Energy management provides insight into how, where, and when you consume energy and the means to regulate your consumption. An energy management system can cut your electricity costs and maximize your solar and storage system.
Energy management systems, provided by firms like Span, Lumin, Schneider, and Generac, can come in various forms, such as smart electrical panels and sub-panels; typically, they allow you to monitor and regulate your electricity at the circuit breaker level. In this post, we will cover significant incentives that can help you upgrade your electrical panel with an energy management system at a more affordable cost.
Why implement a system for energy management?
Before discussing incentives, let's examine some of the reasons you may be interested in installing an energy management system:
Lower energy bills: You can save up to $500 annually on energy costs by replacing or updating obsolete electrical panels with an energy management system. With load management features, you can quickly and remotely monitor and regulate your energy consumption, resulting in these substantial savings.
Long-term savings: energy management systems are intelligent and may often inform you when your loads consume more or less energy than usual. This allows you to proactively repair or replace your appliances, which could result in long-term savings.
Cleaner air quality: With an energy management system, you'll be able to electrify your home appliances much more quickly, which can enhance air quality - for instance, replacing old gas stoves and furnaces with electric ones can improve indoor air quality and minimize long-term health risks and expenditures.
Act on Rebates for High-Efficiency Electric Homes
This incentive, originally known as the Zero-Emission Homes Act (ZEHA), is a 10-year rebate program that allows low- and moderate-income (LMI) households in the United States to save money on home electrification. HEEHRA includes point-of-sale reimbursements of up to $14,000 per household for "eligible electrification initiatives." You might receive up to $6,500 in HEEHRA rebates for installing an energy management system: $4,000 for upgrading your electrical panel and $2,500 for electrical wiring.
These refunds are designated for low-income households and are not available to all. You will receive the full rebate amount if your household has a low income (less than 80 percent of the area's typical family income). If your household's income falls between 80 and 150 percent of the median family income in your area, you will receive 50 percent of the rebates. If you do not fall into either of these two categories, you will not be eligible for the rebates. It is also vital to note that State Energy Offices will distribute these reimbursements, and the program's launch date remains undetermined.
Credit for Energy-Efficient Homes
The Energy Efficient Home Credit would pay homeowners $1,200 in annual tax credits beginning in 2023 for making their homes more energy efficient. It replaces the existing Nonbusiness Energy Property Credit, which gives a $300 one-time credit. With the Energy Efficient Home Credit, you can obtain a tax credit of up to $600 (or 30% of the total system expenses, whichever is smaller) if you equip your electrical panel with an energy management system.
Credit for Residential Clean Energy
The Domestic Clean Energy Credit, often known as the investment tax credit, offers a 30% tax credit for residential solar and storage installations. Suppose you upgrade your electrical panel with an energy management system as part of your solar or storage installation. In that case, you may be able to apply this credit towards the cost of your new electrical panel. This tax credit will remain at 30% until 2033, decreasing to 26%.
Regional and state inducements
In addition to the federal incentives outlined previously, some states and municipalities provide people with incentives and rebates. Check with your local government or utility provider to see if any incentives are available in your area; the following are some examples:
Pasadena's Electric Panel Upgrade Rebate
You are eligible for a $1,000 rebate if you live in Pasadena, California, and you upgrade your existing electric panel to a new one (including smart electrical panels that serve as energy management systems) that is 200 amps or higher. However, you must also install a Level 2 EV charger or an electric water heater and your electrical panel upgrade to qualify. If you are enrolled in the Pasadena Department of Water and Power's income-qualified bill assistance program, you may be eligible for an additional $500.
Program for Electrical Panel Upgrade Rebates in Reading
As a Reading, Massachusetts resident, you could receive up to $1,500 in rebates or up to 50 percent of an improved electrical panel's purchase and installation cost. Every four years, you are eligible to receive $1,000 for a 200-amp standard or smart electrical panel or $1,500 for a 400-amp panel through this program. However, it is essential to remember that this rebate does not apply to sub-panels.
The Climate Action Rebate program in Denver
When paired with a rebate for EV chargers, heat pumps, solar, or battery storage, you can receive up to $2,000 in Denver, Colorado, for an electrical panel update. The rebate applies to both the solar panel and any required wiring. You may be eligible for incentives covering up to 100 percent of your project costs if your income qualifies.
How can you profit from these incentives?
You can apply for federal rebates through the loan program office (LPO). Before you receive the stamp of approval, pre-application consultations will assist you in understanding your project and eligibility and direct you to the two-part application process to evaluate your project's eligibility. If you are seeking a federal tax credit, you can include the project on your federal tax return - the following is a guide to claiming the ITC. Local and state-based incentive application procedures differ, but you can frequently find the information you need on the websites of your local departments.
QuestGreens can help you manage your home's energy usage.
Adding an energy management system to your electrical panel is just one technique to increase your home's energy efficiency. You may also lessen your reliance on the grid and boost your energy security by investing in solar panels - visit the QuestGreens to compare bids from our network of pre-screened installers for a solar energy system that meets your demands and budget. Using a new energy management system, you can effortlessly integrate your solar energy system with your home's electrical system.