Go Energy Efficient and Get a Huge Tax Credit

The sun shines on rooftop soalr panels

The sun shines on rooftop soalr panels

Just a few weeks ago, the Inflation Reduction Act was passed and it will have a big impact on your wallet as a homeowner.

While it’s yet to be seen if this new act will have an impact on the cost of gas and groceries, it will make transitioning to an all-electric, energy-efficient lifestyle more affordable.

We wanted to share all the details, and highlight how we can help you make the switch with ease. Here is the best info we have at this point:

What is the Inflation Reduction Act? (IRA)

The Inflation Reduction Act is a new act that was passed with the intention of reducing inflation in the United States. Some of the ways it can attempt to do this is by offering incentives for people to switch to more energy-efficient systems in their homes, like heat pump water heaters.

These incentives will come in the form of tax credits and rebates for the purchase and installation of new clean energy technology.

What home improvements will be incentivized?

The IRA will incentivize a variety of home improvements, but one that will have a big impact on your plumbing is a new water heater. If you upgrade to a high-efficiency all-electric heat pump water heater, you could receive up to $1,750 in tax credits and rebates.

Here are some other non-plumbing-related home improvements you can make to receive similar incentives:

Installing rooftop solar: The IRA provides 30% off the cost of rooftop solar, which amounts to average savings of $7,000, according to estimates from the Sierra Club. The bill also offers 30% off the cost of home batteries for the first time.

Switching to electric appliances: The Inflation Reduction Act offers homes up to $14,000 in rebates to switch over to electric appliances — covering up to 50% of the costs for moderate-income households and 100 percent of the costs for low-income households.

This includes up to:

  • $8,000 for a heat pump, which serves as an air conditioner in the summer and heater in the winter

  • $1,750 for a high-efficiency, all-electric heat pump water heater

  • $840 for an electric induction cooktop

  • $840 for a high-efficiency all-electric heat pump clothes dryer

  • Up to $9,100 for enabling improvements to the electric panel, wiring, and home insulation

Improving energy efficiency: An alternative rebate option offers to cover more than 50% of the cost of whole-home energy efficiency retrofit or more than 80% in the case of homes occupied by low to moderate-income households.

Households that do not participate in either rebate program can still claim a variety of home energy tax credits, which are improved and extended for 10 years by the bill.

And if you invest in rental homes or apartments: The IRA’s investment incentives aren’t just for individual homeowners. The bill provides rebates of up to $400,000 for whole-building energy efficiency retrofits in large multifamily apartment buildings as well as grants and loans worth $1 billion in total for improving efficiency and installing zero-emission equipment in affordable housing units.

There are also other credits for purchasing new and used electric vehicles.

Benefits of upgrading to a heat pump water heater

Water heaters usually only last 8-12 years, so if yours is nearing the end of its life, you might be due for an upgrade anyway. And with the IRA, there is no better time to switch to a more energy-efficient water heater. Here are 5 benefits of heat pump water heaters:

1. Save money on your energy bill: Heat pump water heaters are 4x more efficient than standard electric water heaters, so a typical family can save around $300-400 per year by switching. This helps offset the cost of installation, which is generally higher for these much more efficient pieces of equipment.

2. Longer lifespan: Heat pump water heaters tend to last longer. Between 10-15 years, while a standard water heater will only last 8-12.

3. Less wear and tear: Since heat pump water heaters don’t use as much electricity to heat water, there is less wear and tear on the system overall. This means you can go longer without needing repairs or replacements.

4. Environmentally friendly: Heat pump water heaters don’t use as much electricity, which means they produce fewer greenhouse gas emissions. In fact, when compared to gas water heaters, studies have shown a reduction in emissions by 50% and more!

5. Functions as an A/C: If your water heater is located inside your home, the heat pump water heater can also help with cooling in the summer. By moving heat from the water in the tank to the air around it, the water heater takes on a dual role as an air conditioner.

Can I start taking advantage of these benefits now?

Starting in 2023, tax credits and rebates will be available for many of the home improvements listed above. So if you’re thinking about making any upgrades to your home, it may be worth waiting just a little longer to receive a bigger discount.

In the meantime, our Plumbers in Plaid can help make sure your water heater is in good shape to last until it’s time to upgrade in 2023.

Fall is quickly approaching, which means now is the perfect time to schedule a check-up or maintenance appointment for your water heater. We can also show you the options available if you want to upgrade to a new water heater in the new year. Here’s to saving money and energy in the years to come!

The Plumbers in Plaid

P.S. Want to learn more about high-efficiency heat pump water heaters? Click here.

Tankless Water Heaters – Should You Upgrade?

D&F tankless heater

D&F tankless heater

Tankless Water Heaters – Should You Upgrade?

Do you know why plumbers hate installing tankless water heaters? Because it’s a tankless job! Ba dum tss! In all seriousness, we love installing tankless water heaters. They provide an unlimited supply of hot water and can cut your monthly bills, what’s not to like? Now here’s why you should upgrade. 

How Tankless Water Heaters Work

Tankless water heaters connect directly to your plumbing. When hot water is requested, a series of heating elements turn on and heat the water that passes through them, providing you with hot water on demand. 

The Benefits of Tankless Water Heaters

  • Long lasting: Because tankless water heaters don’t store water, they usually operate efficiently for at least 20 years. They also often come with longer warranties than conventional water heaters. 
  • Lower utility bills: The Department of Energy says tankless water heaters use around 24%-24% less energy than conventional storage tank water heaters. 
  • Endless hot water: Tankless water heaters provide water on-demand so you have an endless supply of hot water.
  • Compact size: Tankless water heaters are much smaller than their conventional counterparts. This means you can install it in various places and it won’t take up much space.
  • Reduced carbon footprint: Because you’ll be using less energy with a tankless unit, you’ll reduce your carbon footprint.
  • Increase in home value: tankless water heaters are highly sought after, so if you plan to sell your home in the near future, this may be an attractive feature to potential buyers.

Tankless Water Heater Installation

For decades, homeowners have relied on traditional tank-type water heaters to generate warm water for their homes. Today, you have various options, including the ever-so-popular tankless water heater. So get with the times and get yourself a tankless water heater today–now even! D & F Plumbing is here to help you pick the right unit for your home and your budget so give us a call! 

Signs Your Water Heater Needs Replacing

Heating element with rust and scale. D & F Plumbing serving Portland OR and Vancouver WA talks about signs your water heater needs replacing.

Heating element with rust and scale. D & F Plumbing serving Portland OR and Vancouver WA talks about signs your water heater needs replacing.Whether you own a home or run a business, having hot water is important. But what happens when your water heater stops supplying hot water?

Every appliance will wear out eventually and your hot water heater is no exception. In this blog post, we’ll look at signs your water heater may be failing and offer tips when choosing a new water heater.

Signs of Water Heater Failure

Recognizing the signs your water heater is failing will allow you to replace it before you wake up one-day climbing into a cold shower or standing ankle-deep in water. Below are some common signs your water heater may need replacing.

  • Insufficient Hot Water: whether you only get warm water and not hot, or have just cold water
  • Discolored or Foul-Smelling Water: water that is rusty-colored, cloudy, or smelly often means there is a build-up of mineral sediment at the bottom of the tank
  • Corrosion: if you notice your pipe fittings are corroded this typically means water is leaking through
  • Water leaks: water heaters can leak slowly over time or very abruptly, this is a surefire sign your unit needs replacing
  • Unusual Sounds: popping and banging sounds or often indicators mineral sediment has built-up
  • Old Age: traditional tank-type water heaters typically have lifespans of about 8 to 12 years while on-demand tankless water heaters last about 20 years

If your water heater is experiencing any of these symptoms, it’s probably time you contact your local plumber and have your water heater replaced.

Selecting a Water Heater

Selecting the right water heater for your home or business is important, but with so many options out there, how are you supposed to choose? Below are some factors you’ll want to consider while shopping around for a new hot water heater.

  • Fuel source: what source of energy does your home use natural gas or electricity?
  • Size: how much space is available for your new water heater?
  • Volume: tank-type water heaters are characterized by how many gallons of water they can hold. For example, for a family of 3 or 4, a 50-60-gallon tank would suffice.
  • Energy-efficiency: you may want to look for Energy Star Certified water heaters

If your water heater is reaching the end of its lifespan, you’ll want to consider replacing it with a new, energy-efficient model. From gas water heaters to tankless on-demand water heaters, there are many types of water heaters out on the market. If you need help determining which water heater will best fit your needs and your budget, consider contacting your local plumber like D & F Plumbing. We’ll help you find the perfect water heater and professionally install it!