligible for a retroactive credit but at its original 10% value. 

Many energy efficient home upgrades qualify for the IRA energy efficiency tax credit, including: 

The HOMES (Home Owner Managing Energy Savings) Rebate Program 

The HOMES rebate program offers rebates for energy efficiency upgrades with modeled energy savings of 20% or more. Qualifying upgrades include insulation, air sealing, HVAC upgrades, and more. 

  • Projects with modeled energy savings of 20% or more qualify for a $2,000 rebate

  • Projects with modeled energy savings of 35% or more qualify for a $4,000 rebate

  • Rebate amounts are doubled for low and moderate-income households 

These rebates cannot be combined with other federal grants or rebate programs. 

The High-Efficiency Electric Home Rebate Program

The High-Efficiency Electric Home Rebate Program will provide energy efficiency rebates to low and moderate-income households. The program offers rebates for a variety of services, including a $1,600 rebate for insulation, air sealing, and ventilation. Additional rebates are available for heat pumps, energy efficient appliances, and electrical system upgrades. There is a $14,000 maximum rebate amount per household and the rebates cannot be combined with other federal grants or rebate programs. 

How Do the Inflation Reduction Act Rebates Work? 

The HOMES rebate program and the High-Efficiency Electric Home Rebate program will be implemented by individual states. Each state will receive funding from the federal government and its department of energy will be responsible for distributing the funds. Maine will receive a total of $71,664,970

It will still be a while before this rebate program is available to homeowners—DOE expects funding to be available to the states by the spring of 2023 and to the public later that year. Funding is expected to go quickly and it will be important to act fast if you want to take advantage of these savings! We will be providing updates as more information on how to claim Inflation Reduction Act rebates becomes available. 

We Can Help You Take Advantage of the Inflation Reduction Act Savings 

The Inflation Reduction Act can help you cut energy costs in 2023 and beyond by making important energy-saving upgrades more affordable. Evergreen Home Performance can help you take advantage of these savings! We are a local insulation and energy efficiency company that has been helping Mainers improve their homes since 2006. We believe all homes should be safe, healthy, and comfortable, and we know we can improve our environment one house at a time. 

If you have questions about the Inflation Reduction Act for energy efficiency upgrades, give us a call. We can help you maximize your savings with IRA incentives, Efficiency Maine rebates, and financing for home improvements. 

Save on energy efficiency home improvements with tax credits and rebates. Call 207-594-2244> or contact us to learn more.

Find out how you can save with energy efficiency incentives. 

Call Evergreen Home Performance today! 207-594-2244

Greetings one and all! I am writing to express my gratitude to all involved in my insulation project.  From start to finish, I appreciate the universal theme which was maintained by each and every one of you, to ensure that my home was insulated and protected from freezing pipes as if it was your home. Andrea, thanks for helping me navigate my way to the project. Nate, thanks for the thorough initial assessment and the time you took to explain this project to me, step by step. Brian, thanks for setting up my project - so happy

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The Evergreen Team did a fabulous job, well exceeding our expectations, In just over a week they transformed our very drafty, noisy 213 year old house into a snug, draft-free, quiet haven with warm floors! The team was prompt, did everything they said they'd do and more. We are thrilled!

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Bridgton

The Evergreen crew from initial inception to installation were professional, on time, and left our place spotless. The end result was exceptional.

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The Evergreen Team did a fabulous job and was very tuned and responsive to the particular needs we had. The job was done right on budget and we are thrilled with the improved warmth and energy efficiency.

Ira M.

Rockland

Thanks Evergreen Home Performance for helping to make our home more efficient. Many thanks as well to Bryan for the initial walk through and recommendations to make our home more efficient and to Dave, Roland, and Jacob for a job that was done professionally and courteous.  We were amazed at the level of efficiency and everyday they made sure to protect our floors, carpets, and furniture. We had daily discussions with Dave about progress and what was being done and where they were at in the project.

Carol Fink

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Edgecomb

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John S.

South Portland

This team of individuals was professional at all times. They set up barriers that kept the dust at a minimum. They conducted an air flow audit and cut the draft circulation from the outside in half by sealing cracks. They hauled out the old insulation and replaced it with blown in insulation with an R - 60 Value. They also did the rebate paperwork so that I could get my $1500.00 rebate from the state of Maine. I highly recommend Evergreen Home Performance!

Daniel B.

Rockland

I used to spend winters in the bathtub because my house was so cold. This was my first winter roaming around my whole house comfortably. This even led me to decorate a little. My heating oil usage has been reduced by over a quarter: I rarely have to boost the thermostat because the temp stays at a constant. The Efficiency Maine rebates, together with the energy savings, make it affordable for me to pay for the loan I took out to finance the project. I do not worry about my pipes freezing.

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Camden

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Anne W.

Rockport

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David Henry Feldman

We absolutely loved our experience with Evergreen. The team was incredibly kind, professional and great to work with. We're very impressed with the quality of work of the Evergreen team and how easy they made everything! Our house had barely any insulation ahead of this project and the results are amazing. Insulating the attic, walls and basement with Evergreen allowed us to tear a 50-year-old furnace, ductwork and oil tank out of the basement and now heat the home with new heat pumps. Evergreen also added 100 sq ft of clean, new storage space to the attic!

Nick S.

South Portland

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Cynthia F.

South Portland

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