Incentives and Costs
Expand each section to see amounts for different households.
You can combine Electrification Rebates with the tax credits for additional savings!
Electrification Rebate
Save up to $4,000
Depending on income
For low-income households (under 80 percent of Area Median Income), the Electrification Rebates cover 100 percent of your electrical panel costs up to $4,000. For moderate-income households (between 80 percent and 150 percent of Area Median Income), the Electrification Rebates cover 50 percent of your electrical panel costs up to $4,000. 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 discounts across all qualified electrification projects are capped at $14,000.
25C Tax Credit
30%
$600 maximum per year
25C provides households a 30 percent tax credit for an electrical panel upgrade, capped at $600 per year, if it’s upgraded in conjunction with another upgrade covered by 25C (like a heat pump or heat pump water heater). 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.
The tax credits for an electrical panel upgrade can only be claimed if the panel is upgraded in conjunction with another upgrade covered by 25C or 25D. In the case where both 25C and 25D are applicable for a panel upgrade (i.e., if you're upgrading your panel in conjunction with both a heat pump and rooftop solar), you cannot combine the two credits.
25D Tax Credit
30%
Of equipment and installation cost
25D likely provides households a 30 percent uncapped tax credit for an electrical panel upgrade if it’s upgraded in conjunction with rooftop solar.
The tax credits for an electrical panel upgrade can only be claimed if the panel is upgraded in conjunction with another upgrade covered by 25C or 25D. In the case where both 25C and 25D are applicable for a panel upgrade (i.e., if you're upgrading your panel in conjunction with both a heat pump and rooftop solar), you cannot combine the two credits.
