Since the recent passage of the Inflation Reduction Act (IRA), the green building industry has been buzzing with enthusiasm for the more than $50 billion in federal funding to support energy efficiency upgrades for homes and commercial buildings.
Beginning 2023, the legislation includes $9 billion to support retrofit installations of equipment and materials such as HVAC heat pumps, new electric appliances, insulation, and electric panel upgrades for qualifying low- and moderate-income households.
Other initiatives, such as the Home Energy Performance-Based Whole-House Rebate (HOMES) program and the Energy Efficiency Home Improvement credit (25C), will provide thousands of dollars for upgrades to households regardless of income.
RMI, formerly the Rocky Mountain Institute, estimates that more than 10 million homes will benefit from these climate action incentives. Clearly, this will be a massive undertaking for the home improvement industry, and it’s been hailed as the largest piece of climate legislation in history.
Impact on Business
Undoubtedly, this juggernaut of resources will have a significant impact on the construction industry.
Remodeling projects are always expensive, especially if you're talking about a deep energy retrofit, which calls for a dramatic reduction in gas and electricity consumption as we undergo renovations for kitchens and bathrooms, etc.
Every dollar toward those projects helps. And these resources will make it easier for homeowners to expand the scope of their projects to maximize their energy-efficiency upgrades.