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The information provided on this site is for general informational purposes only and is not intended to be legal, financial, or tax advice.
Heat Pump Water Heater Incentive Details
Inflation Reduction Act Heat Pump Water Heater Rebate
The Inflation Reduction Act rebate for heat pump water heaters in Connecticut provides an upfront discount of up to $1,750, depending on income level.
For low-income households (under 80 percent of Area Median Income), the rebate covers 100 percent of the heat pump water heater costs, up to $1,750.
For moderate-income households (between 80 percent and 150 percent of Area Median Income), the rebate covers 50 percent of the costs, also up to $1,750.
The aim of the program is to promote the use of heat pump water heaters, which are more energy-efficient, cost-effective, and environmentally friendly compared to traditional systems, providing benefits such as dehumidified air and reduced mold.
The Inflation Reduction Act includes the 25C tax credit, allowing Connecticut residents to claim a 30% credit, capped at $2,000 per year, on the cost of purchasing and installing heat pump water heaters. The tax credit provided by 25C is applicable on an annual basis, meaning that homeowners can claim the credit each year for eligible projects. This provision allows homeowners to take advantage of the credit for multiple heat pump water heater installations or replacements over time.
In addition to the tax credit for heat pump water heaters, the 25C provision also offers a 30% tax credit of up to $600 for an electrical panel upgrade. However, this credit is only available if the electrical panel upgrade is performed in conjunction with another upgrade covered by 25C, such as a heat pump water heater installation. This means that homeowners may find it beneficial to complete both upgrades simultaneously in order to maximize their tax benefits.
Upgrading to a heat pump water heater in Connecticut offers several advantages for homeowners, including:
- Energy efficiency: Heat pump water heaters are 2-3 times more efficient than traditional water heaters, leading to significant savings on utility bills.
- Cost savings: The Electrification Rebates and tax credits available for heat pump water heaters can help offset the upfront cost of installation, making it a more affordable option for homeowners.
- Environmental benefits: Heat pump water heaters are better for the environment as they do not use fossil fuels and produce fewer greenhouse gas emissions. They also do not contribute to damaging methane leaks, which is a significant concern with gas water heaters.
- Improved technology: With the launch of the first 120-volt HPWHs, installation costs are lower, and there is more potential for future cost savings as more efficient models become available.
Overall, upgrading to a heat pump water heater offers homeowners in Connecticut a way to reduce their environmental impact, save money, and enjoy the benefits of advanced technology.
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Costs & Savings
$800 - $0
$3500 - $0
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The average initial cost of a heat pump water heater will depend on several factors, including the brand, model, size, and installation costs. According to the US Department of Energy, the initial cost of a heat pump water heater can range from $800 to $3,500 or more.
Calculating the exact lifetime savings of upgrading to a heat pump water heater will depend on various factors, including the current heating system, energy usage, and electricity rates. However, according to the Department of Energy, the average household can save around $350 per year by switching to a heat pump water heater. Assuming a conservative estimate of 10 years for the lifetime of a heat pump water heater, the average lifetime savings could be around $3,500. This amount could be higher or lower depending on individual circumstances, but it demonstrates the potential for long-term savings by upgrading to a heat pump water heater.
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A "Home Energy Solutions" Energy Audit is Your Best First Step.
Looking to maximize your Heat Pump Water Heater incentive/rebate and achieve optimal energy savings for your home? Look no further than a comprehensive Home Energy Solutions (H.E.S.) audit. By identifying areas of energy waste and recommending upgrades to enhance efficiency, a HES assessment is the logical first step in your energy savings journey. Plus, with the HES Score you receive, you'll be able to qualify for the best incentives available. Don't miss out on the opportunity to save energy and money - schedule your HES audit today and start your journey towards a more efficient home.
H.E.S. only costs you $50 out-of-pocket. It could be free-of charge if you qualify for Home Energy Solutions Income-Eligible (H.E.S.-IE).