In many cases, no! The IRA’s incentives are designed to increase access to clean technology. For households with lower incomes, up to 100% of appliance and installation costs are discounted at purchase, meaning you could install efficient electric appliances at no cost, with no spending.

Middle-income households do have to spend in order to access savings, but up to 50% of appliance and installation costs can be covered through upfront discounts, and you can use tax credits to cover some of the remaining gap. Highest-income households are not eligible for upfront discounts, so you will have to pay full price for appliances and installation — but tax credits on the back end could recoup up to 30% of your costs.

Yes! Many of the IRA’s upfront electrification rebates and electrification tax credits can be used by renters, but bigger upgrades will require buy-in from landlords. Renters are already eligible for the used and new EV tax credits. They can also subscribe to community solar — which will be cheaper because of the IRA’s supply-side renewable energy incentives. And we’re excited about renters being able to use IRA incentives for window-unit heat pumps (which should qualify for rebates and tax credits by 2025). Window-unit heat pumps — which are like an AC and heater in one — don’t require any infrastructure upgrades, and they’re portable, so renters can bring them to their next homes and don’t have to leave any savings behind. 

All IRA tax credits were available starting January 1, 2023, so save your receipts for filing season! If you installed rooftop solar in 2022, it is eligible for the new, 30% tax credit called “25D.” If you installed a heat pump in 2022, it may be eligible for the old “25C” tax credit: 10% of costs up to $300. The Electrification Rebates and Efficiency Rebates will likely not be retroactive.