Incentives and Costs
Expand each section to see amounts for different households.
You can combine Electrification Rebates with the tax credits for additional savings! Note that the rebates and 25C cover different weatherization upgrades.
Electrification Rebate
Save up to $1,600
Depending on income
The Electrification Rebates cover the following weatherization projects: insulation, air sealing, and ventilation. For low-income households (under 80 percent of Area Median Income), the Electrification Rebates cover 100 percent of your weatherization costs up to $1,600. For moderate-income households (between 80 percent and 150 percent of Area Median Income), the Electrification Rebates cover 50 percent of your weatherization costs up to $1,600. The rebates may be implemented differently in each state, so we cannot guarantee final amounts, eligibility, or timeline. And without additional appropriations from Congress, the rebate programs will end once their initial IRA funding is exhausted.
Total Electrification Rebates across all qualified electrification projects are capped at $14,000.
Tax Credit
30%
$1,200 maximum per year
25C covers the following weatherization projects: insulation, air sealing, doors and windows upgrades, and energy audits. 25C provides households a 30 percent tax credit for the projects, capped per year at the following amounts:
- Insulation and air sealing: $1,200
- Doors: $250 per door, $500 total
- Windows: $600
- Energy audits: $150
Unlike other 25C qualified projects and all other rebates and tax credits, 25C only covers purchase costs (not installation costs) for weatherization upgrades. The credit resets each tax year, effectively becoming available again for additional projects.
Total 25C tax credits across panel upgrades and all weatherization projects are capped at $1,200 per year. Heat pumps and heat pump water heaters are subject to a separate 25C cap of $2,000 per year.
All the details
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How does it work?
Weatherization refers to a series of steps you can take to reduce the amount of energy required to heat and cool your home. Weatherization may involve air sealing, insulation, door and window upgrades, and ventilation improvements.
The first step towards weatherization for most people is to get an energy audit — a service in which a trained professional comes to your house, performs tests, and identifies trouble areas in your home. Energy audits may be offered for little to no cost by your local electric utility.
How will it save me money?
Weatherization can save you hundreds of dollars a year by reducing energy waste.
Why is it better for the environment?
By reducing energy waste, weatherization also reduces your home’s carbon emissions.
Other benefits?
In addition to lowering your utility bills and carbon emissions, weatherization can make your home more comfortable by reducing drafts and temperature fluctuations. Weatherization can also keep you healthier by keeping pollutants and allergens out of your home.
Last but not least, weatherization can actually reduce the cost of a heat pump HVAC system. Because weatherization reduces the amount of wasted heat, a well-insulated and ventilated home can get by with a smaller, less expensive heat pump.
