ENERGY STAR on Incentives for High-Efficiency Water Heaters
April 20, 2023
Because sustainable product design is top of mind, we are honored to be named an ENERGY STAR® 2023 Partner of the Year for the third year in a row and elevated to “Sustained Excellence” status. In honor of Earth Day, this post highlights how ENERGY STAR influences the transition to a clean energy future.
ENERGY STAR Earth Day 2023 Theme
As we transition to cleaner energy sources, smart decisions about your home’s water heater can help you save energy, live more comfortably and protect the planet—all at the same time. ENERGY STAR encourages U.S. homeowners to make homes and buildings more energy-efficient and reduce energy demand by installing ENERGY STAR certified products like heat pumps and heat pump water heaters. Installing heat pumps has the extra benefit of reducing fossil fuel use and positively impacting climate change.
Inflation Reduction Act
Information from ENERGY STAR:
The 2022 Inflation Reduction Act is expected to accelerate the transition with billions of dollars in financial incentives designed to make the needed purchases more affordable and other market support to make clean energy and efficient electric equipment more available.
Tax credits covering 30% of the project cost up to $2,000 will be available for qualifying improvements to primary residences through 2032. This would apply to ENERGY STAR certified heat pumps for heating and cooling and heat pump water heaters.
The Inflation Reduction Act also includes significant funding for states and tribes to offer rebates that could add up to as much as $14,000 and can be combined with income tax credits, to households that install new electric appliances, including super-efficient heat pumps, water heaters, clothes dryers, stoves and ovens. The rebates would also apply for households that make repairs and improvements that increase energy efficiency. These rebate programs are expected to start becoming available in the Fall of 2023.
Rheem Tying It Together
We offer ENERGY STAR certified heat pumps and heat pump water heaters. Not ready to switch to electric? You can still install a high-efficiency ENERGY STAR certified gas water heater and we’ve gathered resources to help you identify which Rheem® models are both ENERGY STAR 5.0 certified and eligible for federal tax credits under the Inflation Reduction Act.
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