Navigating the policy landscape
There are a host of federal and state policies that support whole home electrification, whether by financially incentivizing homeowners to embark on electrification journeys or by challenging state governments to mitigate emissions and combat climate change. Knowledge of these policies can be a solar professional’s best friend come next customer consultation. A note on using incentives There can be homeowner confusion out there about how difficult it is to claim some of these rebates and incentives. Many direct rebates for things like heat pump hot water heaters are taken right at the register — the customer gets the rebate right when they buy. Other incentives may require submitting a receipt to the utility company or government agency. Tax incentives, of course, are often claimed on IRS or state tax forms. Whatever the process, it’s often easier than a homeowner thinks, and a little education can go a long way.
Inflation Reduction Act
Earlier, we mentioned how the federal government passed the Inflation Reduction Act (IRA) in 2022, which contains several provisions that encourage development and adoption of U.S. electricity transmission infrastructure, creating new energy jobs in the process.
Namely, the IRA offers a suite of programs and tax credits that can financially help homeowners to electrify their homes and vehicles, and convert to renewable energy, including:
- An Energy Efficient Home Improvement credit, offering up to 30% tax deductions for upgrades like solar panels, batteries, and more
- Direct rebates to offset upfront costs of technologies like heat pumps, heat pump water heaters, and rooftop solar panels
- Home electrification and appliance rebates to help electrify low- to moderate-income households
- Long-term, uncapped renewable energy tax credits and a federal tax credit for used EVsx
Climate Leadership and Community Protection Act (NY)
In 2019, the state of New York signed the Climate Leadership and Community Protection Act (CLCPA) into law, which mandates that the state combat climate change by hitting net-zero emissions by 2050
This legislation is broken up into smaller milestones:
- By 2030, New York will reduce emissions to 40% below where they were in 1990, at which point 70% of the state’s electricity is expected to be generated by renewable energy
- By 2040, New York will reach 100% zero-emissions electricity — all generated by renewable energy.
- By 2050, emissions will be 85% below 1990 levels, with the remaining 15% offset to reach net-zero emissions by taking climate-friendly actions like planting additional trees to decarbonize the air
Clean Energy Climate Plan (MA)
The Clean Energy Climate Plan (CECP) is a Massachusetts proposal stating that by 2050, the state will achieve net-zero greenhouse gas emissions
The CECP is broken up into smaller plans, each representing key milestones along the way to 2050:
- The 2025 plan specifies actions Massachusetts will take to enable a 33% emissions reduction from 1990 levels in 2025
- The 2030 plan details steps Massachusetts will take to accomplish a 50% emissions reduction from 1990 levels by 2030
- The 2050 plan highlights Massachusetts state goals, strategies, policies, and actions that together will reduce statewide gross greenhouse gas (GHG) emissions by at least 85% below the 1990 baseline level, all while conserving and enhancing carbon sequestration on natural and working lands
California incentive programs
With over 39 million people, California is the most populated state in the U.S. That’s a lot of people — and a lot of emissions. Let’s look at three key pieces of legislation the state of California passed to combat these emissions by helping homeowners electrify their homes in more cost-effective ways.
California Advanced Homes Program
The California Advanced Homes Program (CAHP) is a comprehensive residential new construction program with a focus on clean energy efficiency as well as sustainable design and construction efforts. This program supports the state’s climate goals by encouraging builders to construct all-electric homes under California’s 2019 Energy Code, which aims to improve the energy efficiency of new and existing buildings and additions through the use of energy-efficient technologies and construction practices.
Low-Income Weatherization Program
The Low-Income Weatherization Program (LIWP) provides free solar PV systems and energy efficiency upgrades to low-income households. This program is designed to reduce GHG emissions and household energy costs for those in need by offering them the means to more efficiently generate, use, and save clean, renewable energy. At the same time, electrifying homes supported by the LIWP helps homeowners improve household conditions like indoor air quality by eliminating their reliance on harmful fossil fuel-based power.
Self-Generation Incentive Program
The Self-Generation Incentive Program (SGIP) offers rebates to owners of residential homes and nonresidential facilities so they can fund installation of existing, new, and emerging distributed energy resources on the customer’s side of the utility meter. Qualifying technologies include:
- Wind turbines
- Waste heat to power technologies
- Pressure reduction turbines
- Internal combustion engines
- Microturbines
- Gas turbines
- Fuel cells
- Advanced energy storage systems
Other state policies
These are just a few examples. To get more information about the policies and regulations in your state, the N.C. Clean Energy Technology Center‘s Database of State Incentives for Renewables & Efficiency (DSIRE) is an easy-to-use reference.