Ways to Save with SWEPCO airs on Tuesday mornings between 5 and 7 a.m. Watch on YouTube. Steve Mutiso, Energy Efficiency and Consumer Programs Manager, discusses the benefits of new federal incentives aimed at making your home more energy efficient while putting money back in your pocket.
In the latest installment of Southwestern Electric Power Company’s (SWEPCO) Ways to Save video series, we looked into new federal incentives aimed at making your home more energy-efficient while putting money back into your pocket.
This week, SWEPCO’s Energy Efficiency and Consumer Programs Manager, Steve Mutiso, sat down with KTBS’s Jan Elkins to discuss the significant savings available through new federal tax credits and incentives, specifically focusing on heat pumps and weatherization.
The Inflation Reduction Act of 2022 (IRA) represents the largest climate investment in U.S. history, with the potential to reduce greenhouse gas emissions by up to 44% below 2005 levels by 2030. A key component of this initiative is providing financial incentives to encourage homeowners to adopt more efficient, all-electric appliances, such as heat pumps, which are instrumental in reducing domestic energy consumption and greenhouse gas emissions.
Under the IRA, homeowners can take advantage of a federal tax credit that covers 30% of the cost of purchasing and installing electric heat pumps and heat pump water heaters, up to $2,000 annually. This tax credit is available to all homeowners, although the amount of savings will depend on your individual tax situation. This credit is in addition to the $1,200 available for other energy-saving renovations and appliances, offering a comprehensive way to reduce energy costs.
"Heat pumps are an incredibly efficient way to heat and cool your home,” said Mutiso. “They use less energy than traditional systems, which directly translates to lower utility bills for homeowners. With the new federal tax credits, the upfront costs of switching to a heat pump are significantly reduced, making it a more affordable and attractive option for many people.”
In addition to tax credits for heat pumps, the IRA also introduces rebates for energy-efficient home renovations, such as adding insulation, sealing air leaks, and upgrading exterior doors and windows. The rebate amount varies depending on household income and the extent of energy savings achieved through the renovations. For instance, renovations that result in at least 20% energy savings could qualify for rebates ranging from $2,000 to $4,000, covering up to 50% of the project costs.
“Weatherization is one of the most effective ways to improve your home’s energy efficiency,” said Mutiso. “By sealing air leaks and upgrading insulation, homeowners can experience immediate savings on their energy bills. The rebates offered through the IRA can offset a substantial portion of these costs, making it easier for families to make these important upgrades.”
The good news is that everyone qualifies for these incentives, but the extent of your savings will depend on your tax bill and household income. For low-income households, the benefits are even greater, with rebates potentially covering up to 80% of project costs. These incentives are available now through the end of 2032, providing a long window of opportunity for homeowners to make impactful energy efficiency upgrades.
SWEPCO is committed to assisting customers in navigating these new federal incentives. From providing information on eligible products to guiding homeowners through the application process, SWEPCO is here to help you maximize your savings. By leveraging these incentives alongside SWEPCO’s existing energy efficiency programs and rebates, customers can significantly lower their energy bills and contribute to a more sustainable future.
“At SWEPCO, we’re dedicated to helping our customers make the most of these new federal incentives,” said Mutiso. “We provide resources and guidance to ensure homeowners understand which products and upgrades qualify, and we assist them every step of the way, from applying for rebates to choosing energy-efficient appliances. It’s all about making the process as smooth and beneficial as possible for our customers.”