Happy anniversary, Inflation Reduction Act!August 16, 2023
The Inflation Reduction Act (IRA), signed into law by President Joe Biden one year ago today, represents the largest climate investment ever in the U.S., making way for significant investments to expand renewable technologies, such as solar and electrification, increase access to energy efficiency programs, and direct equitable investment and jobs into communities which have been disproportionately impacted by climate change.
With over $1 trillion committed over the next decade, the IRA sets the stage for various new rebating and incentive programs that customers can apply for to help offset the cost of cleaner technologies, with programs estimated to save American households up to $1 billion annually on their energy bills.
ComEd reminds customers of rebates and incentives that are now available through the IRA to ease the transition to cleaner technologies, which are aligned with the company’s own priorities to combat climate change and to create a cleaner future for the 9 million people served in northern Illinois.
“Thanks to the Biden-Harris Administration and Congress, the IRA provides an unprecedented level of funding to help communities here in northern Illinois as well as across the country take steps toward a cleaner future,” said ComEd CEO Gil C. Quiniones. “Utilities like ComEd have a key role to play in this pursuit, and we will continue to work with partners at the federal, state and local levels as we modernize the grid and work collaboratively to ensure the transition to cleaner energy is an equitable one.”
Many of the programs funded by the IRA are administered with partners like ComEd, and programs are already available for customers to access the energy savings and environmental benefits. Here’s a look at some of the IRA programs that are currently available:
ENERGY EFFICIENCY UPGRADES
More than $8.5 billion is being allocated to support home energy upgrade projects, including new rebates for energy efficiency (EE) and home electrification programs. In Illinois, $264 million is expected over the next decade to help jumpstart upgrades that can increase customers’ EE, reduce emissions, and improve air quality for the surrounding community. Since 2008, ComEd’s award-winning EE portfolio has helped customers realize more than $7.65 billion in energy bill savings, and the IRA stands to help customers achieve even greater savings.
Customers pursuing home upgrade projects can apply for a 30% federal tax credit offering now available to help offset the cost and, in some cases the installation of, new, higher efficiency equipment, including:
- Heating and cooling: air-source heat pumps, heat pump water heaters and central air conditioners
- Home weatherization upgrades: insulation, air sealing, windows and skylights, exterior doors and home energy audits
Federal tax credits can be paired with ComEd heating and cooling and EE programs. Additional EE rebates are expected in the years ahead as state energy offices launch new programs authorized by the IRA. Many programs provide targeted funding for low-income households, helping remove barriers for more customers to pursue clean energy, home retrofits and zero-emissions transportation options, regardless of their ability to pay.
ELECTRIC VEHICLE ADOPTION
For customers who may be considering the switch to an electric vehicle (EV), the IRA provides new and expanded programs to incentivize the purchase of EVs and EV charging equipment. This includes a purchase tax credit of up to $7,500 for new EVs, and creates a new provision to incentivize purchase of used vehicles, with up to $4,000 for used EVs, with some exceptions.
ComEd’s EV Toolkit is an all-in-one customer resource designed to help customers plan their transition to EVs. Customers can click the “Savings & Benefits” tab to access currently available state and federal incentives; customers can search for specific makes/models to view available incentives for each vehicle. Several federal EV funding programs are available now through December 31, 2032.
SOLAR PANEL INSTALLATION
One of the most valuable incentives provided by the IRA is the extension of the 30% Residential Clean Energy credit (solar investment tax credit or ITC) for all solar projects installed from 2022 to the end of 2032, and it also applies to battery storage. Customers can find more on solar rebates and incentives on ComEd’s webpage, www.comed.com/Solar.
ComEd customers can view a full list of IRA-funded incentives and programs that are live now, or will soon be made available, by visiting the DOE Energy Savings Hub website, www.energy.gov/save