Rebates and incentives
Efficiency upgrades often come with money back. Knowing where to look is most of the work.
Where incentives come from
Four common sources: federal tax credits, state energy programs, your electric or gas utility, and occasionally your city or county. They can stack, but each has its own rules, paperwork, and deadlines.
Projects most likely to qualify
High-efficiency HVAC and heat pumps, water heaters, insulation and air sealing, energy-efficient windows and doors, and solar. Cosmetic work, paint, cabinets, flooring, almost never qualifies.
How to check what you qualify for
- Search your utility's website for "rebates" and enter your account ZIP code.
- Check your state energy office for current residential programs.
- Confirm federal tax credit rules and limits with the IRS or your tax preparer.
- Ask two contractors which incentives they have actually filed for this year, installers who do it routinely know which programs are funded.
Rules that trip people up
Many programs require pre-approval before work begins, a specific efficiency rating, an installer on an approved list, or a post-install inspection. Buying the equipment first and asking later is the most common way homeowners lose a rebate.
A rebate is a discount; a tax credit reduces what you owe when you file. Budget for the full project cost up front either way.
Estimate the project first
Incentives change the net cost, not the price of the job. Start with a planning range from our cost calculators, then subtract only the incentives you have confirmed in writing.