A recent survey by Mitsubishi Electric Trane HVAC US  provided information on how American homeowners felt about the Inflation Reduction Act (IRA) and environmentally friendly home improvements. This blog dives into key findings from the study, Heat Pumps and Homeowners Index, shedding light on the role of government incentives and the growing interest in heat pumps.

Government Incentives Driving Homeowner Interest:

According to the survey, 63% of U.S. homeowners are familiar with the IRA, with 54% ranking government incentives, such as tax credits or rebates, among their top three reasons for considering the installation of a heat pump. The IRA’s Energy Efficient Home Improvement Credit, offering a 30% nonrefundable tax credit for qualified heat pump installations, stands out as a significant motivator for 54% of respondents.

Financial Concerns and Energy Bills:

Concerns about rising energy bills are prevalent among homeowners, with 83% expressing worry about the impact on their household budgets. The survey also highlights that 46% experienced increased cooling costs last summer, and 54% faced higher heating costs this winter. In response, 49% of respondents identified “reduce energy bills” as a top reason to consider installing a heat pump.

Homeowner Considerations and Hurdles:

While 24% of homeowners already have heat pumps installed, 69% are open to the idea. Concerns about installation costs deter 28% of homeowners, emphasizing the need for financial incentives. Notably, the survey found that 36% of respondents are interested in improving air quality as a motivation for heat pump installation.

Millennials’ Interest in Tax Credits:

The survey indicates that tax credits for high-efficiency electric heating, ventilation, air conditioning, and/or water heating are particularly appealing to homeowners, especially Millennials. Among Millennials, 65% expressed interest in these tax credits, showcasing a preference for energy-efficient solutions over alternatives like solar panels or electric vehicles.

Conclusion:

As homeowners prioritize energy efficiency and cost savings, the Inflation Reduction Act’s tax credits play a pivotal role in influencing decisions to adopt all-climate heat pumps. With a focus on education and financial incentives, Always On HVAC aims to drive sustainable choices among homeowners, paving the way for a greener and more energy-efficient future.