Inflation Reduction Act: What you need to know
The Inflation Reduction Act provides $369 billion to reduce emissions and promote residential electrification upgrades, making it the largest-ever investment to address climate change in the country’s history. The Inflation Reduction Act offers multiple incentives for electrification to American homeowners.
High-Efficiency Electric Home Rebate Act
Low-and-moderate-income households - which are defined as households with a median family income of less than 80% of the area median income - are eligible for incentives up to $6,500 total for an Upgraded Load Center which SPAN Panel qualifies for, and for Upgraded Electrical Wiring which the installation of a SPAN Panel qualifies for as well. More incentives are available to add electric upgrades that can be more easily installed in the home with SPAN, including heat pumps and space heating appliances, heat pump water heaters, induction cooktops, and home insulation. Incentives for low-and-moderate-income households vary by appliance upgrade from up to $850 for an induction cooktop to as much as $8,000 for heat pumps and space heating.
This incentive will make whole home electrification accessible to more Americans at a significantly reduced cost after savings. With SPAN’s smart panel load management capabilities, homeowners are provided the ability to electrify homes with less than 200-amp utility electrical service without the need for an often time-intensive, costly electrical service upgrade.
Energy Efficient Home Improvement Credit
This credit covers a wider range of electrification upgrades. A Load Center is now eligible for 30% of the costs up to $600, which SPAN Panel qualifies. While the old credit could be applied toward just 10% of the costs of energy efficiency upgrades like air-sealing, insulation, and new doors and windows, the new Energy Efficient Home Improvement Credit is equal to 30% of the costs for eligible home upgrades, with incentive limits varying by appliance upgrade from up to $600 to as much as $2,000 for heat pumps and space heating appliances.
Many American families will make electrification upgrades because of this incentive: heat pumps and space heating appliances, heat pump water heaters, induction cooktops, upgraded load center. SPAN Panel enables homeowners to replace outdated and often inefficient fossil fuel appliances with better performing, more efficient electrical appliances.
Residential Clean Energy Credit
The new Residential Clean Energy Credit increases the federal investment tax credit (ITC) to 30%, extends the incentive to the end of 2032, and now includes grid-tied battery storage installed without solar as eligible for this credit. When you add SPAN to these renewable energy projects, a SPAN Panel purchase may qualify for the Residential Clean Energy Credit tax credit.
SPAN enhances the solar and battery homeowner experience. When SPAN is added to solar, homeowners get insights into their solar production in real-time and can control and monitor every circuit in their home. When SPAN is added to battery storage, homeowners get better whole home backup with fully customizable circuit-level control to manage where and how backup power is used, which extends backup time during an outage by up to 40%.
For eligibility of Inflation Reduction Act incentives, please consult your accountant or tax professional.
There are other components of this legislation that have more electrification incentives for homeowners. SPAN will publish more educational information to our website in the coming weeks.
Now is the time to electrify
SPAN makes it possible for all American homes to electrify—even homes with less than 200A utility electrical service. We’re particularly excited that more homeowners will transition to electric appliances and EVs, and for SPAN to be one of the key companies that will shape the future of electrification to help the Inflation Reduction Act achieve its climate goals.