Rewiring America’s
Guide to the Inflation
Reduction Act
Everything you need to know to start
using your electric bank account
Go electric!
(Now)
GO ELECTRIC! REWIRING AMERICA
Introduction
What is the Inflation Reduction Act? 03
Why Electrify? 04
What it means for YOU 06
Key details + timelines
When this all goes into effect 05
Getting Rewiring Ready 06
Know your machines! What are all these things? 07
Know your incentives? What are all these things? 14
Case studies 15
FAQ 32
Your plan 33
Further information + contact us 34
Table of Contents
Go deeper with our Electrify everything in your home guide.
Visit RewiringAmerica.org to learn more
GO ELECTRIC! REWIRING AMERICA
The Inflation Reduction Act is the largest clean energy investment
America has ever made, with strategic incentives to make the transition
to clean energy and a decarbonized life easy and financially smart.
Its home energy offerings include up-front discounts, tax credits and
low-cost financing that together provide a substantial pot of money
for every household to electrify the machines they rely on — the
cars they drive, how they heat the air and water in their homes, cook
their food, dry their clothes and get their power — regardless of
income level.
Think of the IRA as a free electric bank account with your name on
it, because that’s what it is. It’s your own personal fund to help you
go electric — swapping out your old, fossil-fueled appliances for new,
clean electric ones — over the next ten years. We’ll call it the IRA —
which is confusingly like an Individual Retirement Account — but,
hey, you and the federal government are investing in you!
What is the Inflation Reduction Act?
And what does it mean for you?
Why go electric? There are three key reasons, all of
which will substantially improve your quality of life,
and that of the people around you.
Money money money money
Running electric appliances and driving EVs were already becoming cheaper than
fossil-fueled machines, but the IRA incentives make this financial choice even
more compelling by bringing down the up front costs of electric machines them-
selves. Households will save on average $1,800 a year by going electric. You’ll also
no longer be beholden to the volatility of oil (yo-yoing gas prices!). In the coming
years, electric appliances will become cheaper and cheaper to buy and run. For
low-income households, the IRA’s up-front discounts will unlock lower energy
bills year over year.
Home clean home
Going electric improves your home health and safety in a number of ways. We
know that burning gas in the home is akin to living with a smoker, and is a major
factor in childhood asthma. But beyond cleaner air, electric home heating and
cooking are more even and consistent, providing better thermal comfort, and
greater temperature control.
You’ve got the power
For too long, we’ve been told there’s not much we, as individuals, can do to fight the
climate crisis. And while it’s true that we need more systemic policy changes (hello
IRA), it’s also true that 42 percent of energy-related emissions come from our homes
and vehicles. Going electric is the equivalent of growing a victory garden — doing
your part to help build a resilient, climate-safe future. The bonus is that you control
your power — renewable energy that comes from your roof means you’re not be-
holden to foreign dictators and price volatility, and that you’re keeping money in your
community, supporting local businesses and helping onshore good-paying jobs.
What does it mean to electrify?
To electrify everything, you’ll need to replace any machine that currently
burns fossil fuels — your gas-powered car, furnace, water heater, kitchen
stove and dryer. You might also install some new electric machines, like
solar panels, a home storage battery and an upgraded electrical panel
and wiring. You don’t have to do this all at once — you can wait until
the next time your car or air conditioning needs to be replaced.
The IRA is a financing tool to help you convert your household to
run fully on electricity, backed by renewable energy. You can use
the IRA money over the next ten years to electrify at the pace
that works for you.
42% of
energy-related
emissions
come from
the home.
Burning gas in
the home is akin
to living with a
smoker.
Save on average
$1800 a year by
going electric!
GO ELECTRIC! REWIRING AMERICA
GO ELECTRIC! REWIRING AMERICA
Electrify now!
Some incentives are available
right now, and others will start
in 2023. You can check out our
calculator to see which incentives
are available to you, and when you
can start accessing them. And
these are just federal incentive
programs — you might have state
and local incentives available
now, too.
Who gets the money? Everyone!
Your IRA electric bank account
is a mixture of up-front discounts
right when you buy electric
appliances, tax credits you
can claim later, and low-cost
financing. Your income deter-
mines the particular makeup
of your bank account.
Show me the money!
Use our calculator to get an
overview of the money available
to you, and start thinking about
your plan. There are provisions of
all kinds, for every kind of house-
hold. In the following pages, we’ll
highlight key incentives for spe-
cific groups. We’ll also show you
some samples of households that
might be like yours, so you can
get a sense of what your electrifi-
cation journey might look like.
Key things to know / Timelines
The cheat sheet
Switching to electric appliances: The IRA offers households up to $14,000 in up-front discounts
to switch over to electric appliances — covering up to 100 percent of project costs for low-income
households and up to 50 percent of costs for moderate-income households. For remaining costs and
for households who don’t qualify for the up-front discounts, the IRA includes major tax credits for
electrification and energy efficiency upgrades. Low-cost financing — which will bring down the month-
ly, financed costs of electric machines — will also become widely available in the months ahead.
Purchasing electric vehicles: The IRA offers up to $7,500 toward the purchase of a new electric
vehicle and up to $4,000 toward the purchase of a used electric vehicle. Starting in 2024, these
incentives can be accessed as up-front discounts.
Installing rooftop solar and home storage: The IRA provides 30 percent off the cost of rooftop
solar, home batteries and geothermal systems.
Making major investments in affordable housing and multifamily rental units. While it may not
be consumer-facing, the IRA includes significant funding for rental housing to go electric, cut costs,
and increase safety and resiliency.
Jolt into action
A quick overview to get you going
Read our case study (page 24)
to see how a couple of low-
income renters will be able to
install portable, window-unit
heat pumps for free!
Is your
household
income low
or moderate?
Is your household
income too high
to qualify for up-front
discounts?
Are you
a renter?
The IRA targets the most mon-
ey to low- and moderate-income
households who can least afford
to upgrade to electric, yet stand
to benefit the most from the lower
operating costs.
“Low income” or “moderate income”
is relative to where you live and
how big your family is. Compared
to the “Area Median Income” (AMI)
for your region, any household
making less than 80 percent of
AMI is considered low income, and
any household making between 80
percent and 150 percent of AMI is
considered moderate income.
Low- and moderate-income families
are eligible for up-front discounts
that can pay for lots of electrification
upgrades! Low-income families will
have 100 percent of their electrifica-
tion costs covered up to $14,000, and
moderate-income families will have
50 percent of their costs covered (but
they can pair the discounts with tax
credits for additional savings).
If your household income is over
150 percent of your Area Medi-
an Income, you won’t qualify for
the IRA’s up-front electrification
discounts. In the Denver suburbs,
that might mean an income over
$160,000 for a family of four…
or in Lancaster, Pennsylvania,
an income over $100,000 for
a household of two.
Instead, these folks can take ad-
vantage of the IRA’s electrification
tax credits, which will reduce final
costs by up to 30 percent!
Low-cost financing — which will
bring down the monthly, financed
costs of electric machines — will
also become widely available in
the months ahead.
Most households will qualify for
the new EV tax credit, too, though
some very high-income households
won’t. Very expensive cars also
won’t qualify. So, if you have your
eyes on a future electric Ferrari,
you’re on your own for that one.
The IRA’s up-front electrification
discounts and electrification tax
credits can all be used by renters!
Renters are also eligible for the
used and new EV tax credits.
Many electrification upgrades
(including window-unit heat
pumps, induction cooktops /
stoves, and heat pump clothes
dryers) are portable, so renters
can bring them to their next
homes and won’t have to leave
any savings behind.
Renters can also switch to fully
renewable electricity from their
utility or subscribe to community
solar — which will be cheaper
because of the IRA’s renewable
energy supply incentives.
And although they’re not exactly
consumer-facing, the IRA includes
multiple provisions that will
benefit renters by incentivizing
energy retrofits in apartment
buildings.
Read our case study (page 18)
to see how a low-income family
will pay almost nothing to
electrify their home.
Read our case study (page 20)
to see how a moderate-income
family will electrify their
home for half-off and use
tax credits to recoup some
of the remaining cost.
Read our case study (page 28)
to see how a high-income
family will electrify their home
by taking full advantage of
the 30 percent tax credits.
Check out our IRA calculator to see which
incentives your household qualifies for.
GO ELECTRIC! REWIRING AMERICA
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What’s a [BLANK]?
Equipment Description
A heat pump is a single electric appliance that can
replace both your traditional air conditioner and home
heating system (like a furnace or boiler).
At the simplest level, heat pumps use electricity to
move heat from one place to another. In cooling mode,
a heat pump acts like an air conditioner, moving the
heat from inside your home to the outside. In heating
mode, heat pumps go into reverse-mode and pump
heat from the air outside your home to the inside.
That might seem a bit counterintuitive. After all, how
can something move heat from the outside air when it’s
20 degrees outside? But heat is just energy, and there’s
energy in the air all the way down to absolute zero,
which is -465°F. Heat pumps designed for cold cli-
mates can keep your home warm — without a backup
heating source — even when outside temperatures are
below -20°F.
Heat pumps come in two main forms: ducted and
ductless. Ducted heat pumps use your home’s existing
ductwork (or new ducts if needed) to disperse heated
or cooled air throughout your home. Ductless (or “mini-
split”) heat pumps are easier to install where there is no
existing ductwork. Ductless heat pump heads are usually
mounted high on the wall, and each one serves one room
or area of your home. There are also window-unit heat
pumps, which are an especially good option for renters.
How will it save me money?
Heat pumps are 3-5 times more efficient than most
current fossil fuel heating systems. This is because it
takes less energy to move heat around than to produce
it. In a natural gas furnace, the heat must first be pro-
duced by burning gas and then additional energy must
be used to distribute it around your house. With a heat
pump, the heat energy itself is taken for free from the
air outside, so energy is only needed to transport that
heat indoors and then distribute it around your house.
As a result, heat pumps are often far less expensive
to run than other heating systems, which translates to
hundreds of dollars per year in savings for an average
household. And these dollar savings are increased when
fossil fuel prices rise — as they have in recent months.
Why is it better for the environment?
Heat pumps don’t burn fossil fuels — they’re electric!
When paired with clean electricity sources like rooftop
or community solar, heat pumps warm your home
without warming the planet. Even if your electricity
supply isn’t 100% clean today, heat pumps are still
more climate friendly than other heating systems
because they use so much less total energy. And as the
grid gets cleaner, their emissions will continue to fall.
Even under conservative modeling assumptions, 98%
of U.S. households would cut their carbon emissions
by installing heat pumps today.
Because they are not connected to the gas grid, heat
pumps also do not contribute damaging methane leaks
into the atmosphere. Your gas furnace (and the gas lines
connected to your house) are the source of ongoing
emissions of unburned methane gas, which has many
times the global warming effect of carbon dioxide.
Heat pumps do use small amounts of refrigerants that
can sometimes leak into the atmosphere and contribute
to climate change. However, the United States is moving
with other countries to adopt strong standards that
require the use of new, climate-friendly refrigerants.
Heat Pump
And everything else you need to know about electric appliances
GO ELECTRIC! REWIRING AMERICA
Equipment Description
Heat pump water heaters (HPWHs) are similar to heat
pumps for space heating, except they produce hot
water instead of hot air. In other words, HPWHs use
electricity to pull heat from the surrounding air and
transfer it into a hot water tank. Like heat pumps,
HPWHs transfer heat instead of creating it, leading to
efficiency gains, utility bill savings, and greenhouse gas
reductions.
How will it save me money?
HPWHs transfer heat instead of creating it, and they
don’t combust fossil fuels. As a result, they are 2-3
times more efficient than most current hot water sys-
tems. These efficiency gains translate to hundreds of
dollars per year in savings for an average household.
This year, Rheem launched the first 120-volt HPWH.
Because they plug into a wall outlet and don’t require
any special wiring, 120-volt HPWHs will have lower
installation costs and further increase household
savings. We expect more 120-volt HPWHs to become
available soon.
Why is it better for the environment?
HPWHs don’t combust fossil fuels! When paired with
clean electricity sources like rooftop or community
solar, HPWHs warm your water without warming the
planet. Even without clean electricity, HPWHs are more
climate friendly than other water heating systems
because they use so much less total energy.
Because they are not connected to the gas grid, heat
pumps also do not contribute damaging methane
leaks into the atmosphere. Gas water heaters (and the
gas lines connected to your house) are the source of
ongoing emissions of unburned methane gas, which
has many times the global warming effect of carbon
dioxide.
And like other heat pumps, HPWHs will become even
better for the environment as the grid becomes cleaner
and manufacturers switch to new refrigerants.
Equipment Description
Heat pump clothes dryers use heat pump technology
to transfer hot air from outside the dryer to inside. This
hot air flows through the dryer drum, sucking moisture
out of your clothes. Rather than releasing the humid air
through a dryer vent to the exterior of your home like a
conventional dryer, a heat pump dryer sends it through
an evaporator to remove the moisture and then reuses
the warm air to continue drying your clothes.
How will it save me money?
Like heat pumps for space and water heating, heat
pump clothes dryers are more efficient than their
traditional counterparts, which translates to utility
bill savings.
Why is it better for the environment?
Heat pump clothes dryers don’t combust fossil fuels!
When paired with clean electricity sources like rooftop
or community solar, HPWHs dry your clothes without
warming the planet. Even without clean electricity,
heat pump clothes dryers are more climate friendly
than other clothes dryers because they use so much
less total energy. And like heat pumps, heat pump
clothes dryers will become even better for the environ-
ment as the grid becomes cleaner and manufacturers
switch to new refrigerants.
Heat Pump
Water Heater
Heat Pump
Clothes Dryer
GO ELECTRIC! REWIRING AMERICA
Equipment Description
The term “electric stove” (or “range” or “cooktop”)
includes both traditional electric resistance stoves and
modern electric induction stoves. These technologies
are quite different, but what matters is that neither
burns methane gas inside your home to create heat.
Traditional electric resistance stoves — often with
metal coil burners — have been sold for decades, and
are what you probably think of when you hear “electric
stove.” They operate much like your toaster in that the
burner gets hot as electricity passes through a resis-
tance element.
Modern electric induction stoves operate quite dif-
ferently; energy is transferred directly to the cooking
pan through a magnetic field. As a result, the cooktop
surface doesn’t get very hot, so there’s less chance of
getting burned. They heat super-fast and can be
accurately controlled — so not only are induction
stoves better for the environment than gas stoves,
but they work better, too.
How will it save me money?
Induction stoves are more efficient than both gas and
electric resistance stoves, and are somewhat cheaper
to operate. Because you only use your stove for a few
minutes a day, your energy bill savings won’t add up to
much every month — but then again, you can’t put a
price on the joy of watching a pot of water boil in less
than half the time!
Why is it better for the environment?
Neither induction nor electric resistance stoves burn
fossil fuels. They also don’t require gas hookups, which
often leak methane — a potent greenhouse gas. In fact,
recent studies have shown that methane leaking from
gas-burning stoves installed in U.S. homes, even when
they are turned off, has the same negative impact on
the environment as the carbon dioxide emitted from
around 500,000 gasoline-powered vehicles.
Equipment Description
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.
Electric Stove /
Induction Stove
Weatherization
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Equipment Description
Your home gets its electricity from the electric grid,
and it is distributed to different circuits through your
home’s electrical panel — sometimes called the break-
er box, load center, or distribution center. You can think
of electricity coming into your home like water flowing
through a pipe, with the flow of electricity measured
in Amperes or Amps. Older homes might have panels
that can handle a maximum of 60 or 100 Amps (60A or
100A), while newer homes are often set up to handle
200A or more. Depending on the size of your home and
your electrical needs, it may be possible to electrify
everything with 100A, but you may need an upgrade.
In any case, electric panels are critical enabling
equipment for whole-home electrification.
Upgrading to a larger electrical panel will often require
a utility service upgrade. That’s why tech companies
are getting creative with tools like “smart panels,”
which use software to support a fully electrified home
without requiring a utility service upgrade. The best
option for your home — a smart panel or a 200A panel
upgrade — will depend on your home, electrification
plan, and household characteristics.
How will it save me money?
Upgraded electrical panels themselves won’t save you
money, but they will enable other upgrades — like heat
pumps and electric vehicles — that will save you money!
Why is it better for the environment?
Same deal as above. Upgraded electrical panels
themselves aren’t better for the environment, but
they will enable other upgrades — like heat pumps
and electric vehicles — that are!
Equipment Description
Along with your electrical panel, electrical wiring is a
critical enabling step for whole-home electrification.
While some electric appliances — including 120V heat
pump water heaters and 120V window-unit heat pumps
— can plug into a normal outlet, many others require
240V outlets. This is especially important for EV
chargers, induction stoves, and most heat pumps
and heat pump water heaters.
If you’re upgrading your panel, or hiring an electrician
for one electrification project in your home, that’s a
great time to install additional dedicated circuits and
outlets for appliances you might want to electrify in
the future. Then when your next fossil fuel appliance
needs to be replaced, the circuit and wiring will be
ready to go and you will save substantial money and
time because you won’t need to hire the electrician
a second time.
How will it save me money?
Upgraded wiring itself won’t save you money, but it will
enable other upgrades — like heat pumps and electric
vehicles — that will save you money!
Why is it better for the environment?
Same deal as above. Upgraded wiring itself isn’t better
for the environment, but it will enable other upgrades
— like heat pumps and electric vehicles — that are!
Electrical
Panel
Electrical
Wiring
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Equipment Description
Rooftop solar uses solar photovoltaic (PV) panels to turn
sunlight into electricity. PV panels can be installed on
your roof or even in your yard. When sunlight shines onto
a PV panel — even on a cloudy day — your solar system
will generate clean, renewable energy.
Rooftop solar provides zero-carbon, no-cost electric-
ity once it’s installed and paid for. Depending on your
situation, it might make sense to buy your rooftop solar
outright or finance your purchase over a number of years.
How will it save me money?
Depending on how it’s purchased or financed, rooftop
solar can save you hundreds of dollars a year. That’s
because the electricity produced by rooftop solar is
completely free! As you electrify your home and your
electricity needs grow, rooftop solar may deliver even
bier savings.
Why is it better for the environment?
Rooftop solar produces no carbon emissions! In many
cases, this carbon-free electricity will flow back into
the utility grid, where it will directly decrease the
amount of fossil fuels burned by your utility company.
Rooftop
Solar
Equipment Description
A battery storage system lets you store energy from
the power grid or from rooftop solar. Battery storage
systems are most effective when paired with rooftop
solar, because the pairing enables households to store
no-cost solar electricity generated during the day for
use around the clock.
You can use a home battery to power any electric
appliance in your home, so its benefits are maximized
when more of your appliances are electric!
How will it save me money?
A battery storage system lets you store excess solar
energy generated during the day. You can use this
low-cost excess energy during peak hours, when grid
electricity is most expensive, which reduces your
electricity bill.
As more utilities roll out “time-of-use” rates and de-
mand-response programs, home batteries will enable
customers to take full advantage of available incentives.
Why is it better for the environment?
Battery storage systems reduce your carbon emissions
by enabling you to use zero-emission solar energy all
day long.
Battery
Storage
GO ELECTRIC! REWIRING AMERICA
Equipment Description
Electric vehicles are either partially or fully powered by
electricity. Fully electric vehicles (EVs) have a battery
instead of a gasoline tank, and an electric motor instead
of an internal combustion engine. Plug-in hybrid elec-
tric vehicles (PHEVs) are a combination of gasoline and
electric vehicles, so they have a battery, an electric mo-
tor, a gasoline tank, and an internal combustion engine.
Most EVs on the market today have a range of more
than 200 miles on a single charge, which means most
people can satisfy all of their daily driving needs by
charging their EV overnight at home. Most EVs can be
charged with a standard 120 V outlet. To charge the ve-
hicle more quickly, you may want to install a dedicated
“Level 2” charging system. If you live in an apartment
or condo complex, your building may offer charging
services, and if you live in a city there could soon be a
charger on every utility pole in your neighborhood. You
may also be able to plug in at your workplace, or at one
of the growing numbers of public charging stations.
How will it save me money?
Electric vehicles are much cheaper to operate than
gas-powered vehicles. As gas prices get higher and
more volatile, electric cars are now three to six times
cheaper to drive than gas vehicles, which translates to
hundreds of dollars a year in savings. EVs also typically
cost half as much to maintain because they have fewer
moving parts and don’t require oil changes.
Why is it better for the environment?
EVs produce no tailpipe emissions! And when paired
with clean electricity sources like rooftop or communi-
ty solar, electric vehicles don’t produce any emissions
while charging, either. Even without clean electricity,
EVs are more climate friendly than gas vehicles
because they are so much more efficient.
Electric
Vehicles
Equipment Description
Geothermal or ‘ground-source’ heat pumps function
much like every other type of heat pump, by capturing
and moving heat between indoors and out. The primary
difference is that geothermal systems transfer heat
with the earth, through long loops of liquid-filled pipe
buried in the ground.
Because the earth even a few feet underneath our feet
remains at a stable temperature all year long, geother-
mal heating doesn’t have to do much work to extract
and disperse heat. As a result, geothermal heating
can be even more efficient than air source heat pumps.
How will it save me money?
Like air source heat pumps, geothermal heating
transfers heat instead of creating it, and it doesn’t
burn fossil fuels. As a result, it is 3-5 times more
efficient than most current heating systems. These
efficiency gains translate to hundreds of dollars
per year in savings for an average household.
Why is it better for the environment?
Geothermal heating doesn’t burn fossil fuels! When
paired with clean electricity sources like rooftop or
community solar, geothermal warms your home with-
out warming the planet. Even without clean electricity,
geothermal is more climate friendly than other heating
systems because it uses so much less total energy.
And like air source heat pumps, geothermal will
become even better for the environment as the grid
becomes cleaner and manufacturers switch to new
refrigerants.
Geothermal
Heating
GO ELECTRIC! REWIRING AMERICA
Equipment Description
An EV charger pulls electricity from your home and
delivers it to an electric vehicle, just like any other
appliance or device you charge by pluing into the
wall. Most residential EV chargers will be “Level 2,”
meaning that they pull electricity from a 240V outlet
and can fully charge your electric vehicle overnight.
“Level 3” chargers, most often found in public locations
and along highways, can charge your EV in as little as
20 minutes.
How will it save me money?
EV chargers themselves won’t save you money, but they
will enable you to use electric vehicles, which can save
you hundreds of dollars a year!
Why is it better for the environment?
Same deal as above. EV chargers themselves aren’t
better for the environment, but they will enable you to
use electric vehicles, which are much better for the
environment!
Equipment Description
A community solar project is a large, central solar
power plant, whose electricity is shared by more than a
single property. Community solar is also often referred
to as roofless solar, solar gardens, or shared solar.
Since you don’t need to have a suitable rooftop for
solar to participate in a community solar project, it’s a
great option for renters and people who live in shared
housing. By purchasing a share of or subscribing to a
community solar project, everybody can benefit from
solar while paying less for electricity.
Community solar projects and programs are typical-
ly offered in two formats. In the “ownership model,”
participants purchase a portion of a community solar
project. When you buy into a community solar project,
you’ll get electric bill credits/savings from all of the
power produced by the solar panels you own —
almost as if they were on your roof. In the “subscription
model,” participants subscribe to a solar farm owned
by a developer. When you subscribe to a community
solar project, you usually start paying a lower price
for your electricity.
How will it save me money?
Zero-carbon electricity is simply cheaper than electric-
ity generated by fossil fuels. As a result, community
solar participants often save between 5 to 15 percent
of their typical electricity bills.
Why is it better for the environment?
Community solar produces no carbon emissions!
In most cases, this carbon-free electricity will flow
into the utility grid, where it will directly decrease
the amount of fossil fuels burned by your utility
company.
EV
Charger
Community
Solar
GO ELECTRIC! REWIRING AMERICA
What’s a HEEHRA?
For more information about specific electrification incentives, their eligibility
requirements, and which provisions you might qualify for, check out our calculator.
But since we mention some incentives by their wonky legislative names, here’s
a little information about each of them:
High-Efficiency Electrification
Rebates (HEEHRA)
HEEHRA provides up-front discounts
up to $14,000 to enable low- and
moderate-income households to
electrify their homes. These point-
of-sale rebates are immediate, off-
the-top discounts when making
qualifying electrification purchas-
es. HEEHRA covers 100 percent of
electrification project costs (both the
appliance and labor) for low-income
households and 50 percent of costs
for moderate-income households.
Note that HEEHRA rebates only
apply if you’re replacing a non-electric
appliance (i.e., replacing an oil boiler
with a heat pump or replacing a gas
stove with an electric one). Unfortu-
nately, this means that households
with inefficient electric resistance
heating cannot receive HEEHRA
rebates for a heat pump. However,
households with electric resistance
heating are prime candidates for the
Whole Home Energy Reduction Rebate
Program, which is also featured on
our calculator.
25C Energy Efficient Home
Improvement Tax Credit
25C is a capped 30 percent tax credit
for residential efficiency and elec-
trification upgrades, including heat
pumps and heat pump water heaters.
25D Clean Energy Tax Credit
25D is an uncapped 30 percent tax
credit for residential renewable
energy installations, including rooftop
solar, battery storage, geothermal
heat pumps and some community
solar ownership models.
25E Used EV Tax Credit
25E is a 30 percent tax credit up to
$4,000 for used electric vehicles,
dependent on MSRP and income
limits. Starting in 2024, this credit
can be transferred to dealerships in
exchange for a point-of-sale discount
right off the top.
30D New EV Tax Credit
30D is a $7,500 tax credit for used
electric vehicles, dependent on MSRP
and income limits. Starting in 2023,
the credit will also be subject to
geographic manufacturing require-
ments that may initially restrict the
list of eligible models. Starting in 2024,
this credit can be transferred to deal-
erships in exchange for a point-of-sale
discount right off the top.
30C EV Charging Tax Credit
30C is a capped 30 percent tax credit
for installing home electric vehicle
chargers. Starting in 2023, the credit
will be limited to households in low-
income or rural communities.
A quick overview of every household electrification
incentive available and what all those letters mean
Electric
inspiration
Note: These case studies are our best guesses, not our guarantees. While we’ve tried to use realistic cost estimates, your actual costs will likely
vary. These case studies are intended to offer examples of how to take advantage of and maximize the incentives, spur conversation around
what’s possible, and help you start imagining what your own household electrification plan might look like. Also note: These case studies refer
only to the IRA’s incentives, not to state, local and utility incentives. Many consumers will be able to access additional incentives that will further
drive down costs. Also also note: For these case studies, we assume that the IRA’s incentives remain fully funded by Congress and structurally
unchanged over the next 10 years. We also assume that if a family is eligible for up-front electrification discounts in 2023, they stay eligible for
the rest of their electrification journey.
Case studies to help you build your own electric plan
The IRA lets you create the electrification plan that’s right for you.
You have ten years to access these benefits, but the earlier you start,
the more you save, so it’s important to create a plan and charge
forward on your electric journey. Looking at different households
across the country, we see that there are great options for everyone.
CASE STUDIES
GO ELECTRIC! REWIRING AMERICA
GO ELECTRIC! REWIRING AMERICA
Their story
The Colemans are a family of four
in Cleveland, Ohio. They own a
1,300-square-foot, 3-bedroom home
built in 1966, and heat it with natural
gas. They have an annual household
income of $128,000, which is just
under 80 percent of their Area Median
Income (AMI). As a result, they qualify
for up-front discounts that can cover
100 percent of their electrification
costs up to $14,000.
The Coleman family has two main
reasons for electrifying: cost savings
and emissions reductions. Because the
IRA will almost completely cover their
costs up-front, they can accomplish
both goals at once! All in, the Cole-
mans will electrify their home for $875,
plus $10,000 for an electric vehicle
(which they would have spent to replace
their car anyway). Each electrification
upgrade will reduce the family’s energy
costs (the heat pump, heat pump water
heater and electric vehicle together will
save them over $1,500 each year),
so the upgrades will pay for themselves
both in terms of cost savings and
improved quality of life.
Money and time
The Coleman family knows that they
could utilize the $14,000 of electrifi-
cation discounts all at once, but they
plan to spread the upgrades over the
next ten years to make it easier. They’ll
start by switching their utility plan to
a renewable electricity option (for no
additional cost), which will matter
even more as they convert to electric
appliances. The Colemans would like
to subscribe to community solar, but
Ohio law doesn’t yet allow it.
First, the stove
The first thing the Colemans will elec-
trify is their old gas range (for no cost!).
Ever since the hood stopped working a
few years ago, they’ve worried about
the impact of particulate pollution on
their kids — and recent studies have
The Colemans care
about cost and climate
Household Profile: Size: 4 people; Income: $128,000;
AMI: Under 80 percent; Location: Cleveland, OH
With a modest income, this family in
Cleveland can realize their electric
dreams
They qualify
for up-front
discounts that
can cover
100% of their
electrification
costs...”
CASE STUDY #1
GO ELECTRIC! REWIRING AMERICA
confirmed that burning gas in your
kitchen raises the odds of childhood
asthma. While the Colemans are up-
grading their stove, they’ll also lay the
groundwork for future electrification
by rewiring their home (also at no cost!).
The Colemans considered upgrading
their electrical panel, too, but they
decided not to because they already
have a 100A panel, which is enough
in their case for them to fully electrify.
As their old appliances die
Upgrades will then proceed roughly
in line with their current appliances’
useful lives — an electric heat pump
water heater to replace their aging
propane water heater, then a heat pump
to replace both their central AC and
propane furnace when either one dies
and finally a heat pump clothes dryer
to replace their unreliable propane
dryer. Each appliance upgrade is cov-
ered by the IRA’s up-front electrification
discounts, with the heat pump and heat
pump clothes dryer fully paid for. The
cost of the heat pump water heater
exceeds the value of its discount, so
it will cost $875 after the Colemans
claim a tax credit against the remaining
cost. They’ll also use an up-front
discount to weatherize their home
for no cost. By sealing air leaks and
adding some insulation, the Colemans
will finally get rid of pesky drafts and
ensure that their home is as efficient
as possible.
The EV market speeds up
Toward the end of the decade, the
Colemans plan to replace their gasoline
engine car. By that time, there will be
a growing used car market for EVs,
with prices falling across the board.
The Colemans can transfer their
used EV tax credit to the dealership
in exchange for an up-front discount
on a used EV, which will end up costing
them $10,000. It’s a sizable purchase,
but one they would have needed to
make anyway. The Coleman family also
qualifies for a tax credit to install a
Level 2 EV charger in their garage, but
they decide to hold off on that expense.
For now, they’ll primarily charge the
car at work and around town.
They’ll also
lay the
groundwork
for future
electrification
by rewiring
their home
(also at no
cost!).”
The Electric End
The Coleman family’s electrification journey is complete! In the back of
their minds, they’re wondering about solar power — they might consider
rooftop solar and battery storage if the costs drop enough, or community
solar if Ohio allows it. For now, though, they’re saving money, breathing
cleaner air and enjoying their high-tech electric appliances.
CASE STUDY #1
GO ELECTRIC! REWIRING AMERICA
2022
2023
2024
Dirty electricity
Propane Range
—
—
Tank propane
water heater
Clean electricity
Weatherization
Electric range
Electric wiring
Heat pump
water heater
$749
$0
$1,500
$3,000
$1,600
-$375
(25C)
$875
$0
$0
$0
$0
30% Tax
credit
Final
cost
Est. cost,
installed
Propane Furnace
Window AC unit
Ducted mini-
split heat pump
$7,500
$0
2025
-$1,750
(HEEHRA)
-$1,600
(HEEHRA)
Replacing Buying
Up-front
discount
-$7,500
(HEEHRA)
-$749
(HEEHRA)
-$1,500
(HEEHRA)
2027
Gasoline car
Used EV
$14,000
$10,000
-$4,000
(25E)
2027
Cap gas line!
-$160/
year
Propane clothes
dryer
Heat pump
clothes dryer
$798
$0
-$798
(HEEHRA)
CASE STUDY #1
The Colemans go electric
Upgrades considered but not currently planned:
TOTAL AFTER TEN YEARS
-$17,897 -$375 $10,075
100A electric panel
—
—
—
200A electrical
panel
EV charger
Rooftop solar
Battery storage
$2,000
$1,000
$19,000
$16,000
$0
$700
$13,300
$11,200
-$2000
(HEEHRA)
-$5,700
(25D)
-$300
(30C)
-$4,800
(25D)
$27,147
$29,147
GO ELECTRIC! REWIRING AMERICA
6
Clean electricity: $0
Switch to clean,
renewable electricity
for the same price as
dirty electricity.
2022
Electric range & wiring upgrades: $0
Replace 20-year-old propane gas range
with an electric range. Install three new
240-volt outlets for the electric range,
HPWH and heat pump clothes dryer.
2023
Water heater: $875
Replace 12-year-old
propane water heater
with 240-volt hybrid heat
pump water heater with
resistance backup
2024
1
Weatherization
& heat pump: $0
Replace 13-year-old
propane furnace and
three aging window
air conditioners with a
ducted mini-split heat
pump. Weatherize home
by sealing air leaks and
adding insulation.
2025
Used EV: $10,000
Replace 17-year-old
gasoline car with a used
EV. For now, rely on
workplace EV charging
to avoid the cost of an
at-home fast charger.
2026
Heat pump clothes dryer: $0
Replace propane clothes dryer
with a heat pump clothes dryer.
Cap gas line!: -$160 a year:
No more gas appliances, no
more gas fees.
2027
2
3
4
5
Household Profile:
Size: 4 people; Income: $128,000; AMI: Under 80%; Location: Cleveland, OH
CASE STUDY #1
GO ELECTRIC! REWIRING AMERICA
Their story
The Garcias are a family of three in
Sacramento, California. They own a
1,600-square-foot, 4-bedroom home built
in 1972, and heat it with natural gas. The
family has an annual household income
of $136,000, which is just under 150
percent of the Area Median Income (AMI)
where they live. As a result, they qualify
for up-front discounts that can cover 50
percent of their electrification costs up
to $14,000.
The Garcias just had a baby, and they
care deeply about the climate crisis. They
know that electrification will cost mon-
ey, but they believe it’s the right thing to
do: for the planet, for their child and for
their home resale value. The Garcias will
try to time their electrification upgrades
with their current appliances’ natural
life spans to minimize added costs.
Nothing’s going to be replaced early,
but when things do need to be replaced,
the appliances will be electric. All in all,
the Garcias will electrify their home for
$9,490, plus $13,000 for an electric
vehicle (which they would have spent
on a car anyway) and $13,300 for roof-
top solar (which will be reflected in their
home value). Each electrification upgrade
will reduce the family’s energy costs —
the heat pump, heat pump water heat-
er, EV and solar will save them almost
$2,400 each year — so the investments
will quickly pay dividends.
Driving toward electrification
The first thing the Garcias plan to
electrify is their car. Both parents regu-
larly commute for work and take longer
trips on the weekends to visit family in
the Bay Area, and they’ve recently been
slammed by sky-high gas prices. Since
they’ll need to replace their old gas
clunker soon anyway, the Garcias will
opt for a used EV. After tax credits, a
used EV and an at-home Level 2 charger
cost $13,840, which they’ll finance. And
while they have an electrician installing
the EV charger, the Garcias will lay the
groundwork for future electrification by
The Garcias want
a beautiful future
for their child
Household Profile: Size: 3 people; Income: $130,000;
AMI: Under 150%; Location: Sacramento, CA
They can do their part for the
climate crisis, and save money
Nothing’s going
to be replaced
early, but when
things do need
to be replaced,
the appliances
will be electric.”
CASE STUDY #2
GO ELECTRIC! REWIRING AMERICA
rewiring their home and upgrading their
electrical panel to 200 Amps. After the
up-front discount and tax credits, the
rewiring and panel upgrade cost $1,950.
Fossil-free Independence, retire early
The Garcias are willing to break their
end-of-life replacement rule for one
appliance: their gas stove. Since they
read recent studies about the harmful
air quality effects of gas stoves on small
children, they’ve been using an inex-
pensive portable induction burner and
a toaster oven for most of their cooking.
But the Garcias want a more permanent
solution, so they’ll install an induction
stove, which costs $650 after the up-
front discount. As a safety bonus, they
won’t have to worry about open flames
and hot burners as their child grows.
Weatherization and wildfires
A few years later, the Garcias will be
ready to weatherize the house and
replace their old AC, gas furnace and
water heater. By weatherizing their
home first, the Garcias will be able
to purchase a smaller, less expensive
heat pump because they won’t have
to overcompensate for leaks and bad
insulation. They’ll also improve their
indoor air quality, which is especially
important when wildfire smoke is present.
Together, the weatherization, heat pump
and heat pump water heater will cost
$6,050 after up-front discounts and tax
credits. Since the Garcias already have
an electric clothes dryer, their home is
now gas-free and they can contact their
gas utility to permanently disconnect
the gas service line from their home!
By the end of the decade, rooftop solar
costs will have dropped enough that the
Garcias will finance the purchase. They
know that it’s a big cost ($13,300 after
the tax credit), but they also know that
rooftop solar will maximize the savings
potential of their electric appliances. In
fact, because electricity is so expensive
in California, rooftop solar could save the
Garcias and their fully electrified home
$1,000 a year! In doing so, their solar
will soon pay for itself, as well as add
significant value to the home. They’re
not planning to get battery storage at the
moment, but they’ll see how much costs
fall in the coming years.
...they also know
that rooftop solar
will maximize the
savings potential
of their electric
appliances.”
The Electric End
The Garcia family’s electrification journey is complete for now! They still
wonder about adding a home battery to their rooftop solar to maximize
their ability to use the electricity their solar system generates and to keep
electricity flowing when the power’s out, but they’re content with their
decisions. The Garcias’ investments will pay off, and their child will grow
up in a healthy home.
CASE STUDY #2
GO ELECTRIC! REWIRING AMERICA
2023
2024
Gasoline car
—
—
Gas furnace
—
Central AC
Tankless gas
water heater
60A electric panel
Used EV
EV charger
Electric wiring
200A electric panel
$17,000
$1,200
$2,500
$2,000
$1,300
$1,600
$12,000
$3,000
$700
$650
$800
$4,200
$1,050
$13,000
$840
$1,250
30% Tax
credit
1
Final
cost
Est. cost,
installed
Gas range Induction range
Central heat pump
Heat pump
water heater
Weatherization
2026
2027
-$1,000
(HEEHRA)
-$650
(HEEHRA)
-$800
(HEEHRA)
-$6,000
(HEEHRA)
-$1,500
(HEEHRA)
Replacing Buying
Up-front
discount
-$4,000
(25E)
2
-$1,250
(HEEHRA)
-$360
(30C)
-$300
(25C)
-$1,800
(25C)
-$450
(25C)
CASE STUDY #2
The Garcias go electric
1
The 30 percent tax credit hits a $4,000 cap for the used EV purchase.
2
Starting in 2024, the used EV tax credit can become an up-front discount. But the Garcias
didn’t want to wait till then, so they’ll recoup the $4,000 as an end-of-year tax credit.
— Rooftop solar
$19,000
$13,300
2028
-$5,700
(25D)
Upgrades considered but not currently planned:
—
Battery storage
$16,000 $11,200
TOTAL AFTER TEN YEARS
-$11,200 -$12,610 $34,990$59,600
-$4.800
(25D)
2027
Cap gas line!
-$160/
year
GO ELECTRIC! REWIRING AMERICA
Used EV, EV charger, and wiring upgrades: $15,790
Replace 17-year-old gasoline car with used EV and add
faster Level 2 EV charger. Install four new 240-volt outlets
for the EV charger, induction stove, heat pump water
heater and heat pump clothes dryer. Upgrade 60A
electrical panel to 200A.
2023
Induction range: $650
Replace 12-year-old gas
range with an induction
stove.
2024
Weatherization &
heat pump: $5,000
Weatherize house and
replace 16-year-old gas
furnace and 18-year-old
central air conditioner
with central heat pump.
2026
Heat pump water
heater: $1,050
Replace 14-year-old gas tankless
water heater with a 120V or 240V
hybrid heat pump water heater.
Cap gas line!: -$160 a year:
No more gas appliances, no
more gas fees.
2027
Rooftop solar: $13,300
Finance up-front cost of
6kW rooftop solar. No
battery storage planned.
2028
1
2
3
4
5
Household Profile:
Size: 3 people; Income: $130,000; AMI:Under 150%; Location: Sacramento, CA
CASE STUDY #2
GO ELECTRIC! REWIRING AMERICA
Their story
The Nguyens are a retired couple in
Atlanta, Georgia. They rent a 650-square-
foot, 2-bedroom apartment in a 10-unit,
gas-heated building built in 1961, and
they use a Section 8 individual housing
voucher. The couple has an annual
household income of $30,000, which
is well below 80 percent of the Area
Median Income where they live. As a
result, they qualify for up-front dis-
counts that can cover 100 percent of
their electrification costs up to $14,000.
You can take it with you
The Nguyens have been reading about
indoor air quality with gas appliances,
and they’re worried about energy costs
rising. There’s a lot they can do, even
though they’re renters, and even though
their cash is limited. Their electrification
journey is focused on using the IRA’s
up-front discounts to install mostly
portable electric appliances, so that
if they decide to move, they’ll be able
to take their electric appliances with
them. But they’ll also be advocating for
their landlord to take advantage of the
IRA’s investments in greening affordable
housing.
The Nguyens know that they’re at high
risk of developing respiratory illnesses,
so they start their electrification journey
by buying a portable induction burner
and countertop oven (both fully covered).
These electric appliances will allow the
couple to avoid using their asthma-
inducing gas range as much as possible.
The Nguyens would also like to subscribe
to community solar — which would
probably save them money
3
— but there
A retired Georgia couple
electrify their apartment
Household Profile: Size: 2 people; Income: $30,000;
AMI: Under 80%; Location: Atlanta, GA
These renters on a budget show it can be done
If they decide
to move, they’ll
be able to take
their electric
appliances
with them.”
CASE STUDY #3
GO ELECTRIC! REWIRING AMERICA
aren’t many good community solar
options currently available in Georgia.
Once there are, they’ll switch.
The window-units are coming
In a couple years, the Nguyens will
replace their aging window-unit ACs
with new window-unit heat pumps,
which are fully covered by up-front
discounts. Efficient window-unit heat
pumps are entering the market today
and should be a great choice soon —
especially for renters. They’re self-
installable and portable, so the
Nguyens know that they won’t have
to leave any savings behind if they
move one day.
The Nguyens also plan to install a 120-volt
combo clothes washer/dryer, fully
covered up to $840, which will let them
age in place more easily. Those units
are currently a little more expensive
than the discount limit, so they’ll keep
an eye on the price.
The Nguyens will also set to work
educating their landlord on the IRA’s
available incentives. Because the
building includes at least one federally-
subsidized unit, their landlord can apply
for new funding for affordable housing
energy retrofits like heat pump water
heaters.
4
Their landlord can also use
the funding for rewiring and electrical
panel up-grades, which will enable
the building’s residents to install
even more electric appliances.
3
The Nguyens’ Section 8 housing voucher limits their rent and utilities to 30 percent of their income,
which comes out to $750 a month. If their monthly utility bill goes up or down, it lasts only until the
next time their utility allowance is adjusted. Generally, because of their housing voucher, the Nguyens’
potential savings are limited.
4
This funding was appropriated in a new IRA provision titled “Improving Energy Efficiency or Water
Efficiency or Climate Resilience of Affordable Housing,” and it will be administered by the Department
of Housing and Urban Development (HUD). The funding can be distributed as a grant or converted
from a loan to a grant if the landlord agrees to an extended period of affordability for the property.
The Electric End
The Nguyens’ electrification journey is complete! They know that they can
also get $4,000 off a used electric vehicle, but the Nguyens are content
riding around on Atlanta’s (increasingly electric) public transportation.
And they’re happy knowing that they’ve taken more control of their
health and budget … and done their part to fight against climate change!
Their landlord
can apply for
new funding
for affordable
housing energy
retrofits.”
CASE STUDY #3
GO ELECTRIC! REWIRING AMERICA
Upgrades considered but not currently planned:
2023
2024
—
—
—
60A electric panel
Portable induction
burner and oven
$300
$4,000
$840
$2,000
$2,000
$0
$0
$0
$0
$0
30% Tax
credit
Final
cost
Est. cost,
installed
2 window unit ACs
Gas furnace
100A electric panel
Electric wiring
2 window unit
heat pumps
Combo washer &
clothes dryer
2025
2026
-$840
(HEEHRA)
-$2,000
(HEEHRA)
-$2,000
(HEEHRA)
Replacing Buying
Up-front
discount
Gas range
Gasoline car
Electric range
Used EV
$540
$10,000
$0
$7,000
-$300
(HEEHRA)
-$4,000
(HEEHRA)
TOTAL AFTER TEN YEARS
-$9,140 -$0 $0
$9,140
-$540
(HEEHRA)
-$3,000
(25E)
CASE STUDY #3
The Nguyens go electric
GO ELECTRIC! REWIRING AMERICA
Window unit heat pumps: $0
Replace 15-year-old window-unit air
conditioners with window-unit heat
pumps, which can also be used instead
of the gas furnace for heating.
2024
Wiring & panel
upgrades: $0
Work with landlord to utilize
the IRA’s funding for retrofits
of affordable housing.
2026
Portable induction
burner and oven: $0
Switch to an induction
stove and countertop
electric oven to avoid
using the installed gas
range.
2023
1
Electric clothes dryer: $0
Install a combined 120V
washer & dryer unit once the
price falls below rebate limit.
2025
3
4
Household Profile:
Size: 2 people; Income: $30,000; AMI: Under 80%; Location: Atlanta, GA
CASE STUDY #3
2
GO ELECTRIC! REWIRING AMERICA
Their story
The Sandovals are a family of five
who live outside of Oklahoma City,
Oklahoma. They own a 3,500-square-
foot, 5-bedroom home built in 1999,
and heat it with natural gas. The family
has an annual household income of
$280,000, which is well above 150
percent of their Area Median Income
(AMI). As a result, they don’t qualify
for the IRA’s up-front discounts,
but they do qualify for electrification
tax credits.
The Sandovals want to fight the climate
change that is causing extreme heat
and to increase their household resil-
iency — and they have the resources to
do it. They’ve lost power a few times re-
cently because of tornadoes and heavy
rain, which is scary and dangerous.
Now that the IRA re-upped a bunch of
tax credits — and added one for home
battery storage — the Sandovals have
decided to fully electrify. All in all, the
Sandovals will electrify their home for
$29,100, plus $55,000 for two electric
vehicles (which they would have spent
on new cars anyway) and $24,500 for
rooftop solar and battery storage. Each
electrification upgrade will reduce the
family’s energy costs — the heat pump,
heat pump water heater, EV and solar
will save them over $1,700 each year.
But just as importantly for the San-
dovals, the upgrades will ensure that
their home stays powered even when
extreme weather threatens the electric
grid around them.
Power like the wind
The Sandovals start with with their
priority: installing rooftop solar plus
battery storage. Together the solar and
storage will enable the Sandovals to
keep their lights and air conditioning
on even when the power goes out. The
Sandovals also know that the resiliency
benefits of solar and storage will only
increase as they electrify more house-
hold appliances. The IRA includes 30
percent tax credits for both upgrades,
which knock over $10,000 off the
sticker price for a final cost of $24,500,
which the Sandovals plan to finance
over twenty years.
Reaching for resilience
Household Profile: Size: 5 people; Income: $280,000;
AMI: Above 150 percent; Location: Oklahoma City, OK
A well-resourced Oklahoma family electrifies
for security and the climate crisis
The upgrades
will ensure that
their home stays
powered even
when extreme
weather
threatens the
electric grid
around them.”
CASE STUDY #4
GO ELECTRIC! REWIRING AMERICA
While they have an electrician over to
hook up the solar and storage, they’ll
prepare for future electrification by
adding 240-volt electrical outlets for
a heat pump water heater, two EV char-
gers, and an induction range. They’ll
also install a 200A smart panel, which
will help manage the electrical loads in
their home. There’s no tax credit for the
wiring, but there is one for the panel
upgrade. Together, the final cost is
$6,000.
Electrifying their fleet
Because they live in the suburbs, the
Sandovals drive a lot and know that
transportation represents an outsized
share of their emissions and costs. So
when it comes time to buy a new car
they’ll choose an electric model, with
its $7,500 tax credit, along with a faster
Level 2 charger. The Sandovals don’t
qualify for the EV charger tax credit
(they don’t live in a rural or low-income
community), but after the EV tax credit,
the total cost for the EV and charger is
$33,500.
A family of heat pumps
The Sandovals decide to install heat
pumps next. There’s a $2,000 yearly
cap for the heat pump tax credit, so
they work with their contractor to split
up the job across two years. In the first
phase, the Sandovals replace their gas
furnace and central air conditioner
with a central heat pump that serves
the main living areas in the house. In
the second phase, the Sandovals install
a ductless mini-split heat pump for
two rooms above their garage that have
always been a little too hot or too cold.
By breaking up the heat pump instal-
lation into two parts, the Sandovals
double the value of the tax credit,
for a final cost of $16,000.
Later in the decade, the Sandovals
will install an induction stove, heat
pump water heater and heat pump
clothes dryer. Because of the Sando-
vals’ income, the stove and dryer are
not eligible for any tax credit, but the
water heater is. The final cost of these
three projects is $5,600, and now the
Sandovals are officially gas-free. They
can cap their gas line, breathe easier
without asthma-causing fumes, and
stop paying their monthly utility gas
meter fee!
The Electric End
The Sandovals finish their electrification journey by purchasing a
second new EV and charger, for $23,000 after the EV tax credit. At
this point, the family home is fully electrified and much more resilient.
Even when the grid is down, the Sandovals can heat and cool their home,
cook their food and drive their cars — all with no carbon emissions.
And when extreme weather strikes, the Sandovals provide safe haven
for their friends and neighbors, too.
They can cap their
gas line, breathe
easier without
asthma-causing
fumes, and stop
paying their monthly
utility gas meter fee!”
CASE STUDY #4
GO ELECTRIC!
2023
—
Gasoline car
Gas Furnace
Central AC
Window ACs
Tank gas water heater
Heat pump water
heater
Heat pump clothes
dryer
Electric range Induction range
Electric clothes dryer
—
Rooftop solar
Battery storage
200A smart panel
Central heat pump
(year 1)
Ductless mini-split
heat pump (year 2)
Electric wiring
New EV #1
EV charger #1
$19,000
$5,000
$16,000
$2,500
$40,000
$1,000
$13,000
$7,000
$4,000
$1,300
$1,500
$13,300
$11,200
$3,500
$2,500
$32,500
$1,000
$11,000
$5,000
$2,800
$1,300
$1,500
30% Tax
credit
5
Final
cost
Est. cost,
installed
—
100A electric panel
—
2024
2025
2026
2027
-$2,000
(25C)
-$2,000
(25C)
-$1,200
(25C)
Replacing Buying
Up-front
discount
-$5,700
(25D)
-$4,800
(25D)
-$1,500
(25D)
-$7,500
(30D)
Hybrid car
—
New EV #2
EV charger #2
$30,000
$500
$22,500
$500
2029
-$7,500
(30D)
TOTAL
-$15,000 -$17,200 $107,980$140,980
CASE STUDY #4
The Sandovals go electric
5
The 30 percent tax credit hits a $2,000 cap for the heat pump purchases.
Cap gas line!
-$160/
year
GO ELECTRIC! REWIRING AMERICA
New EV #1 & EV
charger #1: $23,500
Replace 15-year-old gasoline
car with first new EV and add
first 240V Level 2 charger.
2024
2025 and 2026, Heat pump: $16,000
Spread heat pump upgrades across two years
to maximize tax credit. First year, replace gas
furnace and central air conditioner with
a central heat pump ducted through main
part of the house. Second year, add ductless
mini-split heat pump to rooms over garage
that are often uncomfortable.
2025
2027, Heat pump water heater, induction
stove & heat pump clothes dryer: $5,600:
Replace 10-year-old gas water heater with
a heat pump water heater, 14-year-old gas
range with an induction range, and 11-year-
old resistance clothes dryer with a heat
pump version.
Cap gas line!: $160 a year:
No more gas appliances, no more gas fees.
2027
2029, New EV #2 &
EV charger #2: $23,500
Replace 16-year-old hybrid
car with second new EV and
add second 240-volt Level 2
charger.
2028
Rooftop solar, battery storage & panel/
wiring upgrades: $30,500
Add 6kW rooftop solar and two 10kWh
storage batteries. Upgrade electrical panel
to 200A smart panel and pre-wire for heat
pump water heater, two EV chargers, and
induction range.
2023
1
Household Profile:
Size: Size: 5 people; Income: $280,000; AMI:
Above 150 percent; Location: Oklahoma City, OK
CASE STUDY #4
2
3
4
5
GO ELECTRIC! REWIRING AMERICA
Frequently Asked Questions
Do I need to spend a lot to get these
incentives?
In many cases, no! The IRA’s incentives
are designed to increase access to clean
technology. For households with lower
incomes, 100 percent of appliance and
installation costs are discounted at
purchase, meaning you could install
efficient electric appliances at no cost,
with no spending.
Moderate-income households do have to
spend in order to access savings, but up to
50 percent of appliance and installation costs
can be covered through upfront discounts,
and you can use tax credits to cover some
of the remaining gap. In most cases, these
families will have to spend money either way
because they’re replacing a failed or failing
machine – the IRA just makes the electric
version the most affordable choice.
Highest income households are not eligible
for upfront discounts, so they will have to
pay full price for appliances and installation
— but tax credits on the back end could
recoup around 30 percent of their costs.
Everyone will likely see lower energy
costs going forward.
Do the rebates and tax credits cover
installation costs as well as purchase
costs?
Yes!
When can I access the IRA’s incentives?
Some incentives are available now, and others
will become available in 2023. The tax credits
marked “2023” will be available on January
1, 2023. Unfortunately we don’t know exactly
when the up-front discounts marked “2023”
will be available, because it will depend on
how each state rolls out its incentive program.
Our best guess is that those up-front dis-
counts will be available by the middle-to-end
of the year.
Can I benefit from other electrification
incentives in addition to what’s in the IRA?
Probably! It’s up to your state, local govern-
ment, and utility to decide if you’re allowed
to stack their incentives on top of the IRA’s
rebates and tax credits, but we think most
of them will allow it.
GO ELECTRIC! REWIRING AMERICA
Your plan
The most important thing is to get Rewiring Ready. This means creating an electric plan, like the households
in our case studies. Of course, your plan needn’t be as extensive. Just knowing what’s available to you, and
how to get ready to electrify, is your first step. Because if your furnace dies in the middle of a cold winter
night, you may make an emergency decision that locks in higher costs and fossil fuels emissions for the next
20 years. We’ve grouped things that make sense to upgrade together in the table below. Fill in the year you
might upgrade each of these items. We’ve done the first one for you, to encourage you to switch to a clean
electricity plan ASAP!
Tax creditUp-front discount
2022
Clean electricity
New EV
Used EV
EV Charger
Rooftop solar
Geothermal heat
pump
Battery storage
Electrical wiring
(pre-wire outlets
early!)
Electrical panel (if
under 100-amps)
Weatherization
Heat pump
Heat pump water
heater
Electric/induction
stove
Heat pump
clothes dryer
100% up to $2,500
(HEEHRA)
100% up to $4,000
(HEEHRA)
100% up to $1,600
(HEEHRA)
100% up to $8,000
(HEEHRA)
$100% up to $1,750
(HEEHRA)
100% up to $840
(HEEHRA)
100% up to $840
(HEEHRA)
$7,500 (30D)
10
30% up to $1,000 (30C)
11
30% up to $1,000 for some census tracts (30C)
30% (25D)
30% (25D)
30% (25D)
Up-front discount,
low-income Buying
Fill In
Year!
50% up to $2,500
(HEEHRA)
50% up to $4,000
(HEEHRA)
50% up to $1,600
(HEEHRA)
50% up to $8,000
(HEEHRA)
50% up to $1,750
(HEEHRA)
50% up to $840
(HEEHRA)
50% up to $840
(HEEHRA)
30% up to $1,200
(25C)
30% up to $2,000
(25C)
30% up to $2,000
(25C)
30% up to $600 (25C)
or 30% uncapped
(25D), depending on
the corresponding
upgrade
9
Up-front discount,
moderate-income
Tax credit
9
25C provides households a 30% tax credit for an electrical panel upgrade, capped at $600, if it’s upgraded in conjunction with another upgrade covered by 25C (like a heat
pump or heat pump water heater). 25D provides households a 30% uncapped tax credit for an electrical panel upgrade if it’s upgraded in conjunction with rooftop solar.
10-11
In 2023, the electric vehicle incentives will be accessible as tax credits. Starting in 2024, these incentives will be transferable to dealerships in exchange for up-front discounts.
*Not every household will be eligible for every incentive: product standards, income limits, and other eligibility requirements apply. For more information on the incentives,
check out our calculator.
GO ELECTRIC! REWIRING AMERICA
Want to stay in the loop on this whole electric thing?
Sign up for our updates at RewiringAmerica.org/newsletter
Rewiring America is the leading electrification nonprofit,
working to electrify our homes, businesses and communities.
Want to go deeper?
Download Rewiring America’s free guide, Electrify Everything in Your Home, for
lots more info about each of the electric appliances, including questions to ask
your contractors.
