Take advantage of the Inflation Reduction Act with the help of Loxone

08/17/2022 in Know How

The Inflation Reduction Act (IRA) that was passed August 2022 is the largest investment to fight climate change and reduce prescription drug prices in the United States’ history. The US government will invest almost $400 billion for various projects to counter the energy crisis long-term. There are many ways for consumers to benefit from it, and here is how Loxone can make it happen.

All of the IRA highlights at your fingertips:

Short and Sweet: What is the Inflation Reduction Act?

How you can benefit from what’s in this bill

Other blog posts and become a sustainability hero

Short and Sweet: What is the Inflation Reduction Act?

To counter the ever-growing climate and prescription drug crisis, the US government passed the Inflation Reduction Act. This bill includes various programs to make clean energy projects as well as prescription drugs more affordable for American consumers.

The former, especially, comes with many benefits and deductions ranging from heat pumps, solar panels, insulation, e-mobility, or energy-efficient appliances.

In addition to tax benefits, cost reductions or special grants and loans, there are more long-term savings in store for American consumers. The nonprofit organization advocating for energy efficiency, Rewiring America, estimated that an American household that makes the switch to some of these clean energy measures promoted in the IRA will save up to $1,800 per year.

This sounds pretty sweet, and it’s called the largest US investment in climate change for a reason. However, since the act is extensive and there are many initiatives and programs included, we put together some of the best ways to take advantage of the Inflation Reduction Act – and how Loxone can help you turn those projects into reality.

How you can benefit from what’s in this bill

1. Direct rebates for efficient electrification

Low to moderate income households that install new and efficient electrical appliances can now receive direct rebates for their improvement projects. For instance, a heat pump installation can be fully covered for low or 50% for moderate-income households (cap of $8,000).

If you want to start such an improvement project for your home, Loxone can help you in many ways, as our system can efficiently control many heat pump systems, and we have many other IRA-related solutions for electrical wiring, panels, or ventilation.

Supported projects also include installing or upgrading:

a heat pump (water heater)
an electric stove
an electric clothes dryer
electrical wiring and/or panel
insulation
ventilation

1. Direct rebates for efficient electrification

a heat pump (water heater)
an electric stove
an electric clothes dryer
electrical wiring and/or panel
insulation
ventilation

2. Tax deductions for electric upgrades

Great news for all American households: You can deduct up to 30% of the project cost from your taxes for electric upgrades that include heat pumps, insulation, and especially new electrical panels to support a heavier electric demand. Loxone partners can help plan and install new cables and panels that fit the needs for any energy-efficient home improvement project.

3. Zero Energy Ready Home program supports home developers

Listen, US home developers and Loxone partners! You can receive up to $5,000 for newly-built single family or multifamily homes, as well as existing homes going through a thorough retrofit thanks to the New Energy Efficient Home credit. Your projects must meet the Zero Energy Ready Homes requirements for program partners regarding the size of the home, or the necessary improvements covered by the retrofit. These include certified improvements in areas such as Renewable Ready, Water Efficiency, Lighting & Appliances, or Indoor Air Quality, among others.

As you know, Loxone is no stranger such projects! If you are interested in zero-energy living, check out Neal’s home in New Jersey, which was equipped with new Loxone products to support him on his sustainability journey.

FYI: Loxone supports many types of lighting and other aspects of home so that anyone can create an atmospheric home like the Whistler’s Barn. You can see for yourself how the gorgeous Whistler’s Barn that was retrofitted with Loxone’s smart lighting, heating and safety features.

EN_FS_CS_Photo_Whistlers-Barn_Lighting-Walkway

4. More tax deductions for solar and energy storage projects

Another great initiative in this bill is the Residential Clean Energy credit which makes the installation of solar panels as well battery storage more affordable for US households. Now, Americans that choose to install PV or a battery storage system can deduct up to 30% of the project cost from their taxes! This initiative is not supposed to be a short-term fix for the climate crisis or inflation of prices, but the credit is guaranteed for the next 10 years.

Loxone can be an important partner for such a solar panel and battery storage project, as we have experience in energy monitoring and load management to optimize your solar energy and battery use. On top of that, Loxone can work with a wide range of solar inverters such as the ones from solaredge and batteries such as the tesla powerwall. With Loxone, you can also optimize the EV charging process to only use excess solar energy for charging the vehicle in order to exclusively use green energy and save costs.

Ashbrook Homes created this stunning home together with Loxone, where they found a way to integrate solar panels into their rooftop garden that is eye-catching as much as it is energy-efficient. See for yourself how Loxone made this home smart, automated and truly unique.

5. Special grants & loans for retrofits in affordable housing

More attention goes to retrofits in the affordable housing segment: you can apply for special grants and loans for your retrofitting project to improve your building in terms of electrification, or energy and water efficiency. If you need some inspiration for products that could help you with such a project, here is a great blog post to introduce you to all the benefits of various Loxone solutions that are perfect for a home retrofit.

6. Credit for energy-efficient commercial buildings

If you own a commercial building, today is your lucky day thanks to the Commercial Buildings Energy Efficiency credit! Businesses that can reduce their energy use by 25-50% over existing standards are offered $2.50 to $5.00 per square foot. See for yourself how Loxone will help you include automation and other smart features in your office to reduce your building’s energy consumption.

Here you go!

These are our highlights of the brand-new Inflation Reduction Act of 2022. If you want to extend your knowledge about how to become more energy-efficient yourself, we have more in store for you!